The most successful national strategies around the world (Japan, Singapore, Canada, Finland, Denmark, the Netherlands, etc.) are characterised by their focus on key thematic areas: accelerating digital transformation, fostering innovation, transitioning to a low-carbon economy and strengthening human capital.
These countries’ strategies typically involve a cross-sectoral approach (government, business, academia and civil society working together) and use measurable performance indicators (e.g. emission reduction targets, R&D investment, wealth indices) to monitor progress.
Explanation of the concepts of INDUSTRY 5.0 and SOCIETY 5.0.
The concepts of Industry 5.0 and Society 5.0 represent an evolution of existing paradigms (Industry 4.0 and the information society) by adding the values of human-centricity, sustainability, and resilience.
Industry 5.0 (initiated in the EU) shifts the focus from mere productivity and profits to the industry’s contribution to society—placing workers’ well-being at the center of production, using new technologies to promote prosperity beyond growth, and respecting environmental boundaries (books.google.com).
Society 5.0 (a vision from Japan) describes a super-smart society where the cyber and physical spaces are deeply integrated to address social challenges and ensure a high quality of life for all generations (www8.cao.go.jp).
Japan is already implementing elements of Society 5.0 in practice (e.g. robotics and AI in elderly care, autonomous vehicles in rural areas, smart cities), while the EU is promoting Industry 5.0 principles in industrial policy (e.g. human-centric workplace design, and the “twin transition”—linking digitalization with the green transition).
- Introduction
Today’s rapidly changing environment – marked by the digital revolution, global climate change, demographic shifts, and geopolitical uncertainties – requires countries to adopt forward-looking and comprehensive development strategies.
An increasing number of countries are incorporating long-term strategic documents into their national visions (often targeting the years 2030, 2040, or 2050) to guide social and economic development toward desired goals.
Such strategies define priority thematic areas, key performance indicators, and implementation tools for reforms.
The aim of this document is to provide an in-depth overview of the best national development strategies around the world and to highlight how different countries approach shared global challenges.
The focus is on examples from developed countries in and outside of Europe (Japan, Singapore, Canada, Finland, Denmark, the Netherlands, etc.), which are recognized for their successful long-term strategic planning.
We will analyze the key themes emphasized in these strategies (e.g., digitalization, innovation, environmental sustainability, social inclusion), their approaches (e.g., the role of the state, public-private partnerships, investment in R&D), and performance indicators (how they measure progress and outcomes of their strategies).
2. Overview of the 3 Best National Development Strategies Outside Europe
2.1 Japan: Society 5.0 Vision and Addressing Social Challenges
Japan’s long-term development strategy is centered around the Society 5.0 concept, first introduced by the Japanese government in its 5th Science and Technology Basic Plan (2016) and further elaborated in the 6th Plan (2021).
Society 5.0 represents a “super-smart society”, following the evolution from the hunter-gatherer, agrarian, industrial, and information societies (1.0–4.0) [www8.cao.go.jp].
It is a human-centric vision in which economic development and the resolution of social issues are made compatible through the deep integration of cyber and physical spaces [www8.cao.go.jp].
Thematic Areas and Goals:
The key challenges Japan aims to address with Society 5.0 include an aging population, low birth rates and rural depopulation, social inequality, and energy and environmental sustainability (unesco.org).
The strategy envisions the extensive use of emerging technologies – the Internet of Things (IoT), artificial intelligence (AI), robotics, and big data – to strengthen the economy while simultaneously solving these societal problems (mdpi.com).
Examples include:
- the development of smart healthcare systems and robotic assistance to support the elderly,
- the deployment of autonomous vehicles and drones to connect rural communities,
- the implementation of smart energy solutions (smart grids and renewable sources) to address energy constraints, and
- personalized services powered by AI data analytics to meet diverse population needs
(mdpi.com, hitachihyoron.com).
Through this, Japan adheres to the principle that technological innovation must be directed toward solving social challenges and improving human well-being, not solely toward productivity.
