QUESTIONNAIRE FOR EU-PCD REPORT 2015: CONTRIBUTIONS FROM MEMBER STATES

Transcription

1 Brief Introduction QUESTIONNAIRE FOR EU-PCD REPORT 2015: CONTRIBUTIONS FROM MEMBER STATES The European Union is a major global actor and its non-developmental policies have the potential for substantial positive or negative impact on poverty reduction in developing countries. The very aim of Policy Coherence for Development (PCD) is to ensure that relevant EU policies and development cooperation are mutually supportive and can contribute to the objective of poverty reduction or, at least, that EU policies do not undermine development objectives as well as the effectiveness of European aid. This questionnaire is to prepare the fifth EU report on Policy Coherence for Development (PCD) to be published in In May 2005, the Council invited the Commission to produce a biennial report on Policy Coherence for Development 1. It also called on EU Member States and the Commission "to strengthen policy coherence for development procedures, instruments and mechanisms and secure adequate resources in their respective administrations, looking at the best practices developed by some Member States." The aim of the report is "to encourage the further development of PCD, taking into account feedback from developing countries, civil society and the European Parliament. The report should also serve as a public information tool" 2. In 2009, the Council agreed to focus on five broad areas: trade and finance, food security, climate change, migration and security 3, which was reiterated in the Council Conclusions of December It should be noted that the focus on these five broad policy areas does not mean that the twelve policies 5 identified by the Council in 2005 lose their PCD relevance. On the contrary, each of those policies can effectively contribute to meeting the five global challenges. In order to make further progress on PCD, it is necessary to improve on issues such as measuring PCD, promoting a more evidence-based approach and moving "towards a more focused, operational and results-oriented approach to PCD" 6. In this regard, the Council specifically underlined the importance of reporting on PCD processes and initiatives at country level and strengthening the dialogue with local stakeholders. The 2015 EU PCD Report will therefore aim to: Assess the progress made by the European Union and its Member States; Draw lessons from experience as well as identify good practices and opportunities with the aim to foster decision-making that increases the development-friendly impact of EU external policies; Raise awareness among policy makers and civil society in the European Union on policy coherence challenges as well as tools and processes; 1 May 2005 General Affairs and External Relations Council (GAERC) Conclusions on the Millennium Development Goals (Doc. 9266/05) 2 October 2006 GAERC Conclusions (Doc /06) 3 Council conclusions 16079/09, dd. 18/11/ Council conclusions 15646/13, dd. 12/12/ These policies are: Trade, Environment, Climate Change, Security, Agriculture, Fisheries, Social Dimension of Globalisation, Employment and Decent Work, Migration, Research and Innovation, Information Society, Transport and Energy 6 Council conclusions 15646/13, dd. 12/12/2013

2 Illustrate and demonstrate to the public the importance of PCD. This is of particular relevance this year in the context of the European Year for development 2015; Be a tool for EU representatives in international fora to use in the multilateral discussions requiring a shared approach beyond the European Union. The respondents are kindly requested to have these objectives in mind. Guidelines for answering the questionnaire. The purpose of the questionnaire is to take stock of existing practice and identify progress made in the various PCD areas from January 2013 to January Concrete facts, data and examples are required in view of the preparation, by the Commission, of the 2015 PCD Report. Before completing the 2015 PCD questionnaire, respondents are strongly encouraged to consult the 2013 EU PCD Report 7 even though the 2015 EU PCD Report aims to be more analytical and focused trying to particularly reflect on successes and challenges with evidence-based findings where available. As so far as possible, all questions should be answered and details and explanations given. The thoroughness and quality of the answers will directly determine the quality of the EU PCD Report. The questionnaire should be completed no later than the 31st of March. Please be aware that only one questionnaire per country should be completed, so make sure you are the only one to answer for your country. For this purpose, you can download below a document listing all questions you will need to answer. This will help you gather information from your colleagues if necessary before answering to the questionnaire. Download a preview of survey questions ( KB) For additional information, please contact the European Commission, Directorate-General for International Cooperation and Development, Unit A/1 "Policy and Coherence". Contact person: Norbert Probst at Norbert.PROBST@ec.europa.eu and Amalia Garcia-Tharn at Amalia.GARCIA-THARN@ec.europa.eu 7 See electronic version at:

