OECD Territorial Reviews Randstad Holland, Netherlands.

242 Pages·2007·3.783 MB·English

by  OECD

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OECD Territorial Reviews
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Randstad Holland, Netherlands D
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The Randstad is a poly-centric urban area in western Netherlands, comprising o
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Amsterdam, Rotterdam, The Hague, Utrecht and several smaller cities. It is one ia
of the most densely populated areas in the OECD, and has developed into an l R
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advanced urban economy with many leading sectors, such as logistics, horticulture v
and financial services. The Randstad has one of the lowest unemployment rates in iew Randstad Holland,
all OECD countries, and it is one of the most attractive metropolitan areas for Foreign s
Direct Investment.
Netherlands
However, even though the Randstad had high growth rates over the 1990s, it
performed less well in the 2000s. In particular, the Randstad has witnessed relatively
low labour productivity growth over the last decade.
This Review aims to provide a detailed diagnosis and solutions for improving the
competitiveness of the Randstad. The Randstad does not seem to exploit well the
proximity of its four large cities, and it does not represent an integrated functional
urban system. Key recommendations are: improve internal accessibility within
the area; facilitate knowledge transfers to the private sector; increase flexibility in
housing and labour markets; and strengthen the co-ordination of the economic
specialities of its cities, such as higher education and tourism. Changing the
governance framework is a key condition of success: individual city-regions within
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the Randstad should be strenghtened, and a Randstad agenda should be created,
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prioritising improvement of regional public transport. n
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This Territorial Review of the Randstad is integrated into a series of thematic
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reviews of metropolitan regions undertaken by the OECD Territorial Development
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Policy Committee. The overall aim of these case studies is to draw and disseminate o
horizontal policy recommendations for national governments. ll
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The full text of this book is available on line via these links: ,
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http://www.sourceoecd.org/governance/9789264007918
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http://www.sourceoecd.org/regionaldevelopment/9789264007918 t
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Those with access to all OECD books on line should use this link: e
http://www.sourceoecd.org/9789264007918 r
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SourceOECD is the OECD’s online library of books, periodicals and statistical databases. For more n
information about this award-winning service and free trials ask your librarian, or write to us at d
[email protected]. s
www.oecd.org
ISBN 978-92-64-00791-8
04 2007 01 1 P -:HSTCQE=UU\^V]:

OECD Territorial Reviews
Randstad Holland,
Netherlands
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
ORGANISATION FOR ECONOMIC CO-OPERATION
AND DEVELOPMENT
The OECD is a unique forum where the governments of 30 democracies work together
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is also at the forefront of efforts to understand and to help governments respond to new
developments and concerns, such as corporate governance, the information economy and
the challenges of an ageing population. The Organisation provides a setting where
governments can compare policy experiences, seek answers to common problems,
identify good practice and work to co-ordinate domestic and international policies.
The OECD member countries are: Australia, Austria, Belgium, Canada, the Czech
Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy,
Japan, Korea, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland,
Portugal, the Slovak Republic, Spain, Sweden, Switzerland, Turkey, the United Kingdom
and the United States. The Commission of the European Communities takes part in the
work of the OECD.
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This work is published on the responsibility of the Secretary-General of
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© OECD 2007
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3
FOREWORD—
Foreword
Across the OECD, globalisation increasingly tests the ability of regional
economies to adapt and exploit their competitive edge, as it also offers new
opportunities for regional development. This is leading public authorities to
rethink their strategies. Moreover, as a result of decentralisation, central
governments are no longer the sole provider of development policies.
Effective and efficient relations between different levels of government are
required in order to improve public service delivery.
The objective of pursuing regional competitiveness and governance is
particularly relevant in metropolitan regions. Despite producing the bulk of
national wealth, metropolitan areas are often characterised by unexploited
opportunities for growth as well as unemployment and distressed areas.
Effective policies to enhance their competitiveness need to address their
functional region as a whole and thus call for metropolitan governance.
Responding to a need to study and spread innovative territorial
development strategies and governance in a more systematic way, the
OECD created in 1999 the Territorial Development Policy Committee
(TDPC) and its Working Party on Urban Areas (WPUA) as a unique forum
for international exchange and debate. The TDPC has developed a number
of activities, among which a series of specific case studies on metropolitan
regions. These studies follow a standard methodology and a common
conceptual framework, allowing countries to share their experiences. This
series is intended to produce a synthesis that will formulate and diffuse
horizontal policy recommendations.

