Netherlands Development Cooperation System
Netherlands Development Cooperation System
May 2003
Executive Summary
A team comprising Bernd Balkenhol of the ILO, Mavis Owusu-Gyamfi of DFID, Sanjay Sinha of EDA, and Syed Hashemi and Alexia Latortue of CGAP conducted a Donor Peer Review of the Netherlands Development Cooperation System (Netherlands) in the Hague from 19-23 May, 2003. The review is part of a 17-agency initiative launched by Development Ministers, agency heads, and CGAP to concretely tackle aid effectiveness by using microfinance as a test case.
The Peer Review focused on selected internal procedures, practices and processes of the Department for Development Cooperation within the Ministry of Foreign Affairs (Ministry), and on the Ministry’s relationship with the 10 institutions that form, together with the Ministry (through DDE/OB), the Dutch Microfinance Platform (Platform). The purpose of the review was to identify the success factors and constraints that influence the effectiveness of the Dutch microfinance offer.
DDE of DGIS and the Platform Coordinator provided the peer review team with an orientation to the Ministry and the Platform members. The team had meetings with 69 people, including staff of DGIS, DGRC, and several Central Service departments. The team also met all the Platform institutions and key external resource persons. The team consulted with Minister van Ardennevan der Hoeven and Director-General Keller. On 23 May, the team briefed 40 Ministry staff and management and staff of the Platform institutions in a meeting chaired Ron Keller.
The team noted a strong commitment to improve the effectiveness, efficiency and transparency of the Dutch microfinance offer. This commitment is reflected in the establishment of the Platform with DDE’s engagement, and the Minister and Director-General’s interest in CGAP’s work. The team hopes that this letter will enrich the internal discussions and provide specific ideas on how the Netherlands can maximize the effectiveness and efficiency of the microfinance activities of the overall system, above and beyond individual institutions’ contributions.
This letter outlines the Netherlands’ strengths and challenges, and presents specific recommendations for improving quality, effectiveness, and efficiency. A matrix at the end of the letter provides a summary of key findings and recommendations. The four recommendations are:
- Articulate joint vision on financial services. The Ministry and Platform should draft a short vision statement in a consensual manner and communicate it widely. The Ministry should then provide operational guidance to ensure the effective delivery of the vision.
- Define role of the Ministry beyond financing. DDE should pro-actively engage on a technical level with its internal and external stakeholders. A permanent focal point function with sufficient visibility and Ministry staff with basic knowledge of best practices is needed.
- Improve accountability and transparency. Building on the trend toward results-oriented funding of organizations, the Ministry should select 4 questions to screen applications and should only consider funding requests from new organizations with proven track records.
- Strengthen the platform. The Platform should write a work plan with activities in training, information sharing, tools development, innovations, joint operations, comparative advantage definition, and advocacy. The Ministry should support the plan with a small, flexible fund.
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