BHOS-beleidsnota

Reactie

Naam J. R. S. A. Oppewal, J., Bolling, R., Lijfering, S., Kazimierczuk, A.
Plaats Den Haag
Datum 13 april 2022

Vraag1

(see english below)
Nexus (samenhang) Ontwikkelingssamenwerking & Buitenlandse Handel

Het Nederlandse bedrijfsleven kan door middel van handel, investeringen en marktkracht een belangrijke rol spelen bij een aantal van de grote wereldwijde uitdagingen van deze tijd. Om de Nederlandse inzet richting het bedrijfsleven een focus mee te geven wordt gekozen voor een focus op de “twin-transities”; de digitale transitie (via onder meer artificiële intelligentie) en de verduurzamingtransitie. Deze twin-transities op digitale innovatie en verduurzaming zullen de komende jaren een grote rol spelen om de Parijs en Glasgow-doelen voor klimaat te halen. Die doelen moeten we in Nederland halen, maar ook wereldwijd. Hoewel er een grote behoefte is aan Nederlandse expertise en investeringen, zien we dat meer nodig kan zijn om het Nederlandse bedrijven te betrekken bij deze transities in (lage en) midden-inkomenslanden.

1. Hoe kan het Nederlandse bedrijfsleven meer betrokken worden bij de twin-transitie in (lage en) midden-inkomenslanden?


(EN)
Nexus between development cooperation and foreign trade

Through their trade, investment and market position, Dutch businesses can play a key role in tackling some of the major challenges facing the world today. The focus of Dutch policy vis-a-vis the private sector will be on the 'twin transitions' of digitalisation (including artificial intelligence) and sustainability – both of which will be key to achieving the Paris and Glasgow climate goals in the years ahead. We must achieve these goals not only in the Netherlands, but across the world as a whole. While Dutch expertise and investment funding are in great demand, we also see that more may be needed when it comes to getting Dutch companies involved in these transitions in low- and middle-income countries.

1. How can we increase the involvement of Dutch companies in the twin transitions in low- and middle-income countries?
It requires a more pro-active, directive and specific approach to trade promotion and facilitation. Aid and trade have largely remained separate pillars. To strengthen the links requires a better understanding of the needs, working realities and realism about opportunities to connect both in different types of contexts. More integrated knowledge brokering support at country level and business support organizations (like RVO) can help bridge these different perspectives and experiences.

To ensure contribution to the twin transitions will require investing in inclusive business partnerships and growth models that are ecologically, socially and financially sustainable and scalable, and that count on the participation of civil society and knowledge institutes.

Development policy could be more creative in engaging the private sector. For instance, Dutch technology companies could support digital solutions for rolling out cash transfers or for collecting and processing weather-related information that is relevant to local farmers. Conversely, trade promotion should focus more on the SDG-agenda and connect Dutch investors with aid-driven efforts, also from other bilateral and multilateral donors.

Leveraging sustainable investments in the twin transitions in LMICs will also require a reconsideration of the current policy instruments, in particular the use of fully revolving funds. By pursuing full revolvability, we may miss out on exactly the type of investments with the highest developmental impact: in new sectors (climate and digital) in more risky lower-middle or low-income countries.

Vraag2

Nederland kent een lange traditie van publieke private samenwerking. Nu de mondiale uitdagingen steeds groter worden, is het van belang deze publiek-private samenwerkingen te verdiepen en te versnellen. De duurzame ontwikkelingsdoelen zijn in 2015 vastgesteld als actieplan voor overheden, bedrijven, kennisinstellingen en burgers om duurzame ontwikkeling te verwezenlijken wereldwijd.

2. Hoe kunnen overheid, bedrijfsleven en kennisinstellingen beter samenwerken om de duurzame ontwikkelingsdoelen te halen?

