BHOS-beleidsnota
Reactie
| Naam | Wageningen University and IOM’s CD4D ambassador (Dr. ir. Ayalew Kassahun) |
|---|---|
| Plaats | Wageningen |
| Datum | 4 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?
The Netherlands has a rich history of trade and investment in Africa since the 1950s. In order to increase the involvement of Dutch companies, it is essential to look back at the shining examples of the past Dutch impactful contributions and the challenges faced.
Most Africans had their first experience with technology through Philips radio and Philips light bulbs. In Ethiopia, the Dutch HVA (Handelsvereniging Amsterdam) introduced sugar to residents of remote villages and towns. There are many lessons to be learned from the past that can help derive a policy that will increase the involvement of Dutch companies (lessons from successes and challenges).
Digitalization cannot serve as a goal on its own. It should serve a purpose beyond financial returns. We haven't yet used the power of existing digital solutions yet. Regulations and the experience of gathering of data on product quality, product safety, compliance to regulations, and market information is needed.
Probably the best sector to realize twin transitions is the farming business. Wageningen and other universities have trained many of the experts and decision makers in developing world in various fields of agricultural, food, agricultural economics, sustainable development, and many related fields. This could help facilitate the involvement of Dutch companies.
With regard to sustainability, in many developing countries there may not be strict environmental, ecological, and societal sustainability standards. Strive to adhere to Dutch sustainability standards wherever possible. Build good relationships with local communities through genuine contributions to the communities in order to survive political and civil turmoil and other disruptive events.
Promoting Dutch work and management ethics in the developing countries where the investment is made (there is a rich history here). There is a need for transitioning from food security towards nutrient security (see the UN’s Good Food for All call (https://www.un.org/en/food-systems-summit/good-food-for-all). This means people should eat more fruits and vegetables—products in which Dutch producers are expert on. Dutch businesses are best positioned to respond to the calls made during the UN World Food Summit and should use the awareness the summit created.
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?
The focus here seems the Public-Private-Knowledge institution/University (PPU) partnership in the Netherlands. However, achieving the SDGs requires similar partnership in the partner developing countries.
PPUs in the Netherlands need to engage not only the authorities in partner developing countries, but they should also strive to engage local businesses, local public, and local knowledge institutions. This requires boundary spanners (linchpins) that have good exposure in both worlds, and who can facilitate constructive dialogs and identify feasible solutions. There are two potential groups who can do that: the diaspora experts in the Netherlands and local universities in partner countries.
There is a large (increasing) diaspora population in the Netherlands working in private businesses and knowledge institutions (and this contribution is from a member of that community). Local knowledge institutions in developing countries can be a very good contact points too because they are in many cases the only or the best people that have better exposure to European way of thinking and working (because many have studied in abroad).
It is important to give attention to the increasing number African higher education institutions. Africa has over 1100 universities. Nigeria alone has 170 universities spread across the country. Ethiopia has 50 universities and as many specialized research institutes. But often, research done by Dutch universities in certain localities completely bypasses the local universities. This will not help create the desired contact among the PPUs here and PPUs in the developing countries.
Unlike universities in UK and US, it is until now not customary for Dutch universities to have colleges or branches in other developing countries. But some of the Dutch universities such as Wageningen University, Leiden University, and the Erasmus Institute of Social Studies train many African scholars, they have alumni in many countries, and they have a significant focus on Africa in their research. They should consider local branches in major African countries in collaboration with universities in those countries. This will allow create PPUs in partner developing countries that can collaborate with PPUs in the Netherlands.
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?
It is true that the policy for development cooperation of BHOS can be undermined by other policies set by other miniseries and the EU. Policy coherence can be achieved by:
- Focusing on those sectors that are not affected by tariffs. It will for instance have little impact to support cocoa and coffee farmers in Africa if they cannot create more value by exporting (semi-) processed products.
- Recognize technology transfer as a contribution. For instance, investment in cut flower business may have had negative impacts in some aspects but it introduced greenhouse production technologies.
- Focus on local market development, such as dairy, fruit and vegetable products for which there is local demand and local market as well as export potentials. The Corona pandemic has demonstrated that when there is no local market, export disruption becomes a major crisis.
- Focus on carbon trading, such as supporting tree plantation through carbon capture funds.
