ABSTRACT
Industrial policy in the Netherlands paralleled that of Belgium in promoting industry, regional development and foreign investment through a package of grants, fiscal incentives, government loan guarantees, and the attraction of cheap natural gas for energy intensive industries. The Netherlands was unique among Western European states in entering the mid-1970s crisis with no significant energy inhibition. The Netherlands' free market tradition predisposed the nation to accept the disappearance of whole industries with less resistance than its neighbors. These free market traditions meant that Dutch industry was largely on its own in adjusting to the difficult economic situation in the 1974-77 period. The dramatic near disappearance of the Dutch clothing industry prompted Dutch approval of the European Economic Community tightening of the Multifiber Agreement State subsidized loans or guarantees to the shipbuilding industry, and to its suppliers became frequent. The government also is promoting the restructuring of industry, which will see a move away from declining sectors.
