The Development of Water Management as a Focus Theme within Dutch Development Cooperation Policy

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The Development of Water Management as a

Focus Theme within Dutch Development

Cooperation Policy

Name: Claire Wolfs

Student number: S1379739 Date: 11th of January 2019

Supervisor: Dr. Johan Christensen Word count: 25.649 words

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Abstract

Water management has always been an issue of high salience for the Netherlands. As a result, water management is an issue present in numerous Dutch policies. Among those policies is the development cooperation policy of the Netherlands. Water management has been marked as a core theme within the scope of Dutch development policy.

The research in this thesis examines how Dutch development cooperation policy has developed over time and what the reasons are for the adoption of water management as such an important theme within development cooperation policy. It is expected that the Dutch government either uses water management expertise as an economic power resource to strengthen their position in international politics, or that water management has been adopted to such great extent due to global politic priorities set by leading international organizations, or that the Dutch government uses water management in order to strengthen its reputation and credibility to be able to exert soft power. In order to formulate a conclusion an analysis was conducted, including literature, (international) policy documents and seven interviews. The main reasons for the adoption of water management as such an important theme are the expertise the Dutch possess in the area of water management, their history regarding water management and their ability to provide an integrated water approach through their development cooperation policies. The unique and proper organization of the Dutch water sector are also very important in this regard.

The analysis demonstrates that there has been a transition from ‘aid giving’ relationships with development countries, to relationships where there is an increased focus on economic interests and establishing an equal economic relationship. Finally, the influence of the Sustainable Development Framework of the United Nations is of great importance for the development of Dutch development cooperation policy over time.

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Preface

This thesis was written in the context of the Master Public Administration: International & European Governance at the University of Leiden. It has been an interesting journey to research the development of water management in Dutch development cooperation policy and to discover what the reasons for this focus are. I had the opportunity to meet several very inspirational people, who work with great pleasure and ambition to improve water management in the Netherlands, but on an international level as well. Therefore, I want to thank all the interviewees for sharing their thoughts and their honest answers with me.

Second, I would like to thank my parents, as well as my friends, for their continuous support throughout this process. There have been stressful moments, but they were always there to encourage and motivate me.

Lastly, I want to thank my supervisor, Dr. Christensen. His feedback has been extremely helpful and was always constructive, with a positive note. Without his support and advice, this research would not have been possible.

Claire Wolfs January 2019

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Chapter 1 – Introduction

1.1 Introduction

The Netherlands is well known for its expertise in the area of water management. The Dutch water sector is internationally considered to be one of the best-organized water sectors. This is mainly due to the involvement of the various actors, ranging from the Dutch government, along with its ministries, non-governmental organizations (NGOs), companies, regional water authorities and private actors. These actors strongly work together in order to promote the Dutch water sector abroad. With success: Dutch knowledge on water affairs has become an important export product and the Dutch are involved in water projects all over the world. The Dutch water sector has been labelled as one of the nine Dutch Topsectors, since the sector enjoys a leading position in the world economy (Topsectoren, n.d.). Water is a consistent theme regarding plenty of internal policies in the Netherlands. In development cooperation policy, water management is a focus theme too. Development cooperation is part of the same department as international trade, leading to considerable private sector involvement with regard to development cooperation. This is not new for the Dutch, ever since the 1980s there are many public-private partnerships, between the government and the private sector (Van Leussen & Meijerink, 2014, p. 251; Rijksoverheid, n.d., 4). These partnerships indicate the intense cooperation in the Dutch water sector. Despite the presence of water management in numerous policy areas, water management as a Dutch Topsector and most importantly water management as a focus theme within development cooperation policy, the reason for this focus has never been extensively researched. While the Dutch are active in water development projects all over the world, the reason for this focus, how this focus once started and how water management as a focus theme has developed remain unanswered questions. The focus on water management in many policies has hardly been explained and researched, despite the Dutch water expertise and the Dutch water sector being stressed and praised often. Even less research has been conducted on why, how and when water management became a focus theme within Dutch development cooperation policy. This thesis aims to explain how and why water management has become such an important theme within Dutch development cooperation policy.

