The Netherlands Donor Profile

THE NETHERLANDS Donor Profile

FUNDING TRENDS STRATEGIC PRIORITIES KEY OPPORTUNITIES

Increased costs for hosting refu- The Netherlands has four General elections held in March gees contributed to ODA thematic priorities for ODA, and 2017 may change the strategic reaching 0.75% of GNI in 2015, focuses geographically on direction of development policy, but ODA is projected to fall sub-Saharan Africa and with most political parties below the 0.7% target from 2017. least-developed countries. calling for increased or stabilized ODA.

Yemen is a priority country for the Netherlands, and one with which it has a long-term development relationship; since 2015, Dutch bilateral cooperation has focused heavily on humanitarian assistance within the country.

THE NETHERLANDS at a glance

Funding trends

•• The Netherlands spent US$5.7 billion on net official development assistance (ODA) in 2015, making it the 7th-largest donor country (in 2015 prices). This corresponded to 0.75% of its gross national income (GNI), after ODA had stayed below the United Nations’ 0.7% target for two consecutive years previously.

•• The ODA rise in 2015 was mainly due to increased costs for hosting refugees in the Netherlands, which are partly reported as ODA. These costs accounted for 23% of Dutch ODA in 2015, and constrained funding available for development programs.

•• The Dutch government has sharply cut ODA since 2010 as part of its auster- ity measures. The government announced that it would cut ODA by €750 million below the 0.7% of GNI target for the 2014-2016 period, and keep ODA structurally €1 billion below the 0.7% target from 2017 onwards. How- ever, these plans may be revised once a new coalition government is formed.

Strategic priorities

•• The Netherlands focuses its ODA on four thematic priorities: 1) security and the rule of law, 2) water, 3) food security, and 4) sexual and reproductive health and rights (including HIV/AIDS). Other focus areas include climate protection, humanitarian aid, private sector development, women’s rights, and gender equality.

•• Geographically, Dutch development assistance is concentrated on sub-Sa- haran Africa and low-income countries.

Key opportunities

•• On March 15, 2017, the Netherlands held general elections. The ongoing coalition talks provide an opportunity to advocate for increased funding for development, and shape the strategic direction of Dutch development policy.

•• All political parties have called for an increased development budget in their election manifestos, except for the winning conservative VVD party and the far-right PVV, which came in second place in the election. Howev- er, the VVD stated that it will not govern with the populist PVV. The VVD will need at least three other parties to form a majority, which presents opportunities to generate more resources for development programs, particularly for Dutch thematic priorities.

2 An initiative by SEEK Development March 2017 The Netherlands Donor Profile

KEY QUESTIONS the big six

How much ODA does the Netherlands provide?

ODA was inflated in 2015 due to increased costs for The Netherlands takes the costs incurred to host refu- hosting refugees gees in their first twelve months in the country from the ODA budget. This has reduced the funding available for In 2015, the Netherlands was the 7th-largest donor coun- ‘regular’ development programs, especially since por- try among members of the OECD’s Development Assis- tions of the funding to cover these costs in 2016 and 2017 tance Committee (DAC), spending US$5.7 billion on net have been frontloaded and will be financed from ODA ODA (in 2015 prices; US$6.8 billion in 2014 prices).1 budgets for the period 2016 to 2020. The ODA-reportable costs for hosting refugees peaked at €1.2 billion in 2015. Dutch ODA stood at 0.75% of gross national income (GNI) In 2016, €713 million was budgeted to host refugees. in 2015 (5th among DAC countries), after staying below However, the number of arriving refugees and thus costs the 0.7% target (to which the Netherlands has commit- were lower than expected, which has resulted in a reallo- ted) for the previous two years. However, this increase is cation of €460 million to the development assistance mainly due to the costs associated with hosting refugees budgets for 2016 and 2017. On top of this, another €48 in the Netherlands, which accounted for 23% (€1.2 billion million that had previously been budgeted to cover costs or US$1.6 billion) of Dutch ODA in 2015. When excluding associated with hosting refugees has also been reallocat- these costs, net ODA actually decreased to 0.58% of GNI ed to the Emergency Relief Fund, which supports victims in 2015. This real decline is in line with the government’s of conflict and natural disasters and runs from 2014 to decision in 2012 to maintain ODA spending at €750 mil- 2017. For 2017, costs for hosting refugees are budgeted at lion below the 0.7% target for 2014 to 2016, and at €1 bil- €900 million. The Labor Party (PvdA), the Green Party lion from 2017 onwards. These plans may be revised (GroenLinks), and the Reformed Party (SGP) all call for when a new coalition government is formed following the ‘pure’ ODA, which neither includes refugee costs in- general elections that were held on March 15, 2017. country nor climate financing. The Christian Democratic Party (CU) would like to cap refugee costs at a maximum of €250 million of ODA.

