Financing Development Now and in the Future

mei 2015

The study ‘Financing for Development Now and in the Future: Implications for The Netherlands and Beyond’ makes clear that a rigorous debate change is needed on development finance from 2015. Little or no attention has been given to the financing of sustainable development by national politicians or the media. The Dutch debate on development finance is narrowed to the 0,7% target of Official Development Assistance and cost effectiveness. This is diverting attention away from more important current issues such as the root causes of poverty, other financial flows such as domestic taxes and international private financial flows and a far more diverse donor community including emerging economies, the private sector and philanthropic foundations.

Furthermore, a survey has been executed among a representative group of Dutch citizens which reveals a somewhat narrow view on development assistance. Only 41 percent of the Dutch citizens agree that there is a direct relationship between poverty in developing countries and global challenges such as climate change.

On the basis of expert interviews and literature review it is shown that The Netherlands has the potential of being frontrunner in contributing to the modernization of development finance seeing its long standing history as a donor with recent experiences in innovating development policies. The study identifies three prerequisites for a progressive Dutch approach. These are a focus on partnerships, policy coherence and solidarity with the poorest. A new narrative is needed adapted to the 21st century needs on development finance which acknowledges solidarity, global interdependences and policy and financial coherence for development.