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The research question will therefore be as follows:

How has Dutch development cooperation policy with regard to water management developed since the 1990s? And how can you explain the adoption of water management as an

important part of Dutch development cooperation policy?

The research will be an explanatory research, focused on explaining how, and why, water management has developed into an important theme of Dutch development cooperation policy. The goal of this research is to explain how this policy has developed over the years and the adoption of water management as an important part of the Dutch development cooperation policy (Y). The research will thus be focused on what caused Y (Toshkov, 2016, p. 298).

Since water is one of the four core themes outlined by the Dutch Ministry of Foreign affairs as a focus theme of development cooperation policy, it is interesting to research what the role of Dutch water expertise is within this particular Ministry. The influence of the international frameworks provided by the United Nations on Dutch development cooperation policy will be analysed as well. Within the Sustainable Development Goals (SDG) framework there is a goal specifically on water, SDG 6, and the Dutch government focuses on this particular goal actively (UNDP, 2018, 2). Hence, the influence of the SDG framework on Dutch development cooperation policy will be analysed too.

In order to answer the research question various data will be analysed: policy documents published by the Dutch government, the Dutch Ministry of Foreign Affairs, organizations active within the Dutch water sector, the Dutch regional water authorities and data from international organizations, such as the United Nations. Interviews conducted with people either specialized in water management affairs or who are, or have been, active professionally within the Dutch water sector are analysed as well.

The thesis present thee different theoretical explanations for the adoption of water management as such an important theme in development cooperation policy. The first theoretical argument provides an argument on the use of water management expertise as an economic power resource to strengthen the Dutch position in international politics. Secondly, there is argued that water management has been adopted to such great extent due to global politic priorities set by leading international organizations. The last argument provides a theoretical argument on the possibility that the Dutch government uses water management in

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order to strengthen its reputation and credibility to be able to exert soft power. Literature on small states is also included in the theoretical framework, since this provides interesting insights on the foreign policy behaviour of the Netherlands.

1.2 Academic & Societal Relevance

A substantive part of academic literature on water management focuses on the domestic and internal issues the Dutch face with regard to water management. Less focus has been on the role of water management within Dutch foreign policy and moreover within the Dutch development cooperation policy, despite the fact that water management has long been an important theme within this policy area. There has been hardly any research conducted on why the Netherlands, as a small state, would focus on water management and how the Dutch became so well known for their expertise in the area of water management.

In literature on small states there is addressed that small states often tend to focus on a particular expertise area in order to have an influence within the international system. However, little research has been conducted on what the specific expertise areas of small states are and why and how small states determine these expertise areas. For the Netherlands this has been hardly researched as well (Ingebritsen et al., 2006, p. 8; Braveboy-Wagner, 2010, p. 408). This thesis therefore aims to provide an insight on the reasons explaining the focus on Dutch water management, as an area of expertise, in development cooperation policy.

Research on this topic will not solely be interesting from an academic perspective, but for society too. People in the Netherlands are used to clean, safe drinking water and hygienic sanitary provisions, but for many people in development countries this is not evident at all. Water is becoming a scarce source, due to a world facing rapid population growth, along with urbanization. The demand for water is rising continuously. It is therefore important to manage our water resources accordingly. Water requires management because of economic, but mainly because of environmental, reasons (World Bank, 1993, p. 9, 36). Water scarcity is an issues that is of increased attention too. Too little, too much or too dirty water underlies many water problems all over the world (BZ, 2018, 3, p. 1). Water crises affect everyone, and the World Economic Forum has addressed water crises to be one of the five greatest threats to the world economy (BZ, 2018, 3, p. 1). This indicates that water is an issue that is strongly related to many other areas, such as agriculture, climate, energy and food security (BZ, 2018, 3, p. 1).

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In general, the importance of water management and good water governance is increasingly stressed. The design of the Sustainable Development Goals framework and especially SDG 6 on water emphasize this increased focus (UNDP, 2018, 2).

