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"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 Fortuins 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 couldnt 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 its not a problem if the sea rises, we dont
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 cant 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 dont
mop and put up sandbags.
I guess, we get the government that we deserve. Politicians dont
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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