Achieving sustainable self-reliance without educational capacity building an illusion

More instruments are in the planning. The 20 programmes that have been announced are all well chosen and they all focus on the right issues. They are tightly aligned forming a comprehensive programme for overall support to the private sector. However, I have serious doubts that the outcomes of the financed cooperation will be sustainable since the (higher) education institutions, which ensure continuity of capacity building, have not been included in these plans. Particularly the universities of applied sciences have a role to play in these programmes.

Ministerial cooperation

The cooperation between MinBuZa and MinEL&I has greatly intensified under the current cabinet. MinBuza is outsourcing the management of several of its major development cooperation programmes to MinEL&I’s implementing organ NL Agency. The strengthened cooperation is logical since the two ministries have some common goals with regard to international cooperation for economic growth purposes.

MinEL&I is interested in Dutch economic growth and strengthening the position of the Dutch private sector in the international trade market. MinBuZa shares this interest, but from the perspective of international partners (developing and emerging economies) so that these can eventually become self-reliant.

The private sector plays a central role in the international cooperation strategy of the two ministries, with regard to economic growth. Both ministries recognise that developing private sector capacities and the entrepreneurial landscape of partner countries will also be beneficial to Dutch enterprises doing business in these countries.

The programmes

The programmes that have been created by the two ministries to achieve their joint goals are outlined in De Nieuwe Koers van Ontwikkelingsamenwerking (The New Course of Development Cooperation). Each subsidy instrument tackles one or more aspects that contribute to improving the climate for doing business with 60 selected developing and emerging economies, or support individual enterprises in doing business with and/or in these countries.

MinBuza’s total budget for positioning the Dutch private sector for intensified international cooperation with developing countries amounts to €900 million per year in the next four years - a substantial investment.

What about capacity building?

It is very refreshing to see such strong ministerial cooperation. Very often government ministries are criticised for not communicating or working together enough, with each ministry focusing on its own action list.

The investments in the private sector are a positive and welcome development. At first sight they offer a win-win situation for the Dutch participants and their southern partners.

However...

What about capacity building? Several MinBuZa programmes have the overall aim of raising the economic development and self-reliance of the participating developing countries. Can this be achieved sustainably without incorporating a systematic capacity building component in these programmes? I don’t think so. Reality tells us that companies go bankrupt, employees change employers, economies fail or that company interests in a given location can change. This has consequences on the ability to sustain the knowledge and skills earned during any cooperation.

When (higher) education and training institutions are involved in the company-to-company cooperation, the sustainability of  capacity development is better guaranteed. Such participation can involve curricula reforms through incorporating universal practical aspects relevant to the company-to-company cooperation in the curricula or creation of internship possibilities within the company-to-company cooperation so that more people (both students and teaching staff) are trained.

Other ways in which the capacity building can be linked to company-to-company cooperation programmes are discussed in one of my recent blog posts.

I see a lot of potential for involving the HE sector (particularly universities of applied sciences) in the new programmes outlined by MinBuZa and MinEL&I. In fact, in practically all the programmes outlined. Both the Dutch universities of applied sciences as well as the HE sector in the 60 partner countries can make a valuable contribution.

This link has not yet been made in the programmes chosen by the two ministries. But there’s still time to do so. This is necessary if sustained impact of the outcomes of the financed international private sector cooperation is to be achieved.