3 An initiative by SEEK Development March 2017 The Netherlands Donor Profile

What are the Netherlands’ strategic priorities for development?

Focus is on four thematic priorities on the interlinkages between these priority themes in its policies and programs. These priorities are based on the The objectives and priorities of Dutch development poli- ‘added value’ and expertise of the Netherlands, and large cy are outlined in the strategy paper: ‘A World to Gain: A thematic shifts are thus not expected after the elections, New Agenda for Aid, Trade and Investment’ (released in though changes in focus within the thematic areas are 2013). The Netherlands focuses its development assis- possible. tance on four thematic priorities: 1) security and the rule of law, 2) water, 3) food security, and 4) sexual and repro- Since late 2012, the government has refocused develop- ductive health and rights (SRHR, including HIV/AIDS). ment assistance with the aim of increasing alignment Other priorities include climate protection, humanitari- between development cooperation and foreign trade and an aid, private sector development, women’s rights, and has involved the private sector more strongly in develop- gender equality. The Netherlands puts a strong emphasis ment programs. Furthermore, the Dutch government has

4 An initiative by SEEK Development March 2017 The Netherlands Donor Profile reduced funding to cross-cutting themes, such as good provision of services and goods) and strategic partner- governance and education, to multilateral organizations ships. working on issues that are not Dutch thematic priorities for ODA, and to funding for CSOs. The Netherlands has stepped up its support for humanitarian aid and is a strong advocate for this at both the United Nations (UN) and European Union (EU) level. The The Netherlands’ key development priorities: country allocated 11% of bilateral ODA to humanitarian aid in 2015. Between 2014 and 2015, the humanitarian aid •• Sexual and reproductive health and rights (includ- budget grew by 88%. This increase was driven by the cre- ing HIV/AIDS) ation of the Emergency Relief Fund (€570 million for 2014 to 2017) to support victims of conflict and natural •• Security and the rule of law disasters. This financing comes on top of the humanitarian aid budget line. The Netherlands pledged €125 mil- •• Water lion at the Syria Conference for 2016, of which €75 million was earmarked for emergency aid and €50 million for •• Food security stimulating education and employment for refugees. Af- ter 2017, spending on humanitarian aid is projected to slightly decrease, as the Emergency Relief Fund will come to an end. Increased funding for humanitarian aid and refugees; decreased funding for CSOs Global health, and particularly SRHR, is another priority. Health accounted for 6% of Dutch bilateral ODA in 2015. According to OECD data, the Netherlands channeled However, total ODA to health is much higher as the Neth- more than two-thirds (73%, or US$5.1 billion) of its total erlands channels more than half (52% in 2015) of health ODA bilaterally in 2015. However, nearly one- third (31% ODA as multilateral ODA. This brings total health ODA to or US$1.6 billion) of this was used to cover the costs of US$591 million in 2015, or 9% of Dutch ODA, which is on hosting refugees in-country, making it by far the largest par with the OECD’s Development Assistance Committee expenditure area of Dutch bilateral ODA. (DAC) average. The Dutch government has recently reaf- firmed its leadership on SRHR by launching the global The second-largest share of bilateral ODA was allocated initiative ‘She Decides’ to support family planning and to ‘government and civil society’ (17%). However, since civil society organizations in response to the decision by the end of 2015, funding for CSOs has been sharply cut the new United States (US) administration to cut funding and replaced by the funding scheme “Dialogue and Dis- to organizations that support access to or provide infor- sent. Strategic partnerships for lobby and advocacy” mation about safe abortion. (See question six: ‘How is (2016-2020, with a maximum of €185 million per year. Dutch ODA spent?’ for more details.) For further informa- This puts an emphasis on advocacy work (as opposed to tion on global health, see “Deep Dive: Global Health”.

5 An initiative by SEEK Development March 2017 The Netherlands Donor Profile

Who are the main actors in Dutch development cooperation?

Minister for Foreign Trade and Development Coop- eration leads; no implementation agency

Prime Minister Mark Rutte (People’s Party for Freedom and Democracy, VVD) led a coalition government with the Labor Party (PvdA) until the elections in March 2017. As the VVD won the most seats in the general election, it is likely that Rutte will continue to serve as Prime Minis- ter of the new government. The Ministry of Foreign Af- fairs (MFA) defines priorities for Dutch development policy. Up until the elections, the MFA was headed by Bert Koenders (PvdA). The Minister for Foreign Trade and De- velopment Cooperation (MFTDC), Lilianne Ploumen (PvdA), who is part of the MFA, leads the MFA’s work on development cooperation.

