Netherlands NGO Sector

The Netherlands is one of Europe’s leading participators in not-for-profit and international aid activities. “‘The non- profit sector [is] a huge economic source in the Netherlands, accounting for substantial shares of national expenditures and employment… a $60 billion industry”’ (Salamon and Sokolowski 2004). The Netherlands is home to many international organizations, for example, the greenpeaceGreenpeace, and is largely involved in international developmental activities. “‘Surprisingly few people seem to realize that the Netherlands is one of the leading countries in global civil society building, and that the Dutch government is one of the leading donors to non-governmental organizations throughout the world.”’ (Evaluation of the Theme based Cofinancing 2003). Compared to neighboring European countries, the Netherlands clearly stands out in its non-for-profit, charitable activities.

Dutch Not-for-Profit

One of the earliest traces of Dutch charitable, not for profit activities can be found in the 17th and 18th century Netherlands. ‘”Few aspects … were more striking than the elaborate system of civic poor relief and charitable institutions”’ (Israel 1998 1998). In the early days, Dutch charitable activities were still considered quite superior relative to its European counterparts. “‘Its superiority over what one then found in neighboring countries was sufficiently obvious to be frequently acknowledged…”’ (Israel 1998). According to Veldheer and Burger 1999, the hospital is considered one of the earliest obvious examples of non-for-profit activities in the Netherlands, and was funded by the Church, as was most charitable organizations. “ ‘Pre-modern nonprofitnonprofits operated mainly in the classical field of nonprofitnonprofit action: poor relief, health care and education”’ (Burger and Dekker 1997). Even in its early history, dutchDutch non- profits were quite distinctive. “‘The non profitnonprofit sector's key features such as its size, structure and revenue base are a clear reflection of its long and rich history”’ (Salamon and Sokolowski 2004).

The not-for-profit sector is not a well established, noror clearly defined term in the Netherlands. Anyone using the term has to be more specific as to what they mean. ‘“The attribute non profitnonprofit (not translated in Dutch), however, is commonly used. Non-profit organizations are essentially defined in legal terms’” (Burger and Dekker 1997). Because of this, the non-profit sector is not always a well established, nor clearly defined term in the Netherlands. The major groups of the nonprofitnonprofit sector are education, healthcare and social services (Burger and Dekker 1997).

‘“The main types of nonprofit organizations in the Netherlands are associations (vereniging), foundations (stichting), and churches’” (Burger and Dekker 1997). Associations and foundations are being the most common. Examples of foundations and associations are ‘“housing, medical, legal financial technological help, orphanages, hospitals, nursing homes, schools, libraries, museums, worker’sworker’s training, research facilities, the advancement of music, drama and other arts, and other activities which are beneficial to society or certain groups, such as, for example, professional associations, labour unions and political parties’” (Burger and Dekker 1997). Associations are member based (formal [legal] and informal) and foundations can not have members. Many churches like to be considered a foundation or association because ‘“the civil code does not provide for formal or material rules for churches, a religious group may be in doubt about its legal personality’” (Burger and Dekker 1997). Other types of non profits are cooperatives and mutual societies, as well as public law institutions. To be considered non profit, an organization has to have the following attributes:

1. Oorganized – ‘“institutional reality’”
2. Pprivate – ‘“institutionally apart from government’”
3. Nnon-profit distributing
4. Sself governing
5. Vvoluntary

(Burger and Dekker 1997)

Because statistical information regarding non profit’s size and activities are scarce and are hard to find, in ‘“The non profit sector in the Netherlands’”, the authors take upon themselves the task to quantify the Netherlands non-profit sector. The Netherlands non-profit sector is significant due to its role in national employment. ‘“It provides about 660,000 full-time equivalent jobs.’” The non-profit sector therefore is a huge part of the economy of Netherlands, ‘“its expenditure amounts to almost NGL 65 billion (about EUR 45 billion) annually, and its added value amounts to NLG 65 billion (about EUR 30 billion).… Non-profit expenditures reach 15.5% of Gross Domestic Product (GDP). Non-profit paid fte full time employment (FTE)employment accounts for 12.3% of fte employment in the whole economy, and 12.9% of non-agricultural employment.’” The above is shown below in Table 1, Key figures of the Dutch non profits sector.

