BHOS-beleidsnota

Reactie

Naam	INCLUDE Knowledge Platform (INCLUDE Knowledge Platform INCLUDE Knowledge Platform INCLUDE Knowledge Platform)
Plaats	Leiden/Den Haag/Nairobi, Kenya
Datum	14 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?

In the twin-transition African youth should be in the lead as Africa’s growing youth population has the potential to be the continent’s greatest source of productivity and innovation. Africa’s youth are potential drivers of agribusiness enterprises as well as rural transformation. this means they are no longer seen as just a recipient of the results of economic growth, but should be positioned in the driver’s seat, initiating and creating that growth themselves (UNDP Africa; UN Economic Commission for Africa, 2015 and https://includeplatform.net/blog/the-world-youngest-continent-is-looking-for-work/).
In Sub-Saharan Africa alone an estimated 230 million jobs will require digital skills within the next decade. While digital skills for youth employment was already a focus of public and private sector policies in past years, the pandemic accelerated the transition into digital jobs, expanding market opportunities of the digital economy. Creating an enabling environment for digitally-enabled jobs and green jobs will be crucial to address the wicked problems of inequality and youth unemployment. An investment in digital literacy and digital skills for youth will be key. Inclusive business- and multi-stakeholder partnerships between the private sector, governments, non-governmental organizations and knowledge institutes, could play a key role in facilitating this.
Low-income communities should be included in value chains and last-mile distribution of products and services. This involves encouraging responsible innovation, ensuring that products and services related to the twin transition of digitalisation and sustainability adhere to the 5 A’s of inclusive innovation: accessibility, availability, affordability, awareness and appropriateness. Partnering with non-market actors such as civil society organizations (CSOs), knowledge institutions and public actors can help develop and embed these innovations in the local market and align their business model with local cultural, social and political realities. For more information on this see the Research for Inclusive Development in Sub-Saharan Africa (RIDSSA) programme that INCLUDE coordinated: https://includeplatform.net/theme/research-for-inclusive-development-in-sub-saharan-africa/

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?

Working together is exchanging knowledge and evidence on what works best between policy makers, knowledge institutions and researchers, and private sector actors. Partnerships should be improved through dialogue and transparency with relevant stakeholders in both African countries and the Netherlands. In most African countries, especially the French-speaking ones, there is still a lot to be done, but it is essential to prioritize and go step by step in order to achieve the Sustainable Development Goals.
To bridge the gap between evidence, knowledge and policy, knowledge institutions should translate their research findings into short, synthesized pieces that can be accessible to governments and private sector actors for their decision-making and policy design and implementation. It is also crucial that knowledge institutions involve governments and the private sector at the early stage of their research design. This can help knowledge institutions to receive feedback from governments and the private sector and be aware of what information they would like to get from the research.
The key is to get everyone involved in a theme or issue to come together and engage in a dialogue. An example of such a mechanism is the African Policy Dialogues, organized by INCLUDE and its partners. These dialogues are set between government, research, and other involved stakeholders in specific policy themes. This way the gap that often exists between policy and evidence is bridged. (for more information on APDs, visit the INCLUDE web page for APDs

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?

Policy coherence should underpin green growth and decent employment for youth. With 12 million youths entering the labor market annually, jobs are scarce, causing the youth to end up working in informal employment, or seeking employment in urban centers or abroad. Trade agreements and investments could match the prospect of this ‘youth bulge’ and include an emphasis on employment provision in urban and rural areas in African countries. This is also mentioned in question 1, above.
‘Industries without smokestacks’ can play major roles, as well as extending forward and backward linkages in (agri-food) value chains, lengthening them within the LMICs’ own borders and improving possibilities for export of finished high-value products. Within these trade agreements and the investment regime, attention should be extended to financial flows to and from African countries, considering the findings of this UNCTAD report.
In addition to working with developing country governments, the Netherlands should also move down to the household and individual levels to see if there is a gap between the priorities of the citizens and the priorities of their governments. It is important to get data about people's needs, priorities, and how they would like to be approached and/or assisted.

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?

