Frank van Oort, Professor of Urban and Regional Economics at Erasmus School of Economics, recently appeared in an article by Het Financieele Dagblad on the stagnation of Zuid-Holland's economy. The region is performing significantly less well than other regions, and this needs to change.
Economically, Zuid-Holland grew 10% to 15% slower than other regions in the Netherlands. This is due to the multitude of ageing sectors, but also due to the lower average standard of living. An action plan should deliver 1 percentage point of extra growth per year or 12 percentage points of growth, €24 billion and 120,000 jobs in 10 years. Low productivity is often attributed to its high diversity. The province consists of several economic hubs, such as the glasshouse horticulture in Westland and the port of Rotterdam with the petrochemicals based there.
This diversity can be a downside by making it more difficult ‘to keep the ship on course’, Van Oort argues. An effective focus on one theme, such as on high-tech in Eindhoven, is then difficult because each sector looks primarily at itself and its own interests. ‘Fragmentation is often frustration,’ says the professor. Although a diversity of industries can also be an asset. ‘During an economic downturn, sectors can take the blows among themselves.’ Besides, the sectors in which Zuid-Holland specialises are somewhat older and mature in technology. ‘Those sectors know that between now and 30 years, they will disappear or have to renew themselves completely.’
Previous research
Van Oort has previously contributed on this issue. Together with Jeroen van Haaren, senior researcher affiliated with the Erasmus Centre for Urban Port and Transport Economics, he wrote a report on the challenges and opportunities in Zuid-Holland. In the report, the researchers argue that Zuid-Holland scores relatively low on indicators of broad prosperity. ‘Although the region has a strong economic engine with the port of Rotterdam and top universities, the social and environmental challenges remain great,’ Van Oort and Van Haaren conclude.
A key role in Zuid-Holland's new action plan is played by the Living Environment Monitor, an instrument that collects data on economic, social and ecological factors. The report recommends enriching this monitor with new indicators, such as happiness, segregation, and economic structure changes. In addition, the monitor should provide more insight into differences between population groups and regions, in order to target policy at the most vulnerable. It is recommended that this new policy give greater priority to themes such as sustainability, inclusiveness and spatial cohesion.
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You can download the full article from Het Financieele Dagblad, 19 November 2024, above.
You can download the full report by Van Oort and Van Haaren above.