Implementation Approaches:
To realize the vision of Society 5.0, Japan has established several strategic councils and programs. The concept was incorporated into the development guidelines of the Council for Investments for the Future (established in 2016) and into the country’s core economic and fiscal policies (hitachihyoron.com).
The government launched multidisciplinary pilot projects, such as:
- demonstration smart communities,
- the introduction of telemedicine and caregiving robots under the strategy for a super-aged society,
- and the development of a data integration platform across sectors (known as the Super Smart Society Service Platform).
There is also a strong emphasis on breaking down silos between industry, academia, and government. Strategic documents highlight the need to dismantle the “five walls” that hinder collaboration (e.g., administrative boundaries, legislative obstacles, incompatible data systems, etc.), in order to accelerate open innovation and cross-sector cooperation (hitachihyoron.com).
Performance Indicators:
Japan monitors the success of the Society 5.0 strategy partly through economic indicators (e.g., aiming to increase productivity through digitalization or boost GDP through innovation), but is increasingly focused on social indicators.
The overarching goal of Society 5.0 is to improve quality of life – such as extending the population’s healthy life expectancy, ensuring equal access to services regardless of region, and increasing the proportion of elderly people receiving care through smart solutions.
Specific numerical targets include, for example:
- increasing the penetration of robotics in elderly care by set percentages,
- achieving nationwide coverage with 5G high-speed networks,
- and reaching environmental goals, such as reducing CO₂ emissions in line with international commitments.
In recent years, Japan has also introduced composite indices (e.g., the Societal Well-being Index) to track progress beyond GDP alone.
Importantly, the Society 5.0 concept has translated into concrete policies: for example, national budgets include allocations for promoting “human-friendly AI,” for the development of smart cities (such as the experimental city Fujisawa or reconstruction projects in the Fukushima region aligned with the 5.0 vision), and for education and workforce development (including digital skills training and interdisciplinary programs designed to equip the next generation with Society 5.0-relevant knowledge).
2.2 Singapore: A Holistic Vision of a Smart and Sustainable Nation
Singapore, a city-state renowned for its strategic long-term planning, implements its development vision through a series of interconnected strategies that together shape the national development agenda.
Singapore aims to remain a globally competitive, highly developed economy, while also ensuring a high quality of life and a sustainable environment for its citizens. Its approach is characterized by holistic planning, strong government coordination, and clearly defined cross-ministerial goals.
Thematic Areas:
Singapore’s core strategic direction is to become a “Smart Nation” while simultaneously evolving into a sustainably oriented society. Since 2014, the national Smart Nation initiative has been in place, built on three pillars: the digital economy, digital government, and digital society (publicadministration.desa.un.org).
This means that Singapore invests heavily in digital infrastructure (universal access to high-speed internet, national data centers, cybersecurity), promotes digital transformation in businesses and fosters innovation (Singapore consistently ranks among the top countries in global innovation indices – edb.gov.sg), while also digitizing public services and providing citizens with digital skills education.
Another key focus area is sustainable development and the green agenda. In 2021, Singapore launched the Singapore Green Plan 2030, a nationwide sustainability program with ambitious targets by 2030: planting one million trees, converting 20% of the vehicle fleet to electric vehicles, reducing landfill waste by 30%, and achieving the highest clean city standards.
This green plan supports Singapore’s broader commitment to achieve net-zero greenhouse gas emissions by 2050 (nccs.gov.sg).
In addition to its digital and green strategies, Singapore places strong emphasis on human capital development. Education is a national priority (Singapore consistently achieves top scores in international education benchmarks), and initiatives like SkillsFuture promote lifelong learning and reskilling of the workforce to prepare for future jobs (worldbank.org).
Approaches and Instruments:
Singapore’s development model is often described as a state-led market model—where the government plays a proactive role through strategic initiatives and investment programs, while working in close partnership with the private sector.