The structure of the thesis will be as follows: the theoretical framework of the thesis will be discussed in chapter two. The research design and methods of the thesis will be outlined in chapter three. Chapter four will offer an extended explanation on the case: a description of the development of Dutch development cooperation policy over the years and the organization of the Dutch water sector. The data retrieved from the interviews and other sources, such as policy documents will be combined in order to discuss why and how water management was incorporated to such great extent in Dutch development policy, will be discussed in chapter five. Chapter six provides the conclusion on the findings in the thesis.

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Chapter 2 – Theoretical Framework

In this chapter the theoretical framework of the thesis will be outlined. Every state has its own foreign policy behaviour. Nation-states tend to focus on particular issues within their foreign policy. But what determines this foreign policy focus and what are the main determinants for the formulation of foreign policy in general

In this theoretical framework there will be provided three arguments from different theoretical perspectives in order to analyse why and how national governments determine their focus in foreign policy. The first argument proposes an insight from traditional international relations theories realism and liberalism, the second argument addresses the importance of international organizations regarding foreign policy behaviour and how international agreements influence a state’s foreign policy. The third argument outlines the importance of soft power. The importance of size will be addressed in each argument as well.

2.1 Traditional International Relations Theories: Realism and (Neo-)Liberalism Realism is one of the key theories within international relations, and offers some insights for this theoretical framework. Realism is mainly about military power (Greig et al., 2007, p. 57). Realists argue that nation-states are mainly interested in policies that are in their self-interest. Due to the anarchy of the international system, states are solely concerned with reinforcing their own power and self-interest (Greig et al., 2007, p. 54). Realists tend to focus foremost on military power as an important power source, and secondly on economic power (Greig et al., 2007, p. 213-214). In realism there is a focus on the capabilities of a state regarding its own survival and security in the international system (Braveboy-Wagner, 2010, p. 407). Weak states are the states that have no military capabilities, according to realism (Braveboy-Wagner, 2010, p. 408). Within neoliberalism, power is important within the international system too. However, neoliberalism tends to focus on economic power instead of military power (Greig et al., 2007, p. 57, 214). This indicates an important difference between neoliberalism and realism: realists tend to see the world as a more conflictual place than neoliberals do (Jervis, 1999, p. 44). Military power is a necessary source of power within realism, whereas in neoliberalism economic power is also important. Neoliberals are not in denial that there is conflict present within world politics, they argue though that it is not definite for world politics solely (Jervis, 1999, p. 44-45).

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Within the realm of liberalism an interesting viewpoint is the distinction between the so-called ‘high’ and ‘low’ politics within world politics. High politics include security and survival, whereas low politics include political justice, environmental protection and welfare (Greig et al., 2007, p. 63). A striking difference between realism and neoliberalism is the assumption that within international politics there are absolute and relative gains. Within realism, the focus is on relative gains and within neoliberalism the focus is on absolute gains. Relative gains imply that the win of one state consequently means a loss for another state (Powell, 1991, p. 1303). This makes cooperation between states unlikely, because the interests at stake are high (Powell, 1991, p. 1303). Neoliberals argue that focus on absolute gains is superior, given that absolute gains focus solely on the gains for the individual state: there is an indifference with regard to the possible win of other states (Powell, 1991, p. 1303). Neoliberals argue that states should try to maximize their absolute gains within world politics (Powell, 1991, p. 1304). This allows for win-win situations when states cooperate, whereas realism, and its focus on relative gains, assumes this to be less likely.

The shift to the focus on economic power is not something that is solely stressed by (neo-)liberals. The shift in focus is also a development within the nature of power of world politics in general. Whereas the focus used to be more on military power, focus shifted to economic power. Main reason for this shift was that military force became less important, and a less favourable option, within policy and politics in general (Greig et al., 2007, p. 213). The traditional view on the power of military resources is mainly challenged by neoliberals, because of the high costs that are related to war between nation-states, thereby stressing the essence of economic power. Another explanation for this shift, strongly related to the theory of (neo)liberalism, is that the world is becoming more interdependent and sharing information is becoming increasingly simple (Greig et al., 2007, p. 213, 214). People tend to hear and see more of what happens around the globe, and along with that they are increasingly able to form judgements on the values and cultures of others increasingly (Greig et al., 2007, p. 214). Moreover, people are more able to judge the policies, especially the foreign policy, of their own government (Greig et al., 2007, p. 214).

