Developments like digitalization and climate change may jeopardize the future prosperity of many while our governance methods have not inspired the confidence that things will turn out alright. Therefore, in his inaugural address on November 4, Professor Kim Putters, University Professor of Broad Prosperity, argued in favor of a new basis for the Dutch society and economy of the future: a broad prosperity contract.
Putters, University Professor and President of the Dutch Social and Economic Council , introduced the broad prosperity contract in his inaugural lecture, entitled Navigeren op het smalle pad naar brede welvaart. Maatschappelijke transitie en ons poldermodel[Navigating on the narrow road to broad prosperity. Social transition and our polder model]. This contract connects economic, social, and ecological interests, objectives, and values, respects our social and planetary limitations, and reinforces our earning power. It aims to ensure that the benefits and negative effects of social change are distributed fairly among different groups, regions, and generations. In addition, it offers more scope for bottom-up initiatives and it creates opportunities for participation. There is openness to local, regional, and international partnerships, and both evidence-based academic and experiential knowledge is applied.
After the Second World War, the Dutch "polder model," a method of consensus decision-making, helped to reconstruct our country and stimulated economic growth through collaboration. We now face the transition to a broad prosperity economy, in which the interests of people, planet, and profit are balanced.
Too narrow a concept of prosperity
Putters argues that the development of our economy is based on a concept of prosperity that is too narrow, because it is limited to material prosperity and our GDP, whereas health, education, and social cohesion are also crucial elements of our broad prosperity. "In companies, short-term shareholder profits still win over long-term social profit," he observes. "Moreover, the government has based public services on a too narrow and often negative view of humanity, prompted by distrust of citizens. Cases in point are the bureaucracy in the health care system and the childcare benefits scandal. Society has also become more individualistic and demanding. Extreme opinions monopolize people’s attention. Many feel disenfranchised, especially young people. Difficult decisions have been postponed for too long."
The promise of broad prosperity
The picture is a worrying one: not everyone shares in prosperity, people get caught up in rules, the environment is polluted and natural resources are depleted, and the interests of future generations are hardly taken into account. The promise of governing with broad prosperity in mind means a more sustainable and inclusive economy and society with an equitable distribution among populations and regions. In his inaugural address, Putters argued in favor of a broad prosperity contract as a basis for our future society and economy, with three routes towards a better balance among people, planet, and profit.
- The new economy, with many open-source online knowledge resources and digital commodities, calls for a redefinition of public interests and rights and duties, for instance, a right to lifelong learning and support for informal caregivers, access to the power grid and affordable energy for businesses and households.
- New forms of dialogue can strengthen the consultation economy, whereby knowledge, policy, and practice are involved on an equitable basis, including starting entrepreneurs, social, regional and citizens’ initiatives, nature, and future generations.
- The education and selection of leaders in businesses and institutions must be about their social contribution, not solely or primarily about cost control and shareholders’ profits. They offer opportunities for bottom-up leadership, for instance, via citizens’ collectives and social entrepreneurship.
Steering for broad prosperity is a collective effort which can prevent unworkable polarization, Putters argues. Besides financial-economic calculations, consideration must be given to the impact of political decisions on society. With a view to future generations, politicians should focus on multiannual budgeting in order to better cope with the consequences of climate change and demographic developments.
About Kim Putters
Professor Kim Putters has been a University Professor of Broad prosperity at Tilburg University since September 16, 2022, for one day a week. He studies the impact of fundamental changes in our economy and society, for instance, those concerning sustainability, social inequality, and technological progress, on steering and governance. As an ambassador of our university, he generates academic and social impact. Kim Putters is also the President of the Dutch Social and Economic Council.