(EN)
The Netherlands has a long tradition of public-private partnership. As the global challenges grow ever bigger, it is important to deepen and accelerate these partnerships. The Sustainable Development Goals were presented in 2015 as a plan of action for governments, companies, knowledge institutions and private individuals to achieve sustainable development worldwide.

2. How can government, the private sector and knowledge institutions work together better to achieve the Sustainable Development Goals?
There is wide acknowledgement that partnering has large pay-offs in terms of achieving the SDGs. What is less recognized, however, is that effective collaboration also requires investment of time and resources. The government could invest more in knowledge brokering to get partnerships off the ground, sustain them, and maximize their benefits. Positioned as a neutral intermediary, knowledge brokers enable inclusive and impactful knowledge sharing and utilization in a dynamic environment where power dynamics and diverse interests are at play. Such brokering should be organized around specific themes or geographic regions or countries. Current support for locally-organized multistakeholder knowledge platforms must be continued and expanded. Although the question fails to mention civil society organisations, it is very important to include in partnerships as well.

In addition to better collaboration between the Dutch government, private sector, civil society and knowledge institutions, there is also a strong need to invest in collaborations of all these actors with governments, private sector and knowledge institutions in the Global South.

The Ministry should set-up collaborative learning trajectories between knowledge institutes and the private sector, assessing practices and policies in relation to the SDGs to identify lessons learned and formulate policy recommendations.

Vraag3

Nederland heeft sinds 2016 een actieplan beleidscoherentie voor ontwikkeling. Beleidscoherentie voor ontwikkeling heeft als doel om in niet-hulp (OS) beleid schade voor ontwikkelingslanden te verminderen en synergiën en samenwerking te versterken. Het Nederlandse actieplan is in 2018 herzien en geeft een overzicht van vijf Nederlandse beleidsthema’s die een invloed hebben op de ontwikkelingskansen in ontwikkelingslanden. Deze thema’s zijn: (1) het tegengaan van belastingontwijking/ontduiking, (2) ontwikkelingsvriendelijke handelsakkoorden, (3) een ontwikkelingsvriendelijk investeringsregime, (4) verduurzaming van productie en handel en (5) het tegengaan van klimaatverandering.

3. Hoe kan de bovengenoemde Nederlandse inzet op beleidscoherentie voor ontwikkeling verder versterkt of verbeterd worden?

(EN)
The Netherlands has had an action plan on policy coherence for development since 2016. The aim of policy coherence is to reduce the negative effects on developing countries caused by policies in areas other than development, and to strengthen synergies and cooperation. The action plan, which was revised in 2018, identifies five Dutch policy themes that can enhance developing countries’ opportunities for development: (1) combating tax avoidance/evasion, (2) development-friendly trade agreements, (3) a development-friendly investment regime, (4) more sustainable production and trade, and (5) combating climate change.

3. How can the Netherlands’ efforts to achieve policy coherence for development be further strengthened or enhanced?


The Ministry of Foreign Affairs should be more pro-active in engaging other relevant Ministries, such as the Ministry of Finance, the Ministry of Agriculture and the Ministry of Energy & Climate, on the topic of policy coherence for development. For instance, the Ministry should invest in interfaces that make these interrelationships visible and accessible. Dedicated knowledge brokering capacity on key topics such as tax evasion, trade agreements, investment regimes, sustainable production/trade and negative/positive impacts of Dutch industries on climate change can serve to inform coherence in interdepartmental issues where the national and international are inherently connected. To tackle policy (in)coherence the Netherlands should start at home and identify and map these unintended effects and possible ‘trade-offs’ between policies.

Attention to coherence can also be improved within the realm of trade and development policy. For instance, there should be attention to possible unintended adverse consequences of due diligence legislation or carbon taxes (CBAM) for developing countries, and to finding ways of mitigating them.

Identifying and mapping these unintended effects and possible ‘trade-offs’ between policies is key to strengthening policy coherence.

In general, policy coherence would benefit from the involvement of knowledge brokers who are generalists in outset and can combine and connect different themes and perspectives.

