Ministry of Foreign Affairs 1)Dutch Foreign Policy, a birdseye view 2)The Netherlands and Korea...

Ministry of Foreign Affairs

1)Dutch Foreign Policy, a birdseye view

2)The Netherlands and Korea

3)The Netherlands and Globalisation

4)Key Problems facing the Netherlands


A. Brief History

B. Constants in Dutch Foreign Policy

C. After World War II

D. Foreign Policy Formulation

E. The Ministry of Foreign Affairs

1)Dutch Foreign Policy, a birdseye view

A. Brief History

- 80 year war of independence against Spain;

- 17th Century Golden Age; Arts and Culture; Trade and Colonies; Major International

Power;

- House of Orange; stability;

- 1700 - 1940; Relative decline, but wealthy;


A. Brief History (continue)

- Struggle against the sea; birth of democracy;

- 1848: Ministerial Responsibility;

- After 1945: Active Engagement; UN, NATO, EU, Council of Europe, OSCE etc..


B. Constants in Dutch Foreign Policy

- Three main tendencies/traditions:

1) maritime commercialism, 2) neutralist abstentionism, and 3) internationalist idealism

1) Maritime commercialism;

- 14th Century : dominated shipping from Baltics to Mediterranean

- Open and outward looking


- Anti-protectionist economic policy

- Promotion of free trade, even during abstentionist periods

- Reliance on treaties, rule of law and international Peace

- Johan de Witt 1650: ”Quiet and Peace everywhere so commerce can be conducted in unrestricted way”.

- Hugo Grotius; Law of the Sea


2) Neutralist abstentionism;

- Maritime Commercial interests : so stay away from other nations’ political quarrels

- But also balance-of-power when necessary to avoid one continental power becoming too strong

- 1839 (Secession of Belgium) until 1940 most distinctly neutralist Period


- De facto alliance with UK; important for Dutch independence on continent

- After WWII : strong US presence in Europe in our interest

3)Internationalist idealism

- Neutralist abstentionism contributed to inexperience; certain naivete

- Realism versus idealism; pacifism; mercantile interests


- No territorial ambitions in Europe

- Legalism; Rule of law; Hugo Grotius; to serve mercantile interests

- Certain Moralism; Legalism and Moralism make up for lack of power

- Non-Militarism; Mercenary army

- But strong naval tradition


- Identification with socio-economic and religious groups

- Supranationalism; Mundialism

- The Hague Legal Capital of the World


C. After World War II

C.1 Security Policy; farewell to neutrality

C.2 Economic Integration

C.3 Multilateral versus Bilateral

C.4 Development Cooperation

C.5 Human Rights

C.6 The Hague, legal capital of the World


C.1 Security Policy

- UN

- NATO, Strong US leadership

- WEU / EU

- OSCE

- Peace Missions; Former Yugoslavia, Ethiopia / Eritrea, Afghanistan, Iraq,

Liberia

- Both Atlanticist and European; no incompatability


C.2 Economic Integration

- European Community Coal and Steel/Monnet, Schuman, de Gaulle,

Adenauer; French/German reconciliation

- European Community/Common Market, 1960’s

- European Political Cooperation, 1980’s

- Maastricht Treaty 1991; Three pillars: Economic, foreign and security policy

and Justice and Home Affairs.


C.2 Economic Integration (continue)

- Sharing Sovereignty; European Laws versus National laws

- Monetary Union, Euro

- CFSP and ESDP; EU/NATO cooperation

- The institutions: European Council, Council, Commission, European

Parliament, European Court of Justice

- So political cooperation grew from economic cooperation


C.3 Multilateral versus Bilateral

- Netherlands is medium sized power;

- Needs both multilateral and bilateral diplomacy;

- Bilateral diplomacy can reinforce multilateral diplomacy

- Rules based internationalism


C.4 Development Cooperation

- Strong engagement since 1960’s; in our interest

- 0.8% GNP

- Good Governance and respect for Human Rights; conditions for

development

- Sectoral Approach; away from projects; ownership


C.4 Development Cooperation (continue)