For example, the Future Economy Council (FEC), led by government ministers and industry leaders, develops Industry Transformation Maps for key sectors to enhance productivity and drive innovation.
The Smart Nation initiative is implemented through the Smart Nation and Digital Government Office, with clear KPIs, such as the full digitalization of 100% of eligible public services. The progress is remarkable: today, 99% of all public services in Singapore are fully end-to-end digital, available to citizens seamlessly (publicadministration.desa.un.org).
As a result, Singapore has been consistently ranked among the countries with the most advanced e-governments in UN reports (globalgovernmentforum.com).
To meet its sustainability goals, the government established an Inter-Ministerial Committee on Climate Change, and the Green Plan includes partnerships with communities and businesses. For instance, GreenGov.SG mandates that the public sector must also meet specific environmental performance targets.
Singapore places a strong emphasis on urban and spatial planning—maintaining both a Master Plan and a Concept Plan that guide land development up to 50 years ahead, including solutions for sea level rise, population growth, and maximizing limited space.
Performance Indicators:
Singapore is known for its meritocratic, data-driven approach, and therefore monitors a wide range of indicators. In the economic domain, these include, for example, the GDP growth rate, labour productivity, and employment rate, and Singapore consistently stands out: (a high average growth of ~7% over the decades since independence – worldbank.org, low unemployment ~3%).
In human capital, Singapore leads in rankings such as the World Bank Human Capital Index (1st place in 2020) – worldbank.org – an indicator that reflects the country’s ability to develop the full potential of new generations through healthcare and education. In innovation, it ranks among the world leaders according to the Global Innovation Index (7th place in 2023, and #1 among countries with high GDP per capita) – wipo.int – as it invests ~3% of GDP in R&D and has strong patent output.
Environmental indicators include, for example, carbon intensity (target to reduce it by half by 2030 compared to 2005), the share of renewable energy (target of 2 GW of solar energy by 2030), and air and water quality (Singapore already meets WHO standards).
To monitor sustainable development, Singapore has also incorporated the UN SDG goals into its national plans. In spatial indicators, it tracks, for instance, the share of green areas (nearly 47% of the territory is green space), the waste recycling rate (>50%), and more.
Distinctive Features:
Singapore’s strategy differs from that of some larger countries in that it does not have a single monolithic document like a “Strategy 2050.” Instead, it relies on a set of coordinated medium-term plans (often 5- and 10-year cycles) and a visionary framework outlined by the government—frequently articulated in the Prime Minister’s annual addresses.
Nevertheless, a clear long-term vision is evident: to become a sustainable global city with world-class infrastructure, a high-tech economy, and a cohesive society.
Singapore successfully integrates an economic vision (to rank among the world’s top financial and technology hubs) with a social vision (a high standard of living and well-organized society) and an environmental vision (a green city in nature). Its consistent achievement of defined performance indicators earns it both global credibility and public trust in strategic planning.
2.3 Canada: Sustainable and Inclusive Growth within the Framework of Agenda 2030
Canada grounds its national development strategy in the concepts of inclusive growth, sustainable development, and social justice.
The key framework is the Canada’s 2030 Agenda National Strategy (titled Moving Forward Together: Canada’s 2030 Agenda National Strategy), which was developed in response to the United Nations Sustainable Development Goals.
In addition, Canada has a range of sectoral strategies (e.g., the Innovation and Skills Agenda, the Clean Growth Strategy, the Indigenous Rights Strategy), all of which align under the broader vision of Canada 2050 as a prosperous, sustainable, and just society.
Thematic Areas:
At the core of Canada’s strategy is social inclusion and equal opportunity. Canada emphasizes its commitment to “leaving no one behind”, which is a central principle of the 2030 Agenda (canada.ca).
This is reflected in policies aimed at reducing inequality (both economic and among different population groups), empowering marginalized communities (including Indigenous peoples, immigrants, and minorities), and promoting gender equality.
A second priority is sustainable development and environmental protection. As the second-largest country by land area, Canada devotes significant attention to preserving natural ecosystems, sustainable management of forests and water resources, and transitioning to a low-carbon economy.
