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For its economic prosperity the Netherlands is very dependent on its international environment. This study distinguishes between the economic susceptibility of the Netherlands and its economic vulnerability. This study focuses on whether the Netherlands is economically vulnerable or in danger of becoming so as a result of such geopolitical developments: vulnerable in the sense that harmful effects occur which seriously hamper the smooth functioning of the Dutch economy and which may also have harmful political consequences due to other countries politically mis using economic relationships of dependence.
From this point of view, economic vulnerability is closely related to the concept of economic security: the lower the level of vulnerability, the greater the economic security. The Dutch government has considered national economic security, i. The basic assumption of this study is that the strong external economic dependence of the Netherlands does not necessarily imply greater vulnerability. This depends, first of all , on the nature of the relationships of dependence. If these are asymmetrical, i.
However, also as a result of the greater interconnectedness, these relationships of dependence are often more complex and mutual, thereby reducing the likelihood that ill-willed parties will effectively take political advantage of them. As a result of the process of economic globalisation there is a strong tendency within the current global economic system towards production in chains, in which several countries are involved and the mutual dependencies are greater.
Globalisation has brought with it a lower risk of vulnerability sincet there are more opportunities to diversify suppliers and markets. A second important factor is whether relationships of dependence are embedded in internationally agreed rules WTO, IMF, etc. Finally, the extent to which the Netherlands is economically vulnerable is strongly determined by its resilience and flexibility, i. The scope of this study is limited to economic vulnerability as a result of geopolitical developments.
