BHOS-beleidsnota

Reactie

Naam ECDPM (Senior policy officer ECDPM E. Spierings)
Plaats Maastricht
Datum 15 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?
Embassies of the Netherlands can usefully play a more active role. They need more tailored guidance on how to support companies in translating the twin agenda into practice. Embassies also need to be adequately staffed to be able to support the transition.

Relatedly, the Netherlands can support the creation of platforms that connect companies involved in green/ digital transition in low and middle-income countries, in which Dutch companies can get involved. A good example to build on is the Netherlands Circular Economy Hotspot which provides this kind of service, albeit broader, as it supports countries in setting up circular economy hubs that facilitate networking, such as the Circular Business Platform Lagos launched in October 2021.

See for direct links to these and additional sources the attached document "ECDPM contribution to the Consultation Netherlands' new BHOS policy":

IOB. 2021. Report – Implementation of the aid, trade and investment in 3 partner countries
Ashraf and van Seters. 2021. The role of low- and middle-income countries in the circular economy transition of the Netherlands and the EU (ECDPM Briefing Note 142)
Ashraf and van Seters. 2021. Working with the private sector for sustainable digital transformation (ECDPM Briefing Note 136)

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 Netherlands has a strong track record of supporting multi-stakeholder initiatives for sustainable value chains, for example through the sectoral International Responsible Business Conduct Agreements and the work of the Sustainable Trade Initiative (IDH). This is very valuable, as a single actor cannot address systemic issues alone, and thus worth building on.

This is particularly relevant in the context of legislative initiatives at the EU level to promote responsible business conduct, such as the proposals for a regulation on deforestation-free products, a regulation on batteries and a directive on corporate sustainability due diligence. Clear and effective mandatory requirements are important but are not a silver bullet. ‘Accompanying measures’ such as multi-stakeholder initiatives can play a key role in contributing to the achievement of the objectives of these legislations.

Attention is therefore needed to design, implement and support initiatives involving the public sector, companies, knowledge institutions, but also other civil society actors to effectively play this role. Furthermore, as a frontrunner in this field, the Netherlands can promote this approach actively in the EU context.

An approach to build on is the European Partnership for Responsible Minerals, of which the Netherlands is one of the founders.

When supporting multi-stakeholder partnerships, enhanced attention should be paid to the configuration and management of the partnerships, including allowing more creativity in the design of partnerships, specifying the role of public sector partners (whether it be the Ministry of Foreign Affairs itself, RVO or other public actors), and focusing on empowering local partners who are often considered ‘weak’ actors in partnership arrangements.

See for more details and direct links to these and additional sources the attached document "ECDPM contribution to the Consultation Netherlands' new BHOS policy":

Karkare and van Seters. 2019. A smart mix for responsible business conduct: Due diligence legislation and multi-stakeholder initiatives (ECDPM Briefing Note 108)
KIT. 2017. Review of external evaluations of Dutch Aid and Trade programmes from 2013-2017
van Seters and Ashraf. 2019. Responsibly sourcing minerals from conflict-affected and high-risk areas: Lessons from the European Partnership for Responsible Minerals (ECDPM Briefing Note 109)

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?


A continued commitment to policy coherence for development (PCD) is critical. Policy-makers should also pay attention to the unintended effects of international economic policies on governance in developing countries and to potential synergies with governance support. Doing so is in the long-term interest of the Netherlands and Europe, as they also drive irregular migration and prevent the realisation of sustainable business opportunities.

Besides setting priorities, current challenges also require upgrading approaches to policy coherence. Notably, a whole-of-government approach is needed for the climate crisis and the ecological transition. For example, climate action, food security, water and energy, may provide opportunities for enhancing the impact of PCD.

While food security is not explicitly part of the current PCD action plan, it should be integrated amongst the new priorities, considering the recent rise in staple food prices and the mounting effects of climate change on agricultural and food systems.

Promoting policy coherence in the context of the SDGs is a complex task and the Dutch government has to provide for adequate capacities to undertake it. The government should implement ex ante impact assessments such as the “SDG Check”. The Netherlands also has the opportunity to promote PCD internationally, especially at the EU level, and Dutch diplomacy could play a role in promoting what it sees as PCD priorities by engaging with advanced and emerging economies’ governments.

