Next week, The New Zealand Initiative will take more than three dozen business leaders to the Netherlands. Why the Netherlands? 

Our international delegations visit small, successful economies. After three previous visits to Switzerland, Denmark and Ireland, we now turn to the Dutch. 

Both New Zealand and the Netherlands are maritime economies with strong agricultural sectors. But the similarities end there. 

Dutch workers produce nearly twice as much per hour as Kiwis. They are supported by almost double the capital intensity – that is, investment in machinery and infrastructure per worker.  

The Netherlands’ productivity is not down to luck. It is the result of decades of deliberate policy choices about improving, making themselves a more attractive economy, and mobilising enormous amounts of capital.  

Consider regulation. Twenty years ago, the Netherlands did something radical. Instead of talking about cutting red tape, they first measured it. They calculated the exact costs of dealing with all the forms Dutch businesses had to fill in regularly. That gave them a baseline. 

The Dutch government then set itself a target to reduce compliance costs by 25% within four years. They achieved it, saving the economy €4 billion annually.  

The Dutch also excel at turning constraints into opportunities. Living below sea level forced water management mastery. Now, they are exporting their expertise globally.  
Limited land availability made the Dutch agricultural innovators, feeding millions from a country smaller than Canterbury.  

They capitalised on their advantages, too. Rotterdam leveraged its position to make its port a gateway to Europe. 

Our delegation will explore these Dutch successes first-hand. We will see Rotterdam’s automated terminals where driverless cranes work continuously. We will visit Wageningen’s “Food Valley”, where startups reimagine agriculture and technology. We will have a guided tour of a facility in Utrecht that captures heat from wastewater.  

Critics might argue that different contexts make direct policy transfer impossible. But that would be missing the point. 

We do not go out into the world to copy individual policies. Instead, we want to understand the underlying philosophies and approaches. The Swiss taught localism. Denmark showed us infrastructure efficiency. Ireland demonstrated what openness to foreign investment can do.  

Each of our previous visits expanded our imagination. We hope next week’s visit will do the same, giving us new insights that could help transform New Zealand’s future. 

We will let you know what we learn on our return.