OECD Development Co-operation Peer Reviews: Netherlands 2023

Annex A. Progress since the 2017 DAC peer review recommendations

Towards a comprehensive Dutch development effort

 

Recommendations 2017	Progress
The Netherlands should do more to clarify and communicate how it plans to meet its international climate finance commitments, including a) increasing climate mainstreaming within development co‑operation programmes; and b) using concessional finance to mobilise investment from all sources.	Fully implemented The policy “Do what we do best” as well as the Global Climate Strategy set out Dutch public and private climate finance objectives and ways to reach those. More detailed information on planned climate finance is provided in the budget documents submitted to parliament, in addition to a dashboard for public climate finance. Dedicated guidance and support to staff has helped strengthen mainstreaming of climate objectives. However, an evaluation of climate finance highlighted some challenges in compiling climate finance data.
The Netherlands should continue to improve the reporting of its official development finance beyond ODA, in particular finance linked to FMO.	Partially implemented FMO has recently started issuing detailed data on private sector instruments but is the only large development finance institution that does not submit activity-level data to the OECD, for instance as Other Official Flows (OOF). The Netherlands considers FMO as a private entity that does not invest official flows from its capital base.

Vision and policies for development co‑operation

 

Recommendations 2017	Progress
The Netherlands should explore ways to further weave the various strands of its development co‑operation programme into a coherent narrative which continues to place due emphasis on poverty eradication and leaving no one behind.	Partially implemented The Netherlands approaches the 2030 Agenda’s commitment to leave no one behind through a focus on fragile contexts, gender equality and youth. The policy “Do what we do best” does not set out a more specific approach to poverty reduction or to reducing inequalities but gives significant attention to empowering local civil society. It states that programmes take persons with disabilities into account.
The Netherlands should develop, communicate and apply a clear rationale and funding criteria for its bilateral allocations and partnerships, in order to mitigate the impact of fluctuating budgets on its partnerships.	Partially implemented The policy “Do what we do best” reaffirms existing priorities. This continuity enables stability in partnerships, as does the shift towards long-term programmes. Six-year rolling budgets guide planning. The policy also establishes differentiated partner country categories. However, there are not yet clear criteria as to how this translates into allocations.

Aid volume and allocation

 

Recommendations 2017	Progress
The Netherlands should halt the decline in its ODA and renew efforts to deliver 0.7% GNI as ODA.	Fully implemented The policy “Do what we do best” and budget documents commit the Netherlands to substantial ODA increases over the coming years (EUR 300 million per year, and then EUR 500 million starting in 2025). This is anticipated to bring ODA/GNI to 0.65% by 2025 with a continuing trajectory to reach a ratio of 0.7%, although a date for this is not specified.
In line with its commitments to transparency and accountability, the Netherlands should identify the recipient country in relevant ODA reporting.	Partially implemented Internally, the Netherlands is improving information on country allocations from centrally managed programmes. However, in reporting to the OECD it continues to have the highest share of bilateral ODA not allocated by country, while project descriptions contain some information on country allocations. The Netherlands also encourages implementing partners to report on IATI, which in turn can provide information by country.
The Netherlands should maintain its levels of core support to multilateral organisations to allow it the credibility to engage strategically in relevant multilateral governance structures.	Fully implemented The Netherlands provides substantial levels of multi-annual core funding to multilateral organisations and is recognised as a highly engaged partner in governance structures.

Organisation and management

 

Recommendations 2017	Progress
The Netherlands should enhance the role of embassies in “partner countries”, including through delegated funds, in order to increase the effectiveness and sustainability of Dutch investments.	Partially implemented Embassies have a strong role in country teams that design country strategies. They are increasingly consulted on headquarter-financed activities but have limited capacity for monitoring. The share of allocations delegated to embassies has not increased.
The Netherlands should improve its internal communications, so that staff – including locally employed staff – are clear on how they are contributing to the overall vision for development co‑operation and are well equipped to do so.	Fully implemented A new co‑operation policy, thematic policies and country strategies provide an updated view of Dutch development co‑operation objectives. Local staff play an essential role in annual planning and programme management and have access to training. Embassy staff are engaged in ongoing dialogue with central staff through regular calls and digital communication, though the level and frequency of engagement varies by thematic area. A study on institutional racism in the Ministry of Foreign Affairs provides an opportunity for further dialogue with local staff on their role and on the ways in which all staff relate to each other.
The Netherlands should find new ways of creating a flexible and agile workforce, with the skills to pursue policy priorities and new ways of working, addressing gaps and stress points identified in the new strategic workforce planning processes.	Partially implemented Progress has been made on several actions recommended by a development co‑operation expertise task force in 2020. As a result the Netherlands has implemented a number of workforce measures, such as new recruitment to compensate for retirements, and moving staff from short-term to open-ended contracts and the development of more attractive career paths. Full implementation of the action plan is expected in 2023. Locally employed staff have few advancement opportunities. In terms of staff vitality and health, staff satisfaction (2021 survey) in DGIS is the lowest across the MFA and high workload and burnout are likely to impact ability to be flexible and agile. Survey results also indicate that staff are engaged in and enjoy their work, providing a basis for further engagement.

