Knapen supports new World Bank programme: no money without results

News article | February 2, 2012

The Netherlands supports the World Bank’s new financing programme for developing countries and the strict conditions associated with it. This new arrangement was actually requested by the developing countries themselves. Under this new scheme they will only receive funds when they have achieved goals that have been previously agreed with the World Bank. The Dutch position was expressed by the Minister for European Affairs and International Cooperation Ben Knapen to Sri Mulyani Indrawati, a Managing Director of the World Bank.

The administration of the World Bank approved the scheme two weeks ago. Mr Knapen has praised the new approach: ‘The World Bank will pay out on the basis of genuine, measurable results – not good intentions. This is very much in keeping with this government’s ideas about development. Our concern is results.’

Under the new financing programme, governments in developing countries can also apply for loans for particular aspects of public programmes, such as improving water management.
Up to now, formally speaking, it was only possible for developing countries to borrow money from the World Bank to supplement the general budget or for a specific self-contained  project, such as the construction of a bridge.

Mr Knapen also took advantage of the above meeting to discuss the priority themes of his policy: food security, water management, security and the legal order, and reproductive and sexual health and rights. Programmes relating to a number of these themes will involve working with the World Bank. For example, the Netherlands supports the food security fund GAFSP. This money is used as guarantee capital to enable local farmers and entrepreneurs to borrow more easily from the bank.