OECD TERRITORIAL REVIEWS: RANDSTAD HOLLAND, NETHERLANDS –ISBN–97–89–26400791–8 © OECD 2007
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— ACKNOWLEDGEMENTS
Acknowledgements
This Review was produced by the OECD Regional Competitiveness
and Governance Division in co-operation with the Government of the
Netherlands (Ministry of Economic Affairs; Ministry of Housing, Spatial
Planning and Environment; Ministry of Agriculture, Nature and Food
Quality; Ministry of Transport, Public Works and Water Management
and Ministry of Interior) and Regio Randstad. Special thanks are given to
Ms Willy Bruinsma from the Ministry of Economic Affairs and
Mr Piet Oudega from Regio Randstad, local team coordinators, as well
as to all local team’s members from the different ministries involved, and
Regio Randstad, as well as all the authorities that cooperated during the
review process.
A team of international peer reviewers and experts participated in the
Review process: Mr Don Christiansen, Chief Executive Investment
New Zealand; Mr Wolfgang Knapp, Senior Researcher at the Research
Institute for Regional an Urban Development in Dortmund;
Mr Christian Lefevre, Professor, French Institute of Urban Affairs,
University of Paris VIII; Ms Gesa Miehe-Nordmeyer, German Federal
Ministry of Economics and Technology; and Ms Joan Sollenberger,
Executive Liaison of Transportation, Business, Transportation and
Housing Agency for California, USA.
This Review was directed by Mario Pezzini, Head of Regional
Competitiveness and Governance Division, and co-ordinated and drafted
by Ms. Dorothée Allain-Dupré and Mr Olaf Merk.
Substantial help to the drafting process was provided by
Mr Guang Yang. Individual contributions were provided by
Mr. Jonathan Kings and Ms. Ritsuko Yamazaki-Honda. Statistical data
were produced by Ms. Brunella Boselli and Mr. Javier Sanchez-Reza.
Ms. Alex Heron provided assistance for the editing of the Report. Ms.
Erin Byrne and Ms. Georgina Regnier prepared the Review for
publication.

