90s economic growth, freedom and privatization

The 90s

The 90’s begin with the end of the cold war between the Soviet Union and Western countries. The book by Francis Fukuyama: The End of History and the Last Man even argues that liberal democracy, peace is the only winner is left. The nuclear tests were concluded with the nuclear test ban treaty.

In The Hague, the International Criminal Court installed after the atrocities in Rwanda and Yugoslavia (disintegration socialist federal state of Yugoslavia in Slovenia, Croatia and Macedonia, Montenegro, Serbia, Bosnia and Herzegovina in 1991). Criminals of human rights had now answer for an international tribunal of the United Nations.

Boris Yeltsin performs a democratic constitution in press freedom, but the Russian Federation is completely disrupted and only the big oligarchs enriching themselves shamelessly to the society falling apart. The ruble crisis triggered a global decline in stock prices. Russian democracy is threatened constantly by extreme nationalists and the powerful Communist Party. The Russian state is also threatened by separatists and people who want to be independent.

In Germany, the reunification of the BDR and the GDR central. By reuniting the German economy crashes because of the very outdated East German state economy. Helmut Kohl lost the election and was succeeded by Gerhard Schroder who leads a red-green coalition.

In Italy, Berlusconi’s center-right Forza Italia focuses on. It also revived the separatist Lega Nord life.

In Europe, push the Social Democrats to the center. In the Netherlands, the PvdA is working with the VVD in a purple cabinet headed by the Cabinet Cook I and II.

In South Africa, was the release of Nelson Mandela and the ANC presidency from the apartheid abolished so there could not be legally discriminated against on race and skin color. Creating a wave of democratization in Africa because countries are less easily played off against each other by the end of the Cold War. However, appear extremely vicious civil war between the government (often supported by the Western elite) and various Islamic movements and tribal wars.

In the Middle East the 90s are characterized by the Gulf War with Iraq (Saddam Hussein) invading Kuwait in 1990. The coalition of 34 countries led by the United States (George Bush sr.) Bombed (Operation Desert Storm) as a reaction to Baghdad and attacked with ground forces in Iraq. The Iraqi army was defeated within seven weeks of the bombing, too weak Iraqi ground forces and internal rebellion. Kuwait was liberated and Iraq remained severely weakened. However, Saddam Hussein remained seated. The Americans were afraid of anarchy and chaos in Iraq by comparing Saddam Hussein.

Saddam Hussein could result (Sunni, Baath party) to suppress the rebels (Kurds and Shiites). In 2003 attacked the Americans and the coalition of the willing, led by Bush. Iraq again because Iraq had alleged WMD, abused the oil for food program and Muslim terrorists allowed. The aim was to oust the Iraqi regime. Saddam Hussein was this time I was arrested and hanged. Besides ousting Saddam Hussein was nation-building center. This phase, however, was hampered by widespread riots and true civil wars between different religious groups, supporters of the Baath Party and terrorists who were mainly linked to al-Qaida. In 2011 the US officially withdrew the troops from Iraq.

In 1993, the Oslo agreements are drawn up in the presence of Bill Clinton. The first conditions for a solution to the Israel-Palestinian conflict will be drawn up including Palestinian Authority and the withdrawal of the Israeli army from the Gaza Strip and the West Bank. With the establishment of the Jewish State of Israel in 1948 after the Second World War and the conquest of the Palestinian territories (War of Independence) emerged much conflict between Israel and the neighboring states in the Middle East.

The claim of the Jewish people (Zionists) on the sacred ‘promised’ land (Hebrew Bible, Torah) incited many wars between Israel, the Palestinians, Syria, Egypt and Jordan, but dislocated actually the whole area in the Middle East where Western oil interests, the guilt of the Holocaust and the granting of British Mandatory Palestine to the Jews play a large role (Balfour Declaration). Israel is widely supported by Western countries, particularly the United States. The Palestinian people (Palestine), Syria, Egypt and Jordan are supported by the Arab countries (Arab League).

In 1964, founded the Palestine Liberation Organization (PLO) headed by Yasser Arafat, with the aim of liberating the Palestinian State. The conflict has a long history of conflict on religious grounds between Muslims on the one hand and Jews and Christians on the other side.