3 A. PROFILE OF THE RESPONDENT Country: The Netherlands Please tell us a little about yourself Name: Surname: Margriet Kuster margriet.kuster@minbuza.nl Telephone: Which Ministry or organisation do you represent? The Ministry of Foreign Affairs of the Netherlands Do you certify being the only one to answer to this survey for your country? I don t know

4 B. EXISTING PCD COMMITMENTS AND PROCESSES 1) Does your country have a legal basis on PCD? Yes No If yes, please explain and precise since when: 2) Does your country have a political commitment (e.g. in government programmes, strategic documents on development cooperation) on PCD? If yes, please explain and precise since when: PCD is part of a whole-of-government approach coordinated by the Ministry of Foreign Affairs. In 2013 the Minister for Foreign Trade and Development Cooperation stated in her policy note A World to Gain: A New Agenda for Aid and Trade that Policy coherence for development means that the consequences of our policy for low- and middle-income countries will be taken into account in our decision-making. 3) Does your country have reporting obligations on PCD? If yes, to whom and how. Please explain and precise since when: In 2010 a motion on an annual overview of the PCD agenda was adopted by the House of Representatives. Reporting was combined with sending the EU PCD reports for 2011 and 2013 to parliament. 4) Does your country have coordination mechanisms on PCD within the national administration? If yes, please explain roles and responsibilities, and precise since when: EU policy proposals are monitored systematically for their possible impact on development, with the aim of avoiding negative effects and promoting synergy. Three main interministerial bodies systematically address the development dimension of policies and prepare the Dutch position on EU policy proposals: the Working Group for the Assessment of new Commission Proposals (BNC),

5 the Strategic Coordination Committee on International Affairs (CORIA), and the Coordinating Committee on European Integration and Association (CoCo). For national policy proposals, the Cabinet of Ministers takes account of the implications for developing countries in its decisionmaking. 5) Is your Parliament involved in PCD? If yes, please explain how: The Standing Committee on Foreign Trade and Development Cooperation supervises the government on coherence issues. In addition, the House of Representatives asks questions about PCD on a regular basis. Furthermore, a pilot study on the possible impacts of Dutch policies in several PCD-related areas on development in Ghana and Bangladesh (PCD pilot) was initiated at the request of parliament. This illustrates parliament s interest in the effects of non-aid policies in partner countries. In 2015 parliament requested the Minister s opinion on the Coherence Monitor, a report written by Partos (the Dutch association of NGOs working in international development), the Max van der Stoel Foundation and the NGO Woord en Daad. 6) Does your country have thematic priority areas regarding PCD? If yes, which priority areas? There are three thematic key areas: trade, tax and textiles. Trade: PCD efforts are focused on negotiations in the WTO, international agreements and the Economic Partnership Agreements (EPAs) between, for example, the EU and Southern, Eastern and Western Africa. In addition, the Minister aims to mitigate the negative effects and maximise the positive effects of TTIP for developing countries. Tax: In 2014 the Netherlands started revising 23 bilateral tax treaties with developing countries to combat tax evasion. Within the OECD and G20, the Netherlands helped to ensure that developing countries are included in the ongoing negotiations on tackling tax evasion worldwide. Technical assistance on tax collection and customs has been provided directly and indirectly through international institutions. Textiles: After the collapse of the Rana Plaza in Bangladesh in April 2013, the Minister appealed to the European companies involved (through their governments) to pay compensation to the victims. The tragedy also led to the three leading Dutch branch organisations drawing up the outlines of a

6 national action plan for the sustainability of the textile industry. Moreover, an international CSR agreement between the government and the Dutch textile sector associations is now being drawn up to improve conditions in the textile supply chain. The focus is not only on Bangladesh, but also on other textile manufacturing countries like India, Turkey and Vietnam. Dutch SMEs in the textile industry are being encouraged to join global sustainability initiatives. In addition, the Netherlands is working to create a level playing field in Europe for national action plans for the textile industry. Together with Germany, the Netherlands initiated a broader EU Like Minded Informal Meeting on social and environmental standards in global supply chains. Furthermore, with ILO, IFC and Pakistan, the Netherlands established a Buyers Platform Pakistan. We have also contributed to ILO and Better Work programmes aimed at improving inspection on labour conditions and capacity building in Bangladesh, Myanmar, Cambodia and Indonesia, and also in Pakistan in the near future. Other focus areas for Dutch PCD efforts are climate change and migration and development and Intellectual Property Rights/TRIPS and development. 7) Have initiatives been undertaken to strengthen PCD-relevant knowledge and skills through e.g. trainings? If yes, please give examples: PCD-relevant knowledge has been promoted through a pilot study on the possible impacts of Dutch policies in several PCD-related areas on development in Ghana and Bangladesh, as well as a counterfactual study estimating the impacts of Dutch policies in Ghana (see appendix 1). PCDrelevant knowledge is part of the Ministry s courses and training on development cooperation. 8) Have your embassies or third partner countries been involved in PCD related issues (i.e. pilot projects, policy dialogue, events )? If yes, please explain: In cooperation with the Centre for World Food Studies at VU University Amsterdam (SOW-VU), the Ministry of Foreign Affairs Policy and Operations Evaluation Department (IOB) conducted a counterfactual analysis of PCD for Ghana, entitled Autonomy, partnership and beyond. A team of researchers from the University of Ghana were involved in this study and there was intensive interaction with the Ghanaian government and the Embassy (see appendix 2).