Within the MFA, the Directorate-General for Internation- al Cooperation (DGIS) is responsible for designing and coordinating the implementation of development policy. Unlike many other donor countries, the Netherlands does not have an implementing agency. The Dutch embassies are in charge of strategic planning and the administration of bilateral programs.

The role of Parliament is to scrutinize development policy and budget allocations. Parliament can annually amend the government’s draft budget bill. Parliamenta- ry debates in November/December can lead to significant changes to the ODA budget.

Dutch civil society organizations (CSO) play an active role in Dutch development cooperation. The development CSO umbrella association is Partos, representing over 100 such organizations. They lobby the Parliament and the MFA. Many CSOs implement their own programs in developing countries, and are funded by the Dutch government and through private donations. In 2015, 25% of the country’s bilateral ODA was channeled through CSOs. However, since the end of 2015, program funding for CSOs has been sharply cut and a larger focus has been placed on strategic partnerships and advocacy.

6 An initiative by SEEK Development March 2017 The Netherlands Donor Profile

THE NETHERLANDS' DEVELOPMENT COOPERATION SYSTEM

7 An initiative by SEEK Development March 2017 The Netherlands Donor Profile

How is the Dutch ODA budget structured?

The Minister for Foreign Trade and Development Co- Overview: the Netherlands' 2017 millions millions operation manages more than half of total ODA draft ODA budget € US$ Foreign Trade and Development 2,140,094 2,838,321 The 2017 draft ODA budget, presented in September 2016, Cooperation stands at €4 billion (US$5.3 billion). It foresees that the Sustainable trade and investment 398,274 528,215 Minister for Foreign Trade and Development Coopera- Sustainable development, food 658,697 873,603 tion, who is part of the Ministry of Foreign Affairs, will security and water manage the largest share of ODA (53%), followed by the Food security, of which: 1,254 2,065 Minister of Foreign Affairs (14%). Grants 171,899 227,983 Contributions to (international) The Foreign Trade and Development Cooperation budget 175,896 233,284 organizations is organized around thematic areas (see table below). The Water management, drinking water, 195,210 258,899 envelopes for these thematic areas are usually split fur- and sanitation ther into funding lines for bilateral country programs, Natural resources, climate change 115,692 153,438 grants and contributions to multilaterals, and other organizations working in that thematic area. Social progress 725,913 962,749 SRHR, incl. HIV/AIDS 415,173 550,627 Bilateral country programs 83,974 111,317

Grants(including GAVI, PDP's) 168,793 223,863

International organizations (including 163,896 217,369 Global Fund, UNFPA, UNAIDS) Women's rights 53,989 71,603 Other (Mainly CSO support) 256,751 340,519 Peace and security 468,089 620,808 Strengthend frameworks for develop- -110,879 -147,054 ment Multilateral organizations 135,120 179,204 (UN agencies) Other -245,999 -326,259 Foreign Affairs 558,190 740,305 Ministry of Finance 18,964 25.151 (funding for development banks) Multilateral development banks 18,964 25,151 Other ministries 58,535 77,633 Other ODA expenses 1,229,718 1,630,926 EU budget 329,867 437,489 Refugee costs 899,851 1,193,436 Total ODA (gross) 4,005,50 5,312,336

Source: HGIS nota 2017

8 An initiative by SEEK Development March 2017 The Netherlands Donor Profile

What are important decision-making opportunities in the Dutch annual budget process?

Ministerial budget ceilings are set in April/May; allo- •• Cabinet decides on ministerial budgets: In August, cation decisions are made between May and July the cabinet decides on ministerial budgets for the following budget year. ODA allocations can be influenced •• Ministries develop initial budget proposal: From at this time. Important decision-makers are the Minis- February to March, the ministries, including the Min- ter for Foreign Trade and Development Cooperation, istry of Foreign Affairs, develop their initial budget the Minister of Foreign Affairs, and the Minister of Fi- proposals for the coming year and decide on spending nance. increases or decreases for the main policy areas (e.g., food security). The Minister for Foreign Trade and De- •• Draft budget presented to Parliament: In Septem- velopment Cooperation and the Minister of Foreign ber, the government presents its budget bill to the Par- Affairs are the main decision-makers during this pro- liament. The ODA budget is debated and amended by cess, and the thematic departments of the Directo- the Committee on Foreign Trade and Development rate-General for International Cooperation (DGIS) are Cooperation of the House of Representatives. also important stakeholders as they are responsible for designing and coordinating the implementation of •• Parliament debates and approves budget: Parlia- Dutch development policy. mentary debates in November/December can lead to significant changes to the draft budget. In 2015, for ex- •• Ministries update their current budgets: During ample, Parliament amended the budget in order to in- the spring, ministers update the budgets of the cur- crease the Dutch contribution to Gavi, the Vaccine Al- rent year to reflect any changes that have occurred liance, by €50 million. since the draft budget was presented in the previous fall. This is known as the ‘spring budget’. While the Unless a government coalition is formed very quickly, it Parliament has the right to amend the budget, chang- is unlikely that the March 15, 2017 elections result in large es are rarely made. The ‘spring budget’ is published on changes in budget volumes, as the ministries are already 1 June at the latest every year. far into the budget development process.