- Sustainable Development/Education/AIDS, Health Care

- Netherlands traditionally very strong in Agriculture and Water Management

- Peace and Security / Development / Respect for Human Rights


C.5 Human Rights

- Universality; Mo Zi: 400 BC

- Equality of different human rights; social/economic and civil/political

- Netherlands signed all relevant Treaties


C.5 Human Rights (continue)

- Active engagement in all relevant fora and bilaterally with the aim of

encouraging compliance world wide

- Human Rights Commission Geneva primary body within UN for

ensuring human rights are respected; HR Council


C.5 Human Rights (continue)

- Special Focus on: strengthening Rule of Law, non-discrimination and tolerance, freedom of expression, freedom of religion and conscience, protection of vulnerable groups, campaign against torture, support for human rights activists, abolition death penalty

- Emphasis moving from setting standards, to ensuring compliance and effectiveness


C.6 The Hague, Legal Capital of the World

- Hugo Grotius, “ De iure belli ac pacis”; “Mare Liberum”

- Netherlands Constitution: Obligation to promote development of the

international legal order; only country in the world

- The Hague Peace Conferences; Tsar Nicholas II

- Permanent Court of Arbitration, 1913


C.6 The Hague, Legal Capital of the World (continue)

- International Court of Justice, 1946

- Hague Conference on Private International Law, 1955

- Iran-US Claims Tribunal, 1980’s

- International Criminal Tribunal former Yugoslavia, ICTFY 1990’s / Trial of

Milosevic


C.6 The Hague, Legal Capital of the World (continue)

- International Criminal Court (ICC), 2002

- The Hague now hosts 32 intergovernmental organizations

- 4th UN city, after New York, Geneva and Vienna


D. Foreign Policy Formulation

- Parliament; Coalition governments; Consensus politics

- NGO’s / The Churches / Civil Society

- Business community


E. The Ministry of Foreign Affairs

- 5500 staff of which local staff 2200

- 176 missions abroad; large network; 111 embassies; 31 consular missions; PR’s 16

- Budget € 10.0 billion; € 4.0 billion ODA; 0.8% GNP

- 3 Ministers


E. The Ministry of Foreign Affairs (continue)

- Key objectives:

- International order

- Peace, freedom, security, stability

- European Integration

- Sustainable Poverty Reduction



- Key objectives:

- Bilateral Relations

- Grasp opportunities and confront challenges

- Active engagement, bilateral and multilateral



- OR otherwise formulated:

- Strive for stable and orderly international environment, where

human rights are respected and social justice is pursued;


Reassessment Dutch Foreign Policy 1994/1995

3 C’s:

- Coherence;- Co-operation;- Cogency, or effectiveness.


The Organisation

- Decompartmentilisation of policy and organisation; integration

- Far reaching delegation of authority to embassies in the field;

- Changes of attitudes and culture within theorganisation, for example: less risk aversion and hierarchy, more team work, more transparency and openness;

- Key to success: people willing to work together.


Financial aspects

- Homogeneous Group of Foreign Policy Expenditures; 1.1% of GNP;

- ODA 0.8% of GNP, NON-ODA 0.3% of GNP;- Independence of annual budget discussions in

Parliament;


Financial aspects (continue)

- Annual growth of NON-ODA has been very important to realise many foreign policy

goals outside direct development co-operation (ODA), such as culture,

infrastructure, peace operations, export promotion etc.;

- Key to strengthening the position of the Ministry of Foreign Affairs, both

financially and institutionally as regards co-ordination prerogatives in the Hague.



