From Traditional Aid to Responsible Trade

Bangladesh is not only a priority country for the Netherlands in terms of development cooperation but also in the field of economic cooperation. The transition of the Dutch Government's policy with regard to Bangladesh from 'traditional aid to responsible trade' illustrates the changing nature of the relationship between both countries. The Netherlands is a dynamic economic and trade partner of Bangladesh. The Dutch-Bangla Chamber of Commerce and Industries established in 1999 was the first bilateral chamber to be set up. Over the last couple of years the Netherlands has consistently been in the top 5 largest investors in Bangladesh and there are currently more than 70 Dutch companies directly investing in the country. The Dutch government offers several Business-to-Business (B2B) instruments to stimulate cooperation between Dutch and Bangladeshi companies. Among these the most popular instrument is the Private Sector Investment program (PSI) which offers financial support to entrepreneurs wishing to set up an innovative joint venture in Bangladesh. The Matchmaking Facility (MMF) further provides Bangladeshi companies the opportunity to find a Dutch partner for implementing joint activities, and the ORIO program supports to realize major infrastructure projects in Bangladesh. A last example is PUM, a program through which senior professional experts advise companies in developing countries on instrumental business processes. The Netherlands Embassy seeks to involve the private sector in its development cooperation programs. The strength of these development programs is that they can also function as a gateway for entrepreneurs. As such the Embassy is able to position Dutch knowledge and expertise to contribute to important challenges in Bangladesh as well as enhancing local private sector development. Furthermore, the Netherlands Embassy promotes Bangladesh in the Netherlands. A monthly business newsletter is compiled and distributed to companies abroad to inform them on recent economic news and information on business opportunities in Bangladesh. The Embassy has a unique public private partnership with Nyenrode Business University of the Netherlands focusing on the promotion of sustainable bilateral business-to-business cooperation in four identified sectors: water, food processing/safety, IT and logistics. The goal is to have a positive impact on the volume of new sustainable trade relations; after all, increased trade and value chain development have a positive effect on economic efficiency, and economic growth. Corporate Social Responsibility (CSR) is woven into all economic promotion activities of the Embassy. The Netherlands development programs in Bangladesh are continuously linked to trade, investment and knowledge transfer from the Netherlands. Furthermore, Dutch companies are often frontrunners when it comes to strategically incorporating CSR and responsible business in their economic activities; in their philosophy this makes business sense. In addition, the Embassy supports programs which focus on strengthening small and medium sized businesses, on enhancing female entrepreneurship. The Netherlands plays a prominent role in the world economy due to its exports, foreign investment in the Netherlands and investments abroad. An international outlook and openness to foreign investment makes the Netherlands a strategic business partner for Bangladesh. The Netherlands has expertise in different sectors that are leading the way in terms of innovation and sustainability. It is one of the world's largest exporters of agricultural and food products, the world's leading supplier of flowers, plants and trees, and has developed sustainable systems for the production, supply and treatment of water. Other areas of Dutch business expertise include green industrial equipment and renewable energy technology. Bangladesh offers many opportunities for successful cooperation between both business communities. It is the combined contribution of Bangladeshi and Dutch companies that makes them key players in support of sustainable growth in Bangladesh.