Indo-Dutch Business Seminar
November 25, 2002, New Delhi

Address by Mrs Van Ardenne, Hon'ble Minister of Development Cooperation, Govt. of Netherlands

Excellencies,

Ladies and Gentlemen

Before starting this speech, I would like to tell you about my sons. I have two sons. One of them just started a restaurant; the other one owns a small but promising firm in the IT-business. They have been able to go to school, to develop themselves, they used the opportunities given to them. Yesterday, and the day before, I met many young children having the same dreams and ambitions as my sons. But do they have the same chances and opportunities? I guess not. They are poor and do not go to school. My ambition is to ensure they get the same chances in life.

You might wonder why a Minister of Development Cooperation is here to address you, the business community of New Delhi. Also you might wonder why the Dutch Minister of Foreign Trade and the Minister for Development co-operation are traveling together abroad on a mission.

Joop Wijn and I believe we can make a contribution to a sustainable economic growth that also benefits the poor in India. 
Mr Wijn's angle in achieving this through exports and trade. My angle, or business if you want to put it that way, is through enabling pro poor growth, growth that benefits the poor.  In both cases the private business community can play a role. 

Of course, the private sector cannot be the only partner in the equation. The government and civil society are the other two key players in this field.

But what can I, as minister for Development Co-operation contribute to the dialogue between the Netherlands and India, the government and the private sector? As I said my business is poverty reduction. I will now give you an insight in my 'business plan' regarding this issue.

- First. The creation of a better international environment. Taking India into account three elements play a key role in defining the international environment: trade, investments and policy coherence. This means creating a level playing field through removing unfair trade barriers and subsidies.

After all, markets are like parachutes they only function when open. It also means attracting foreign direct investments by developing sound policies on legal certainty and non-discrimination of foreign investors. Furthermore, cohesion must be enhanced between the various policies on trade and aid. These issues will be addressed during the current trade liberalization round of the World Trade Organization. The Netherlands play together with its European partners a constructive role in helping to achieve these goals. We sincerely hope the Indian government will actively participate in the talks as well.

- Second. Setting up an enabling environment in the countries themselves. The development of a good infrastructure like roads, ports and telecommunications are important too. Furthermore sound policies regarding health and education are required. This in particular means basic education for all Indian children, boys and girls. And it is important to issue legislation on labor, competition and the environment. But the government must not only develop rules and regulations, it is also important that the implementation of these rules and regulations is secured.

This is a task of some size and complexity especially in a country the size of India.

- Third. A better functioning of the private sector. The two previous points deal with the international and national enabling environment, a task of the governments. The result is a framework in which you, the private sector can operate. But it often happens that the private sector needs some assistance as well. What are the problems the private sector is faced with? To get a good insight in the business climate in developing countries, I recently asked all our embassies in these countries, India included, to meet with local entrepreneurs to make an assessment of the constraints they face and of the options needed to enhance the business climate. The first results show that many companies are struggling with bureaucracy, red tape and issues like licenses and unfair business practices. Other factors were the limited accessibility to the financial markets and to lack of knowledge. In our talks in Mumbai and Hyderabad with the private sector that became again evident. In our view, partnerships between the Indian and Dutch private sector can be a way of solving some of these constraints. To stimulate these partnerships we have developed a set of instruments. I will not list them here but the embassy can provide you with the necessary information. 

Let me conclude, sustainable development that contributes to poverty reduction stands or falls by a healthy private sector. The private sector accounts for a substantial share of Gross National Product and employment generation in developing countries. However, the potential of the private sector for pro poor growth has not yet been fully exploited. And that is why we are here in India. To meet the poor, to meet the business men, and to work on their common future.

Thank you