Vraag4

Buitenlandse Handel
Internationale handel en investeringen zijn van groot belang voor de Nederlandse welvaart en werkgelegenheid. De Nederlandse welvaart wordt voor een derde verdiend door internationale handel en een derde van onze banen zijn verbonden aan internationale handel. Onze internationale concurrentiepositie is onderhevig aan de “twin-transities” (digitalisering/innovatie en klimaat/duurzaamheid) en verschuivende geopolitieke verhoudingen. Het is voor Nederland van groot belang om het verdienvermogen te versterken nu en in de toekomst.

Strategisch en duurzaam handelsbeleid
In anticipatie op de geopolitieke en transitie-ontwikkelingen sturen ook buitenlandse staten sterker op hun nationale en internationale beleid. Zo passen staten in toenemende mate assertievere economische diplomatie toe en zetten zij economische machtsinstrumenten in om hun internationale doelen na te jagen. Nederland kan hierin niet achter blijven. De verwevenheid van ons land met de rest van de wereld is groter en kwetsbaarder dan ooit. Als onderdeel van een samenhangend buitenland beleid, zal Nederland zich toeleggen op een strategisch en duurzaam handelsbeleid.

4. Hoe kan de overheid het duurzame verdienvermogen van Nederlandse bedrijven in het buitenland versterken?

Foreign trade
International trade and investment are crucial to prosperity and jobs in the Netherlands. International trade accounts for a third of our national income and is linked to a third of our jobs. But our international competitiveness faces risks posed by the twin transitions (digitalisation/innovation and climate/sustainability) and the shifting geopolitical balance of power. It is therefore vital for the Netherlands to strengthen its earning capacity, both now and in the future.

Strategic and sustainable trade policy
Other states are also anticipating the above-mentioned transitions and geopolitical shifts, and are adjusting their national and international policies accordingly, for instance by pursuing their international objectives through more aggressive economic diplomacy and the use of economic instruments of power. The Netherlands cannot afford to fall behind. Our country’s interconnections with the rest of the world are both greater and more fragile than ever. The Netherlands will therefore focus on strategic and sustainable trade policy as part of its coherent foreign policy.

4. How can the government strengthen Dutch companies’ sustainable earning capacity abroad?
First of all, by recognising that the basis for export success is to be found in domestic policy, at home, not in trade policy. To strengthen Dutch companies’ earning capacity, we will need state-of-the-art industrial policy at home, both in the Netherlands and the European Union. An important part of this is innovation-policy. The introduction of mission-oriented innovation policy by the Ministry of Economic Affairs, focused on important social transitions, is a welcome shift from the very generic approach that used to be dominant. It is unfortunate, however, that the missions are narrowly focused on Dutch challenges. It would be good if additional missions were added with a more global outlook, for instance zooming in on some of the challenges facing LMICs. This, in turn, would strengthen Dutch companies’ earning capacity abroad, and simultaneously leverage the Dutch private sector for achieving the SDGs. MFA should seek active engagement with the Ministry of Economy & Climate on this.

To support this transition it would also be smart to invest in more capacity at embassy level to link, matchmake and identify opportunities while working to improve the enabling environment for Dutch investments in LMICs. Knowledge brokering support at that level can help translate local needs and bridge this to the Dutch offering in partnerships with local businesses, public institutions and other organizations.

Finally, the earning capacity of Dutch companies abroad is boosted most if more countries undergo a process of structural transformation. Thus, the Netherlands should support LMIC governments in strengthening enabling environments and designing and implementing effective industrial policies that support long-term structural transformation.

Vraag5

Thema’s en sectoren van de toekomst
Nu de wereld in transitie is om een goede toekomst voor ons en de generaties na ons te bewerkstelligen verandert de focus van bedrijven, overheid en kennisinstellingen.