According to traditional IR theories larger states tend to prioritize issues in their foreign policy that are in their self-interest.

2.1.1 Small States in International Relations

While traditional IR theories, especially realism, argue that small states are less important within the international system, the increasing amount of these small states in the past years

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indicates that it is no option to ignore the role of small states (Ingebritsen et al., 2006, p. 3). IR theories say that solely states in the possession of (military) power capacities are the most important units of analysis, leaving small states neglected. These powerful states are referred to as great powers and it is argued that they are in charge in the international political system (Ingebritsen et al., 2006, p. 3). Despite the view that all sovereign states should be equal, this is not the case in international politics, because there is argued that they lack sufficient power resources. Consequently: “small states are defined by what they are not” (Ingebritsen et al., 2006, p. 6). In realism small states are referred to as weak states, since there is argued that do not have power because they lack military resources (Braveboy-Wagner, 2010, p. 407- 408). Small states are therefore expected to ‘bandwagon’1 with larger states, engage in an alliance with other small states or taking in a neutral stance, as several European states did during the World War I and World War II (Braveboy-Wagner, 2010, p. 408).

Among states there is a different focus regarding their foreign policy. But how does a state determine what its foreign policy focus is? When comparing smaller and larger states this is determined by a state’s world power, especially military power, to a great extent (East, 1973, p. 557). The foreign policy focus of small states is determined by several factors according to East. Many of these factors are related to activities in international organizations and small states’ lack of military power resources (East, 1973, p. 557). For instance, East mentions the avoidance of military power-use by small states, the high level of compliance to international law and norms, the restraint to design policies and behavior that possibly affect larger, powerful states negatively and the high participation levels in international organization by small states (East, 1973, p. 557). However, the process of decision-making regarding a small state’s foreign policy behavior does not differ from larger states, since they both use a rational model to design their foreign policy (East, 1973, p. 557-558). However, small states tend to have a stronger policy focus within their foreign policy, since their resources regarding the international, or foreign affairs, sector are less compared to larger states (East, 1973, p. 558-559, 573). Due to a lack of military power resources, small states tend to seek for methods in their foreign policy that are more economical and diplomatic, and less costly (East, 1973, p. 560). Economic issues are therefore or greater importance to small states (East, 1973, p. 573). Elman argues that since small states are rather weak in the international system, and since they are mainly concerned with their own survival, they tend to focus on fewer issues within

1_{Bandwagoning means that a small state allies with the source of an external threat, and is a concept} of Stephen Walt. The opposite of bandwagoning is balancing, wherein a small state allies against the source of the external threat (Ingebritsen et al., 2006, p. 239).

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their foreign policy than larger states do. This is because larger states possess more resources to formulate a broader foreign policy (Elman, 1995, p. 175). Small states often solely engage in international issues that influence their own development and economic growth, rather than issues that have an influence on the world, or an area, in general (East, 1973, p. 560). Besides, small states tend to focus within their foreign policy on issues that have a tight connection to their domestic affairs (Ingebritsen et al., 2006, p. 77). Because small states lack the resources to focus on a broader spectrum of political issues (Ingebritsen et al., 2006, p. 77).

However, there are some IR scholars that argue there should not be focused on small states and great powers, but on specific issue areas, since many small states possess great knowledge in specific issue areas (Ingebritsen et al., 2006, p. 8). Small states might not be powerful regionally or globally, they can be influential in specific areas (Braveboy-Wagner, 2010, p. 408). There are numerous small states, especially in Europe, that are prosperous, where people enjoy a high level of freedom, national income is relatively high and where a high living-standard is common (Vandenbosch, 1964, p. 301). One of the reasons given for this is that small states tend to spend little on military assets. They are often enjoying security rather than producing it (Vandenbosch, 1964, p. 301).