‘“The figures show that the non-profit sector in the Netherlands is an economic force of major significance’ (” (Burger and Dekker 1997).

As stated previously, the Netherlands is quite superior compared to Europe. Figure 3 above from Burger and Paul 1997 shows its superiority in employment.

Healthcare is the largest employer in the non-profit sector, 4 out of 10 jobs are in healthcare, with education being second largest sector (Burger and Dekker 2001), see figure Table 2 above.

The twentieth century saw a large growth in the amount of non-profits in the Netherlands due to pillarization. ‘“The result was that organizations such as political parties, labour unions, housing associations, newspapers, broadcasting associations, and also schools, hospitals and sports clubs formed along the lines of the main Dutch religious denominations’” (Avry and Veldheer 2001). ‘“Very important for the shape and size of the Dutch noprofitnonprofits sector was the so called pillarization process, which started in the second half of the nineteenth century’” (Burger and Dekker 1997). ‘“Pillarization is the process in which groups of citizens organize themselves along religious and political lines. Pillarization took place in all socioeconomic, political and cultural spheres’” (Burger and Dekker 1997). The reason for pillarization is considered to be due to three elements: ‘“emancipation for socialist workers and for all Catholic and Calvinists (from lower to upper class), and social control by the elitist of all denominations over their flock’” (Burger and Dekker 1997).

International NGO

The Netherlands is also superior for its NGO activities abroad. ‘“Ngo (Non-governmental organization) is reserved for non-profits in the field of international cooperation and development aid’” (Burger and Dekker 1997). Dutch NGO’s have played an integral role in the international developmental sector, providing many funds and services abroad, principally in Africa and Southeast Asia. Prior to 2006, there were six co-financing organizations, also called MFP, created for funding Dutch NGOs focusing on aide and relief to developing countries. ‘“The aim of cofinancing programme since its inception has been to make a contribution to the structural reduction of poverty in the South’” (Es, de Groot and Rietveld 2003).

‘“The CF [cofinancing] programme began in 1965. In that year, three cofinancing organisations, Cebemo (now Cordaid), ICCO and Novib, received government subsidies to finance the work of partner organisations in the South. Later (in 1978) Hivos also joined the programme. The system, which was originally established on the basis of project financing, evolved by 1980 into a system of programme financing, in which the government granted greater autonomy to cofinancing programmes…The CFAs [cofinancing associations] were responsible for the financial accountability and evaluation of the programmes they financed’” (Es, de Groot and Rietveld 2003).

The six primary cofinancing organisations were:

1. ICCO- Interchurch Organisation for Development Co-operation- ‘“ICCO's mission is to work towards a world where poverty and injustice are no longer present. The work of ICCO, Interchurch organisation for development co-operation, consists in financing activities which stimulate and enable people, in their own way, to organise dignified housing and living conditions.

ICCO is active in countries in Africa and the Middle East, in Asia and the Pacific, in Latin America and the Caribbean, and in Central and Eastern Europe.’”