7 C. UPDATE ON PROGRESS / CHALLENGES PER THEMATIC AREA 9) Per thematic area, please describe what new initiatives have been undertaken in to ensure that your non-development policies take account of development objectives? Please indicate: i. the Description of the initiative, policy or action taken, ii. the Analysis of relevance / contribution to PCD A. Trade and Finance: Trade In the EU, the negotiations on the EPAs with the African, Caribbean and Pacific (ACP) countries are a key focus area for coherence in trade. The EPAs are specifically designed to combine the interests of developing countries with the WTO rules. For the Netherlands, concluding these agreements in a way that meets the needs and concerns of the ACP countries was a priority. Minister for Foreign Trade and Development Cooperation Lilianne Ploumen facilitated conclusion of the agreements by conducting three inclusive stakeholder meetings in Kenya, Tanzania and South Africa. Coherence should be key in the technical assistance programmes that support the EPAs. These programmes have an important role to play in addressing the concerns of, for example, farmers in developing countries, helping to improve food security, supporting farmers and other producers in meeting European standards on health and safety issues, and promoting sustainable development in general. Furthermore, special emphasis on the regional integration aspect (notably improving Rules of Origin), should also be stimulated, for example through trade facilitation and technical assistance in understanding Rules of Origin. As the stakeholder meetings have shown, it is a good idea to involve NGOs in the negotiation/implementation process. This allows for a constructive and inclusive dialogue in which the concerns of all parties are heard and can be addressed correctly. All the relevant parties, including NGOs, private entities, civil servants and members of parliament, can be consulted in this process. This can increase transparency and support, and provide correct information to counteract the misperceptions and information gaps that surround the EPAs. However, not all concerns have been alleviated. It is therefore important to monitor potential problems when EPAs are implemented. This is an important follow-up area for the Netherlands. Apart from the EPAs, the Netherlands supports several other trade-related initiatives involving PCD. For example: - negotiation and implementation of the least developed countries (LDC) services waiver by WTO members; - the current negotiations on the Doha Development Round; - implementation of the Bali package on trade facilitation; - research into the effects of the EU-US trade agreement TTIP on developing countries in order to maximise the positive spill-over effects on these countries;

8 - advocating harmonisation of the EU and US preferential trade systems for developing countries; - ensuring that developing countries can make use of flexibilities in the TRIPS agreement to meet public health and food security needs and to ensure that the EU does not require TRIPS-Plus provisions in bilateral trade negotiations that hamper the development of developing partner countries in these negotiations. In a letter to parliament on intellectual property rights and developing countries of 8 July 2014, the Ministers for Economic Affairs and for Foreign Trade and Development Cooperation stated that, in developing their systems for intellectual property rights, developing countries should be allowed to take into account their level of development and local situation, by making use of the existing flexibilities offered by the multilateral framework in the WTO TRIPS Agreement. This means that the Netherlands: - will actively advocate, in the interest of public health and nutrition, that the EU will not require TRIPS-Plus provisions in bilateral agreements that would unnecessarily restrict the options of developing countries to make use of flexibilities for public health and nutrition, and will assess negotiating outcomes in this respect; - will advocate that, in bilateral trade agreements, the EU determines and substantiates the ambition level on intellectual property protection for each developing country separately; - will call, if the ambition level increases, for special attention for preconditions such as a longer implementation timeframe and assistance in capacity building; - will urge the EU to request the WTO to examine why developing countries without production capacity hardly make use of the opportunity in the WTO TRIPS Agreement that allows for compulsory licensing for the production of medicines destined for export. In addition, the Netherlands contributes to economic development in LDCs through its Dutch Good Growth Fund (DGGF). The DGGF is a new private sector development initiative, focusing on financing underserved SMEs in the Netherlands and developing countries (including fragile states). Its objective is to increase economic growth in developing countries, by stimulating trade and investment, to create jobs, increase productivity and stimulate knowledge transfer, in accordance with CSR principles. Finance In 2013 the Netherlands undertook a study of its tax treaties with selected developing countries to assess policy coherence. The Ministry of Finance introduced measures in 2013/14 to increase substance requirements for companies routing interest and royalties through the Netherlands. In addition the Dutch Central Bank tightened supervision of Trust Offices. In 2014 the Ministry of Finance proposed including anti-abuse measures in its tax treaties with 23 developing countries (LICs and LMICs). Agreement has been reached at administrative level with a first group of countries. The process is ongoing. Since 2013, technical assistance in the field of taxation has been substantially expanded, with the aim of helping countries raise their revenue collection. This work is being done in close cooperation with the Ministry of Finance and the Dutch Tax and Customs Administration. Support for the IMF Anti-Money Laundering Trust Fund was renewed in The Netherlands supports the participation of developing countries in the OECD/G20 BEPS