Dutch companies operating in African countries need a conducive environment. This environment consists of regulatory, economic, infrastructural and logistic factors. The government of the Netherlands can strengthen these companies’ earning capacity by working closely with other countries’ governments to ease out barriers in these environmental factors. extensive collaboration between businesses and the state is critical, while African governments should not outsource development tasks to Multinational Companies (more on this here).
A meaningful long term operating strategy should include investments that can help developing countries upgrade their positions in the global value chain. This involves carefully designed and locally consulted social investments and conscious job creation with local benefits. Besides that, technological and knowledge transfer is necessary, as well as promoting responsible business practices for sustainability. Doing so, Dutch companies in African countries will have higher earnings in the medium and long terms. For more on this, visit the ‘Dutch multinational businesses in Africa’ page.

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?

Important sectors include agribusiness, the transformation of raw materials to add value, and digitalization. The agricultural sector remains the most important sector to invest in for a food secure future. Not only that, but agriculture also continues to be the main employment sector for many countries, and a first pillar for further development and a rise in welfare and wellbeing of populations.
Besides the above, promoting the green economy is a potential source for green jobs. This means to shift unsustainable practices into more sustainable ones, which opens new opportunities for employment. Industries without smokestacks can play a role in this, including the (digital) services and tourism sector (find out more in this webinar on the green economy) .
Currently, the focus should also be on education and vocational training, infrastructure in the broadest sense (roads, railroads, electricity, internet, and sanitation), digitalization, and agriculture. For most African countries, there is a strong demand for infrastructure development, especially in the areas of electricity, water, road, and agriculture. The African Union is already developing large projects in the framework of the agenda 2063 and Dutch companies could play an important role.
Women face disparate barriers to decent employment, which require interventions that focus on access to finance, childcare services, and engaging with biases in access to jobs in certain sectors (Synthesis paper Young, female and African). Within the international enterprises and their value chains, it is important to consider the roles and positions that are available to women. Women generally occupy the more precarious and low-skilled positions within value chains, involving less capital, assets, lower income and opportunities. You can find more in-depth analysis of agri-industrial value chains of cotton and fish in Uganda.

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?

To better support Dutch SMEs, the Dutch government should get reliable information about the companies’ needs, the problems that Dutch companies abroad are facing, and if possible, also get feedback from companies who failed in doing business abroad and what the reasons are. In this process, the collaboration between knowledge institutions, governments and private sector actors is key, as mentioned in question 2.
a. A good market for digital innovations requires infrastructure, and a population that has the skills and digital literacy to create a demand for such innovations. In many LMIC African countries, export markets in the areas of digital innovation and sustainability exist, but need to be promoted in terms of infrastructure (electricity, network coverage, transport) in LMICs.
b. (And c) The Growth sectors for youth employment programme of INCLUDE has identified key growth sectors in Tunisia, Uganda, Nigeria, Kenya, Egypt, Ethiopia, Senegal and Mozambique. Private sector support should focus away from jobless growth to growth with jobs. The predominant sectors for this growth are agriculture and agribusiness, manufacturing, services, digitalization in the health and education systems, energy, and lastly industry and local processing of raw materials before export. This varies per country. Additionally, efforts are still necessary to boost decent employment for youth in African countries and it is evident that youth themselves should be involved in the decision making processes.

It must be recognized that the conditions are not always met in all countries to do good business but it is important to make a difference by being present in order to accompany these countries towards emergence. For example, the Dutch government would benefit from accompanying the private sector in West African countries, especially French-speaking countries where even a diplomatic representation is not there for some countries.

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?