9 An initiative by SEEK Development March 2017 The Netherlands Donor Profile

How is Dutch ODA spent?

All ODA is delivered as grants; role of CSOs in imple- Who are the Netherlands’ ODA recipients? mentation is decreasing; stronger focus on private sector Dutch ODA has a strong focus on low-income countries and targets sub-Saharan Africa The Netherlands channels more than two-thirds of its ODA bilaterally (73% in 2015). Core contributions to mul- The Netherlands places a priority on sub-Saharan Africa. tilateral organizations made up 27% of ODA in 2015. The Sub-Saharan Africa received 18% of the Netherlands’ bi- largest recipients were the EU institutions (US$648 mil- lateral ODA between 2013 and 2015, which is below the lion), the World Bank (US$471 million), UN agencies OECD Development Assistance Committee (DAC) aver- (US$435 million), regional development banks (US$152 age of 25%. However, 70% of bilateral ODA is not allocat- million), and the Global Fund to Fight AIDS, Tuberculo- ed to specific countries (this mainly includes funding for sis and Malaria (US$70 million). In addition to these core CSOs, earmarked funding for multilaterals, and costs for contributions, the Netherlands channeled 11% of its ODA hosting refugees). When excluding these funds, there- through multilaterals in the form of funding earmarked fore, sub-Saharan Africa accounted for 60% of bilateral for specific thematic priorities or regions (this is reported ODA between 2013 and 2015. to the OECD as bilateral ODA). Thus, in total, 38% of Dutch ODA in 2015 was implemented by multilateral or- Dutch development policy focuses on the poorest coun- ganizations (see figure). tries. When only considering funding that is allocated to specific countries, more than two-thirds (70%) of bilater- All of the Netherlands’ bilateral ODA is allocated as al ODA between 2013 and 2015 went to low-income coun- grants (as opposed to loans). There is no Dutch imple- tries (LICs) (15% if total bilateral ODA is considered). Sev- mentation agency. Instead, Dutch embassies are respon- en of the top 10 recipients of Dutch bilateral ODA and 11 of sible for implementing bilateral programs with partner the Netherlands’ current 15 partner countries are LICs. countries. Civil society organizations (CSOs) play an im- The Netherlands selects its partner countries based on portant role in implementation, channeling 17% of bilat- poverty level, their potential for alignment with Dutch eral ODA in 2015. However, at the end of 2015, the largest thematic priorities – where the Netherlands’ expertise is CSO funding system (€1.9 billion for 2011 to 2015) came to of greatest value – the potential for regional interven- an end, with cuts mainly affecting direct program imple- tions (countries in a region where the Netherlands is al- mentation funding. The government established a new ready present), and where root causes of displacement funding scheme “Dialogue and Dissent. Strategic part- can be tackled. Since 2011, the Netherlands has reduced nerships for lobby and advocacy” (2016-2020, with a the number of its partner countries from 33 to 15. Dutch maximum of €185 million per year), which puts an em- priority countries are divided into two categories: phasis on advocacy work (as opposed to provision of services and goods) and strategic partnerships between 25 •• Fragile countries with which the Netherlands main- CSOs and the Minister of Foreign Trade and Develop- tains ‘aid relationships’ (Afghanistan, Burundi, Mali, ment Cooperation. Between 2018 and 2020, €3 million a the Palestinian Territories, Rwanda, South Sudan, and year will become available for extra support to CSOs that Yemen), and work on service integration and education related to sexual and reproductive health and rights (SRHR) and HIV/ •• Countries with which the Netherlands maintains AIDS. ‘transitional relationships’ (Bangladesh, Benin, Ethio- pia, Ghana, Indonesia, Kenya, Mozambique, and Private sector development is an important focus area for Uganda) to foster economic growth. the Netherlands. The Dutch Growth Fund (DGGF) has a €300 million budget for 2017 (double the €150 million The exception to this categorization is Syria, which is not available for 2015 and 2016) and provides customized fi- designated as a priority country, yet is still a top recipient nance to micro-, small-, and medium-sized enterprises of Dutch ODA due to increased humanitarian aid to ad- from the Netherlands, emerging markets, and develop- dress the conflict and support those affected. As of 2020, ing countries. The government uses this fund as a tool to Dutch middle-income partner countries Kenya, Ghana, promote investments in trade with emerging markets and Indonesia will cease to be. The relationship between and developing countries. Public-private partnerships the Netherlands and these countries will continue, how- also play a major role in implementing Dutch develop- ever, and will be focused on trade, investments, and po- ment cooperation policy. These partnerships are be- litical collaboration. As the Netherlands will continue to tween the government, the private sector, research insti- have 15 partner countries, new partnerships will be es- tutions, and CSOs; they and are referred to as the “Dutch tablished with three least-developed countries (LDCs) in Diamond Approach”. the Sahel in Africa. The Netherlands’ partnership with Rwanda will change from an aid relationship to a transitional relationship in 2020.