9 project. The Netherlands co-signed a letter to the EU High Representative and the Commissioner for International Cooperation and Development on abolishing tax exemptions (see appendix 3). B. Climate Change: The Dutch Ministry of Foreign Affairs consistently promotes climate-smart development and explicitly focuses on private sector climate finance. To this end, the Ministry engages with the private sector, including the financial sector, with the aim of increasing climate-relevant investments in developing countries. This agenda contributes to mobilising international climate finance and increasing climate-relevant investments in developing countries, thus enhancing their populations resilience to climate change. In all its interactions with the private sector, the Ministry actively highlights the importance of development co-benefits, pushes an ambitious gender agenda and applies the highest standards of social and environmental safeguards. Furthermore, it aims to integrate a gender perspective in climate change financing. In 2014, for instance, the Ministry organised a seminar promoting innovative proposals for climate relevant investments, called MoMo (Mobilising More). The seminar brought together representatives from government, the private sector and NGOs to develop and support innovative proposals. It resulted in the participants setting up several partnerships. In the same year the Netherlands was also an active member of the Global Innovation Lab for Climate Finance initiative. Proposals from several Dutch organisations, including the Netherlands Development Finance Company (FMO), were identified as providing promising innovative opportunities for increasing climate change investments. Climate-relevant investments in the sectors identified by the government as priorities (the top sectors in which the Netherlands excels globally, such as energy, water and food security) were assessed. The Ministry for Infrastructure and the Environment and the Ministry for Foreign Affairs funded several studies* on opportunities for climate change financing, including increasing the climaterelevance of investments. These studies focused particularly on adaptation, since the Netherlands feels that increasing resilience is important for development. Furthermore, the Netherlands has substantial expertise in water management and climate-smart agriculture, both important sectors for climate change adaptation. Another example is a study** that explores the possibilities for a new and innovative financial instrument to mobilise private sector climate finance in tandem with institutional investors. The conclusions of this study are currently being considered by the Minister for Foreign Trade and Development Cooperation. She is planning to engage in a dialogue with institutional investors to explore whether shared climate and sustainability ambitions can be better achieved by working in a partnership. Finally, the Ministry initiated a dialogue with the financial sector, including insurance companies,