See for more details and direct links to these and additional sources the attached document "ECDPM contribution to the Consultation Netherlands' new BHOS policy":

Woolfrey. 2021. Can trade policies help promote sustainable forest management? An analysis of the EU-Ghana FLEGT Voluntary Partnership Agreement (ECDPM Discussion Paper 307)
Mackie, Ronceray and Spierings. 2017. Policy coherence and the 2030 Agenda: Building on the PCD experience. (ECDPM Discussion Paper 210).
Medinilla. 2021. An adaptive and context-driven approach to the water, energy and food nexus (ECDPM Briefing Note 135)
Tondel, Ronceray, Mackie and Ashraf. 2019. Implementing policy coherence: A challenge inherent to the 2030 Agenda (ECDPM commentary)

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?
EU trade policy measures are key to strengthening Dutch companies’ sustainable earning capacities, by removing barriers to trade. The Netherlands needs to continue to actively inform EU trade policy measures in the context of the Council of the EU and beyond. This can include striving for strong SME chapters in EU free trade agreements and their effective implementation.

EU trade agreements are widely used by Dutch companies, but their utilisation rate can further increase. Trade and investment promotion tools of the Netherlands can be supportive in this regard, but better use can also be made of European economic diplomacy efforts. Embassies and RVO staff can collaborate more strongly with EU delegations in third countries in this context, for example, to involve Dutch companies in EU trade missions (including circular economy missions, which the EU intends to organise more of, as stated in the European Circular Economy Action Plan) or to feed into EU policy dialogues with third-country governments for a more enabling sustainable business environment. The latter is particularly relevant in light of the IOB evaluation finding that policy dialogues on the business environment merit to be strengthened, but that the Netherlands has little capacity to do this.

The Netherlands seeks to combine the promotion of its economic interests and its values. This can further be strengthened by building greater synergies between development and commercial (non-ODA) activities and finance. This would mean for example between FMO, Invest International and Atradius, together with private financial institutions and pension funds.

See for more details and direct links to these and additional sources the attached document "ECDPM contribution to the Consultation Netherlands' new BHOS policy":

IOB 2022. Policy review article 1 of the budget for Foreign Trade and Development Cooperation (BHOS)
Bilal. 2021. A European Economic Diplomacy in the making.
Große-Puppendahl, Karaki and Bilal. 2016. Investment promotion for sustainable development: The roles of DFIs and export credit agencies (ECDPM Discussion Paper 208)

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?
In the private sector instruments mix, particularly the ODA instruments, attention is needed for private sector support in low and lower-middle-income countries, where risks - and perceived risks - tend to be high. To avoid fragmentation, certain instruments could focus more explicitly on a limited number of countries with specific needs that match the expertise of the Dutch business community, as also noted in the recent IOB partners in development evaluation.

In light of the ambitious climate targets of the government and the European Green Deal, particular focus should be on private sector support for low carbon, resource-efficient and inclusive development pathways. This relates to the selection criteria of instruments, but also the type of support offered. Bilateral instruments can be further adapted, but the Netherlands can also use its leverage to strengthen and use EU instruments in this regard, such as the Enterprise Europe Network that provides international matchmaking and technical assistance to SMEs). Relatedly, the commitment to phase out export support for fossil fuels by the end of 2022 is very welcome, which needs to be put into practice.

More (bilateral and multilateral) support could be directed to specific (sub-) sectors or chains. This can yield more results than support to individual companies without a sectoral or chain approach. For example, the merger of PUM and DECP could take more sectoral approaches in specific countries, which can contribute to more enabling eco-systems for Dutch companies to trade and invest.

See for more details and direct links to these and additional sources the attached document "ECDPM contribution to the Consultation Netherlands' new BHOS policy":

van Seters and Bilal. 2020. The under-tapped potential of trade and investment promotion tools: The Enterprise Europe Network (ECDPM Great Insights magazine, Volume 9, Issue 2)
van Seters, J. and S. Bilal (2019). The Enterprise Europe Network: EU Trade Promotion and Sustainable Trade Policy Objectives, (RESPECT paper)
IOB. 2021. Report — Partners in Development

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?
Responsible business practices: The Netherlands has a strong track record of supporting multi-stakeholder initiatives for sustainable value chains. Most RBC agreements stimulate companies to publicly commit to comply with the RBC guidelines, put in place reporting frameworks, contributing to a harmonised and structured approach on due diligence among participants. The Netherlands also made substantial contributions to both non-regulatory and regulatory IRBC initiatives and used its EU membership to amplify its voice and drive change.