10 An initiative by SEEK Development March 2017 The Netherlands Donor Profile

How is bilateral funding programmed?

Embassies are key players in strategy development and program implementation

The Ministry of Foreign Affairs (MFA) develops Mul- ti-Annual Strategic Plans (MJSPs) for all partner countries. MJSPs cover a period of four years, although inter- im adjustments are possible. Current MJSPs run from 2014 to 2017. Strategic plans are based on a combination of Dutch development priorities, development priorities of the partner country, and the potential for Dutch investment returns. In close consultation with relevant thematic departments at the MFA, Dutch embassies es- tablish programs.

11 An initiative by SEEK Development March 2017 The Netherlands Donor Profile

12 An initiative by SEEK Development March 2017 The Netherlands Donor Profile

THE NETHERLANDS outlook

How will the Netherlands’ ODA develop?

•• The Netherlands has implemented massive ODA budget cuts since 2012. The government agreed to cut ODA by €1 billion below the 0.7% of GNI target from 2017 onwards. However, the March 2017 elections might change this trajectory, as the majority of parties have called for increases in ODA in their election manifestos.

•• Costs for hosting refugees in the Netherlands will continue to constrain the funding that is available for ‘regular’ development programs in the coming years, as parts of the funding to cover these costs in 2016 and 2017 have been frontloaded and will be financed from future ODA budgets until 2020.

What will the Netherlands’ ODA focus on?

•• Dutch ODA currently focuses on four thematic priorities: 1) security and the rule of law, 2) water, 3) food security, and 4) sexual reproductive health and rights (including HIV/AIDS). These priorities are expected to largely remain in place after the March 2017 elections, though there might be changes in focus within them.

•• Strengthening private sector development, public-private partnerships, and, more generally, linking development cooperation with Dutch foreign trade interests are also likely to remain a focus for the Netherlands.

What are key opportunities for shaping the Netherlands’ development policy?

•• On March 15, 2017, the Netherlands held general elections. The current post-election and coalition-building talks provide an opportunity to advocate for increased development budgets as well as to shape Dutch development policy and its thematic priorities for the coming years.

•• All political parties have called for an increased or stabilized development budget in their election manifestos, except for the two parties with the most votes: the conservative VVD and far-right PVV. However, the VVD has stated that it will not govern with the PVV, and will need at least three other parties to form a majority. The new coalition government will thus present opportunities to generate more resources for development programs, particularly for thematic priority areas.