- Lobby at the EU so that the EU can reconsider current tariff barriers, other trade barriers, and subsidies.
Vraag4
Buitenlandse HandelInternationale 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?
Strategies for sustainable earning requires the capacity to give-up short term benefits for the long-term sustainable relationships. These could include:
- Making a proactive support for the African Continental Free Trade Area (AfCETA) agreement process.
- Recognize the local entrepreneurship capabilities and aspirations. According to the Global Entrepreneurship Monitor (https://www.gemconsortium.org/report/gem-2014-global-report), Africa has by far the highest proportion of people engaged in some entrepreneurial activity. In the long term, a sustainable earning for Dutch businesses can be achieved through a win-win partnership with businesses in developing countries. Particularly, partnership with local investment groups and cooperatives.
- Focus on products and service for which there is market locally in the developing countries as well as in foreign countries. For instance, during Covid pandemics, coffee producers in Ethiopia were far less affected than flower producers.
Vraag5
Thema’s en sectoren van de toekomstNu 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?
Almost all themes and sectors are in high demand in developing countries. Nonetheless, I prioritize sectors from my experience (Agri-Food and Sub-Sahara Africa focused).
- Agriculture: There are shortages of agricultural products in many African countries, and food prices are high enough (purchasing power is big enough even in regional towns). Main products imported by many African countries include wheat, rice, soybeans, cooking oil, and frozen meat. Except frozen meat, the other products are produced elsewhere in the world and provide little opportunity for Dutch businesses. Frozen meat produced in the Netherlands may offer a profitable business opportunity now but will not have future feasibility, in my opinion. Opportunities for international enterprise are the intra-African trade. Currently Africa trades little among itself but with the implementation of AfCETA (which will lower the cost of trade) Africa’s local market will grow and many of its imports will come from within Africa. Products such as seeds, other farm inputs (generic material, additives to feed, etc), and food processing, marketing, and logistics within Africa are promising.
- Food processing: In many African countries, limited processing capacities of dairy, meat and cooking oil offer opportunities for international enterprises. Dutch businesses can use experiences of working with farmers cooperatives in these areas.
- Farm inputs: Feed supply is needed in many countries. In the future farm services (logistics, integrated control of plant and animal disease, digital services) will offer substantial opportunities for international business.
- Vertically integrated agri-food business: Integrated agri-food investment such as food processing + logistics, food processing + farm services, etc. offer plenty of opportunities for now and in the future.
- Health: The quality of healthcare in many African countries is very poor. Public hospitals are poorly funded. Private hospitals/clinics are expensive and have ethical issues. The healthcare sector offers plenty of opportunities for international business. Focus could be given to specific health services. The focus shouldn’t necessarily be on equitable services but on bringing about a step change in ethical practices. The Korean hospital (Myung Sung Christian Medical Center) in Ethiopia is an example.
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?
a. What type of support should be given to companies (and SMEs)?
Provide SMEs information about the markets, the risks (sustainability issues), rules/procedures, and most importantly the sustainable development goals they could help achieve just by doing business.
With respect to digital innovation, the policy must be clear about for whom, why and where the digital innovation is sought for. If digital innovation refers to the innovation that must take place in the Netherlands, it should probably focus on digital innovation in marketing of products in developing countries. That requires information about potential customers, their needs, their spending capacities, and the sustainable development goals the products help to achieve. Businesses partnerships may be needed to build digital platforms for gathering information and for marketing products.
Support for businesses should be tied to sustainability performance. Unsustainable practices bring about risks and thus no support should be provided when businesses engaged in unsustainable practices. The policy must clearly state which sustainable factors are essential.
b. What countries, regions?
The government support should provide support where it will be the most effective. It is probably wrong to select countries beforehand. It is much better to ask “We are we good at, and Where can we effectively use what we are good in?”. E.g.:
- The Dutch are good at working with farmers’ cooperatives. There are small and big businesses that are cooperative businesses or work with cooperatives in the Netherlands. These businesses should be supported to do business where similar arrangements can be made
- In Africa, the AfCETA is coming and will facilitate Intra-African trade. It is therefore better to focus on regions instead of countries. Support SMEs to target and benefit from Inter-Africa trade and at the same time help realize the goals of AfCETA. Bilateral trade among African countries is low and unbalanced. This imbalance will change, and Dutch SMEs could help accelerate that process, making business value for themselves and the peoples of the countries they operate in.
c. Trade promotions the government must stop doing
My advice here is no more trade promotions on export of raw products, and no more trade promotions on “export-only” products.