Policy coherence: the Netherlands has experience in setting up and using robust coordination structures to reduce incoherence between national or EU policies and the Netherlands’ objectives.

In the private sector instruments mix, particularly the ODA instruments, attention is needed for private sector support in low and lower-middle-income countries, where risks - and perceived risks - tend to be high. To avoid fragmentation, certain instruments could focus more explicitly on a limited number of countries with specific needs that match the expertise of the Dutch business community, as also noted in the recent IOB partners in development evaluation.

Particular focus should be on private sector support for low carbon, resource-efficient and inclusive development pathways. Bilateral instruments can be further adapted, but the Netherlands can also use its leverage to strengthen and use EU instruments in this regard, such as the Enterprise Europe Network that provides international matchmaking and technical assistance to SMEs). Relatedly, the commitment to phase out export support for fossil fuels by the end of 2022 is very welcome, which needs to be put into practice.

More (bilateral and multilateral) support could be directed to specific (sub-) sectors or chains. This can yield more results than support to individual companies without a sectoral or chain approach.

See for more details and direct links to these and additional sources the attached document "ECDPM contribution to the Consultation Netherlands' new BHOS policy":

van Seters and Bilal. 2020. The under-tapped potential of trade and investment promotion tools: The Enterprise Europe Network (ECDPM Great Insights magazine, Volume 9, Issue 2)
van Seters, J. and S. Bilal (2019). The Enterprise Europe Network: EU Trade Promotion and Sustainable Trade Policy Objectives, (RESPECT paper)

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?

The Netherlands could more consistently seek to pay attention to the political-economic context in which it operates, to better adapt its approaches to that context. Political economy analysis and flexibility to adapt interventions/programmes are important in that regard. A good example to build on is the West Africa Trade Facilitation Programme.

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?
In the reallocation of the Dutch own special drawing rights (SDRs, or equivalents) to Africa and providing leadership in the related SDR processes within the EU and beyond. The G20 Summit of 2021, including the Netherlands, expressed the global ambition to voluntarily reallocate SDRs to the equivalent of $100 billion for countries most in need, but SDR reallocation pledges are not even half of this, with the Netherlands considering so far rechannelling only 3% of its SDRs. The Netherlands could commit more, e.g. 20% reallocation like France, Italy and Spain did, and influence other countries to do so, in particular to channel such resources to African countries suffering the most, in the context of the renewed partnership announced at the recent AU-EU Summit (22 EU member states have not signalled any potential pledge so far).

Moreover, the Netherlands could support this process by promoting African systematic participation in the decisions around how to use these reallocated SDRs (or their equivalents) for the SDGs and by recommending effective channels for reallocation, e.g. use guarantee mechanisms to also be catalytic for additional private investment in African economies.

Technical difficulties may exist to rechannel the SDRs directly to African countries, outside IMF intermediation; but the Netherlands and other EU member states could take advantage of their increased reserves through the new SDRs and opt to provide a range of equivalent solutions to SDRs reallocation, including concessional loans, grants and guarantees, to support African countries more directly. This would be very important to help address financial needs of vulnerable countries, especially with respect to COVID-19 impact. The Netherlands could also play a leadership role in directing this SDR re-channeling to the needs of the countries suffering most from the soaring food prices and looming food crisis due to the Ukraine war.

The Netherlands could also consider a capital increase of FMO. It could also consider a capital increase of the European Investment Bank, in the context of the recent creation of EIB Global.

See for direct links to these and additional sources the attached document "ECDPM contribution to the Consultation Netherlands' new BHOS policy":

Bilal. 2022. EU countries should reallocate a share of their special drawing rights as a strong commitment at the EU-AU Summit (ECDPM commentary)

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?

If you would like to get in touch with our staff members directly, please feel free to do so via
www.ecdpm.org or contact us via info@ecdpm.org.

Bijlage