5. Op welke thema’s of sectoren ziet u kansen om internationaal te ondernemen?

(EN)
Themes and sectors of the future
The focus of companies, governments and knowledge institutions is changing in light of the global transition to ensure a bright future for current and future generations.

5. In which themes or sectors do you see opportunities for international enterprise?
Thinking about opportunities, it is important to consider what are the major global trends. The fight against climate change is a very important one that will remain top of the agenda all over the world. Therefore, the green energy, circular economy and climate change adaptation sectors will present ample opportunities for international enterprise. In particular, Dutch companies can contribute in the area of digital agriculture, promoting innovative solutions for climate adaptation. Likewise, the Dutch seed sector has a lot to offer in terms of expertise to help make food systems more resilient to climate change impacts.

Another major trend that will continue is digitalisation. Finally, looking specifically at LMICs, population growth remains relatively high, and people increasingly migrate to cities, meaning that urbanisation will be a consistent dynamic, presenting business opportunities in the area of urban infrastructure.

Moreover, the urgent need to bridge local, national and global priorities and investment requires more attention to governance: strengthening enabling environments to manage these transitions. With its expertise in multi-stakeholder collaboration, The Netherlands should capitalize on this expertise/position by promoting creative global-local and multi-sectoral investment in global public goods such as more sustainable value chains.

Vraag6

Samenwerking publiek-privaat en rol Midden en Klein Bedrijf (MKB)
Een succesvolle aanpak op het gebied van internationale handel vraagt samenwerking tussen burgers, bedrijven, maatschappelijke organisaties en de overheid. Het is nuttig om aan te sluiten op de behoeftes van de markt. Waar zijn bedrijven (specifiek het MKB) mee geholpen om de exportkracht en innovatiekracht te vergroten?

6. Hoe kan de overheid het bedrijfsleven (specifiek het MKB) dat internationaal onderneemt (of dat zou willen) beter ondersteunen om zaken te doen in het buitenland?
a. Welke ondersteuning hebben bedrijven nodig om internationaal succesvol te zijn op terreinen van digitale innovatie (innovatiesamenwerking) en verduurzaming?
b. Voor handel met welke landen (of regio’s of markten) zou ondersteuning moeten zijn?
c. Wat zou de overheid op het gebied van handelsbevordering niet meer moeten doen?

(EN)
Public-private cooperation and role of SMEs
A successful approach to international trade requires cooperation between the public, companies, civil society and government. It is also useful to align with market demand. What would help companies, and SMEs in particular, to increase their export performance and innovative capacity?

6. How can the government better support companies (and SMEs specifically), that are doing or wish to do business abroad?
a. What type of support do companies need in order to achieve international success in the areas of digital innovation (innovation partnerships) and sustainability?
b. For what countries, regions or markets should the government provide private sector support?
c. What type of trade promotion activities should the government stop doing?
The context of investing in LMICs is very different from the European context. It is important for Dutch embassies to provide adequate local support to new Dutch companies entering that market and to facilitate mentorship from other Dutch companies with experience of doing business in this country. Brokers that can help connect SMEs with relevant government departments and donor organisations are also important.

Context and time matter. Programmes supporting private sector development should be mindful of historical, social and economic contexts, particularly underlying political economy and power relations and appropriately factor these into their planning and expected results.

It is therefore also important to have tailored approaches for different types of markets. Promoting investment in a low-income-country like Uganda requires a very different type of, more intensive, support than promoting investment in an upper-middle-income country like Malaysia, where support can be more light-touch.

In terms of allocating time and resources, it would make sense to focus on large lower-middle-income countries, like India, Indonesia, Bangladesh and Vietnam in Asia; and Nigeria, Ghana, Cote d’Ivoire, and Egypt, in Africa. In such markets, the Dutch government can help companies through facilitating business- or multistakeholder partnerships with local networks and organizations.

Since it also takes time to establish networks, visibility and good understanding of operating environments the Ministry would do well to build on currently established relationships and sector focus instead of making changes to every four years. For certain countries it may be opportune to collaborate more closely with European partners.