Canada has committed to achieving carbon neutrality by 2050, with an interim target of a 40% to 45% reduction in emissions by 2030, compared to 2005 levels.
A third key area is innovation and the future of work. Canada seeks to diversify and modernize its economy, making it less reliant on primary industries (such as oil and mining) and more focused on knowledge, technology, and added value.
Programs to support inclusive innovation aim to ensure that the benefits of technological progress reach all regions and groups—for example, support for start-ups outside major cities, or technology accelerators for Indigenous communities.
Approaches and Policy:
Canada’s development strategy was created through extensive consultations and emphasizes a whole-of-society, partnership-based approach. The document Moving Forward Together highlights that implementing the SDGs requires collaboration between the federal government, provinces, cities, the private sector, civil society, and Indigenous communities (canada.ca).
The federal government plays a leading coordinating role. A 2030 Agenda Implementation Unit was established within the Department of Employment and Social Development, tasked with monitoring the achievement of the goals.
The Canadian Parliament even passed a law mandating official SDG progress reporting. Canada has also developed a Canadian Indicator Framework, tailored to national priorities. This framework includes all 17 UN goals and 169 targets but adds 33 national ambitions and a total of 86 Canadian indicators to measure progress in a context-specific way (www144.statcan.gc.ca). For example, under SDG 4 (education), Canada has an additional ambition to improve educational outcomes for Indigenous students, supported by a measurable indicator.
This approach enables transparent tracking: Statistics Canada maintains a public SDG Data Hub featuring over 200 indicators, allowing anyone to monitor the evolution of each metric (www144.statcan.gc.ca).
In recent years, the Canadian government has also launched several missions and strategic initiatives, such as the Innovation Superclusters—which fund collaborations between businesses and researchers in key sectors (artificial intelligence, biosciences, clean technology, etc.)—and the Indigenous Rights Strategy, developed with Indigenous peoples to improve socio-economic conditions (e.g. access to clean water, education, and healthcare).
The government’s team of economic advisors has also proposed positioning Canada as the most efficient country for business and investment, by reducing administrative burdens and measuring competitiveness using international indices like Doing Business (thebusinesscouncil.ca).
Performance Indicators:
Like other countries, Canada tracks traditional macroeconomic indicators such as GDP growth, employment, and inflation.
However, its new national strategic documents emphasize broader measures of social progress. Canada will regularly report on the achievement of all 17 Sustainable Development Goals, using the 244 indicators of the global framework (www144.statcan.gc.ca).
In addition, as noted, Statistics Canada has defined national indicators that reflect Canadian priorities. These include: poverty rates (with reduction targets), household food security, housing affordability, labour market inclusion of persons with disabilities, emissions per unit of GDP, and preservation of marine and terrestrial ecosystems.
Interestingly, Canada is also exploring how to measure social capital and well-being—for example, happiness/life satisfaction indices are being monitored. While not (yet) official strategy targets, they are being considered in policy development.
On international rankings, Canada scores very high in quality of life (ranked 6th in the 2021 Human Development Index), with low corruption, and a well-educated population.
Its emissions intensity is relatively high (due to a large energy sector), making decarbonization a major challenge—but the 2050 Strategy outlines plans for restructuring the energy system (including phasing out coal, investing in hydrogen and small modular nuclear reactors – SMRs, among others).
3. Overview of the 3 Best National Development Strategies in Europe
3.1 Finland: A Systemic Approach to Sustainable Well-being
Finland is considered one of the most successful countries in long-term sustainable development planning. Its national strategy, updated in 2022, carries the vision of a “successful and globally responsible Finland that respects the carrying capacity of nature” (valtioneuvosto.fi). Finland’s strategic direction is based on the 2030 Agenda and emphasizes systemic changes needed to achieve a sustainable future.
