The Netherlands has decided to sharply reduce spending on development aid and to change its focus. Less money for education and public health, more for agriculture and water management. The Dutch are experts in these fields, and Dutch companies will benefit. Aid organisations such as Oxfam Novib are upset.

However, Dutch scientists studying agricultural aid to developing countries are positive about the new emphasis being placed on this sector. According to Huub Löffler, director of Wageningen International, which forms part of Wageningen Agricultural University:

“Agriculture has been neglected for a very long time. It is good to have the subject back on the agenda again. And it is not just the Netherlands, but part of an international context. The 2008 World Development Report says this is the way forward, particularly in Africa. This is where our focus should be.”

Seed improvement
According to Mr Löffler, the focus of Dutch development aid in the last decades of the 20th century was primarily on education and the role of women in developing countries, and to a much lesser extent on agriculture. He believes the sector forms the basis for economic development. African farmers must produce enough food to support the entire population, not just their own village. Only then is further development possible. He has a concrete example of how the Netherlands can play a role in this process.

“The importance to the agricultural sector of good, healthy seed cannot be overstated . When you sow bad seed, your crop is already half lost, because there will be all kinds of disease in the seed. This [seed improvement, ed.] is something the Netherlands is really good at."

According to Mr Löffler the Netherlands is home to several major seed companies which invest in developing countries, such as Tanzania. “These investments are made for economic reasons, but also as the result of a social conscience. They work together with local partners to create a healthy seed sector. This is a good way of doing business: you invest in the country and link up with local businesses."

Corporate accountability
Oxfam Novib is less enthusiastic about the changes in Dutch development aid. The aid organisation is not necessarily opposed to private enterprise playing a role in development aid, but argues it should first be established whether there is any added value. Tom van der Lee, campaign manager at Oxfam Novib, says:

“As far as we have been able to determine, no scientific research has been conducted into the effectiveness of channelling aid via the business community. First off, there is the issue of accountability, giving an account of how the money is spent. This is already a difficult issue where governments are concerned, but far more complicated for private enterprise.”

He says African governments miss out on about 120 billion euros in revenue simply because businesses, including multinationals, pay no or too little tax. “If they are unwilling to do even that, what results can we expect from additional subsidies to businesses to provide development aid?” These subsidies to businesses would come at the expense of local social organisations supported by Oxfam Novib, which are actively involved in improving the lives of the local population.

Effectiveness
“We feel that those people in that location are doing the most effective job possible. And now the money is being redirected to other locations where people are working much less effectively”

Mr Van der Lee denies his organisation is ineffective. Oxfam Novib cannot be compared to a major organisation like UNDP, the United Nations Development Programme, which spends 97 cents on administration for every 75 cents it spends on aid. “In our organisation that is only 19 cents per euro spent on aid.”