Development co‑operation delivery and partnerships

 

Recommendations 2017	Progress
To increase impact and avoid further fragmentation and dispersion, the Netherlands should review and rationalise its instruments and tenders, particularly in its approach to private sector development.	Partially implemented The Netherlands is actively streamlining its portfolio, with fewer countries covered by thematic instruments and larger projects. However, a broad range of instruments (including for private sector development) remain available.
To meet its commitment to development effectiveness, the Netherlands should: 1. include all programmes and funds benefiting partner countries in country strategies and formally agree those strategies with the countries, to enhance predictability, transparency and accountability 2. increase the use of or strengthening of partner country systems 3. continue to untie aid.	Partially implemented Country strategies reference embassy and most headquarter-funded programmes but are not agreed with partner countries. Consultation of partner countries takes place, but there is still room for improvement. Capacity strengthening of local stakeholders is frequently part of the Dutch engagement and efforts to advance locally led development can further enhance their role. The Netherlands has limited direct co‑operation with partner country governments and use of partner country systems has likely not increased (new monitoring data will be available following the Global Partnership for Effective Development Co‑operation (GPEDC) monitoring exercise. Reported ODA remains untied. However, for specific programmes that are de jure untied, “Do what we do best” articulates an ambition that 70% of contracts under the bilateral infrastructure programmes DRIVE and D2B are awarded to Dutch companies.

Results and accountability

 

Recommendations 2017	Progress
To improve learning, and to better inform decision making, the Netherlands should: 1. improve systems for managing for results so that results information can be used to steer the programme 2. disaggregate data to support Dutch commitment to inclusion and leaving no one behind 3. sustain the commitment to knowledge generation, and better connect Dutch knowledge partners with their counterparts in the field to increase the use of evidence.	Partially implemented Improved results reporting internally and through IATI, in addition to initiatives to improve learning from monitoring and evaluation. Some programmes disaggregate data by gender and age. While poverty is a cross-cutting theme, there is no disaggregated monitoring in this regard. Significant learning efforts are underway. New country strategies need to demonstrate reflection of lessons learnt and identify evidence gaps. Resources are also made available to integrate continuous learning into programmes, in collaboration with local partners.
The Netherlands should invest in development education to improve development awareness and support, in line with the Netherlands' strong commitment to global issues.	Partially implemented Curriculum reform puts greater attention to solidarity as part of citizenship education. The policy “Do what we do best” commits to increasing SDG awareness and and for this purpose the MFA’s collaborates for instance with the platform SDG Nederland. However, investments remain limited and different efforts are not yet co-ordinated.

Humanitarian assistance

 

Recommendations 2017	Progress
The Netherlands should update its humanitarian policy to consolidate its work on humanitarian innovation and secure the Dutch Relief Fund and field presence in a solid framework.	Fully implemented The 2019 Humanitarian Policy consolidates the Dutch approach to responding to humanitarian crises, combining quality funding (in the Ministry, as the Dutch Relief Fund was phased out) and diplomacy. Humanitarian policy is integrated into the overarching foreign, development and trade policy adopted in 2022.
The Netherlands should develop communications strategies with the partners to whom it provides core funding to allow better feedback on results to its domestic constituents.	Partially implemented Partners receiving core humanitarian funding describe varying degrees of policy dialogue and communications with the Netherlands. On the one hand this is perceived as a sign of trust and confidence in the organisations’ capacity to deliver on their core mandate and reflects a strong commitment to the Grand Bargain. On the other hand, partners would appreciate a more structured policy dialogue to bolster the partnerships, which in turn could help shape communication strategies and support the Netherlands’ domestic narrative on engagement in fragile contexts. Scorecards provide some insight into qualitative assessments of partners and the MFA’s annual results report gives a thematic overview of Dutch humanitarian aid and results. Communication strategies are more developed where funding is earmarked, e.g. PROSPECTS and COMPASS initiatives.