In addition, the role of oil interests (OPEC) and the Western countries should not be underestimated. Large parts of the Middle East came after the first world war (Sykes-Picot Agreement) in the hands of the French (northern Syria and Lebanon, Beirut, Damascus and Aleppo), the British (head of the Persian Gulf, Basra) and international governance (Palestine ). In 1917, the British conquered Jerusalem in Palestine supported by the Zionists (including Lord Rothschild, Jewish banker). Arab nationalists oppose full by the French and British domination of Syria, Jordan, Palestine, Lebanon and Iraq (Mosul, Baghdad and Basra). Israel was seen as the greatest enemy with a very dominant western enclave in Arab territory.

It leads to structural resistance of Islamic-Arab groups against the West. Hamas (fire, fanaticism) is a Palestinian Islamist political organization and a separation of the Egyptian Muslim Brotherhood who turns fiercely against the Israeli state.

Hamas is seen by the West as a terrorist organization, but is supported by the Muslim neighboring countries. In Lebanon, Hezbollah was formed (party of God). Hezbollah is a militant political party that is anti-Israel and anti-American sentiments and consist of Shiite Muslims. Fatah (victory) is a Palestinian political movement with a terrorist wing “(martyr brigades) and originated from a guerrilla movement. Fatah is opposed to Hamas more moderate socialist movement. Fatah is committed to non-violent negotiations with Israel. Fatah is willing to recognize Israel in exchange for the Gaza Strip, the West Bank and compensation for Palestinian refugees.

In Iraq in 2003, the Islamic State (ISIS, now IS) was established. An al-Qaida-related jihadist organization consisting of Sunni Iraqis with a self-styled Islamic State (Caliphate).

Egypt is the first country to recognize the state of Israel in 1979. The US mediates between different countries (Camp David accords, Jimmy Carter). To date, the Oslo accords are violated on both sides. Israel continues to build settlements and military intervention in the Palestinian territories (Gaza Strip and West Bank) and the Palestinians continue to throw bombs and suicide attacks on civilian targets in Israel. In 2014, all hell breaks loose and the battle field of fundamental Islamic militias expanded from Syria to Iraq. Not only with terrorist acts and killings of Western targets, but also other Muslims, other believers and ethnic minorities in the name of the establishment of the first Islamic State of Sharia (Islamic law, law of God).

Currently, we live in a clash of civilizations between Muslims often fundamental Occupied Territories (Palestine as the core of the conflict) and the Western world. Joris Luyendijk describes well how the media and journalism plays a major role. Muslims who murder each other, for example, hardly any news value, Jews who murder Muslims or Muslims who murder Jews or carry out attacks on Western targets are very much in the news. We live not only in times where it is merely a physical war, but also at a time when the media plays a major role: the media war. We live in a proxy war. The physical battle is played by small players backed by the major powers behind these small players (Hamas is funded by Iran and the Arab League, Israel, the US and the AIPAC and major Jewish bankers, the pro-Russian separatists backed by Putin) .

The US government (Clinton Democrats) runs after two years onto a Republican majority in Congress. However grew during the administration of Clinton’s prosperity, increased economic growth, the budget was put in order and unemployment fell. In his second term, Clinton was famous because of the alleged sexual relationship with Monica Lewinsky.

Worldwide conquers Microsoft (Bill Gates) with its Windows operating system (3.0, 3.1 and 95), a monopoly on the Personal Computer. In most Western households could now have an accessible computer on which one could word processing (Word), internet on the world wide web (internet explorer) and gaming. For many people were bridgeable distances as people, businesses and organizations worldwide had direct contact with each other (globalization).

In the 90s increased economic growth through new possibilities of the Internet (information technology), but also by the opening of new markets in Eastern Europe after the fall of communism.

