Social disinvestment and vulnerable groups in Europe in the aftermath of the financial crisis. The case of households that have difficulties with making ends meet in the Netherlands

After the Netherlands in 2009 landed in the first of three recessions, the government, which took office in 2012, announced that spending cuts had become inevitable. Government deficits and government debts were increasing and the country no longer complied with the requirements for a stable currency union in Europe. Therefore, the Netherlands has implemented substantial spending cuts which were, among others, achieved by reforms of the social security system. An increased emphasis was placed on incentives to find work, whilst access to care facilities was made more difficult, in part by making access require­ments more stringent. Now that the recessions of 2012 and 2013 are also behind us, society is confronted with an increase in both the number of social assistance benefit recipients and those living at risk of poverty. Increasing numbers of citizens are having difficulties with making ends meet (payment arrears and debts). In Rotterdam, the city heading the municipal poverty list, 17.2% of the households must survive on a low income and six per cent had had a low income for at least four consecutive years.

This study articulates the experiences of ten of Rotterdam’s residents who found themselves in a finan­cially vulnerable position at the beginning of this study. They shared their experiences via three group ses­sions and two in-depth interviews. It may be assumed that these experiences, within the context of the broad spending cuts implemented in the Netherlands and the resultant increases in financial problems, are relevant not only for vulnerable households in Rotterdam, but also in the Netherlands.

As framework of analysis, this participative study draws on the concepts of capability and human right. Capabilities refer to the opportunities or freedoms of persons to opt for certain beings or doings defining a person’s well-being, impacted on by available resources and skills and prevailing norms and institutions. Human rights embody the universal values for well-being and a good life.

The participants in our study who have difficulty with making ends meet as a result of their low income confirm that in the past years they moved towards a less favourable financial situation than previously. Their choice options have been reduced as they experienced even more difficulties in making ends meet: being in arrears with the rent, borrowing on the credit card or being overdrawn and reaching agreement on payment schedules when repaying benefits (e.g. housing allowances), as well as being more critical toward spending. The participants also indicated that it has become more difficult to take personal initiatives. This in turn impedes their ‘participation in society’.

Furthermore, the experiences of the participants reveal that the disinvestment in public facilities (public support) would appear to be eroding the social fabric in the Dutch society resulting from the erosion of social norms and social institutions in society. The participants observed an increasing impersonalisation and harshening of the social climate that could already be felt before the crisis got more grip on the Nether­lands.

In addition, participants pointed out that the recipients of social assistance benefits are often no longer or not at all treated with respect. The agencies appear to be suspicious and to assume that clients do not want to cooperate. As a result, the first hypothesis of this study - the expectation that the neoliberal policy of spending cuts (disinvestment) in social assistance schemes result in growing distrust and resentment among the population - was confirmed. The recipients of assistance blamed the failing of politics. This outcome can be considered to be endorsed by the lower share of respondents that tended to have trust in the Dutch government and politics in the autumn of 2015 than of 2008, as measured by the Eurobarometer.

The second hypothesis postulates that these developments are caused by the erosion of or disinvestment in the capabilities of persons and their human rights. The participants ascribed many of the changes to the social climate (caused by changing standards and values) to the politicians who have been implementing the spending cuts. Politicians largely determine the options available to citizens, they pointed out. Although there are individual differences, it must be concluded that many elements of the capabilities with respect to human rights have been weakened. The participants realised that in the situation at the time this study took place some of the human rights were being compromised. The question is then whether, and if so when, the bottom will be reached and both the personal resources and skills will be exhausted.

Participants were concerned that the tide could no longer be turned, on the one hand, and, on the other, that the social climate could not be allowed to get worse. The hope was also expressed that the current system will exhaust itself and create scope for a new start for a more social and charitable society. Partici­pants converted this hope into deeds by taking part in this study and by being willing to think about the alternatives for the follow-up project.