The arguments above lead to the first expectation, which is as follows:

Expectation I: The Dutch government is expected to use water management expertise in its foreign policy as an economic power resource to increase their influence and strengthen their position in international politics.

2.2 The Influence of International Organizations on Foreign Policies

International organizations have been important subjects within international relations ever since the League of Nations was established. Within the realm of liberalism, international organizations are important actors for cooperation between states. Liberals stress that international organizations are important to resolve collect active problems between states (Karns & Mingst, 2010, p. 37). There is argued that a state’s interests, whether this concerns domestic interests, international interests or foreign interests are shaped by transnational as well as domestic groups, power relations and that international organizations also have the ability to fulfil an important role in shaping a state’s interests. Consequently, a state does not have one single interest, but interests that vary and goals that vary too (Karns & Mingst, 2010, p. 37). International organizations provide states with a platform to engage in relationships

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with other states, the ability to negotiate in an equal arena and the ability to contribute to international cooperation among states (Karns & Mingst, 2010, p. 37). Furthermore, liberals argue that international organizations are important to address problems within the international sphere and provide states an opportunity to solve these substantive problems together (Karns & Mingst, 2010, p. 28). However, there is stressed that states use international organizations as a foreign policy instrument or in order to influence the behaviour of other states (Karns & Mingst, 2010, p. 38).

Neoliberals argue that although states are supposed to be individual actors, acting in their own self-interest in the international system, their policies are often interdependent (Karns & Mingst, 2010, p. 39). There is stressed that international organizations have a significant influence on a state’s behaviour (Karns & Mingst, 2010, p. 39). Moreover, international organizations are important in the regulation of international priorities and have the ability to commit states to certain policy priorities. International organizations stimulate compliance to these priorities and stress the importance to establish a good reputation in this regard (Karns & Mingst, 2010, p. 39).

International organizations have the ability to exercise power over individual states because they are of great importance in defining state’s interests and they are the holders of the platform that offers states the opportunity to cooperate (Karns & Mingst, 2010, p. 51). IOs are consequently also important in shaping the economic relations between states, along with improving growth and development, making them important actors in international economic governance (Karns & Mingst, 2010, p. 390). International organizations have the ability to use their authority to set the agenda and regulate the behaviour of states (Barnett & Finnemore, 2004, p. 30). Furthermore, they can choose which states they want to involve in decision-making processes and which states are excluded (Barnett & Finnemore, 2004, p. 30). Besides, they possess the authority, knowledge and regulative power to shape the interests, behaviour and consequently policies of states (Barnett & Finnemore, 2004, p. 31). Through this, international organizations have the ability to steer states in the behaviour of the IO’s preference. Consequently, international organizations have the ability to exercise power over states (Barnett & Finnemore, 2004, p. 30, 31).

Additionally, the ability of international organizations to influence the policies of governments relies on the level of trust an international organization enjoys from its member states and the persuasiveness of an international organization. As Fang & Stone argue:

“Persuasion is key to the influence of IOs” (Fang & Stone, 2012, p. 541). Since policy change

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the argument of the IO. IOs do have the ability to be influential on the policies of governments, since they often possess the required information and expertise to prove their demand for policy-change (Fang & Stone, 2012, p. 539, 541). While most international organizations do not possess the ability to compel for policy change, they rely on the importance of the information they possess. For many governments, international organizations provide them with required knowledge, information and expertise in specific issue areas (Fang & Stone, 2012, p. 541). Through this expertise and information, they influence the policies of governments, even though they sometimes do possess coercive powers but they rather use persuasion to influence governments (Fang & Stone, 2012, p. 541). Trust is an important requirement for persuasion. If a national government perceives the policy advice of an international organization as adverse to its own policy preferences, or interests, the government will be most likely to neglect the policy advice (Fang & Stone, 2012, p. 541). Governments will thus be most likely to adjust their policies if the policy advice of the international organization aligns with their own policy preferences. Consequently, international organizations have the competence to influence a state’s foreign policy, as long as they enjoy trust and present their policy preferences persuasively.