The western companies have benefited from the low wages and the new capitalist markets in Eastern Europe (new markets). Expanding trade relations and opening up new markets was the reason for enlargement of the European Union (EU internal market) and the accession of new Member States. Besides the chain transfer to Eastern Europe also leave many companies in the developed Asia quickly with the then still very low wages and high growth markets. Not only is the economy in the Netherlands grew louder in the 90s (boom), global economic growth exceeded all expectations. Economic growth took longer than they expected on the basis of economic business cycles (increases and decreases). Economists suspect even a long-running new economic era of merely economic growth, “the new economy”.

het poldermodel

Beginning of the 90s, the unemployment rate was still very high so that more abandoned was the syrupy consultation economy and managed on a polder economy / polder model. The sluggishness caused long decision-making and provided a brake on the socio-economic developments and long weak compromises between employers and employees (VNO, FNV, SER). In addition, the consultation economy came under pressure due to the poor functioning of labor offices, explain the generally binding collective labor agreements and the representativeness of trade unions. The corporatist consultation system was overhauled and the primacy of democratically elected politicians should be given a bigger mandate. The influence of the liberals became bigger through the contribution of the VVD and D66 in the first cabinet Cook. The government reduced the budget deficit and illuminated the charges (salmon standard), there was more scope for deregulation, no compulsory advice of the Social Economic Council (SER), ban on cartels and the number of advisory councils restricted. The economy grew partly due to the combination of tax cuts and wage moderation and the role of flexible labor (Flex Accord). Criticism of the polder model is that it actually is as syrupy as the older model consultation and that many prominent representatives preach much for their own parish and not solve the real problems.

By a growing economy, the increasing number of dual-earner homes were becoming more valuable. With this increasing surplus value not only increased investment in homes but could not get residents of homes also higher mortgages and do more consumer spending. Because of this spending impulse increased Gross Domestic Product hard in the 90s and had the feeling that the economy would only get better.

It turned out this together with the Internet bubble was a housing bubble to be those with significant impact on the economic crisis of 2001, but especially in 2008 was reflected from the United States. In the Netherlands, the prices of housing additionally by supply shortages and a housing shortage and released lands, which are not for an increasing demand homes could be built.

Due to rising incomes (often two-income households) were residents of homes almost unlimited credit to borrow from banks, making the financial economy grew very fast, but the real economy (growth dwellings) stagnated. The new financial products reinforced this effect even extra. In the 90s it was common to finance more than 100% of the purchase with borrowed money (mortgages and financial products / credits). This allows the lucrative financial services sector rose quickly and came to the bonus culture.

For each closed financial product there was a fee. For the seller of financial products, it pays to provide as many loans and mortgages. This bonus culture arose because there was little oversight of financial markets. It did not matter if someone had a debt. With rising wages and surplus value, one could surely repay these debts on time. It was thought. Checking whether that was really so lacking.


In that respect the philosophy ruled ‘no bullshit all rich or’ the counterparty Jacobse and Van Es (Kees van Kooten and Wim de Bie). Do not whine so long as things are going well and especially look forward and look at the consequences of the policy. The housing bubble is one of the offshoots of increasing deregulation, minimum government interference and an increasingly strong focus on the free market in the 90s. In America, you could even talk of market fundamentalism. A sacred belief in the success of the market. The left side of politics: Tony Blair, Wim Cook and Bill Clinton took the principle of greater liberalization, privatization and deregulation of their policies. They left increasingly to market forces within the Social Democracy.

Climate, economy and society in the 90s: climate guide the country towards economic distribution country: the review of the first wave climate.

In 1990, appears the first IPCC report (Intergovernmental Panel on Climate Change) of the United Nations on the possible effects of greenhouse gases on climate. The Panel assesses especially research experts from all over the world. From 1990 to now (2014) the IPCC has issued five reports in which the human factor is becoming more pronounced influence on the climate through the emission of greenhouse gases from industry, agriculture, households and traffic. The report recommends that greenhouse gases strongly to limit the temperature rise in the current century not to exceed 2 degrees let rise, making global warming may be irreversible.

In 1991, the memorandum warns that climate change already in 2025 could be the concentration of CO2 in the atmosphere at a level that has not happened in 160,000 years. This note makes recommendations to reduce CO2 emissions by reducing the aluminum industry, restricting car traffic, end to the disposable plastic and advertising and there should be greater use of renewable energy, solar thermal and geothermal energy. In the environmental policy objectives in order to inform the CO2 emissions by 2% per year limit from 1990. In the ’90s the measures for these targets are mainly based on energy conservation and afforestation.