10 pension funds and banks, to encourage them to enhance the climate smartness of their investments. The department concerned with climate change at the Ministry of Foreign Affairs, the Dutch Ministry of Finance and the Ministry for Infrastructure and the Environment cooperate closely. This includes coordination at ministerial level. The focus on mobilising climate change financing, in particular climate-smart private sector investments and innovative instruments, will in the end help increase climate-smart investments in developing countries. This will enhance people s resilience to climate change, preparing them for long-term disaster risks, including extreme weather and slow-onset disasters. Another priority area is access to sustainable energy, an important factor for development and reducing poverty. * Martin Stadelmann, Climate Policy Initiative: Estimating mobilised climate finance for adaptation: exploring data and methods and Duisenberg School of Finance, Barriers for mobilising private finance in adaptation projects. **This study was conducted by the Rebel consultants agency. The report has not been distributed widely. Political decision-making is still ongoing. C. Food security: Since 2013, trade and aid have been the combined responsibility of one minister. This has resulted in a policy framework which combines the agriculture and private sector development perspectives on food security in order to increase synergy between the two. In addition, nutrition aspects have gained attention and are being increasingly integrated in this framework (e.g. nutrition-sensitive agriculture). Recently, the ecological sustainability of global food systems (the food-land-water-climate-energy-landscapes nexus) has been added more explicitly to the policy agenda for food security. At the end of 2014 the Minister for Foreign Trade and Development Cooperation and the Minister for Agriculture (at the Ministry of Economic Affairs) combined these perspectives in a joint policy letter to parliament, entitled The Netherlands contribution to global food security. This culminated in three interlinked objectives: 1. Eradicating existing hunger and malnutrition Efforts centre on vulnerable people who are experiencing hunger due to poverty, natural disasters, armed conflicts and other crises. As well as giving food aid where required, we must provide permanent access to adequate sources of nutritious food. 2. Promoting inclusive and sustainable growth in the agricultural sector Efforts focus on small and medium-sized farms and other agricultural enterprises that are potentially capable of responding to market demand. Increasing their earnings capacity is an effective way to combat hunger and poverty and stimulate economic growth. 3. Creating ecologically sustainable food systems Efforts concentrate on the sustainable management of environmental global public goods such as water, soil, energy and biodiversity. The effects of climate change on food systems and vice versa will be taken into account in all our activities. These three goals aim to make a cohesive contribution to the UN framework for tackling the

11 global challenges to food security (the Zero Hunger Challenge and the post-2015 development goals). Non-development policy The policies of the Ministry of Economic Affairs to promote the Dutch private sector (i.e. by supporting research, innovation and internationalisation) concentrate on the top sectors, of which Agro-food and Horticulture & Propagation Materials are especially relevant for food security. Contributing to development objectives, in this case food security, is explicitly part of Dutch top sector policy and Dutch agribusiness participates in public-private partnerships that strengthen, for example, the livestock sector in Uganda, horticulture in Rwanda, potato farming in Kenya and breeding material for improved vegetables in East Africa. Dutch policies and views on plant breeding and plant variety protection support breeders exemption and farmers rights (cf. UPOV) and are thus coherent with the interests of smallholders and with food security in developing countries. The Netherlands will put the issue of patents on plant varieties on the European agenda during the first half of Thematically, Dutch agribusiness and the Ministry of Economic Affairs take up global, development-relevant food security issues like climate-smart agriculture, food waste and food losses, healthy oceans and integrated soil fertility management. In cooperation with the Ministry of Foreign Affairs, the development perspective is integral part of these efforts. Dutch agribusiness is actively held accountable for adhering to CSR principles and participates in a multi-stakeholder platform on implementation of the CFS Voluntary Guidelines on Land Tenure. Policies on nutrition (e.g. SUN, ICN-2) are coordinated with the Ministry of Health, Welfare and Sport and the Ministry of Economic Affairs. The Ministry of Infrastructure and the Environment is involved in policies on sustainable consumption and this perspective is integrated in Dutch policy on global food security (under the objective creating ecologically sustainable food systems ). D. Migration: For the Netherlands, policy coherence between migration and development is a priority. Policies in both areas aim to increase the positive effects and reduce the negative effects of migration on development. To increase the positive effects, the Netherlands focuses on stimulating brain gain and diaspora engagement and lowering the costs of remittances. To address the negative effects, it gives priority to strengthening migration management and protecting refugees and migrants rights in developing countries, and to combating human trafficking and migrant smuggling. Between 2013 and 2015, the Netherlands has pursued policies or undertaken action to promote coherence in a number of specific areas: 1. The Netherlands works to achieve close coordination and cooperation with EU and third countries on migration, mobility, humanitarian assistance for refugees and development.

