VZCZCXRO3247
PP RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV
DE RUEHTC #1913/01 2911613
ZNR UUUUU ZZH
P 181613Z OCT 07
FM AMEMBASSY THE HAGUE
TO RUEHC/SECSTATE WASHDC PRIORITY 0560
INFO RUEKJCS/NMCC WASHDC
RUCPDOC/USDOC WASHDC
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHBS/USEU BRUSSELS 0560
RUEHAT/AMCONSUL AMSTERDAM 3786

UNCLAS SECTION 01 OF 03 THE HAGUE 001913 
 
SIPDIS 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR EUR/WE, EEB/IFD/ODF 
MCC FOR RMORFORD 
USDOC FOR 4212/USFCS/MAC/EURA/OWE/DCALVERT 
USEU FOR PLERNER 
 
E.O. 12958: N/A 
TAGS: EAID ECON NL
SUBJECT:  KOENDERS ON FUTURE DUTCH FOREIGN DEVELOPMENT ASSISTANCE 
 
REF:  THE HAGUE 1091 
 
THE HAGUE 00001913  001.2 OF 003 
 
 
THIS CABLE IS SENSITIVE BUT UNCLASSIFIED. PLEASE HANDLE 
ACCORDINGLY. 
 
¶1.  (SBU) SUMMARY.  Dutch foreign assistance will now increase 
emphasis on women's rights, fragile and conflict states, climate 
change, and economic growth issues in a shift of development 
strategy recently unveiled by Bert Koenders, the Netherlands' new 
and energetic Development Minister.  The strategy aims to better 
track results and ends assistance to seven countries. 
Multilaterally, the strategy calls for giving developing countries a 
larger say in IMF and World Bank decision-making, consolidating UN 
operations in the field, improving consistency between the EU and 
Dutch on foreign assistant programs, and increasing collaboration 
within the framework of the OECD's Paris Declaration on Aid 
Effectiveness. 
 
¶2.  (SBU)  GONL actions to date underscore these new priorities, 
including support for UN programs in Afghanistan, emergency aid to 
flood victims in Africa, and an increase in the Dutch contribution 
to the Global Fund to fight AIDS, malaria, and tuberculosis. 
Koenders is likely to use his upcoming visit to Washington for the 
IMF/World Bank meeting to showcase his views on the way forward for 
development assistance.  (See reftel for biographical information on 
Koenders.)  END SUMMARY. 
 
-------------------------------------- 
Consultations with Dutch Civil Society 
-------------------------------------- 
 
¶3.  (U)  While most of the new cabinet traveled around the 
Netherlands during the first hundred days of the fourth Balkenende 
government in February, Minister for Development Cooperation Bert 
Koenders traveled to Africa -- visiting Uganda, Rwanda, Burundi, 
Southern Sudan, Darfur and Chad -- to become more familiar with the 
difficulties facing these countries and to study the effectiveness 
of Dutch aid.  In the Netherlands Koenders met with various NGOs, 
business and religious leaders, and concerned citizens to seek their 
views on the future direction of Dutch foreign development 
assistance. 
 
¶4.  (U)  To further engage the country on foreign development 
assistance issues, Koenders signed, together with 36 prominent 
businesses, associations, and institutions, a widely-publicized June 
30 Schokland Accord.  The accord outlined areas where governments, 
business, and society could contribute to the Millennium Development 
Goals (MDGs).  Koenders also used this opportunity to announce a 
Schokland fund of 50 million euros, which would promote -- through 
the provision of knowledge and resources -- innovative ideas that 
support one or more of the MDGs. 
 
--------------------------------------------- ----- 
Establishing Priorities for Development Assistance 
--------------------------------------------- ----- 
 
¶5.  (U)  Drawing on these consultations, Koenders presented to 
Parliament on October 16 a new Dutch foreign development assistance 
strategy.  In an earlier meeting with Emboffs, Maarten Brouwer, 
Director, Effectiveness and Quality Department, Dutch Ministry of 
Foreign Affairs (MFA) explained that the following priorities would 
not replace, but rather "intensify" existing efforts: 
 
-- Address gender inequality and poverty by increasing educational 
and employment opportunities for women and by focusing on family 
planning. 
 
-- Target fragile states and conflict areas by increasing their 
capacity to absorb shocks caused by economic and natural disasters 
and/or regional conflicts and terrorism.  Address state-sponsored 
violence, especially in Africa.  (Koenders has stated previously 
that corruption, although a major risk to development, should not 
deter the Netherlands from aiding those most in need.  He has also 
promised the GONL will do more to monitor aid distribution.) 
 