2.2.1 Small States and International Organizations

As has been shortly addressed in the introduction of this chapter, the size of states is important for the determination of foreign policy behaviour as well. Especially small states tend to have a stronger foreign policy focus, since they lack sufficient resources to formulate a rather broad foreign policy (East, 1973, p. 558-559, 573). With respect to international relations and complying to the agreements in international relations, small states are relatively active. In general, small states are active to a greater extent than larger states in international organizations (East, 1973, p. 565), since these organizations offer small states international recognition and a platform where their voices can be heard (Thorhallsson, 2012, p. 142). The international level offers therefore an adequate level of analysis to predict foreign policy behavior of a small state (Elman, 1995, p. 178). For a small state it is important to adjust its foreign policy to the environment it is surrounded by and the international system the state lies within should be identified before formulating foreign policy (Elman, 1995, p. 179). This might explain why small states tend to comply more actively and rapidly with frameworks designed by international organizations, such as the UN. International organizations, such as the UN, provide small states with the required resources in order to protect their borders and lessen the influence of larger states (Thorhallsson, 2012, p. 142). Small states have a greater

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interest in stability and international peace than larger states do, therefore small states are eager to join international organizations and engage in international treaties and laws (Thorhallsson, 2012, p. 142). Besides, membership of these organizations offers small states acceptance by the international community and especially the UN provides these states with access to international financial institutions, such as the World Bank and the IMF, which offers these states opportunities (Thorhallsson, 2012, p. 143).

The theory outlined above leads to the second expectation of this theoretical framework, which is the following:

Expectation II: The Dutch government is expected to have adapted its focus on water management within its development cooperation policy in accordance with global policy priorities proposed by leading international organizations.

2.3 The Soft Power Argument

Along with the shift of importance to economic power as is outlined above, there is a shift from hard power to soft power. This shift indicates the increasing importance of soft power in world politics. As outlined by Nye, traditional power used to be tested during times of war. The strength of a state was measured by its strength in war (Nye, 1990, p. 154). The range of power was broadened during the 90s, with economic power, ideological, cultural and scientific power as increasingly important power resources (Nye, 1990, p. 155). Power was progressively seen as the ability to change another state’s behaviour (Nye, 1990, p. 155). The importance of non-state actors in international politics, such as companies, private actors and political groups is also stressed (Nye, 1990, p. 156). Along with this development, the world is also becoming increasingly interdependent economically and consequently politically as well (Nye, 1990, p. 158).

A country focusing on a particular theme within foreign policy can be considered as an act of soft power, because of the political value that comes along with this framework (Nye, 2008, p. 95). Soft power is an important power resource for small, as well as larger, states when they are not considered to be an hegemonic power within the international system possessing traditional hard power such as military and economic assets (Cooper & Shaw, 2013, p. 65-66; Greig et al., 2007, p. 213-214). Small states are actively engaging in soft power actions in order to have an influence within international politics (Cooper & Shaw, 2013, p. 65). Within

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soft power it is important that foreign policy projections are united, and these projections have to be accepted by society as well (Cooper & Shaw, 2013, p. 66).

Nye argues in his soft power and public diplomacy theory that the export of a certain product, or policy, can be considered as an act, or form, of soft power, when it contains great cultural meaning. Soft power also includes the ability to move the opinion, for instance the opinion of a country, and moreover being the catalyst in that movement process (Nye, 2008, p. 96). Most important, soft power relies on three capabilities: a country’s foreign policies, its culture and its political values (Nye, 2008, p. 96). The promotion and projection of positive images is an important tool for a country to be able to administer soft power (Nye, 2008, p. 99). Within information, and consequently knowledge, lies a great resource of power, which is an important aspect for governments to enforce soft power (Nye, 2008, p. 99). Moreover, credibility and reputation are important factors within soft power (Nye, 2008, p 100). Among governments there is competition for credibility. Competition also plays an important role between governments and NGOs, corporations and scientific network communities (Nye, 2008, p. 100). Politics in general have become increasingly competitive when it comes to credibility. Politics is less about economy and military, but more on who has the most credible story (Nye, 2008, p. 100). However, when there is a lack of national credibility, governments will not be able to use their credibility as an instrument of soft power (Nye, 2008, p. 101). It remains important to monitor the national credibility closely, since this strongly influences the ability to administer soft power for a state.