13 An initiative by SEEK Development March 2017 The Netherlands Donor Profile

DEEP DIVES topics

The Netherlands’ global health ODA

Health is a key thematic area of Dutch development policy Largest recipients of bilateral health funding The Netherlands’ ODA to global health stood at US$592 million in 2015 or 8.5% of its total ODA (Donor Assistance •• Bangladesh committee (DAC) average: 9%), making it the elev- •• Benin enth-largest DAC donor to global health. The sexual and •• Burundi reproductive health and rights (SRHR) budget line (which •• Ethiopia also includes all other ‘general’ global health spending, •• Uganda such as funding to WHO), is projected to stand at €415 •• Ghana million (US$550 million) in 2017, and to remain stable in •• Mali the coming years. •• Mozambique •• Yemen Over half (52%, or US$307 million) of total Dutch health ODA in 2015 was channeled as multilateral ODA, slightly below the DAC average of 55%. Key commitments to en Dutch CSOs. In response to the planned cuts in US health included pledges to Gavi, the Vaccine Alliance funding to CSOs that support access to or provide infor- (Gavi) (€250 million, or US$300 million) for 2016-2020. mation about safe abortion, the Minister for Foreign This included €180 million in direct contributions and Trade and Development Cooperation, Lilianne Ploumen, €10 million for the Gavi Matching Fund (GMF), a pub- launched the global initiative ‘She Decides’ in January lic-private funding mechanism that aims to incentivize 2017 to support organizations that focus on SRHR and private sector investments in immunization. €60 million family planning. At the ‘She Decides’ ministerial confer- was also provided through the International Finance Fa- ence in March 2017 in Brussels, governments, private cility for Immunization (IFFIm), a long-term financing foundations, and individuals pledged a total of €181 mil- entity that makes immediate funding available to Gavi lion (US$240 million), including €10 million (US$13 mil- for immunization programs by issuing ‘vaccine bonds’ in lion) from the Netherlands. In addition, the €3 million a the capital market. In addition, US$8 million was carried year that has become available as a result of the reduc- over from a previous IFFIm pledge, bringing the total tion in Global Fund funding (see above) will go to support Gavi pledge from the Netherlands for 2016-2020 to CSOs working on service integration and education relat- US$308 million. The Global Fund to fight AIDS, Tubercu- ed to SRHR and HIV/AIDS. losis and Malaria (Global Fund) was also a main recipient of Dutch multilateral ODA for health, with a €156 million The Health and AIDS Division is responsible for de- or US$195 million contribution for 2017 to 19. Yearly con- velopment policy on health tributions to the Global Fund have been lowered by €3 million a year, in favor of supporting civil society organi- Within the Ministry of Foreign Affairs, the Directo- zations (CSOs) working in the fields of SRHR and HIV/ rate-General for International Cooperation (DGIS) is re- AIDS. sponsible for designing and coordinating the implementation of Dutch development policy. Within DGIS, the Bilateral health ODA stood at US$285 million in 2015, ac- “Social Development Department” (DSO) develops poli- counting for 6% of total Dutch bilateral ODA (just under cies and strategies related to health, education, gender, the DAC average of 7%). Reflecting the Dutch policy focus civil society, and research. Within DSO, the health and on SRHR, bilateral health funding also focuses on repro- AIDS division (DSO/GA) is responsible for the policy on ductive health care (51% of bilateral health ODA, or SRHR, including health systems and HIV/AIDS. US$145 million in 2015).

The Netherlands strongly supports CSOs active in the field of SRHR. Funding for SRHR for 2016 to 2020 will most prominently continue under the ‘SRHR Partner- ship Fund’ (€215 million, or US$285 million; a total of €43 million, or US$57 million annually). This Fund is a partnership between the Ministry of Foreign Affairs and sev-

14 An initiative by SEEK Development March 2017 The Netherlands Donor Profile

15 An initiative by SEEK Development March 2017 The Netherlands Donor Profile

DEEP DIVES topics

The Netherlands’ global health R&D

Global health R&D is largely directed towards prod- (TB Alliance, IAVI, DNDi, MMV, IPM, and FIND) have uct development partnerships, vaccine R&D is a fo- been selected to receive funding from PDP III. cus In addition, the Life Science & Health for Development In 2015, the Netherlands provided US$4.9 million for re- Fund (LS&H4D) funds the development of innovative search and development (R&D) on poverty-related and health technologies that provide solutions to poverty-re- neglected diseases (PRNDs), referred to as ‘global R&D’ in lated diseases and SRHR, with a total budget of €2.7 mil- this profile.2 This makes the Netherlands a small donor lion (US$3.6 million) for 2014 to 2016. to global health R&D; the country spends 0.000016% of GDP on global health R&D. Reported financing by the MFA sets strategy; Netherlands Enterprise agency Netherlands to global health R&D overall has been de- manages funds related to global health R&D clining since 2007. The total funding levels in 2015 were 16% of those in 2007. According to G-Finder data, the Dutch Ministry of For- eign Affairs (MFA), specifically the Directorate-General In 2015, Dutch global health R&D focused on HIV/AIDS of Development Cooperation (DGIS), is the largest funder (US$1.9 million, or 39% of its total funding), helminths of global health R&D, channeling 84% of total health (worms & flukes; US$0.9 million, 17%), tuberculosis R&D in 2015. The remaining 16% of global health R&D (US$0.8 million, 16%), and kinetoplastids (US$0.8 mil- funding is channeled through the Dutch Organization lion, 16%). The majority (84%) of funding (US$4 million) for Scientific Research (NOW). Within DGIS, the Social was directed towards product development partnerships Development Department (DSO) develops policies relat- (PDPs), while the remaining 16% went to academic and ed to global health. Within DSO, the Health and AIDS Di- other research institutions. Almost half of all funding vision (DSO/GA) is responsible for the PDP funds. DSO/ (US$2.2 million) was directed towards vaccine research. GA reviews proposals together with the Netherlands En- terprise Agency (RVO). The MFA commissioned RVO, The Netherlands focuses its support to global health R&D which is part of the Ministry of Economic Affairs, to on PDPs, as they contribute to the country’s policies on manage the PDP III and LS&H4D funds on its behalf. sexual and reproductive health and rights (SRHR), as well as the development agenda ‘from aid to trade’, and the ‘roadmap neglected diseases’. This roadmap is part of the ‘Topsector Life Sciences & Health’, one of nine ‘Top- sectors’ identified by the government in which the Dutch private sector and research centers aim to excel interna- tionally. By 2025, the Dutch government wants the Dutch private sector working in life sciences and health to spend more than 10% of its revenue on R&D. ‘Solutions to neglected and poverty-related diseases’ is one of the ten roadmaps within the ‘Topsector Life Sciences and Health’.

