THE HAGUE, WILLEMSTAD – Beyond financial support, Curaçao could face a significant loss of execution capacity and institutional structure if it withdraws from its reform cooperation agreement with the Netherlands.
According to a comprehensive evaluation, the agreement provides more than funding. It establishes a formal system of joint planning, monitoring, and reporting that keeps reforms on track and ensures accountability at both national and Kingdom levels.
If the agreement is terminated, Curaçao would not only lose access to technical assistance but also the legal and institutional framework that supports reform efforts. This includes structured implementation agendas, progress reporting mechanisms, and coordinated policy planning.
The report identifies several areas where this support is already critical. These include legislative capacity, digital transformation, and improvements to government administration. In many cases, external expertise has been brought in to address bottlenecks that local institutions have struggled to resolve on their own.
For example, delays in financial management reforms and government administration systems have already been linked to limited capacity and the need for additional technical support. Similarly, large-scale digitalization projects require centralized coordination and project management structures that are still being developed.
Without continued cooperation, these gaps would need to be filled entirely with local resources. That would likely require significant investment in hiring specialists, developing internal expertise, and strengthening institutional capacity—an effort that could take years.
Another major concern is the potential loss of momentum. The report emphasizes that the current system creates a form of “external clock,” with deadlines and regular evaluations that push reforms forward. Without this structure, decision-making could become more politically driven, increasing the risk that difficult or unpopular reforms are postponed.
At the same time, the report acknowledges that the issue is not purely technical. Political sensitivities around autonomy and historical relations with the Netherlands remain a key factor in the debate. Some view continued cooperation as a limitation on self-governance, while others see it as a necessary tool for strengthening institutions.
Importantly, the evaluation also notes that not all sectors are equally dependent on external support. In areas such as healthcare, local institutions have already taken on greater responsibility, suggesting that a phased transition could be possible.
Ultimately, the report frames 2026 as a decisive year. Curaçao must choose between extending the current framework with clearer national control and prioritization, or taking full responsibility for implementing reforms independently.
Without a concrete replacement strategy, the report warns, the risk is not just slower progress—but reforms that remain unfinished, leaving long-standing structural problems unresolved.