1 11/21/2014 Policy Coherence in practice A Dutch Approach Aid Alone Is Not Enough to Reduce Global Poverty Romanian Development Camp 18 September 2008 Ministry of Foreign Affairs Policy Coherence Unit (DGIS-CE) The Netherlands

11/21/ Content Presentation What is Policy Coherence for Development? Current PCD dossiers “Dutch approach” experiences Cases Challenges and recommendations

11/21/ Policy Coherence for Development Poverty Reduction and Millennium Development Goals Not only development aid, but many other policy areas affect developing countries. Focus on MDG8. Coherent non-aid policies are needed in areas such as trade, agriculture, fisheries, security and environment to support development goals.

11/21/ An example of incoherence Cut Flowers sector in East-Africa exports to EU: -employment, income and comparative advantage EU: New EU legislation: 100% phytosanitary inspection against high costs -> restricted market access (not WTO conform) After intervention: Revised EU legislation: New country specific risk based structure for inspections -> increased market access plus WTO conform

11/21/ Dutch approach explained by the 5 elements of PCD coalition coordinationtargets capacity commitment PCD

11/21/ “Dutch approach”: Political Commitment Legal for basis: Maastricht Treaty of Start Dutch Coherence Programme The result: Political commitment from the top Minister for Development Co-operation with full Cabinet status “Whole-of-government”: coordination in policy formulation and cooperation between departments

11/21/ Capacity for Coherence Policy Coherence Unit at the Ministry for Foreign Affairs (since 2002) as watchdog and focal point

11/21/ Concrete targets Specific targets for PCD approved by the Minister for Development cooperation. A rolling year agenda linked to the political priorities of the Minister. Progress report on PCD to the parliament, every two years.

11/21/ Interministerial coordination Focus on EU-policies Coherence test in assessments of Commission proposals. Project teams with staff officers from relevant ministries Coordination of Dutch interventions in relevant international bodies such as WTO, WHO, UNFCCC.

11/21/ Building coalitions Dialogue with developing countries Cooperation with Non governmental organisations (NGOs) and industry

11/21/ Selection of Current PCD Dossiers WTO Doha round Economic Partnership Agreements (EPAs) Preferential rules of origin Agriculture reform (health check of the CAP ) Product standards and non-trade concerns TRIPs & health Sustainable fisheries Migration and development Peace and security: small arms and international arms trade Climate change and energy

11/21/ Case: Non trade Concerns

11/21/ Non trade concerns Concerns on negative effects of trade liberalisation (child labour, animal welfare, sustainable development) There is a tendency to establish unilateral measures that are not WTO conform Developing countries suspect protectionism instead of genuine non-trade concerns → Publication and debate with NGOs to influence the forthcoming official reaction of the government

11/21/ Case Climate Change Adaptation costs for developing countries between $ and $ millions in 2030 Additional financial means are necessary to comply with Bali agreement and support a possible new agreement on climate in Copenhagen EU recommends possible earmarking of % of CO2 emission auction revenues for adaptation → facilitating a debate between different line ministers and financing a study on adaptation (with DFID)

11/21/ Challenges for the Netherlands Ensure capacity to analyse, monitor and follow- up Make more and timely use of ex ante impact assessments Get better knowledge of how PCD translates in actual poverty reduction on the ground How to deal with diverging interests of various developing countries (poor countries or poor people as the focus)? Ensure policy dialogue with developing countries

11/21/ Recommendations on PCD Address glaring incoherencies first PCD is a process: play the game, be willing to compromise and settle for second-best review to come back for more! Results on PCD can be achieved independent of the budget your country has available for development cooperation! Thank you!