Evidence-based knowledge is crucial to make development cooperation work in each context. Using evidence-based knowledge in these fields allows the Netherlands to be at the forefront of development cooperation. This means bridging the gap that often exists between evidence and policy-making, mentioned under question 2. In cooperation with other countries, organizations and knowledge institutions, the Netherlands can leverage its strengths (see for example the collaboration between INCLUDE/IDRC/ILO: https://includeplatform.net/ye-webinars/).
Digitalization of various public services, but also the role of digitalization in innovation with private sector actors is an upcoming theme of interest that fits snug into the twin-transition (question 1). Governments and private sector actors, as well as NGOs and CSOs are increasingly looking to digital solutions for contemporary problems. However, this may cause a digital divide to materialize, between those who can access and participate in the digital turn and those who cannot. Can we bend this divide into a digital dividend? These are questions we will continue to grapple with for the future of development cooperation and private sector initiatives. An investment package on digitalization combined with knowledge transfer and capacity building will be key.
Africa’s working-age population is expected to increase by 450 million between now and 2035. Each year, 12 to 15 million people are expected to enter Africa’s workforce. With just 3 million formal jobs created, the job deficit is widening each year. At the same, the continent with a huge amount of fertile land is struggling to feed its people. The Dutch private sector could help and gain from providing sustainable food sovereignty to the continent by investing big in the agriculture sector including the agroindustry. Investing today in agriculture in Africa should not be seen just as a moral move, it is also a strategic business decision. In the short term, investments in irrigation, mechanization, storage facilities, and modern inputs will allow farmers on the continent to grow enough food for themselves and their communities. In the long term, these same farmers will be able to produce and store surpluses and sell them throughout the continent. The establishment of the Africa Continental Free Trade Area would surely make things easier in terms of exchanges between countries on the continent. Overall, this creates an important opportunity for job creation.

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?

COVID-19 has taught the world that resilience to shock and the mitigation of its effects is crucial in times of a pandemic. Inequalities and vulnerabilities that existed were exacerbated, as COVID-19 has been a crisis upon crises. The lessons we learned from the COVID-19 pandemic should be used to improve and focus Dutch development cooperation. These lessons include that socio-economic recovery should be directed at youth, women and vulnerable or excluded groups. Holistic social protection programmes absolutely necessary, not only in terms of tackling vulnerabilities that are exacerbated during or after future shocks, but as general economic sense. And wider use of cash transfers in the various responses to the socio-economic effects of lockdown measures should be considered as a more permanent shock-resilience social protection measure.
The Netherlands could make a difference by partnering in the local processing of certain export products such as cocoa, coffee, cashew nuts, horticulture, etc. The African continent is currently a net importer of food despite having 60% of the world's untapped arable land. The Covid 19 pandemic, as well as the war in Ukraine, show once again the absolute necessity to increase the continent's agricultural productivity (especially in rice, maize, cereals, livestock, dairy, fish, and poultry) in order to ensure food self-sufficiency and even to become a net exporter. In this area, the Netherlands is perfectly placed to make win-win partnerships with the countries of the African continent (also mentioned under question 7).
Bridging the gap between research, policy and practice is a continuous effort that the Netherlands can keep innovating (we mentioned this under question 2 and question 7). Established and dedicated knowledge platforms play a key role in this, and the Netherlands has several thematic Knowledge Platforms that have shown quality as knowledge brokers, synthesizers and producers. Coordination and sharing knowledge and lessons learned between and within programmes of Dutch development cooperation can continue to help prevent the reinvention of the wheel.

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?

While African countries experienced growth in the past decade, a large number of people are still excluded from the benefits of this progress. The Netherlands can be even bolder in promoting Inclusive development that aims to reduce poverty, both in income and non-income dimensions, and inequality, through improved redistribution. This includes an effort in six policy domains: economic growth, productive employment, social protection, basic services, spatial equity, and inclusive governance. Moving beyond pro-poor and pro-growth approaches toward more inclusive approaches with more inclusive outcomes requires continued and comprehensive consideration of Equality, Diversity, and Context in all policies of the Netherlands as a donor.
Social protection in a redistributive manner tackles some of the inherent inequalities in the economic systems. The Netherlands could show more leadership in actively promoting social protection. Social protection is not charity, it is a right. Furthermore, it is good for the economy; it is investing in the people and it makes populations more productive, more entrepreneurial and more shock-resilient. During the onset of the COVID-19 pandemic in 2020, many governments and humanitarian organizations scaled up their efforts in direct cash transfers. In INCLUDE’s conference of June 2021 this was also highlighted.

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?

To the Dutch government, Development Finance Institutions’ (DFI) investment flows will be a good policy to encourage. ACET for Africa and ONE has recently published the report ‘Shifting and Accelerating DFI investments for more decent jobs in Africa’ with specific recommendations to donor countries to encourage DFIs to take more risks in Africa- poor countries and critical sectors- and for them to be more accountable for the impact of the investment on decent Jobs in Africa.

Bijlage