NL – Dev Fin. Inst, 2nd NAP

Pillar 1

Central government procurement and private-sector instruments

Private-sector instruments

“Any business using the government’s international financing instruments or requesting any other support focussed on international entrepreneurship, will have to show that it adheres to the OECD Guidelines and implements due diligence on its international supply chain. This will also take into account the responsibility of businesses to respect human rights in accordance with the UNGPs given that the OECD Guidelines refer to the UN’s ‘Protect, Respect and Remedy’ framework, which includes a chapter on human rights drafted in line with the UNGPs. Implementing organisations such as the Netherlands Enterprise Agency (RVO), Atradius Dutch State Business, the Dutch development bank FMO and Invest International all set these conditions. They have also drafted their own RBC frameworks specifically for their own services and products, based on international standards including the UNGPs. An evaluation of RBC policy in 2019 found that large implementing organisations and their clients, the businesses receiving financial support, all address the business community’s responsibilities for human rights. The evaluation also found that they need to focus more on access to remedy (by affected rightsholders), in accordance with their role, for example via a complaints mechanism.” p. 35.

Integrating responsibilities in conflict areas and fragile states into policy

“The Netherlands is committed to collaborating with other donors and organisations in making joint analyses which include a gender dimension. An example here is Dutch investment in the International Finance Corporation’s (IFC) Conflict Affected States in Africa (CASA) initiative. A conflict-sensitive approach to private sector development was central in the 13 fragile states in which this IFC project was implemented.” p. 43

Development cooperation

Sustainable trade with and investment in developing countries “Development cooperation policy on business and human rights focuses on improving the sustainability of production and international value chains in and with developing countries in a way that helps reduce poverty and inequality. To this end it is important that a) the interests and specific situation of the developing countries in question are taken into account when designing measures aimed at making trade and investments more sustainable, and b) developing countries are supported in the transition required to meet these commitments to inclusive, green economic development.

The interests and specific circumstances of developing countries must be taken into account when drafting national, European and international agreements aimed at improving the sustainability of trade and investments. Examples include developing standards on deforestation and the climate, the circular economy, land use rights, labour, foreign trade and investments and RBC. The cornerstone of this is to determine the development impact of efforts to make trade and investment more sustainable, especially the impact on vulnerable groups such as indigenous peoples, small-scale producers, workers and agricultural labourers, with a particular focus on women and young people. This should reinforce the efforts’ positive effects and, as far as possible, prevent and mitigate any negative side effects.

Developing countries receive several forms of support. First, bilateral and EU- and World Bank-led discussions take place with governments in developing countries about the transition towards greater sustainability, and ways of reducing poverty and inequality in the course of this transition. Second, Dutch civil society organisations such as trade unions and employers’ organisations receive funding to, on the one hand, strengthen sister organisations in developing countries (for example through dialogue with other local stakeholders) and, on the other, to advocate at international level the interests of, in particular, small-scale producers and workers. Third, a range of Dutch and international implementing organisations make efforts to improve the business climate and supplementary government policy in developing countries, focusing particularly on SME producers as the ones playing the most significant role in poverty alleviation. Examples include providing access to financial services, improving infrastructure and building capacity for entrepreneurs and their trade associations. Fourth, efforts are made to increase the sustainability of international value chains by working jointly with businesses, civil society organisations and other levels of government on improved procurement practices and new revenue models with a focus on work, a living wage and income, land rights and land use and the elimination of child labour. Further strengthening cooperation between ministries and between Dutch government and other stakeholders can help ensure that the establishment of national, European and international sustainability frameworks and standards and their impact on and support of developing countries mutually reinforce each other even more (learning capacity for coherence). This is particularly important in specific risk sectors and value chains such as cacao, textiles and palm oil which have a significant Dutch footprint. In addition to a separate, permanent interministerial dialogue to be established, the focus will be on lastingly improving learning capacity regarding these activities, so that risks are addressed and mitigated.” pp. 46 and 48.