Thematic Areas: Finland has identified six priority areas where systemic changes are needed to ensure sustainability (valtioneuvosto.fi):
- Sustainable consumption and a wellbeing-driven economic model – a shift toward a circular economy, reducing per capita material consumption, and promoting entrepreneurship and jobs aligned with sustainability. This reflects the “wellbeing economy” concept, where the goal of the economy is not merely GDP growth but the enhancement of overall societal wellbeing.
- Education, skills, and sustainable lifestyles – investing in lifelong learning, ensuring high-level skills for the green and digital economy, and raising public awareness of sustainable values. Finland aims to maintain its world-class education system while integrating sustainability into curricula.
- Well-being, health, and inclusion – strengthening social cohesion and services. Finland seeks to preserve its strong social model (universal healthcare, social security) and adapt it to an ageing population, aiming to maintain high levels of public health and reduce health inequalities.
- Sustainable energy system – Finland has committed to reaching carbon neutrality by 2035, making it one of the fastest transitions globally (commission.europa.eu). This includes phasing out fossil fuels and introducing smart grids and energy storage solutions.
- Sustainable food system – the goal is to ensure food security in a way that promotes well-being (healthy diets) while being environmentally sustainable. This includes supporting local food production, reducing the carbon and ecological footprint of agriculture, and cutting down food waste.
- Sustainable use of forests, water, and land with biodiversity preservation – as a country rich in forests and lakes, Finland emphasizes sustainable natural resource management. The aim is to halt biodiversity loss by 2030, increase protected areas, and implement nature-friendly practices in forestry and land-use planning.
These areas cover the full spectrum of sustainable development — from economic to social and environmental dimensions. Finland addresses them systemically, recognizing the need for interconnected and mutually reinforcing changes.
Approaches:
Finland has a long tradition of participatory strategic planning. The National Commission on Sustainable Development, chaired by the Prime Minister (at the time, Sanna Marin), includes representatives from all sectors of society (valtioneuvosto.fi).
The new 2022–2030 strategy was developed through a year-long consultation process and follows a roadmap designed in 2020–2021 (valtioneuvosto.fi). The approach is based on intergenerational thinking—the document refers to creating a future worth living for the next generations and to systemic innovation as the path to get there.
Implementation tools include the integration of sustainability goals into the government programme (every Finnish government is required to include sustainability commitments in its 4-year programme).
Finland is one of the few countries that includes sustainability impact assessments in its national budget—analyzing how budgetary spending affects SDG goals. Economic instruments are widely used, such as a long-standing carbon tax, incentives for renewable energy, subsidies to improve energy efficiency in buildings, and more.
An important element is also development policy: as a globally responsible country, Finland allocates approximately 0.7% of GNI to development aid, focused on areas of national strength (education, women’s empowerment, peace).
Performance Indicators:
Finland takes progress measurement seriously. The strategy’s monitoring includes the indicators of all 17 UN Sustainable Development Goals (SDGs), with a special focus on those where Finland faces the greatest challenges.
Even before 2022, Finland had developed a national set of sustainable development indicators, which are regularly published and updated. In 2022, it was found that Finland performs well on many social goals (e.g., quality of education, innovation – SDG 9, poverty reduction), while challenges remain in areas such as climate action (SDG 13) and responsible consumption (SDG 12) (valtioneuvosto.fi).
As a result, the new strategy specifically targets these gaps. Some concrete goals include: achieving carbon neutrality by 2035, halting biodiversity loss by 2030, reducing the relative poverty rate, increasing the employment rate to over 75%, maintaining top OECD scores in PISA rankings, and increasing material circularity (target: 90% waste recycling by 2030 and a significant reduction in the consumption of primary raw materials).
Finland also uses a wellbeing index and consistently ranks at the top of the World Happiness Index (number 1 for the past several years). While this is not an official government strategy indicator, it is indicative of the success of the Finnish model—a strong social system and high social trust contribute to high self-reported life satisfaction (approximately 84% of Finns rate their life satisfaction highly – linkedin.com).