12 It actively participates in EU mobility partnerships, regional dialogues on migration, and Regional Development and Protection Programmes. This includes contributing funds and expertise. 2. The Netherlands has completed a national study on remittances (The Remittances Market in the Netherlands), conducted together with the Dutch financial sector (DNB and NVB). Results indicate that the development of new technologies for electronic payments offers potential to reduce remittances costs. In this regard, the Netherlands supports new EU regulations on such innovative payment methods. To enhance the development impact of migration, it has organised four regular consultation meetings with Dutch diaspora members, to promote cooperation, share practices and engage them with national and international migration and development policies and fora (including GFMD and post- 2015). The Netherlands also supports a number of projects that stimulate diaspora engagement and brain gain, including continued support for the IOM s Temporary Return of Qualified Nationals programme and several programmes which provide training and coaching for migrants who plan to start a business in their country of origin. 3. On 1 July 2013 the Netherlands launched its Modern Migration Policy, which eases the procedures and regulations on hiring foreign employees for companies in the Netherlands. Companies can submit an application to become a sponsor for a foreign worker for the following purposes: labour (for the purpose of working experience (trainees), seasonal labour, regular labour, labour as a highly skilled migrant and residence based on the European blue card), scientific researcher within the context of Directive 2005/71/EC, exchange and study. Furthermore, from 1 January 2015 onwards, ambitious entrepreneurs from outside the EU wishing to start an innovative business in the Netherlands may apply for a starting entrepreneur s residence permit. Furthermore, the Netherlands is participating in a joint research programme of the OECD, UNDP and the Global Forum on Migration and Development on measuring policy and institutional coherence for migration and development (PICMD). PICMD is an initiative of KNOMAD (the Global Knowledge Partnership on Migration and Development), which developed a dashboard of indicators for the programme. The Netherlands is now involved in operationalising this dashboard through the research programme. This project aims to improve the instrument in order to effectively measure policy coherence for the area of migration and development. All in all, the exercise intends to help countries take stock of their existing policies and institutional arrangements in different sectors related to migration and development, and consider what policies and institutions may be needed to maximise the positive impact of migration on development. E. Security: In 2014 the Netherlands established a new permanent International Security Budget of EUR 250 million per annum. The budget is geared towards supporting the comprehensive approach for crisis management and peacekeeping missions in developing countries. It finances international military missions, activities in the area of security sector reform, peacebuilding, rule of law, capacity building and activities that enable this work. The Ministers of Foreign Affairs, Defence and International Trade and Development Cooperation decide on the expenditure of the budget, which must be developmentally relevant and embedded in long-term strategies, linked to priorities and capacities of local actors.

13 The joint decision-making contributes to greater coherence of foreign policy instruments, such as diplomatic efforts, development funding and humanitarian aid. As an example, one of the activities funded by the International Security Budget is a comprehensive civil-military exercise. In these exercises, Dutch military personnel are trained to deal with comprehensive military missions in a local context with the participation of NGOs and multilateral organisations. F. Other policy areas: The Dutch government creates the conditions for companies to embed CSR principles as effectively as possible in their business activities. Although enterprises themselves remain responsible for respecting human rights and implementing CSR measures, this might be easier for multinationals than for Dutch SMEs. The government therefore helps SMEs to put CSR principles into practice and exercise due diligence by providing information (e.g. through the Netherlands Enterprise Agency/RVO) and tools like the CSR risk monitor check, focusing on CSR within its private sector programmes, and through the National Contact Point (NCP). Furthermore, a sector risk analysis has been conducted in 86 sectors of the Dutch economy. The main objective of the study was to gain an insight into business sectors with an elevated CSR risk profile. In addition, it aimed to identify key risks and make visible to what extent the sectors fulfil their responsibility to eliminate these risks. Thirteen sectors were found to be at risk. In one of these, the textile sector, an International CSR covenant is being concluded between the government and three Dutch textile sector associations to encourage the sector to take its responsibility and to improve the conditions within the supply chain. It is the Netherlands ambition to conclude International CSR agreements with the other sectors as well, using a multi-stakeholder approach. To this end, initial discussions are currently taking place between government, the sectors in question and civil society. 10) Looking back on the last two years, can you give one example that you would like to highlight as a particularly good practice / lesson learned for promoting PCD? If yes, please describe: The OECD/G20 BEPS project is an example of the importance of involving developing countries in negotiations on important coherence dossiers. Furthermore, our pilot studies on the possible impacts of incoherence in Dutch policies on Ghana and Bangladesh clearly offer some important lessons: 1. Setting clear and measurable objectives is key for successful PCD action. Well-articulated objectives provide a greater insight into the development impact and into the steps to be taken in non-development policies to achieve this impact. 2. Engaging developing country partners in setting PCD objectives is key to identifying the most important PCD action to be taken and to promote companion policies by the partner country to harness more coherent policies for development.

14 There is a need for more academic analysis to obtain evidence on the impact of Dutch policy choices in developing countries, but there is a lack of research in this area. Encouraging such research is important.

