COMMISSION COMMUNITY

 

 

"YOU GET THE GOVERNMENT YOU DESERVE"


Robert Rubinstein
May 2003


During the pas Dutch election, there was massive attention given to the issues of care, safety, immigrants, crime, and education. Politicians began to embrace the rallying cry of Pim Fortuin’s party (LPF). What was fundamentally lacking was the attention to a not so sexy issue, but one that should have been at the top of the list; namely sustainability.


The previous three governments, Paars 1 & II, CDA-LPF-VVD worked tirelessly to dismantle the Netherlands superior position and competitive advantage on sustainable performance. Tax advantages for green investing and green car purchases were ended. Green subsidies were eliminated for foreign wind energy purchase. The ministerial post of environment and international development was degraded.


As toxic chemicals in the form of endocrine disruptors, and air pollutants continue to exacerbate, we have seen an equivalent rise in cancer, respiratory disease and infertility. The Netherlands has one of the highest percentages of cancer in Europe. All of which will put a further strain on the health care system. In addition, insurance company profits will continue to drop, forcing higher price increases. If one is concerned about care, then preventions seem a more effective medicine.


You would think that living in a country below sea level, with the risks linked to climate change and global warming, that political leaders would be grabbing onto this public safety issue. In spite of the clear and present danger to coastal areas, and riverfronts by flooding, you couldn’t this issue on the lips of politicians. How often does the River Maas have to flood, farmers have to lose their crops, beaches disappear, or infrastructure be heavily damaged. I remember giving a talk to the Association of Insurers (Verbond van Verzekeraars) on threats and opportunities of climate change for the financial sector, and a director of a leading insurance company stood up and said “it’s not a problem if the sea rises, we don’t cover salt water damage”. My response was “That is true, but you sell mortgages, and if 100.000 homes are flooded and lose their value and the owner can’t pay his mortgage then the insurer has a massive problem”.


Desertification, conflict, poverty and aids all further fan the flames of migration of people. Instead of trying to assist them, we make it difficult and nearly impossible to them to make a living here or a home. Those who do surmount all the obstacles to arrive here are treated like outcasts. Economic policies of spending nearly 2/3 of the EU budget to subsidize an agricultural system that is failing, at the expense of the developing world. Who will work in the low wage jobs in cleaning, restaurant, au pair, hotels, etc? Where will the wage base be to cover the anticipated massive pension short falls, due to demographic changes?


In a recent German study on quality of life and sustainability performances of 31 countries, the Netherlands scored in the lower half of all countries. It used to lead the world. Institutional investors that want their portfolio screened according to sustainable criteria use this study. This process is not only limited to publicly traded companies but also included government bonds. If a poor rating is given, an improvement in that rating, in the short term, is nearly impossible to achieve.


If we believe the politicians, and the election was about care, safety, and immigration, then our leaders showed tremendous lack of leadership, by pandering to so called “solutions” to effects and totally avoid causes. When a faucet is leaking, you fix the faucet; you don’t mop and put up sandbags.


I guess, we get the government that we deserve. Politicians don’t show leadership, but react to the whims of the public. This is similar to military leaders who are brought to justice for war crimes, claiming, “I was only following orders”. Just as that claim was and is invalid, the monumental neglect of Dutch political leaders to the strategic importance of sustainability is criminal at best.


©Robert Rubinstein
Founder of Brooklyn Bridge and Triple Bottom Line Investing Conference

 

 

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