Also reduction targets were included for methane and CFCs. Energy for only one received no political support. While you can convert energy with a big step to save energy (a high price leads to less or alternative uses of energy).

An energy tax / charge should you make international agreements due to free riders effect. If one country does not participate encounter other countries, negative consequences of this. In Europe hooks Britain and the southern states on which one can not agree on a European energy tax. In the Netherlands, the employers’ associations VNO and CNW and business (Akzo, DSM, Hoechst, Hoogovens, KPN and Shell) against structurally. Netherlands lost its position as the leading country (late 80s, early 90s) for European climate by the business (the threat of moving abroad). The CO2 reduction targets have continued to suffer from a very low oil prices. An energy tax for small users will get there. Large and medium enterprises were exempt. The industry was spared while the industry was precisely the largest user and polluter.

In Paars-II came in 1996, the Regulatory Energy tax on the use of natural gas and electricity followed by the Ministerial Regulation Environmental Energy (MEP) in 2004. With these arrangements, the consumers pay considerably less energy. The scheme is a form of subsidy on fossil fuels, because consumers make massive use of cheap coal and there is therefore pay less tax. In 2008 this scheme was replaced by the SDE (+) control (Sustainable Energy Production Incentive).

Measures to mitigate climate change are further offset by the expansion of the port of Rotterdam and Schiphol and farmers can realize their growth ambitions. Also an inhibiting economic growth weakened economic environment minister to get sufficient support for climate policy. The fear of economic decline and economic damage caused by a far-reaching climate is great. Netherlands is a distribution and the agricultural economic sector is very large. Traffic, trade and agriculture can be economically Netherlands just help them to recover. Optimism about the climate has disappeared and purchasing power and economic developments dominate the policy. Strong charismatic leaders in environmental policy are gone and have been replaced by a strong economic policy with more waste, more cars, larger ports and more runways. Of annual CO2 reduction has failed to materialize. CO2 emissions per year increases even through economic growth and low energy prices.

The Netherlands has in Portugal and Spain (countries with an economic catch-up), the largest increase in CO2 emissions. Large industrial companies such as Aldel be no extra charge but are annually subsidized by the millions. Greenhouse gases and energy consumption could be reduced not only by measures on raw materials and the introduction of taxes. CO2 reduction and environmental approach was much more along with lifestyle and economic growth (driving and eating meat). Furthermore, environmental issues in the neoliberal paradigm should not be resolved by the government but by the free market, businesses, citizens and social organizations. The World Wildlife Fund is the major driving force behind the public debate on climate change in the 90s. WWF led by Ed same Nijpels out for the first time very critical of climate policy. The people were too few external costs of driving and growing livestock presented on the bill. WWF explains the relationship between the greenhouse effect and the disappearance of species and the increase of endangered species.

In addition, according to the WWF is tackling the greenhouse effect associated with the growth in the number of jobs is good for the economy. Too much and too hard policy of the government was also perceived as patronizing. It could anyway not too costly. The climate issue was difficult to bring the man because it did not involve immediate visible effects such as acid rain or chemical waste dumps. It is a global problem where people feel at void. This sense makes people passive. What an individual can contribute to a total global problem? That’s the same thing some people have elected: what is the meaning of my one voice in political decision making? The climate problem is a future problem that affects future generations. But people tend to make decisions over the long term for putting them off. That makes the climate issue very concrete and tangible. People are not able to oversee the long-term securities over a period of 20-50 years. Both economically and ecologically people choose the short term. In evolutionary terms, you are also more likely to respond to a risk that you or your immediate environment affects directly.

Early 90s are well put great strides in the global policy on climate change. The cold war was over and during this period it was more about the fight against poverty and the preservation of the earth. In 1992, the first global climate summit was held in Rio de Janeiro. There was much good will of government and there was a positive feeling about the possible solutions. In Kyoto in 1997 had created a new climate that was more based on negotiations and a less voluntary. It was agreed that there were sharp reduction targets for the industrialized countries and that developing countries were largely spared.