15 D. RESEARCH AND EVIDENCE-BASED FINDINGS 11) Does your government take into account development objectives in assessing the impact of non-development policies? If yes, please explain: Firstly, because the Dutch Minister for Foreign Trade and Development Cooperation is responsible for both development and foreign trade policy, all trade policy dossiers are also considered from a development perspective. Furthermore, the government is alert to signals, for instance from Dutch and international NGOs, that development objectives (in all possible areas) could be at risk. 12) Have any PCD-related evaluations (regarding policies or mechanisms) or ex-post impact assessments been conducted in with a relevance to PCD? If yes, please explain: In 2013 the Ministry of Foreign Affairs published a pilot study on PCD for Ghana and Bangladesh. The study identified result chains in various PCD policy areas. The aim was to define plausible results of Dutch/EU non-aid policies on development in Ghana and Bangladesh, rather than attributing specific outcomes to specific policies. The pilot study concluded that several EU/Dutch policies have both a positive and negative impact in the two partner countries. The nature of the lack of coherence was usually clear but often difficult to quantify. The conclusions indicated areas where further PCD gains are to be made, for example in non-tariff measures, financial flows and international migration management. This pilot study was followed by a counterfactual analysis of PCD for Ghana, conducted by the Ministry of Foreign Affairs Policy and Operations Evaluation Department (IOB) (see also answer to question 8). This analysis used several counterfactual scenarios, combining quantitative data with qualitative insights within a modelling approach. This enabled the researchers to analyse the options of different donor policies (e.g. on trade, tax policies and migration) and the reactions of the government of Ghana in a single framework. The analysis thus looked at the potential effects that different policy changes of the Netherlands and EU might have had on the Ghanaian economy in the period The possible policy reaction of the Ghanaian government was also taken into account. The main conclusion was that the negative effects of changes in NL/EU policies on Ghana in the short term would be quantitatively limited. 13) Have any PCD-relevant studies been commissioned or carried out?

16 If yes, please explain and describe the main results if applicable: The Ministry of Foreign Affairs has commissioned a study into the impact of TTIP on developing countries. Results are expected by summer ) Does your country use indicators for measuring / evaluating the development-friendliness of your PCD-relevant policies? Yes No If yes please give examples: Indicators were developed in the pilot study on Ghana and Bangladesh to measure the benefit developing countries obtain from more coherent policies. As indicated in question 12, it is not easy to establish a causal relation between PCD-relevant policies and outcomes at country level. For effective PCD policies, the most relevant approach is to use indicators that measure the development-friendliness of PCD-relevant policies. This will be done in a newly established PCD project group, by setting clear objectives with indicators and interim results for developmentfriendly policies in key Dutch PCD areas. E. DIALOGUE WITH OTHER STAKEHOLDERS 15) Do you involve civil society and the private sector in your discussions on PCD-relevant issues? If yes, please give some examples of the initiatives taken: Ministry departments hold regular discussions, mainly with NGOs and less frequently with the private sector on various dossiers. F. OUTSTANDING PCD-RELEVANT CHALLENGES 16) Which are in your view the key policy challenges A. At EU level? 1) To set and agree on measurable objectives with indicators for the different PCD areas. 2) To encourage and use academic research on policy coherence. 3) To promote effective dialogue with governments in partner countries to identify important incoherencies and to achieve synergy in resolving them. It is important to use mechanisms like the dialogue with ACP countries in the Cotonou Agreement to achieve this. 4) To create more political space for civil society organisations in developing countries to give

17 their views on coherence issues. 5) To develop elaborated strategies, as described in points 1-4, on a limited number of PCD issues (e.g. tax, textiles and trade). This will help achieve measurable results on these issues which could then inspire results in other PCD areas. B. At National level? To mobilise the interest of the public, policymakers and parliament on PCD issues. 17) What are in your view the remaining key challenges in relation to PCD tools and mechanisms? C. At EU level? 1) To conduct more research into measurable goals, indicators and the impact of PCD policies. 2) To devise mechanisms for regular feedback from EU delegations in the field to identify incoherencies and ways to address them. 3) To inform a wider audience of the importance of PCD and mobilise support for developmentfriendly policies. D. At National level? To devise a method to set strategic objectives with indicators for development-friendly policies in various PCD areas. G. Publication and Contact Point 18) Does your country agree to make your contribution to the 2015 EU Report on PCD publicly available?