Currently the Netherlands channels its global health R&D through the PDP III Fund. PDP I and II had total budgets of €150 million or US$200 million between 2006 and 2014. The PDP III fund has a total budget of €86 million (US$114 million) for 2016 to 2020. The Netherlands aims to contribute to innovation in the areas of health care products and technologies specifically targeting diseases and conditions related to poverty and SRHR. The fund focuses on the development and availability of af- fordable and effective medicines, vaccines, diagnostics, and innovative products for neglected diseases, with the aim to combat poverty and inequality. Six organizations

16 An initiative by SEEK Development March 2017 The Netherlands Donor Profile

DEEP DIVES topics

The Netherlands’ agriculture ODA

Agriculture is not a funding priority for the Nether- adolescent girls; building resilience against food shortag- lands, but is incorporated into different sectors es and undernutrition; bilateral cooperation, including through the private sector and public private partner- Agriculture and rural development are not among the ships; reducing food losses and food waste; sustainable four thematic priorities of Dutch development assis- food production systems; sustainable stock farming; cli- tance. Within policy making, agriculture is not seen as a mate-smart agriculture; and sustainable climate-smart single component, but rather as one intertwined with investments in all parts of the food chain together with food security, water management, and climate protec- the private sectors, research institutes, civil society or- tion. According to OECD data, ODA to agriculture and ganizations (CSOs), and governments. Additionally, the rural development decreased to US$390 million in 2015 Netherlands contributes to the improvement of essential (6% of total ODA; DAC average 7%) after doubling from enabling conditions such as land tenure security, knowl- US$222 million to US$453 million between 2010 and edge transfer and infrastructure, and institutional ca- 2013. pacities.

In 2015, the Netherlands provided US$157 million of its The Dutch government aims to intensify the cooperation funding to agriculture and rural development as multi- between high-tech corporations and CSOs to combat lateral ODA. This corresponds to 40% of total ODA to ag- food scarcity in developing countries. It created the pro- riculture. These multilateral contributions were mainly gram Geodata for Agriculture and Water (G4AW), in in the form of assessed contributions to the International which the private sector and CSOs work together to im- Development Association (IDA) of the World Bank, EU in- prove sustainable food production and security and to stitutions, and funding to the International Fund for Ag- fight the consequences of climate change by using satel- ricultural Development (IFAD). The Netherlands started lite data. At the Marrakech Climate Change Conference a strategic partnership with the Consortium of Interna- (November 2016), the Netherlands pledged an additional tional Agricultural Research Centers (CGIAR) in 2015, fo- €20 million to the G4AW program (€31 million was avail- cusing on food security, with specific attention to cli- able from 2014-2015). mate-smart agriculture, nutrition, water use, and biodiversity. Although the Netherlands previously The Directorate of Inclusive Green Growth (IGG) is strongly supported CGIAR (US$165 million from 2012 to responsible for policies related to food security 2015), the country’s next financial commitments to CGIAR are currently unclear. Within the Ministry of Foreign Affairs, the Directo- rate-General for International Cooperation (DGIS) is re- The main focus areas of bilateral agricultural ODA in sponsible for designing and coordinating the implemen- 2015 (US$233 million) were agricultural research (18%), tation of Dutch development policy. Within DGIS, the agricultural development (16%), rural development (14%), Department of Inclusive Green Growth (IGG) focuses on and food crop production (11%). policies related to food security, climate, water, energy, and natural resources. IGG includes a specific thematic The Dutch Minister for Foreign Trade and Development cluster on food security. The Sustainable Economic De- and the Minister for Agriculture outlined three main tar- velopment Department within DGIS supports farmer co- gets in their 2014 letter to Parliament concerning the fo- operatives in developing countries. cus of the Netherlands’ support to food security: 1) eliminating hunger and malnutrition, 2) stimulating inclusive and sustainable growth in the agricultural sector, and 3) realizing ecologically sustainable food systems. The Netherlands intends to double the productivity and income for smallholder (female) farmers and build sustainable, climate-resilient food production systems by 2030. Coherence and synergies with related themes – such as private sector development, water, and climate, as well as the broader Dutch policy related to development cooperation and trade – is considered key. Within the focus areas, particular emphasis is placed on strengthening the sexual and reproductive health and rights of women and