The government seeks to preserve these non-material dimensions of wellbeing by continuing to invest in cultural and social life (e.g., encouraging active ageing, volunteering, and civic participation).
3.2 Denmark: Green Leadership, Digital Nation, and High Quality of Life
Denmark is often highlighted as a country that successfully combines economic competitiveness, social welfare, and environmental sustainability.
Its national development strategy is rooted in the Danish model—a combination of a market-based economy and a strong welfare state—along with the ambition to be a global pioneer in climate action and public sector digitalization.
Thematic Areas:
Green transition and climate leadership: Denmark has one of the world’s most ambitious climate goals—to reduce CO₂ emissions by 70% by 2030 compared to 1990, as enshrined in its Climate Act (sgi-network.org). The ultimate goal is climate neutrality by 2050. Denmark aims to achieve this through a transition to 100% renewable energy (currently ~50% of electricity already comes from wind and solar), electrification of transport, and a circular economy. It has a national plan for a circular economy by 2050, with an intermediate goal of halving the use of primary raw materials by 2030 (theprogressplaybook.com, rivm.nl). Other key focus areas include waste reduction (especially plastics) and green agriculture (reducing agricultural emissions and protecting water resources).
Digitalization and e-government: Denmark has been a global leader for years in UN digital government indexes (globalgovernmentforum.com). Its 2022–2025 national digital strategy emphasizes a “digital by default” approach—nearly all public services are accessible through online platforms. Key national solutions include MitID (a digital identity system for all citizens), NemKonto (a centralized system for payments and benefits), and Borgerforslag.dk (a platform for citizen-driven legislative proposals) (globalgovernmentforum.com). A new area of focus is the integration of AI and 5G into public services. Denmark is exploring chatbots, robotic process automation (RPA), and other emerging technologies—guided by a human-centric and ethical approach, in line with Industry 5.0 principles. Importantly, Denmark has achieved these digital advancements with a high level of public trust in government data handling, attributed to transparency and strong security standards (e.g., secure-by-design systems) (globalgovernmentforum.com).
Social model and “flexicurity”: Denmark continues to develop its renowned flexicurity model in the labor market—a combination of highly flexible employment (ease of hiring and firing), strong social security for the unemployed, and active labor market policies (sgi-network.org). The result is very low unemployment (~2.5% in 2022) and short durations of unemployment (sgi-network.org). Strategically, Denmark faces the challenge of an ageing population and sustaining its welfare state. Reforms include gradually raising the retirement age, incentives to extend working life, and policies to attract skilled migrants.
Education and innovation: Denmark places strong emphasis on investment in research and development (~3% of GDP) and the promotion of innovative entrepreneurship, particularly in green technologies, pharmaceuticals, design, and IT—sectors where the country has a competitive edge. Denmark’s innovation strategy is closely aligned with EU programs (such as Horizon Europe) and features robust collaboration between universities and industry.
Approaches:
Denmark maintains consistent policies regardless of changes in government—there is broad societal consensus on the importance of the green transition and digitalization, which ensures policy continuity. One example is the Climate Act (2019), which was passed with near-unanimous support from all parties and legally binds future governments to produce annual action plans to reach the 70% emissions reduction target (sgi-network.org). In the field of digitalization, a public agency (the Agency for Digital Government) leads efforts, working in partnership with the private sector.
Denmark actively involves citizens in policy-making—for example, the Borgerforslag.dk platform allows any citizen proposal that reaches a required threshold of public support to be formally debated in parliament (globalgovernmentforum.com). This strengthens participatory democracy in the digital age.
In the area of the circular economy, Denmark follows an action plan (2021) consisting of ten initiatives, ranging from promoting eco-design to establishing circular cities. Danish cities like Copenhagen and Aarhus serve as testing grounds for sustainable solutions—Copenhagen aims to become the world’s first carbon-neutral capital by 2025, with a range of projects including biomass district heating, cycling infrastructure, and net-zero buildings.
