Public support from the
Netherlands to the financial sector
Wiert Wiertsema,
Senior Policy Advisor, Both ENDS
<ww@bothends.org>
Trends in NL
Minister for Foreign Trade & Development Cooperation
 Aid budget cut by € 1.000.000.000 (ODA level < 0.7% GNI)
 Policy focus on International Public Goods
(trade, financial system, food and water, migration, climate, security)
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

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More aid via and for the private sector
More ODA-money for international security
Climate finance in ODA
Active efforts to dilute ODA definition at OECD-DAC
Mechanisms for private sector
development (PSD) - I
Agentschap.NL:
• PPP-facility for Sustainable Entrepreneurship and Food Security (FDOV )
• Sustainable Water Fund (FDW)
• Facility for Infrastructure Development (ORIO, annual budget: 90.000.000)
• Partners for International Business (PIB, annual budget: 7.150.000)
• Partners for Water (annual budget: 9.500.000)
• Pilot 2g@there-OS (Ethiopia, Kenya, Uganda)
• Private Sector Investment Program (PSI, annual budget: 90.000.000)
• Subsidy program for demonstration projects, feasibility studies, and knowledge
acquisition (annual budget: 4.000.000)
• Transition facility (Colombia, South Africa, Vietnam)
Mechanisms for private sector
development (PSD) - II
FMO: “entrepreneurial development bank”
• 51% government, 49% private banks & trade unions
• Products:
o
o
o
o
o
o
Equity
Loans & garantees
Project finance
Mezzanine finance / tailor made solutions
Capital market transactions
Access to expertise, network & partnerships
• Total portfolio: € 6.300.000.000
• Net profit 2012: € 146.000.000
• Government funds and programs:
o
o
o
o
MASSIF (Financial Intermediaries, € 430.000.000)
Infrastructure Development Fund (IDF, € 340.000.000)
Access to Energy Fund (AEF, € 53.000.000)
Emerging Markets Fund (FOM OS - still new - target € 40.000.000 by 2015)
Mechanisms for private sector
development (PSD) - III
• Dutch Good Growth Fund
- Revolving fund: € 750.000.000
- ODA money
- Concessional trade finance
- Subsidy for trade finance of (private) banks
• Atradius Dutch State Business: export credit insurance
- € 8.200.000.000 (2011)
- More than 200 applications per year
• Trade missions
• Institutional investments of public pension funds:
- ABP (€ 265.000.000.000)
- PFZW (before PGGM, € 130.000.000.000)
- Several smaller pension funds (more than € 250.000.000.000)
Safeguards
• OECD guidelines for MNEs
o
o
o
Also applicable to financial sector (since 2011)
Minority investment shares also considered ‘business relationship’
Soft law
• IFC Performance Standards
o
Usually used as a benchmark
• Common Approaches (Atradius DSB)
o
considered benchmark by Agentschap.NL
• FMO:
o
o
o
o
o
o
o
Disclosure (limited)
Anti Bribery & Corruption Statement (“zero tolerance”)
KYC & Anti Money Laundering
Exclusion list
Corporate governance policy
Human Right Policy
Environmental & Social Policy
Concerns
• No independent accountability mechanisms
• Regular independent evaluation not taken care of
• Limited political oversight
• Gap between policies on paper and the reality on the ground
• No guarantees that PSD benefits the poor
Thank You !