17 An initiative by SEEK Development March 2017 The Netherlands Donor Profile

DEEP DIVES topics

The Netherlands’ nutrition ODA

Nutrition is a key priority within the focus on food ticular focus within this priority is the nutritional status security of adolescents, particularly of girls of reproductive age, given the importance of nutrition during pregnancy. Food security is a key priority for the Netherlands. Ac- Therefore, reproductive health and gender aspects have cording to government data, €348 million (US$462 mil- been integrated into food security programs. lion) will be allocated to this area in 2017. Eliminating hunger and malnutrition is one of the three priorities of Focus countries for Dutch bilateral cooperation on food the Netherlands’ overall strategy for food security. A par- security in 2017s are: Burundi, the Palestinian Territo-

18 An initiative by SEEK Development March 2017 The Netherlands Donor Profile ries, Rwanda, South Sudan, Bangladesh, Benin, Ethiopia, Dutch companies in the food and nutrition industries Indonesia, Kenya, Mozambique, and Uganda. across all stages of the food value chain to ensure sustainable improvements in nutrition in Kenya, Tanzania, Key commitments by the Netherlands include a pledge of Ethiopia, and South Africa. The Dutch government and €300 million (USD$398 million) to the Nutrition for AIM partners both contribute €11 million to the initiative Growth Initiative (2013-2020), with funds equally divid- (total budget €22 million for 2014-2018) ed between nutrition-sensitive and nutrition-specific interventions. The Directorate of Inclusive Green Growth (IGG) is responsible for policies related to food security

Within the Ministry of Foreign Affairs, the Directo- •• Nutrition-specific: Interventions with primary rate-General for International Cooperation (DGIS) is re- objective to improve nutrition (i.e. support for sponsible for designing and coordinating the implemen- exclusive breastfeeding, supplementary feeding, tation of Dutch development policy. Within DGIS, the etc.) Directorate of Inclusive Green Growth (IGG) focuses on policies related to food security, climate, water, energy, •• Nutrition-sensitive: Interventions addressing and natural resources. The directorate includes a specific underlying causes of malnutrition and consider thematic cluster on food security. cross-sector impacts (i.e. improve access to diverse diet, etc.)

The Netherlands implements a multi-stakeholder approach within ODA combining government, civil society, the private sector, and knowledge institutes. This public-private partnership (PPP) approach is also known as the “Dutch Diamond”. The main PPP within the field of nutrition is the Amsterdam Initiative against Malnutri- tion (AIM). Their aim is to leverage the experience of

19 An initiative by SEEK Development March 2017 The Netherlands Donor Profile

ENDNOTES

1 ‘2015 prices’ refers to the actual ODA amount disbursed in 2015. This figure is commonly used when comparing About the Donor Tracker ODA across donors in 2015. To compare ODA levels in 2015 with ODA levels provided in previous years, figures The Donor Tracker seeks to advance and support need to be measured in constant prices. This means that progress in global development by providing advo- the ODA amounts in each year are adjusted taking into cates with easy access to high-quality quantitative account the effect of inflation and of exchange rate fluc- and qualitative strategic information to support their tuations. The OECD provides ODA data in constant prices work. using 2014 as the base year (i.e. ‘2014 prices’). In this profile, we thus generally state ODA figures in ‘2014 prices’ to The Donor Tracker is a unique online resource that ensure data is comparable over time. offers free, independent, up-to-date analysis of 14 major OECD donors. Covering 90% of the world’s 2 According to G-FINDER data. G-FINDER is a data official development assistance (ODA), the Donor source developed by Policy Cures Research which pro- Tracker provides data-driven insights on strategic vides information on global investments into R&D for ne- priorities, funding trends, decision-making and key glected diseases. The figures are based on the G-FINDER opportunities. survey, which covers a select group of products in need of R&D (drugs, vaccines and diagnostics for diseases that www.donortracker.org meet the following three criteria: the disease dispropor- tionally affects people living in developing countries, there is a need for new products, and the commercial in- centives are insufficient to attract R&D by the private -in dustry). For more information see: Policy Cures Research, Neglected Disease Research and Development: A Pivotal Moment for Global Health, G-FINDER 2016.

20 An initiative by SEEK Development March 2017