1. Cordaid– ‘“Cordaid does not implement projects in developing countries itself, except in cases of humanitarian emergencies. Instead, we cooperate with local organizations. These organizations may provide health care, shelter to children living in the streets or work to underprivileged young people, or they fight for the rights of slum dwellers.’”
2. Oxfam NOVIB - ‘“Oxfam Novib is fighting for a just world without poverty. Together with people, organisations, businesses and governments. Through projects and lobby. Locally and internationally. Because poverty and injustice are global problems. They are about unjust economic and political relationships.’”
3. Hivos – Hivos is a Dutch non-governmental organisation inspired by humanist values. Together with local organisations in developing countries, Hivos seeks to contribute to a free, fair and sustainable world in which citizens - women and men - have equal access to the resources and opportunities for their development. And where they can actively and equally participate in decision-making processes that determine their lives, their society and their future.
4. Plan Netherlands– Plan aims to achieve lasting improvements in the quality of life of deprived children in developing countries, through a process that unites people across cultures and adds meaning and value to their lives.
5. Terre des Hommes –Terre des Hommes in a non-profit organization that dedicates itself both in heart and soul to the realization of the rights of children worldwide. Goal-orientated and with an eye for results. Terre des Hommes supports 297 projects- created, set up and implemented through local organizations- in 22 countries. Terre des Hommes campaignescampaigns both nationally and internationally for child’s rights. So that, step by step, all children can be children again.

A new programme was implemented due to general disappointment with ‘“the follow-up given by the Ministry in terms of linking and learning, and about the generally aloof attitudes of Netherlands Embassies. After a period of increasing, but fragmented subsidies to many NGOs in the Netherlands and abroad the Ministry decided to start a more transparent subsidy channel, the Theme-based Co-financing Programme (‘TMF’). As far as the Ministry was concerned the TMF programme has the added value of streamlining its hitherto scattered support to many NGOs’” (Dietz and Helmsing 2006).

In 2003 the new theme-based co financing programme has been instituted, ‘“In the new scheme, financing is no longer allocated to the group of cofinancing as a whole, but to each separately. To qualify for the subsidy, they must each submit a business plan once every four years. Based on this business plan, the Ministry decides whether the organization is eligible to participate in the covenanting programme’” (Dietz and Helmsing 2006)

What resulted was the ‘“MFP-narrow’” idea after a ‘“broad consultation process in the Netherlands involving about 50 participants: representatives of civil society organizations (including representatives from the six CFAs), scientists and representatives from the Ministry of Foreign Affairs …The focus on structural poverty reduction and development of the civil society constitutes a cultural shift on the part of the donors and recipients of funding’” (Dietz and Helmsing 2006). The Dutch government ‘“arranged four rounds of four-year subsidies, starting in 2003... The Ministry asked an independent Steering Committee, consisting of five Dutch scientists to co-ordinate and take responsibility for a major evaluation of the first two rounds of the TMF programme (2003-2006 and 2004-2007)…In general and throughout the thematic studies, the research teams concluded that NGOs and their partners could be expected to have substantial effects, with often modest means. They work as catalysts of institutional innovations,innovations and many have already proven they can do so effectively and efficiently” (Dietz and Helmsing 2006).

After further evaluations by the Policy and Operations Evaluation Department (IOB) of the 2003-2007 Theme based cofinancing , it was decided to implement in 2007 a new cofinancing programme called Medefinancieringssteisel, MFS. ‘“In the previous programme …a few evaluations of the road-based Cofinancing Programme [showed] the additional capacity it was promised did not materialise…Under the new MFS…IOB will be able to conduct its own evaluations.’” (Evaluation Programme 2005-2009). The Netherlands is committed to providing a superior cofinancing programme for developing countries,countries; therefore these evaluations and restructuring of the programme will continue to occur.

International Organizations

The Netherlands is also home to many international organizations, demonstrating its influence and superiority in the international relief and development field.

