The Netherlands provides advice and financial resources to support the launch and growth of businesses. The progress made with business development is measured on the basis of the number of business plans for investment or trade in low- and middle-income countries receiving Dutch support through private sector development programmes.

Successful business development leads to more and better jobs in the private sector. In accordance with agreements between international donors, annual monitoring mainly focuses on direct jobs in businesses supported by private sector development programmes.

Apart from direct jobs, some programmes also report on the indirect jobs they help support. This is the case with suppliers to businesses receiving support, or the expected macroeconomic impact of infrastructure support. The different types of employment support are measured differently. For this reason, indirect jobs are recorded separately.

To achieve the UN Sustainable Development Goals by 2030, private investment and know-how are becoming increasingly important, in addition to public investment. This was the conclusion reached by government leaders attending the Financing for Development conference in Addis Ababa, Ethiopia in 2015. For this reason, various Dutch programmes provide advice and financial resources to support local and Dutch businesses, to mitigate the higher risk of investing in low- and middle-income countries. The degree to which businesses and other private organisations like banks are able and willing to bear these higher financial and political risks is monitored on the basis of the extent of private co-investment under the private sector development programme.

Developing countries need knowledge and technology to raise and improve their productivity. By applying international production standards, developing countries can take part in sustainable trade worldwide. This raises living standards and has a beneficial impact on the environment and on working conditions in sectors where many people work.

To ensure that higher living standards benefit all participants in international value chains, the Netherlands urges Dutch businesses to comply with the OECD Guidelines for Multinational Enterprises on corporate social responsibility. The Netherlands actively supports initiatives to improve working conditions for workers in various production sectors in developing countries. These range from agricultural production (palm oil, cocoa and soya) to labour-intensive sectors like the clothing industry. The ILO, multinational enterprises and NGOs are partners in these initiatives.

Various programmes work from the Netherlands to accelerate sustainable production within worldwide value chains for, for example, palm oil, cocoa and soya. These programmes promote joint adoption of sustainable production methods through worldwide cooperation between businesses (the major buyers), NGOs, government bodies and knowledge institutions. Training small-scale farmers in sustainable farming practices is essential for effective dissemination of these production methods and participation in supply chains. The topics addressed include not only better farming and crop protection methods and compliance with sustainability standards and certification, but also action to strengthen the position of workers and to improve employment conditions (wages, overtime, child labour and gender issues).

IDH and Solidaridad (2016-2020) work from the Netherlands to accelerate sustainable production within worldwide value chains for, for example, palm oil, cocoa and soya. These programmes promote joint adoption of sustainable production methods and sustainable land use through worldwide cooperation between businesses (the major buyers), NGOs, government bodies and knowledge institutions.

Developing countries need knowledge and technology to raise and improve their productivity. By professionalising management and applying international production standards, exporters from developing countries can expand their markets abroad. The Netherlands supports producers in developing countries with marketing expertise and application of production standards, thus enabling them to export their products. The Netherlands also works with local governments and customs authorities to support trade facilitation programmes in low- and middle-income countries.

Access to financial services is crucial for poor people and small businesses in enabling them to save safely or invest. For this reason special new or improved financial products or innovative services are being developed with the main goal of reaching this target group. A good example are facilities for women entrepreneurs with little or no credit history. The number of people registered for a special insurance policy for the poor developed with Dutch support is included in this indicator. These special insurance programmes protect poor people against substantial, unforeseeable loss of income risks, such as illness or failed harvests through severe weather. Examples include agriculture and climate insurance for small-scale farmers and the Health Insurance Fund’s electronic wallet that guarantees access to healthcare services for women and children. The number of people with access to financial services has risen substantially due to harmonisation of this indicator with international standards. Further harmonisation will take place in the next 12 months.

Financial services are essential for economic development. Access to financial services is crucial to enable people to save safely, take out insurance or invest in a business. This applies in particular to poor people in rural areas and small businesses in countries with weak financial markets and inefficient financial institutions. For this reason, the Netherlands encourages the development of innovative or improved financial products tailored to the specific needs and local constraints of low-income groups. Examples include the Health Insurance Fund, agriculture and climate insurance for small-scale farmers developed by the Global Index Insurance Facility, and facilities for women entrepreneurs with little or no credit history.

Sound economic governance and professionally organised institutions contribute to a business climate in which the private sector can grow and workers can improve their economic position. By organising, farmers, workers and entrepreneurs can increase their earning power. The Netherlands therefore supports more than 500 organisations that help farmers, entrepreneurs and employees to strengthen their economic position by organising in cooperatives, employers’ associations and trade unions. Examples include training in operational management and negotiation or leadership skills to exert influence on governments for better legislation and regulations. To generate more revenue for development, it is essential that the tax and customs administrations of low- and middle-income countries function properly.

Access to reliable infrastructure is essential for private sector development and to improve poor people’s quality of life. Infrastructure projects call for a long-term financial commitment from all parties involved.

Reserving the necessary funding with partners is crucial for completion of infrastructure projects. For this reason, the number of planned projects with signed funding agreement, is a major indicator of the progress of infrastructure development programmes.

In 2019 the DRIVE portfolio grew substantially due to the changes to administrative rules made in 2017. Total commitments have now risen to over €300 million. The D2B programme is also moving forward fast, and committed to 18 new projects in 2019. Work is under way on follow-up to both DRIVE and D2B from 2021.

The number of end users expected to gain access to new or improved infrastructure is an indicator of its expected reach and social impact.

This indicator is generated using estimated numbers of end users of (1) planned projects for which partners have signed funding agreements and (2) projects completed in the reporting year.

The Private Infrastructure Development Group (PIDG), FMO’s Building Prospects, the development-related export transactions programme (ORET) and the Development Infrastructure Facility (ORIO) have all proved effective in improving infrastructure services.