Performance Indicators:
Denmark consistently ranks at the top of international development indexes: it has held the #1 position for several consecutive years on the UN E-Government Development Index (globalgovernmentforum.com), ranks highly on the World Economic Forum’s Competitiveness Index, and is #2 on the Sustainable Development Goals Index, meeting nearly all SDGs—with the exception of a few environmental targets, such as material consumption. Denmark also regularly ranks among the top 3 countries on the World Happiness Index.
Domestically, it monitors concrete progress through detailed performance indicators.
On the SDG Sustainable Development Index, Denmark ranks near the top—achieving nearly all goals, with the exception of a few environmental targets, such as material consumption. Denmark also regularly ranks among the top 3 countries on the World Happiness Index.
Internally, the country monitors concrete progress through a comprehensive set of national indicators
- Climate performance: CO₂ emissions were reduced by approximately 50% by 2020, with a target of 70% reduction by 2030. The share of renewable energy is already high—around 67% of electricity comes from renewables, with a goal of reaching 100% by 2030. In terms of energy efficiency, Denmark ranks among the world’s best, with one of the highest GDP per unit of energy consumed globally.
- Digital performance: Denmark has made major strides in e-government usage, with a target of over 90% of citizens using digital government mail—a target that has already been achieved. The level of digital skills is also high, with 99% of young people and 80% of older adults possessing basic digital competencies.
- Social performance: The employment rate is currently around 75%, one of the highest in the EU. The share of women in the workforce is approximately 47% of all employed persons, placing Denmark among the top countries globally. Income inequality is low, with a GINI coefficient of around 0.28, and the aim is to keep it among the lowest in the OECD.
- Health: Life expectancy is around 81 years, with goals to further improve it through better preventive healthcare (e.g. increased investment in mental health). Denmark managed the COVID-19 pandemic with relatively low mortality, reflecting the resilience of its healthcare system.
Distinctive Features:
Denmark’s development model places strong emphasis on trust and culture. A high level of trust among citizens and in public institutions enables greater efficiency—for example, high tax compliance and broad acceptance of digital solutions without resistance.
Denmark also maintains very high anti-corruption standards—it consistently ranks #1 or #2 on Transparency International’s Corruption Perceptions Index. This ensures that investments and programs are effective and that public funds are used efficiently, which is a critical precondition for the success of any development strategy.
3.3 The Netherlands: Circular Economy, Broader Well-being Indicators, and Innovative Agriculture
The Netherlands—a small but densely populated and highly developed country—approaches long-term development with a focus on circularity, innovation, and quality of life. Its vision aims to transform the economy into a climate-neutral and circular system by the middle of the century, while maintaining a high standard of well-being.
Thematic Areas:
Circular and Sustainable Economy: The Dutch government launched the program “Nederland Circulair 2050” in 2016 with the goal of becoming a fully circular economy by 2050 (knowledge-hub.circle-economy.com). This means closing material loops—recycling and reuse will become the norm, and waste will be treated as a resource. An intermediate target is to halve the use of primary raw materials (minerals, fossil fuels, metals) by 2030 (theprogressplaybook.com, rivm.nl). The strategy identifies five priority sectors for circularity: biomass and food, plastics, manufacturing industry, construction, and consumer goods (circulareconomy.europa.eu). The Netherlands is also highly ambitious in its climate goals—aiming for a 49% reduction in emissions by 2030 (compared to 1990 levels) and climate neutrality by 2050, with a strong focus on the energy transition and restructuring agriculture (due to significant nitrogen emissions from the farming sector).
Broader Well-being Indicators: The Netherlands is among the pioneers of measuring well-being beyond GDP. Since 2018, its national statistics office (CBS) has published the Monitor of Well-being and SDGs report annually (cbs.nl), tracking around 300 indicators on current well-being, well-being for future generations, and international impact. This concept is integrated into strategic policy discussions—the Dutch development vision emphasizes improving quality of life (e.g., health, education, housing availability) and environmental sustainability as equal goals to economic performance. In policy design, Doughnut Economics principles are applied—for instance, the city of Amsterdam adopted the doughnut model as a framework for urban development.
