THE HAGUE / WILLEMSTAD / ORANJESTAD / PHILIPSBURG:--- Cooperation between the Netherlands and its Caribbean partners is beginning to bear fruit, but deep-rooted challenges continue to slow the pace of reform, according to a new interim evaluation released this week.
The report assesses the Mutual Regulation for Cooperation on Reforms, a framework established in 2023 to guide structural reforms in Aruba, Curaçao, and Sint Maarten. These reforms were initially tied to financial support provided by the Netherlands during the COVID-19 crisis.
A Crisis-Driven Partnership
The origins of the cooperation lie in the economic fallout of the pandemic. Facing severe financial strain, the Caribbean countries turned to the Netherlands for emergency liquidity loans. In return, they committed to sweeping reforms to strengthen governance and economic resilience.
What followed was an ambitious reform agenda spanning public finance, taxation, healthcare, education, and the labor market. But from the start, the scale of these plans posed a significant challenge.
“The reform packages were exceptionally broad and ambitious,” the evaluation notes, highlighting that multiple large-scale changes had to be implemented simultaneously under difficult circumstances.
Progress, but Not Without Strain
Despite early tensions, the report finds that cooperation has improved over time. Joint planning, regular coordination, and support from the Netherlands—particularly through the Temporary Work Organization (TWO)—have helped launch numerous reform projects.
In several areas, tangible progress has been made. Governments have taken steps to improve financial management, modernize tax systems, and strengthen institutional oversight. These efforts, while often technical and behind the scenes, are seen as crucial building blocks for long-term economic stability.
Still, many reforms remain in early stages.
“Much of the work is transitioning from planning to implementation,” the report states, emphasizing that structural changes require years, not months, to take full effect.
Capacity and Politics Slow the Pace
One of the most persistent obstacles is limited administrative capacity. Governments in Aruba, Curaçao, and Sint Maarten often lack the personnel and expertise to implement complex reforms while managing day-to-day responsibilities.
At the same time, political instability and frequent leadership changes have disrupted continuity. The evaluation stresses that progress depends heavily on consistent political commitment—something that has not always been present.
Differences between the three countries have also played a role. Each entered the reform process with its own institutional strengths and weaknesses, resulting in uneven outcomes across the region.
A Cooperation Built on Trust
Unlike more rigid international agreements, the current framework relies on cooperation rather than enforcement. There are no strong legal mechanisms to compel progress, meaning that trust and mutual commitment are essential.
This has proven both a strength and a weakness. While it allows flexibility and respects each country's autonomy, it also makes the process vulnerable to delays and shifting priorities.
Looking Ahead to 2027
The agreement is set to run until 2027, with the option to extend it. Dutch State Secretary for Kingdom Relations Eric van der Burg told parliament that the evaluation will serve as the basis for discussions with Caribbean leaders on the future of the cooperation.
Experts say continuation is likely, given the unfinished nature of many reforms.
The evaluation itself recommends extending the collaboration, warning that ending it prematurely could undermine progress already made.
Long-Term Payoff Still Uncertain
While the reforms are designed to strengthen economic resilience, their impact is not yet fully visible. Many initiatives focus on improving governance and institutional capacity—changes that take time to translate into economic growth.
For now, the report offers a cautious but clear message: cooperation is working, but only just.
The coming years will determine whether this unique partnership can deliver lasting results—or whether its ambitions will outpace its realities.