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Former Development Cooperation Minister Bert Koenders in Kenya
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The Hague , Netherlands
The Hague , Netherlands

Dutch aid organisations face budget slashes

Published on : 2 April 2010 - 3:06pm | By RNW News Desk (Photo: ANP)
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Many Dutch aid organisations fear huge slashes in government funding as well as a drastic cut in the number of organisations receiving subsidies.

Less than half of 43 Dutch aid organisations have so far received word that they are eligible for government funds. In November, the Foreign Affairs Ministry will let them know how big a piece of the subsidy pie they get.

Dutch development assistance

Previously, 86 development assistance organisations received 560 million euros a year. Former Development Cooperation Minister Bert Koenders wanted to cut the budget by some 100 million euros and reduce the number of organisations to 30. Which explains why many organisations decided to form alliances.

Forty-three alliances have submitted requests asking for a total of 740 million euros. There is a maximum of 400 million euros to spend. No organisation will receive more than 106 million euros. Organisations whose applications have been rejected include the Dutch Aids Fund, Solidaridad and Fair Trade shops.

The largest aid organisations and their former budgets:

  • ICCO (an inter-church organisation for development cooperation): 131 million euros
  • Oxfam Novib: 127 million euros
  • Cordaid: 105 million euros
     
Last year, then Development Cooperation Minister Bert Koenders promised to halve the number of agencies which receive government funding and cut the amount they get.

Outgoing Foreign Minister Maxime Verhagen has just announced which agencies will go through to a second round of a review on development aid. The cuts are part of a raft of measures to bring down the budget deficit. However, the government says it is also attempting to increase efficiency.

Efficiency criteria
Bram van Ojik, a senior official at the Ministry for Development Assistance, describes the two criteria the organisations have to meet in order to be eligible for subsidy:

"There are two basic questions. Do you make an effective contribution in the fight against poverty? And secondly, do you do that in an efficient and practical manner?”

As a result, many aid organisations have joined forces to avoid getting axed.

Alliances
Health care organisation Healthnet TPO, represented in two alliances, lost funding for one. Director Willem van der Put says he is not surprised:

"What strikes me the most is that tradition has been found to be more important than reform. In spite of talk of a new approach, I see from the 20 partners whose applications have been renewed that there is mostly more of the same."

The Refugee Foundation, which formed an alliance with Refugee Work, the Netherlands has not gone through to November’s second round. Director Tineke Ceelen understood the government decision: "We did not meet all the criteria. We submitted an application because one always hopes that it will be approved."

 

 

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