• The Hague/International Criminal Court – ‘“The International Criminal Court (ICC) is an independent, permanent court that tries persons accused of the most serious crimes of international concern, namely genocide, crimes against humanity and war crimes. The ICC is based on a treaty, joined by 103 countries.’”
• International Court of Justice – ‘“The international Court of Justice is the principal judicial organ in the United Nations. Its seat is at the Peace Palace in The Hague. The Court has a dual role: to settle in accordance with international law the legal disputes submitted to it by States, and to give advisory opinions on legal questions referred to it by duly authorized international organs and agencies.’”
• European Patent Office – ‘“The European Patent Office (EPO) grants European patents for the contracting states to the European Patent Convention (EPC), which was signed in Munich on 5 October 1973 and entered into force on 7 October 1977. It is the executive arm of the European Patent Organisation, an intergovernmental body set up under the EPC, whose members are the EPC contracting states. The activities of the EPO are supervised by the Organisation’’s Administrative Council, composed of delegates from the contracting states.’”
• EUROPOL (European Policy Force) – ‘“Europol is the European Law Enforcement Organisation which aims at improving the effectiveness and co-operation of the competent authorities in the Member States in preventing and combating terrorism, unlawful drug trafficking and other serious forms of international organised crime.’”
• Greenpeace – ‘“A a non-profit organisation, with a presence in 40 countries across Europe, the Americas, Asia and the Pacific. To maintain its independence, Greenpeace does not accept donations from governments or corporations but relies on contributions from individual supporters and foundation grants. As a global organisation, Greenpeace focuses on the most crucial worldwide threats to our planet's biodiversity and environment.’”
• International Service for National Agricultural Research – ‘“Organization for the Prohibition of Chemical Weapons - Our mission is to implement the provisions of the Chemical Weapons Convention in order to achieve the OPCW's vision of a world both free of chemical weapons and in which cooperation in chemistry for peaceful purposes for all is fostered. In doing this, our ultimate aim is to contribute to international security and stability, to general and complete disarmament and to global and economic

development.’”

As has been shown, the Netherlands is definite one of the leaderleaders in not-for-profit and international development activities. It’sIts not-for-profit organizations are huge contributor to it’s economics and there is continual efforts to make its cofinancing programme more efficient for its recipients. Although its size is small its efforts are substantial. The Netherlands should be seen as ana example for European and Western countries.

Bibliography

Burger, Ary and Vic Veldheer. 2001. The growth of the non profit sector in the Netherlands – Social and Cultural Planning Office, The Hague, The Netherlands

Burger, Ary and Paul Dekker. 2001 The nonprofit sector in the Netherlands, Sociaal en Cultureel Planbureau, Den Haag

Burger, Ary and Paul Dekker, Tymen van der Pleog, and Wino van Veen. 1997. Defining the Nonprofit Sector: The Netherlands. Working Papers of the Johns Hopkins Comparative Nonprofit Sector Project, No. 23, edited by Lester M. Salamon and Helmut K. Anheier. Baltimore: The Johns Hopkins Institute for Policy Studies, 1997.

Dietz, Ton and Bert Helmsing. 2006. Evaluation of the Theme-Based Co-Financing Programme (TMF) of the Dutch Ministry of Foreign Affairs

Dutch cofinancing agencies and their joint evaluation practices. Paper for the workshop Partners in Development Evaluation _ learning and Accountability Joint French and DAC/WP-EV Workshop. Paris, 25-26 March 2003

Evaluation Programme 2005-2009, Ministry of Foreign Affairs IOB Working Documents

Es, Y, D. de Groot and M. Rietveld. 2003. Dutch co financing agencies and their joint evaluation practices: Paper for the workshop Partners in Development Evaluation – Learning and Accountability Joint French and DAC/WP-EV Workshop

Israel, Jonathan. 1998 The Dutch Republic: It’s Rise, Greatness and the Fall 1477 – 1806. Clarendon press. Oxford

Kruse, Stein-Erik. 1997. NGO Evaluation Synthesis Study – Appendix 5: The Netherlands Case Study. NGO Evaluations Policies and Practices.

Salamon, Lester M. and Wojciech Sokolowski. 2004. Global Civil Society: Dimensions of the Non-profit Sector Volume 2

Steijn, Bram and Peter Leisink. 2006. International Review of Administrative Sciences: Organizational commitment among Dutch public sector employees

Veldheer, Vic and Ary Burger. 1999. History of the Nonprofit Sector in the Netherlands. Working Papers of the John Hopkins Comparative Nonprofit Sector Project, no. 35, edited by Lester M. Salamon and Helmut K. Anheier. Baltimore: The Johns Hopkins Institute for Policy Studies