Netherlands ROKoreaSurface 42.000 km2 98.000 km2 (2x)

Population 16.306.000 49.000.000 (3x) GDP USD 4548 billion USD 810 billionGrowth (2005) 0.9% 4.%GDP Capita (PPP) USD 34.000 USD 17.000Services 72% 58%Industry 25% 38%Agriculture 3% 4%

2)The Netherlands and the ROK, some facts;


Netherlands ROKoreaInflation 1.3% 2.75%Labour force 7.400.000 23.000.000 (3x)

Unemployment 6.5% 3.6%Exports (G+S) USD 335 billion USD 284 billionImports (G+S) USD 296 billion USD 261 billionTrade Volume % GNP NL 115% ROK 72%Mobile phones 12.000.000 32.000.000Internet users 8.200.000 26.000.000ODA / Economic aid USD 4.0 billion USD 400 million

(continue)The Netherlands and the ROK, some facts;


* Some conclusions:

- ROK even more densely populated than the Netherlands (NL)

- Services sector in NL bigger

- Foreign Trade more important in NL; volume larger than GDP in NL, about 70% for ROK

- ICT penetration equally advanced



* Some conclusions:

- Large exports compensate for small domestic markets / for NL, Europe is now the market

- Both excellent geographical positions

- Both squeezed by large neighbors



* Brief History:- Hendrik Hamel- Korean War- Embassy in Seoul since 1975- 150-200 Dutch people- More than 40 companies active- NL 4th partner in trade volume from EU- NL largest investor in Korea from EU- Hiddink / Advokaat?- Cultural exchanges

The Netherlands and the ROK, some facts;(continue)


- Curse or blessing?

- Destroy cultural diversity?

- Eco- and Social dumping?

- Race to the bottom?

- Or create more and more wealth?

- But: successes only through globalisation; trade; not self-sufficiency or import substitution

3) The Netherlands and Globalisation


- And: Denmark and Netherlands very open globalised and international, but with strong welfare systems

- Definition: increasing cross-border interdependence and integration of production and markets for goods, services and capital

- Globalisation is good for growth, and should be pursued

- But: Rules based internationalism

What is globalisation?(continue)


- History / Maritime Tradition / No natural resources / Trade / Open to the world

- Geographic location / Gateway

- Membership European Union / WTO / Strong support for multilateral co-operation

- Political stability

- Excellent infrastructure / Rotterdam-Schiphol-Rivers

Success factors contributing to successful participation of the Netherlands in globalisation


- Flexible labour force

- Consensus politics / Labour relations / Tripartite win/win

- Non-discrimination principle

- Open attitude to foreigners

- Excellent language skills

Success factors contributing to successful participation of the Netherlands in globalisation (continue)


- Favourable investment climate / Tax treaties / Fiscal regime

- Favourable customs regime

- Large international multinational corporations have contributed to positive attitudes towards globalisation; Shell, Unilever, Philips, AKZO/NOBEL, KLM, PO NedLloyd, ABN/AMRO, ING



- Openness economy forces competition, efficiency, productivity and innovation, and therefore creates wealth

- Outward FDI exceptionally large; 5th largest stock in world, as much as 75% of GDP; 25% to USA



- Inward FDI also exceptionally large; 7th largest stock in world, 65 % of GDP; mainly from USA

- Specialised in transportation, distribution, banking and insurance

- No support to sunset industries



- Future of EU integration / Constitution-Turkey

- Ageing population / how to pay for it

- Integration of minorities

- Lagging productivity and competitiveness

- Continuous restructuring of labour market in order to increase labour participation; work longer and more;

- Research and Development;

4) Key problems facing the Netherlands


- Continue adapting to a changing world; without constant restructuring and adaptation, stagnation will result

- So remain engaged with the world, and open to it

4) Key problems facing the Netherlands

(continue)


- As a small nation with small market, we must sell abroad/ But for some indicators we are in top 10 of the world

- Must be open to be able to compete

- Participation in globalisation matter of survival

- Globalisation offers opportunities The Netherlands is determined to grasp

- And: Globalisation is good for everyone, rich and poor; book Johan Norberg “long live Globalisation”

Conclusions

Ministry of Foreign Affairs 1)Dutch Foreign Policy, a birdseye view 2)The Netherlands and Korea...

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