In the Kyoto Protocol, the Netherlands is involved through the European Union negotiations. Europe controls the European ambitions for each individual country. The establishment of the Convention was proved extremely difficult with many contradictions between North and South, countries that benefit from reduction and countries facing economic disadvantage tighter reduction targets. Especially Japan and the United States had many objections. The breakthrough came partly due to the contribution of Al Gore as vice president of the US Kyoto provided a new platform for international technological cooperation and a start was made with the international trade in CO2 rights means allowances (EU ETS), a market where you can trade allowances (free market environmentalism versus command and control environmentalism).

The free market solves the problem of pollution, with no tax increase and additional regulations. After the international negotiations, it was decided that both Europe, Japan and the US to reduce CO2. Netherlands was 6% per cent CO2 reduction in 2010 compared to 1990. Although some of the greenhouse could be also realized abroad and the final result of the reduction was much lower than previously thought, the most prominent members of the Cabinet new objectives go much too far. After the Kyoto protocol Netherlands disappears from the sphere of influence. A leader and carrier of international cooperation on global climate policy to the desire to no longer lead. Netherlands does what has been agreed and that is it. Other countries such as Sweden takes over the lead by putting down high ambitions and mandating the Kyoto Protocol. Netherlands buys half the Kyoto reduction targets off by buying emission rights from developing countries. Sweden and Germany are fiercely against it. Germany is in favor of the removal of subsidies on fossil fuels and set tariffs for renewable energy in the long term (the feed-in tariff).

Worldwide, the US plays an important role in the global climate. On the intervention of Al Gore after the US uses mainly a discouraging role. No country will have an impact on the American lifestyle with the highest energy consumption in the world. Foreign interference is not appreciated. Without American Communication, the global climate will be placed in jeopardy. Americans take a quarter of global energy consumption. Americans are with their big cars and their good life literally addicted to oil. The Americans also have a powerful collaboration of fossil lobby groups: a collaboration between the oil industry, car makers and the energy industry with years of lobbying in which climate change is systematically denied or disputed.

In addition, there is the fear of an economically powerful China and a loss of competitiveness with the introduction of a global climate course. Both the United States, China and India have kept themselves absent during the ratification of the Kyoto treaty. Climate change and energy policy is so complex. You charge the producers (polluter) CO2 or users (consumers), many energy-intensive products are manufactured in China but consumed in Western countries. How do you prevent global freeriders behavior, countries which benefit because they refuse to participate? How do you calculate pollution, how to sign up global pollution and who will pay the costs of climate change (floods, famine, hurricanes, etc.). Developing countries are at extra risk of global pollution and climate change in particular, the low-lying deltas.

Surveys show that developing countries climate change is much more than the Western countries because developing countries have fewer possibilities to protect themselves against drought, hurricanes, floods and famine. Moreover, developing countries with lower emissions, less responsible for the emissions of CO2 and other greenhouse gases. Internationally, you see that many problems onto one another so that ultimately action to solve problems is missing. In particular, the United States opposes binding agreements that affect their sovereignty.

After the century prevails in Netherlands environmentally-now-even no atmosphere. Environment has fallen out of political interest. After the WTC attacks in 2001, the debate was about the multicultural society and the economic recession and the political arena was strongly polarized between left and right (rise of Fortuyn and the LPF).

Besides the economic revival in the ’90s emerged as new forms of subcultures. The dance and electronic music flourished in trance, house and gabber music (hardcore). In particular, the gabber culture broke with the mainstream and pop music. Gabber music is a typical Dutch style of music with lots of Dutch producers.

On one hand, blossomed electronic music on the other emerged grunge and alternative rock with bands like Nirvana, Soundgarden Creed, Alice in Chains and Pearl Jam. In this period a lot of experimenting with synthetic drugs. The Netherlands is known for its large-scale ecstasy trade, but also for its many coffee shops where you can obtain free cannabis. In the Netherlands it is possible to conclude civil partnerships between same-sex partners. This allowed now gay people marry. Officially gay marriage was introduced in 2001.

The nineties largely characterized by freedom and tolerance. Not only tolerance towards others, but also more social, political, cultural and economic freedoms. This tolerance toward others came, among others by the disappearance of fear of a particular opponent (cold war). The tolerance was largely offset by finding a new opponent: the Muslims instead of the Russians. The C (l) ash of civilizations.