The eventual goal of soft power is to get others to strive for the same outcomes as the acting party wants (Nye, 2008, p. 103). In order to achieve this, the message that actor wants to send has to be framed appropriately for the audience it wants to influence (Nye, 2008, p. 103). Politicians often think that if they provide others with information they lack, the others will start to see the things similar to what they see and consequently will act accordingly by simply adapting to the politician’s view (Nye, 2008, p. 103). Influencing other state’s behaviour is not that simple however. One must not forget that every state has its own preferences, and that (soft) power is not present until state A is able to influence state B to such extent that state B conceals its intrinsic preferences, because state B is under the power of state A (Isaac, 1987, p. 9). An important question in this regard is what B would have done otherwise, if the state was not under the power of state A (Isaac, 1987, p. 9).

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2.3.1 The power of knowledge

Knowledge provides power, but within power there are various distinctions to be made in order to define the power resources of different countries. One of the most basic distinctions is the separation of power into resource power and behavioural power. Furthermore, the latter can be subdivided into soft power and hard power. Behavioural power means that an actor uses its power to attain the outcomes he or she wishes. Within hard power this is achieved through economic and military assets, but moreover within soft power attraction and convincing are used as a power resource (Keohane & Nye, 1998, p. 86). The definition of power is therefore somewhat more nuanced within soft power: “… the ability to get desired

outcomes because others want what you want” (Keohane & Nye, 1998, p. 86). Convincing

the other of the importance to agree to norms and institutions, and to comply to them, in order to attain the desired behaviour (Keohane & Nye, 1998, p. 86). Therefore, persuasiveness fulfils an important feature of soft power, along with the ability to set the agenda through institutions and norms, but also the ability to shape the preferences of the other (Keohane & Nye, 1998, p. 86). Making its power legitimate is the highest goal of a state, because that offers the possibility to establish international norms and makes it unnecessary to use military and economic resources, which are most often the most important assets within hard power (Keohane & Nye, 1998, p. 86). An important benefit that comes along with soft power is that the costs are fewer than economic and military resources (Nye, 1990, p. 157; Keohane & Nye, 1998, p. 86). There are several states that use soft power actively in order to have an influence within the international system, and with success (Keohane & Nye, 1998, p. 86). Yet, hard power, especially military power, remains an important resource of power within international relations (Keohane & Nye, 1998, p. 88). Another important aspect of soft power is a state’s credibility. If a state provides credible information that proves to be correct information, this may lead to a good reputation. Reputation is not solely important as a resource within soft power, but also within international relations in general (Keohane & Nye, 1998, p. 89-90). According to Busuioc & Lodge, reputation is important for an organization, or in this case government, in order to create organizational identity. It is an important core competency for an organization. Reputation is strongly related to the question “what do we want to be known

for?” (Busuioc & Lodge, 2017, p. 93). Which is an important question for both organizations

as well as governments undoubtedly. This does not have to reflect actual practices within the organization, moreover it is on the image the organization wants to present to the external environment of the organization. Reputation also offers organizations an identity (Busuioc &

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Lodge, p. 93). According to Nye, reputation is becoming increasingly important (Nye, 2008, p. 100).

