van Opstal, Rocus; Timmerhuis, Jacqueline --- "The role of CPB in Dutch economic policy" [2006] ELECD 492; in Tremmel, Chet Joerg (ed), "Handbook of Intergenerational Justice" (Edward Elgar Publishing, 2006)

Book Title: Handbook of Intergenerational Justice

Editor(s): Tremmel, Chet Joerg

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781845429003

Section: Chapter 15

Section Title: The role of CPB in Dutch economic policy

Author(s): van Opstal, Rocus; Timmerhuis, Jacqueline

Extract:

15 The role of CPB in Dutch economic
policy
Rocus van Opstal and Jacqueline Timmerhuis


Introduction
In a democracy, politicians decide on economic policy and quite rightly so.
In the political debate, however, it is difficult to distinguish objective argu-
ments from normative or political arguments or sometimes even argu-
ments designed primarily to reach a preconceived goal. Also, politicians
can suffer from short-sightedness, giving priority to the short-term effects
of their decisions, for example with a view to the next elections. This can
be detrimental for long-term developments and the position of future
generations.
In the Netherlands, politicians, unions, employers' organizations and the
general public see the benefits of separating political arguments from
economic ones. This is why CPB Netherlands Bureau for Economic
Policy Analysis plays an important role in economic policy making in the
Netherlands. While it was originally, that is immediately after the
Second World War, designed as a planning agency to facilitate the post-war
reconstruction of the Dutch economy, CPB soon evolved into a centre of
economic information inside the government and an independent institute
for economic forecasting and analysis. CPB provides politicians and policy-
makers in and outside the government with information that is relevant for
decision making.
In most cases this amounts to sketching the relevant trade-offs that
politicians face, as it is often very hard to find policy measures that are
Pareto-improvements. In other words: most policies that have a positive
effect in one field, will have ...