Vraag7

Ontwikkelingssamenwerking
Development cooperation

Nederlandse inzet op Ontwikkelingssamenwerking

Nederland is op verschillende thema’s actief op gebied van ontwikkelingssamenwerking. Zo investeren we in het realiseren van de Sustainable Development Goals (SDG’s) en zetten we extra in op opvang in de regio, toegang tot vaccins, klimaatadaptatie en -mitigatie. Nederland gaat door met wat goed gaat en focust op waar Nederland goed in is, zoals verbinding tussen diplomatie en ontwikkelingssamenwerking. Meer informatie over het ontwikkelingssamenwerkingsbeleid van Nederland is te vinden op www.nlontwikkelingssamenwerking.nl.

7. Waar is Nederland op het gebied van ontwikkelingssamenwerking volgens u goed in? Op welke thema’s zou Nederland een aanjagende rol kunnen vervullen?

(EN)
Dutch development cooperation activities

The Netherlands is actively pursuing a number of policy themes in the area of development cooperation. For example, we're investing in efforts to advance the Sustainable Development Goals (SDGs), reception in the region, access to vaccines, and climate adaptation and mitigation. The Netherlands will continue its efforts in areas where progress is being made and will focus on its strengths, such as linking diplomacy and development. For more information about Dutch development policy, go to www.nlontwikkelingssamenwerking.nl.

7. In your opinion, what are the Netherlands’ strengths when it comes to development cooperation? In which policy themes could the Netherlands play a leading role?
Much of Dutch development cooperation is focused on capacity building, to adapt expertise that is built-up through Dutch investments in the Netherlands and abroad and apply this to development challenges. The current four themes of Dutch development cooperation (food, water, security & rule of law, sexual health) emphasize this and the MoFA should build on this experience in using knowledge for development.

A major strength (also domestically) is linked to multistakeholder-governance models. Taking evidence and knowledge as the underlying basis, such models seek to bring different actors together, understand the different interests, and seek to bring them into alignment. The Netherlands could play a leading role in promoting such approaches, linked to political economy questions, in different thematic areas. This requires investing more in political economy analysis, and in intermediaries, connectors and facilitators. This can be done at various levels: from context-specific initiatives at the country level to efforts at promoting Global Public Goods at the international level.

There is no need for large changes regarding the themes, although there could be a case for shifting relative priorities and resource allocation. Considering the urgency, the Netherlands could put more emphasis on climate change and biodiversity. To strengthen country ownership, there should also be more room for manoeuvre at country-level to pick the most relevant themes where Netherlands can provide value-added.

Another strength of Dutch development cooperation is that it is relatively flexible as compared to other donors. This adaptability should be expanded and built on to ensure that development funding is spent efficiently, based in local priorities and dynamics.

One policy theme where the Netherlands is a world leader is in logistics and related infrastructure. It would be worth exploring opportunities to use this expertise for development cooperation efforts, keeping in mind the large-scale Chinese infrastructure investments in the last decade.

Vraag8

Innoveren op OS

Nederlandse internationale samenwerking is flexibel en kennisintensief, we zijn vernieuwend. Zo ontwikkelt Nederland nieuwe manieren van werken en partnerschappen die daarna door bijv. de Europese Commissie en Wereldbank worden opgepakt of opgeschaald. De Nederlandse internationale samenwerking fungeert dus veelal als een creatieve en kennisintensieve incubator (een broedplaats voor nieuwe ideeën. Nederland is een relatief kleine donor, maar als lidstaat van de EU en via bilaterale hulp kan Nederland de zichtbaarheid van EU-hulp vergroten en additionele relevante kapitaalstromen generen.

