marktwerking

Marktwerking is a policy concept used in the Netherlands to describe the introduction of market mechanisms into sectors traditionally governed by public administration. It relies on competition, price signals, consumer choice, and efficiency, often by involving private providers or market-based procurement alongside public oversight.

In market-based reforms, the state typically maintains responsibility for setting goals, regulation, and ensuring universal access, while providers compete on quality and price. Markets are shaped by contracts, tenders, benchmarking, and performance-based funding. The idea is to improve productivity, innovation, and responsiveness to citizens’ needs.

Common domains for marktwerking include health care, energy, public transport, education, and social services, where providers compete under regulated conditions. Instruments used are outsourcing, competitive tendering, result-based payments, price transparency, and consumer-choice mechanisms such as vouchers or subsidies.

Critics warn that marktwerking can undermine equity, increase fragmentation, or encourage short-term cost cutting and risk selection. Its success depends on strong regulation, robust contracts, and effective governance. Proponents argue that well-designed competition can raise quality and efficiency while preserving public accountability.