Innovative Agriculture and Food Systems: As the second-largest food exporter in the world by value, the Netherlands is focused on a sustainable transformation of agriculture—reducing chemical use, closing nutrient loops in the agri-food system, and developing high-tech agricultural practices (such as vertical farming). The country is also working to protect water quality and ecosystems from excessive nitrogen emissions, which are a major issue due to intensive livestock farming.
Digitalization and Smart Logistics: As Europe’s logistical hub (with the Port of Rotterdam and Schiphol Airport), the Netherlands is advancing smart mobility and logistics solutions. The development of autonomous shipping, digital transport platforms, and smart city projects in cities like Eindhoven and Rotterdam are all part of the national vision to lead the Fourth Industrial Revolution (4IR) in Europe.
Approaches:
The Netherlands’ development policy is closely aligned with European policies—as a founding member of the EU, it coordinates its national goals with EU strategies such as the EU Green Deal and the Digital Compass. At the same time, the country follows its own coalition-based political culture—each government (formed by a coalition of multiple parties) agrees on a coalition agreement that includes long-term development goals. The current government’s 2021 agreement includes accelerated climate action, investments in housing, and the establishment of an independent committee to monitor broader well-being.
The Netherlands has also created a Government Platform for the Circular Economy, which brings together businesses (e.g. Philips, Unilever), researchers, and policymakers to jointly develop solutions. Cities serve as hubs for experimentation—for example, the Amsterdam Doughnut Coalition and Rotterdam Circulair initiatives allow for local testing of sustainability innovations before they are scaled into national policies.
Performance Indicators:
- For circularity: The Netherlands monitors the recycling rate (recycling about 80% of all waste, among the highest in the EU), resource productivity (GDP per unit of material consumption, also among the highest in the EU), and raw material use (with a target to reduce primary material consumption by 2030—by 2022, a reduction of ~7% was achieved, indicating the need for acceleration). The carbon footprint of consumption is also tracked.
- For well-being: The Monitor Brede Welvaart includes indicators of current well-being (e.g. life satisfaction—85% of the population rates their satisfaction ≥7/10, linkedin.com, education levels, median income, population health status, etc.), future well-being (e.g. investments in R&D, public debt, resource depletion, emissions), and global impact (e.g. CO₂ emissions including imports). This comprehensive set of indicators enables parliament to assess whether national development is moving in the desired direction.
- For innovation: The Netherlands tracks the number of high-tech startups, R&D spending (around 2% of GDP, with a target to raise it to 2.5%), and global university rankings (e.g. Wageningen University is ranked #1 in agriculture, Delft is highly ranked in engineering). The Netherlands consistently ranks around 5th in the Global Innovation Index.
- For social indicators: Income inequality is moderate (GINI coefficient ~0.30), and the at-risk-of-poverty rate is around 13% (with a goal to reduce it, especially child poverty). The unemployment rate is low (~4%), but underemployment among youth remains a challenge.
Interestingly, the Netherlands is also introducing experimental approaches to policymaking—for example, some cities have launched universal basic income pilots or implemented sustainability budgets to assess their social impact.
Distinctive features:
The Netherlands faces unique challenges such as rising sea levels, as much of its territory lies below sea level. This makes investment in climate resilience a strategic imperative—strengthening dikes, building “living dikes” (dunes, wetlands), and adapting to more frequent flooding events. As a result, the Netherlands is also a global leader in climate adaptation.
As a whole, the Dutch strategy aims to achieve by 2050 a “good life within planetary boundaries” for all residents, clearly reflecting the influence of Kate Raworth’s doughnut economics. The Dutch model has inspired other countries—such as Belgium’s Wallonia region, which has adopted circular economy goals, or New Zealand, which introduced a well-being budget—showcasing the global impact of these concepts.
Author: Tadej Slapnik
