Public support from the Netherlands to the financial sector
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Public support from the Netherlands to the financial sector Wiert Wiertsema, Senior Policy Advisor, Both ENDS <[email protected]>
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Public support from the Netherlands to the financial sector. Wiert Wiertsema, Senior Policy Advisor, Both ENDS . Trends in NL. Minister for Foreign Trade & Development Cooperation Aid budget cut by € 1.000.000.000 (ODA level < 0.7% GNI) - PowerPoint PPT Presentation
Transcript of Public support from the Netherlands to the financial sector
Public support from the Netherlands to the financial sector
Wiert Wiertsema, Senior Policy Advisor, Both ENDS<[email protected]>
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)
More aid via and for the private sectorMore ODA-money for international securityClimate finance in ODAActive 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 Equityo Loans & garanteeso Project financeo Mezzanine finance / tailor made solutionso Capital market transactionso Access to expertise, network & partnerships
•Total portfolio: € 6.300.000.000•Net profit 2012: € 146.000.000•Government funds and programs:
o MASSIF (Financial Intermediaries, € 430.000.000)o Infrastructure Development Fund (IDF, € 340.000.000)o Access to Energy Fund (AEF, € 53.000.000)o 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 Also applicable to financial sector (since 2011)o Minority investment shares also considered ‘business relationship’o Soft law
• IFC Performance Standardso Usually used as a benchmark
• Common Approaches (Atradius DSB) o considered benchmark by Agentschap.NL
• FMO:o Disclosure (limited)o Anti Bribery & Corruption Statement (“zero tolerance”)o KYC & Anti Money Launderingo Exclusion listo Corporate governance policy o Human Right Policyo 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 !
