FGG BE ToC 3: Improved Financial and Tax Systems

Both ENDS will continue to analyse the role of development financial institutions (DFIs) as key sources of finance for financial sector reform in developing countries, in order to advocate with Southern partners, such as like Afrodad and Tax Justice Africa. Special attention will be given to access for local, female and young entrepreneurs, small-scale male and female food producers, poor clients, rural areas. The UN Sustainable Development Goals and the COP21 climate talks agreed upon by 2015 will serve as a basis to compare whether the roles the DFIs play in relation to the financial sector contribute to the agreed UN goals. Both ENDS will continue her working on climate finance, with a special focus on the Green Climate Fund in order to make sure the actions of the GCF will be in line with the interests of local communities (including their access to the fund, transparency and gender). As an official civil society observer, we try to empower and strengthen the capacities of southern CSOs to actively engage with and have access to climate finance (with a special focus on the Green Climate Fund and strengthen their access by attending board meetings, deliver inputs and comments, invite southern partners to work with them towards accreditation and funding). We also work on the role of tax havens in transactions supported by Atradius DSB and other private sector development support for Dutch corporations in sectors such as water management, coastal defence, port development and land reclamation, and off-shore infrastructure development. It will advocate due diligence procedures to require the exclusion of artificial constructions that result in tax evasion. Both ENDS will build on existing work on Dutch private sector finance (e.g. Dutch Good Growth Fund, FMO) and start monitoring recently introduced programmes like DRIVE and Develop2Build as well as the contributions of Atradius DSB. Both ENDS and partners will seek to influence and monitor the standards, policies and operations of development banks the Netherlands has a stake in (including the AIIB, FMO, World Bank) and Atradius DSB with the aim to strengthen them. In order to do so, Both ENDS will develop case studies and support local communities as advisors in developing and filing complaints where needed. Local partners will be involved in these case studies, allowing for joint advocacy activities aiming to address eventual social, environmental and/or human rights related concerns. Joint advocacy efforts will be elaborated to enhance the transparency and accountability of development banks and the Dutch ECA. Both ENDS will highlight the impacts of Atradius DSB support for transactions and IFI investments in the fossil fuel chain. The activities will contribute to mutual capacity building, so that Southern CSOs can closely observe the investment and policies of emerging DFIs and IFIs, and monitor public funding of the private sector in their countries. FGG members will also support these CSOs enabling them to participate in policy debates, present case studies and participate in international meetings. Cooperation with local organisations in the development of case studies and complaints will generate awareness and capacity for these CSOs to promote effective enforcement of standards and policies of development banks and ECAs. Both ENDS has long term experience applying the Negotiated Approach. A method for involving communities in participatory and climate proof integrated water management and in influencing water related investments. Both ENDS and selected partners from the AfriWater and IndoWater Communities of Practice will increase their knowledge and lobby capacity related to the key public institutions investing in the water sector in their country and region. These institutions invest both directly in specific water related projects and programmes, and indirectly by supporting key water governance institutions such as AMCOW, AMCEN or the Indonesian Ministry of Public Works. The selected partners will first study regional, country and (sub-) basin investment plans of the most relevant international financial institutions (e.g. 5-year country plans of the World Bank). Both ENDS will analyse relevant current or planned support of the Dutch government in the water sector (develop2build, DRIVE or ECA/FMO support to Dutch companies). Aforementioned studies and analysis will determine the selection of basins. Examples of basins with strong links to the Dutch Water sector and/or IFIs identified so far are Tana Delta in Kenya, Cotonou basin in Benin and Jakarta coastal area in Indonesia. The increased awareness and knowledge base will form the basis for further training for selected and potential partners and for a joint lobby and advocacy strategy for the coming years to be discussed with selected partners halfway 2016 in regional and country workshops in Africa and Indonesia respectively.