-- Address climate change by supporting the G8 target of reducing 
emissions by 50 percent by 2050 and by advocating the "polluter 
pays" principle (The GONL plans to investigate how to fund 
developing country efforts to adapt to climate change and rising 
energy prices.  Koenders has established an inter-ministerial 
working group, with participants from the ministries of Foreign 
Affairs, Environment and Transport on climate change.  One of the 
 
THE HAGUE 00001913  002.2 OF 003 
 
 
working group's goals is to encourage partner countries to embrace 
sustainable energy). 
 
-- Promote more evenly distributed economic growth and increased 
equality and access to institutions and power in order to realize 
economic growth while also reducing poverty. 
 
¶6.  (SBU)  In the multilateral arena, Browers said Koenders plans to 
pursue the following priorities: 
 
--  Increase participation of developing countries in the 
decision-making process at the IMF and World Bank; 
--  Accelerate the pace of "one-UN" reforms that seek to consolidate 
UN operations in the field (the Dutch are already financing a few 
related pilots); 
 
--  Maintain close cooperation with the EU to avoid inconsistency 
between EU and Dutch foreign development assistance efforts; and 
 
--  Increase collaboration within the framework of the Paris 
Declaration on Aid Effectiveness and promote inclusiveness on 
sensitive political issues. 
 
------------------------------------ 
New Categories for Partner Countries 
------------------------------------ 
 
¶7.  (SBU)  The new strategy will phase out, over the next four 
years, assistance to seven of the Netherlands' 36 foreign assistance 
development partner countries (Albania, Armenia, Bosnia-Herzegovina, 
Cape Verde, Eritrea, Macedonia, and Sri Lanka).  It divides the 
remainder into three categories to help obtain "accountable 
results," according to Brouwer.  The first category will include 
well-governed traditional aid recipients with large poverty problems 
(Bangladesh, Benin, Bolivia, Burkina Faso, Ethiopia, Ghana, Kenya, 
Mali, Mongolia, Mozambique, Nicaragua, Rwanda, Senegal, Tanzania, 
Uganda, Yemen, and Zambia).  The second category will include 
fragile states and areas that lack the conditions to achieve the 
MDGs (Afghanistan, Burundi, Columbia, Congo, Guatemala, Kosovo, 
Pakistan, Palestine, and Sudan).  A third category will include 
countries that do not require significant aid, have annual GDP per 
capita over $1,000, but risk falling back into poverty (Egypt, 
Georgia, Indonesia, Moldova, Vietnam, South Africa, and Suriname). 
 
¶8.  (SBU)  Local circumstances, along with Koenders' policy 
preferences, will also determine in which category countries were 
placed, Brouwer noted.  The GONL did not plan to set quotas for the 
number of countries in each category or the total budget for each 
category.  The GONL will release subject-specific papers in 2008 
detailing how such a strategy would be implemented. 
 
------------------------------------- 
Initial Actions Underscore Priorities 
------------------------------------- 
 
¶9.  (U)  Since coming into office, Koenders has already undertaken 
some significant decisions and actions that underscore his 
Ministry's new priorities.  His new strategy earmarked an extra 100 
million euros ($141.8 million) for fragile states and an extra 375 
million euros ($531.9 million) for sustainable energy investments to 
confront the challenge of climate change.   In July, Koenders 
supported a UN proposal to appoint a special representative in Kabul 
for UN programs in Uruzgan, and the GONL pledged 15 million euros 
($21 million) through the Afghanistan Reconstruction Trust Fund for 
programs in human rights, judicial reform, infrastructure, and 
women's rights in Afghanistan.  In September, the GONL gave 11 
million euros ($16 million) in emergency aid to flood victims in 
Uganda, West Africa, and Sudan.  In October, Koenders announced an 
increase of 50 million euros (about $70.9 million) over the years 
2008-2010 for the Global Fund to fight AIDS, malaria, and 
tuberculosis.  The annual Dutch contribution will rise from $85.1 
million in 2008 to an estimated $127.7 million by 2010. 
 
--------------------------------------------- -------- 
COMMENT:  Positive Reactions to the Shift in Emphasis 
--------------------------------------------- -------- 
 
¶10.  (SBU)  Initial reactions to the strategy within the press, 
Parliament, and the Dutch foreign development community have been 
positive.  Hivos -- one of the largest Dutch development NGOs with 
750 partner organizations and active in 31 countries -- welcomed 
 
THE HAGUE 00001913  003.2 OF 003 
 
 
Koenders' "ambitious" plans, especially in the area of women's 
rights.  Further parliamentary reaction is expected when the 
Parliament debates the Dutch foreign development cooperation budget 
during the week of November 6.  Koenders is likely to use his 
attendance at the October 20-21 IMF/World Bank Annual meeting and 
any discussion/meetings on the margins to showcase his views on the 
way forward for Dutch as well as multilateral foreign development 
assistance efforts.  In particular, he can be expected to encourage 
the World Bank 
to focus on the poorest countries, fragile states, 
climate issues, and accountability. 
 
ARNALL