The Netherlands must address criticisms of their tax policies and improve policy coherence with global development
The Netherlands has emerged as a key player in international development despite its small size. This European nation leverages its unique geography, innovative approaches, and commitment to sustainable solutions effectively. With just over 17 million people in an area roughly half the size of Ireland, the Dutch consistently deliver impressive results in global development efforts.
Water Management Expertise
The Netherlands offers its most valuable contribution to global development through water management expertise. Nearly one-third of the country lies below sea level. As a result, the Dutch have mastered flood control, water management, and sustainable coastal development over centuries.
Through programs like “Water for Development,” they now share this knowledge worldwide. Dutch experts actively work with flood-prone countries such as Bangladesh and Indonesia. Moreover, they implement innovative solutions that blend traditional knowledge with modern technology. Notably, the “Room for the River” approach works with natural water systems instead of against them, becoming a global model for climate adaptation.
Agricultural Innovation
Despite limited land, the Netherlands ranks as the world’s second-largest food exporter by value. This success stems from the country’s groundbreaking work in sustainable agriculture and food security.
Wageningen University & Research leads global research in precision farming and vertical agriculture. Many consider it the Silicon Valley of agriculture. Furthermore, Dutch agricultural techniques transfer successfully to regions facing food insecurity, focusing on knowledge sharing rather than traditional aid.
For example, projects like Seeds of Growth provide developing countries with both agricultural products and vital knowledge about sustainable farming practices. Additionally, these initiatives specifically target smallholder farmers and women in agriculture.
Inclusive Economic Development
The Netherlands champions inclusive economic models that move beyond traditional donor-recipient dynamics. Instead, the Dutch focus on creating mutually beneficial economic partnerships while addressing development challenges.
For instance, the Dutch Good Growth Fund offers financing and technical support to small businesses in emerging markets. Meanwhile, Dutch trade policies actively remove barriers for products from developing countries.
Climate Action and Energy Transition
As a low-lying coastal nation, the Netherlands faces direct threats from climate change. Consequently, they have launched significant international initiatives promoting renewable energy and climate adaptation.
The country has committed substantial resources to the Green Climate Fund. Additionally, they have established bilateral climate partnerships with especially vulnerable countries. Dutch expertise in clean energy, particularly offshore wind and solar technologies, now powers collaborative projects worldwide.
Challenges and Criticisms
Despite these contributions, experts criticize several aspects of the Netherlands’ approach to global development. Unlike Nordic neighbors Denmark and Sweden, the Dutch face increasing scrutiny over controversial practices.
Tax Haven Controversy
Critics frequently target the Netherlands for functioning as a corporate tax haven. Many refer to the “Dutch Sandwich” tax avoidance strategy that relies on Dutch holding companies. This practice particularly harms developing nations:
- The Tax Justice Network estimates developing countries lose billions annually from profit shifting through countries like the Netherlands. In fact, these losses often exceed the total development aid these countries receive.
- Despite recent reforms, the Netherlands remains one of Europe’s leading conduit countries for tax avoidance. Over €4 trillion flows through Dutch special purpose entities yearly.
- The European Parliament specifically identifies the Netherlands as facilitating aggressive tax planning, which contradicts their stated development goals.
Policy Coherence Issues
Critics point out contradictions between Dutch development policies and other national practices:
- While promoting sustainability abroad, the Netherlands struggles to meet its own climate targets. They rank among the lower EU performers for renewable energy adoption.
- Dutch agricultural trade policies create unfair competition for farmers in developing countries through subsidized exports.
- The country’s arms exports to conflict regions raise questions about their commitment to peace and security development objectives.
Conditionality of Aid
Unlike some European counterparts with less conditional assistance, Dutch aid increasingly connects to business interests and migration control:
- The shift toward “trade not aid” often prioritizes Dutch economic interests over addressing systemic poverty.
- Development programs increasingly include migration management components, raising ethical concerns about using aid for border control purposes.
Looking Forward
As development challenges grow more complex, the Netherlands continues to evolve its approach. Their current strategy emphasizes systems thinking and connected solutions addressing climate, food, water, and governance together.
Through their technical expertise, innovative thinking, and collaborative methods, the Netherlands shows how smaller European nations can contribute significantly to global development. However, they must address criticisms of their tax policies and improve policy coherence to fully realize their potential as a positive force in global development.
Netherlands
Kingdom of the Netherlands
Nederland
Population
18,064,069 (2025 est.)
17,463,930 (2023)
17,337,403 (2021)
17,280,397 (2020)
17,084,719 (2017)
Capital: Amsterdam
Internet country code: .nl
Government
Official website: government.nl
Official Dutch tourist office: holland.com
Netherlands Enterprise Agency: english.rvo.nl
Statistics Netherlands (CBS): cbs.nl
UN
Netherlands at UN: PR UN, New York
UN Women Nederland: unwomen.nl
Universal Periodic Review: ohchr.org/en/hr-bodies/upr/nl-index
Population counter
The counter shows how many registered inhabitants there are in the Netherlands at this moment according to the most recent estimate of Statistics Netherlands.
> cbs.nl/population-counter
Ethnic groups
Dutch 75.4%, EU (excluding Dutch) 6.4%, Turkish 2.4%, Moroccan 2.4%, Surinamese 2.1%, Indonesian 2%, other 9.3%
Religions
Roman Catholic 20.1%, Protestant 14.8% (includes Dutch Reformed, Protestant Church of The Netherlands, Calvinist), Muslim 5%, other 5.9% (includes Hindu, Buddhist, Jewish), none 54.1% (2019 est.)
How fast has the population of the Netherlands grown?
In 1900, the Netherlands had over 5 million inhabitants. By 1950, this number had doubled to 10 million. The years following the Second World War were marked by relatively rapid population growth; there were already 13 million inhabitants in 1970. The growth rate subsequently started to decline; for example, the population took 11 years to grow from 15 million to 16 million, but 15 years to grow from 16 million to 17 million.
How many people will live in the Netherlands in the future?
Over the coming decades, the Dutch population is projected to grow steadily and reach 20.6 million inhabitants by the year 2070. The population is expected to reach 19 million in 2037. The population is growing mainly due to migration and increased life expectancy. By 2040, a quarter of the population will be 65 or older.
Background
The Dutch United Provinces declared their independence from Spain in 1579; during the 17th century, they became a leading seafaring and commercial power, with settlements and colonies around the world. After a 20-year French occupation, a Kingdom of the Netherlands was formed in 1815. In 1830, Belgium seceded and formed a separate kingdom. The Netherlands remained neutral in World War I, but suffered German invasion and occupation in World War II. A modern, industrialized nation, the Netherlands is also a large exporter of agricultural products. The country was a founding member of NATO and the EEC (now the EU) and participated in the introduction of the euro in 1999. In October 2010, the former Netherlands Antilles was dissolved and the three smallest islands – Bonaire, Sint Eustatius, and Saba – became special municipalities in the Netherlands administrative structure. The larger islands of Sint Maarten and Curacao joined the Netherlands and Aruba as constituent countries forming the Kingdom of the Netherlands.
In February 2018, the Sint Eustatius island council (governing body) was dissolved and replaced by a government commissioner to restore the integrity of public administration. According to the Dutch Government, the intervention will be as “short as possible and as long as needed.”