Vraag7
OntwikkelingssamenwerkingDevelopment 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?
1. Water and sanitation. Almost every Dutch citizen is proud of the Dutch achievements in water management, and Dutch history of water management. It is the area the Prince (now the King) wanted to focus on. I think there is popular support in Water related projects. Many African countries are largely water stressed and the sanitation situation is bad. People are interested to see how Dutch water ingenuity, its water technologies, its engineers changed the world.
2. Agriculture and food. The National Geographic had a headline in 2017 “This tiny country feeds the world” (https://www.nationalgeographic.com/magazine/article/holland-agriculture-sustainable-farming). The Dutch agribusinesses are well known for their expertise. But the world is transitioning, and the transition can be led by technology providers from other countries (hardware and software providers) instead of producers from the Netherlands. Use the advantage that currently exists and play a leading role in the transitions that are taking place.
3. Quality education. In the Netherlands, quality education is provided in public schools. (In fact, private schools not particularly known for their quality superiority). The Dutch public attaches great value to quality education to everyone. In almost all developing world, quality education is a privilege of those who can afford private schools. This is, in my opinion, the third theme where the Netherlands is strong in and can help transform the world.
Vraag8
Innoveren op OSNederlandse 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?
I think working to support the AfCETA initiative in some sectors (e.g. agriculture) can provide the EU a template to scale the Dutch initiative to higher levels.
Vraag9
Een donor met durfDe 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 Dutch investors currently invest in developing countries for export (e.g. cut flowers) or for serving the food-secure markets of capital cities (e.g. with meat, dairy). They can be bold and go beyond these markets and engage the rising regional towns. The Netherlands can be a bold donor in 5 ways in this respect:
1. Recognize that the Dutch were innovative and bold investors in developing countries. They made products for the developing world. Lessons must be learned from the past.
2. Go to regional towns where rising middle class has enough spending capacity but is short on almost every processed product (dairy, meat, etc.) Much of Dutch development cooperation focusses big/foreign markets or completely the opposite of it, which is remote areas. Regional cities/towns of developing countries don’t often attract attention. These cities offer major opportunities, and when they fail, there is major repercussion (in peace and security, migration, sanitation, etc.)
3. Work with local investors. The urban middle class in regional cities is an important group to focus on.
4. Use the diaspora community as a linchpin for realizing sustainable partnership
5. Local universities in regional towns have often a role of promoting investment and development. They can serve as important gateways for development cooperation.
A case of Ethiopia is explained in my blog: https://ayalewkassahun.medium.com/5-tips-to-a-successful-and-sustainable-investment-in-ethiopia-9f0dff1fcf80
Vraag10
Afrondende algemene vraag10. 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?
Over the past several years the Dutch has reached out to millions across the developing world. As a well-organized country, the results are documented and presented at https://www.nlontwikkelingssamenwerking.nl/#/results. However, there are a few issues on the reporting, including:
1. The results are generally organized by year and country, and it is difficult to know the general/integrated impact of development cooperation over last several years. (For instance, what was the impact in the last 5 years?)
2. Only positive results are reported, and the challenges faced are not mentioned. It is therefore difficult to drive lessons from.
For instance, the earlier positive impacts gained in Ethiopia (and probably other countries) were undone by conflicts and other factors (such as the pandemic, and lack of follow-up). Was it possible to have resilient intervention? One of the pillars of the Dutch development cooperation is to help reduce conflict. Did the BHOS learn any lessons from the conflict in Ethiopia and elsewhere? If challenges and failures are not analyzed and discussed openly, the Dutch public could eventually grow, legitimately, skeptical, and development cooperation will become controversial in the future.
It is therefore essential to have brief reporting that clearly indicates the impacts in the past, the challenges faced, and the lessons learned when formulating the policy this time around. The Theory of Change framework (mentioned in current reports at https://www.nlontwikkelingssamenwerking.nl/) could also be a good tool for reporting (with elements of problem description, context, input, activities, outputs, outcomes, impacts, assumptions and risks as part of the report).