8. Op welke manier en op welk vlak kan de Nederlandse ontwikkelingssamenwerking nog meer innoveren?

(EN)
Innovative development cooperation

Dutch international cooperation is flexible and knowledge-intensive. We are also innovative, developing new ways of working and new types of partnership that are subsequently adopted or scaled up by others, like the European Commission and the World Bank. In this respect, Dutch international cooperation is like a creative and knowledge-intensive incubator. We are a relatively small donor, but as an EU member state and through bilateral aid we can make EU aid more visible and generate additional, relevant capital flows.

8. In what other ways and areas could Dutch development cooperation innovate more?

Through more focus on local knowledge. For instance, the Netherlands could invest in local think tanks and knowledge brokers in the partner countries. They can play an essential role both in providing input on individual policies and interventions, but also, and more importantly, in driving systemic change in those countries and facilitating local multistakeholder-governance initiatives. The Power of Voices programme is an innovative way of financing civil society organisations. The Ministry could explore a similar programme for financing think tanks and knowledge brokers in the global South, that can help strengthen the links between research and policy at the country-level.

Vraag9

Een donor met durf

De Nederlandse internationale inzet is gedurfd, omdat we financiële investeringen koppelen aan onze diplomatieke inzet en expertise. We continueren thema’s waar we traditionele meerwaarde hebben: seksuele en reproductieve rechten en gezondheid (SRGR), water, voedselzekerheid en veiligheid & rechtsorde. Daarbij kunnen we nog meer gebruik maken van het diplomatieke gewicht van o.a. de EU. We investeren in systeemverandering om te zorgen dat we de SDG’s in 2030 realiseren. Met systeemverandering bedoelen we dat we de systemen die armoede en ongelijkheid in stand houden aanpakken.

9. Op welke manier/welk vlak kan Nederland als donor nog meer durf te tonen?


(EN)
A bold donor

Dutch international efforts can be characterised as bold, because we link financial investment to diplomatic efforts and expertise. We will continue our work on themes where we have always added value: sexual and reproductive health and rights (SRHR), water, food security, and security and the rule of law. We will also make better use of the diplomatic weight of the EU. To ensure we achieve the SDGs by 2030, we will invest in systemic change, i.e. tackling the structures that maintain poverty and inequality.

9. In what ways or areas could the Netherlands, as a donor, be even bolder?
The Netherlands could be bolder in terms of investing in knowledge partnerships, and in increasing genuine Southern ownership.

In terms of economic development, a bold move would be to link investment promotion with support to LMICs for targeted industrial policies in specific sub-sectors.

Finally, support for the public sector in developing countries has dwindled, for various reasons. It would be bold to rethink this trend, and tinker with new models to re-engage in support to the public sector, centered on the identification of potential pockets of effectiveness in certain countries.

This would go well with a bold move to decentralize Dutch development funding and let more funding flow through embassies instead of the central level. At embassies, synergies between local and Dutch priorities are easier identified, it is easier to bridge thematic focus areas since problem identification and strategy development is done much closer to the context.

Funds to multilateral institutions should be partly reoriented to go into larger multi-donor pooled funds that are distributed to local organizations in order to promote localization of the humanitarian sector. These two moves would coincide with a more flexible approach to result reporting, where results reporting towards central level MoFA would be much more general while embassies can tailor and adapt results agreements in collaboration with partners as context dynamics require.

Vraag10

Afrondende algemene vraag

10. Heeft u nog andere punten van aandacht die u vindt dat meegenomen dienen te worden in de nieuwe beleidsnota?


(EN)
General closing question

10. Are there any other points that you believe should be included in the new policy document?

Dutch development cooperation has become rather fragmented over many different programs and initiatives, which hampers effectiveness and efficiency. Dedicated effort is required to reduce this fragmentation. Strengthening the role of embassies, and increasing the relative share of delegated resources, can also help in this respect. This will allow for more context-specific programming, and at the same time can help reduce fragmentation (because fragmentation is primarily driven by centrally managed multi-country programs). See the article Oppewal (2021) 'Dutch development Cooperation: 2022 and beyond'.