OECD TERRITORIAL REVIEWS: RANDSTAD HOLLAND, NETHERLANDS –ISBN–97–89–26400791–8 © OECD 2007
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TABLE OF CONTENTS—
Table of contents
Assessments and Recommendations................................................................11
Chapter 1. The Randstad: Economic Trends and Challenges .......................27
Introduction.....................................................................................................27
1.1. What is the Randstad?..............................................................................28
1.1.1. The Randstad: cities, population and land use...............................28
1.1.2. The Randstad: an abstract concept rather than a functioning reality...32
The Randstad: measuring its level of functional integration...................34
The geographical boundaries of the Randstad: varied definitions...........39
Limited functional integration.................................................................39
1.2. The Randstad economy: good performance, but low productivity growth...40
1.2.1. Economic significance of the Randstad.........................................40
1.2.2. A wealthy region: high incomes, high employment,
high productivity but low productivity growth........................................42
Average income per capita......................................................................43
Economic growth.....................................................................................45
High employment rate.............................................................................47
High productivity per hour......................................................................49
Low productivity growth.........................................................................50
Conclusion...............................................................................................52
1.3. The Randstad: an open trade and services-based economy......................53
1.3.1. The openness of a services-based economy...................................53
1.3.2. A diversified economy...................................................................58
Trade and logistics...................................................................................59
Financial and business services...............................................................64
Creative industry......................................................................................65
Tourism....................................................................................................66
Horticulture industry................................................................................66
1.4. Defining the challenges to improved growth...........................................69
1.4.1. Taking advantage of the proximity of urban networks...................69
Internal accessibility within the Randstad: transport networks...............70
Reducing duplication, promoting co-operation: the economy,
education and culture...............................................................................75
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— TABLE OF CONTENTS
Housing....................................................................................................75
1.4.2. Using knowledge, encouraging innovation....................................79
Randstad workforce with tertiary education............................................79
Limited contribution by R&D and innovation to regional productivity
growth......................................................................................................83
Limited attractiveness of the Randstad for knowledge workers..............85
Foreign companies and innovation in the Randstad................................88
1.4.3. Making better use of labour...........................................................90
Flexibility in the labour market...............................................................90
High inactivity of ethnic minorities.........................................................91
Increasing labour supply..........................................................................92
Conclusion...............................................................................................95
Chapter 2: Policies to Enhance Competitiveness.............................................99
Introduction...................................................................................................101
2.1. Making better use of proximity..............................................................101
2.1.1. Accessibility.................................................................................102
Congestion.............................................................................................102
Public transport......................................................................................107
External accessibility.............................................................................111
2.1.2. High quality housing....................................................................111
Spatial planning.....................................................................................111
Housing policy.......................................................................................112
Effects on high quality housing.............................................................114
Building in ‘green’ areas.......................................................................117
Making better use of the Green Heart....................................................119
Firm locations........................................................................................119
2.1.3. Regional co-ordination.................................................................121
Regional economic policy.....................................................................121
Urban policy..........................................................................................125
Regional co-ordination..........................................................................126
Tourism..................................................................................................127
Regional co-ordination of cultural infrastructure..................................127
Co-ordination of harbour activities........................................................129
Regional airports....................................................................................130
Competition between universities in the region.....................................131
2.2. Making better use of knowledge infrastructure and skills......................133
2.2.1. Higher education..........................................................................133
Pilots on variable fees and student selection.........................................134
Assessment of the pilots........................................................................135
2.2.2. Attracting knowledge workers.....................................................136
Routes for knowledge workers to enter the Netherlands.......................136
Operation of the knowledge workers programme.................................138
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TABLE OF CONTENTS—
Integration tests......................................................................................139
2.2.3. Attracting foreign direct investment with knowledge spillovers..140
2.2.4. Innovation....................................................................................142
Knowledge transfer................................................................................144
2.3. Flexibility in the labour market..............................................................147
2.3.1. Employment protection................................................................147
2.3.2. Inactivity: ethnic minorities........................................................148
Policies focused on labour market integration of ethnic minorities.......149
Labour market integration and spatial segregation................................149
Labour market integration and segregation in education.......................150
2.3.3. Working hours..............................................................................151
Chapter 3: Governance in The Randstad.......................................................155
Introduction...................................................................................................155
3.1. Government structure of the Randstad...................................................156
Fiscal autonomy: how do Dutch municipalities fare?............................162
Water boards and local central government agencies: another tier........164
On-going decentralisation: more powers and responsibilities for
municipalities.........................................................................................164
The three-tier system: a structure largely unchanged since 1848...........165
Municipal districts.................................................................................165
Changes in number of provinces and municipalities.............................166
Failed reform proposals.........................................................................167
Conclusion.............................................................................................169
3.2. Horizontal co-operation..........................................................................169
3.2.1. Co-operation between municipalities and at the level of the
city-region..............................................................................................170
3.2.2 Co-operation at the wing-level......................................................173
3.2.3. Co-operation at the Randstad-level..............................................175
Conclusion.............................................................................................177
3.3. Governance and the obstacles to competitiveness..................................177
Maximising the benefits of proximity....................................................177
Economic strategy.................................................................................177
Accessibility..........................................................................................178
Housing..................................................................................................181
Firm location..........................................................................................182
Tourism..................................................................................................182
Making better use of the knowledge infrastructure................................183
Higher education....................................................................................183
Foreign direct investment......................................................................183
Knowledge transfer and the commercialisation of research and
development...........................................................................................184
Making better use of labour...................................................................185
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Employee flexibility..............................................................................185
Increasing the labour force participation ethnic minorities...................185
Increase labour participation..................................................................186
What obstacles to be solved by which government level?.....................186
3.4. Vertical co-ordination............................................................................187
At neighbourhood level..........................................................................187
At municipal level..................................................................................188
At city-region and provincial level.........................................................189
At wing level..........................................................................................190
At Randstad level...................................................................................191
At national level.....................................................................................191
3.5. Civil society...........................................................................................192
Pillarisation............................................................................................192
Polder model..........................................................................................193
Crisis in public leadership?....................................................................195
Conclusion.............................................................................................196
3.6. Governance trade offs............................................................................196
Administrative crowdedness and appropriate functional scale..............199
Local autonomy and regional decision making power...........................201
Regional decision making at the Randstad-level and autonomy
of the city/city-region............................................................................202
The relationship between a city-region and the municipalities that
form part of it.........................................................................................205
The relationship between Amsterdam/Rotterdam and their
municipal district councils.....................................................................207
Structure and practical improvements....................................................208
Metropolitan ambitions and regional egalitarianism..............................210
Leadership and consensus seeking.........................................................212
Bibliography....................................................................................................214

List of Tables
Table 1.1. Top three Dutch universities with their respective position in three
international rankings of higher education institutes (2005).......82
Table 3.1. Four city-regions in the Randstad.............................................172
Table 3.2: Institutional fragmentation and governance challenges in some
OECD metropolitan regions......................................................197

List of Figures
Figure 1.1. Randstad Holland........................................................................28
Figure 1.2. Ranking of ratio population of metropolitan area/population
per country..................................................................................31
Figure 1.3. Population density in selected metropolitan regions in 2002
OECD TERRITORIAL REVIEWS: RANDSTAD HOLLAND, NETHERLANDS –ISBN–97–89–26400791–8 © OECD 2007