Carpenter & Krause distinguish four types of reputation: performative reputation, moral reputation, procedural reputation and technical reputation (Carpenter & Krause, 2012, p. 27). These different types of reputation are respectively on the ability of an organization to do the job, the honesty and flexibility of the organization, if the organizations adheres to generally accepted norms and rules and whether the organization possesses the required skills to deal with the complexity of issues the organization faces (Carpenter & Krause, 2012, p. 27). It is argued that in this case the ministry of foreign affairs could be considered facing the same requirements of reputation as organizations do, making the concept applicable to this particular case. It is hard to establish a good reputation (Carpenter & Krause, 2012, p. 28). The different audiences an organization, or in this case a government, faces are also important for the definition of a good reputation. An audience is crucial in the determination of reputation (Carpenter & Krause, 2012, p. 27). Not only because the importance of the impression of the audience, but also because of the diversity of audiences nowadays (Carpenter & Krause, 2012, p, 27).

If a country has a good track record of accomplishment this increases credibility, and consequently improves a state’s reputation. Hence, soft power can lead to reputation through credibility that is required in order to be able to persuade another country of the correctness of the provided information (Keohane & Nye, 1998, p. 90). When information is adequately persuasive, this can lead to a shift of attitudes regarding self-interest and consequently being more desirable than the use of hard power (Keohane & Nye, 1998, p. 94). Soft power is increasingly used in world politics in order to achieve policy objectives (Keohane & Nye, 1998, p. 94). As mentioned before, the general power of state A will increase if state A is able to make state B do what state A wants. State A than has power over state B (Isaac, 1987, p. 9).

2.3.2 Small states and soft power

While both larger and small states can engage in soft power acts, it might be harder for the latter since exerting soft power makes a state vulnerable too (Cooper & Shaw, 2013, p. 65). However, because of their size, small states tend to have a more stable political situation at home providing them with greater political stability and less internal conflict, making them more resilient and less vulnerable in some cases (Cooper & Shaw, 2013, p. 65). Due to the

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strong social cohesion in small states, soft power heavily relies on the ability of the government and society to act in accordance (Cooper & Shaw, 2013, p. 66). Soft power targets not one audience, but addresses all audiences that have and can access the soft power act. It is necessary for the government and society to act as a unity in their foreign policy and engage as a unity in soft power acts as well, otherwise the soft power act will lack credibility and consistency (Cooper & Shaw, 2013, p. 66). As long as both government and society will act in accordance, they will be taken seriously abroad (Cooper & Shaw, 2013, p. 66). When small states lack the resources to exert hard power, they often engage soft power wherein credible resources such as reputation and strong workforce are important (Cooper & Shaw, 2013, p. 69). It is important that all actors within society work strongly together in order to improve national prosperity and be able to efficiently exert soft power (Cooper & Shaw, 2013, p. 69). Credibility, cohesion and confidence are important factors to strengthen a state’s ability to exert soft power and improve the projection of a state’s foreign policy (Cooper & Shaw, 2013, p. 70). Specific actions, such as providing humanitarian aid, can also be considered as an act of soft power (Cooper & Shaw, 2013, p. 77-78). Power is not solely on military power as realists argue, power is on making active efforts to gain a certain position and to exert influence. Theories on foreign policy support this argument and move away from the dominant power perspective of realists (Braveboy-Wagner, 2010, p. 409). Within foreign policy power soft power fulfils an important role, equal to hard power as a power resource. Economic power resources, such as energy resources or knowledge in specific areas, often provide a foundation for soft power for small states (Braveboy-Wagner, 2010, p. 409). Small states are well known as norm entrepreneurs too, for instance the Scandinavian states who are widely acknowledged for their compliance with global regulations and domestic institutions that are unique (Braveboy-Wagner, 2010, p. 409; Ingebritsen et al., 2006, p. 275; Thorhallsson, 2012, p. 139). Braveboy-Wagner refers to smart power that small states exert when they use the development of their expertise and combine this with their strategic capabilities in order to influence others (2010, p. 409). Smart power is resource-based knowledge, whereas soft power can be value based as well. Both are used by small states as resources for foreign policy power and pursuing national interests (Braveboy-Wagner, 2010, p. 409).

Despite that each state will exert soft power in some way, small states tend to rely more on soft power as a power resource than larger states, since larger state also have the ability to rely on their ‘hard power’ resources, for instance military power assets. Small states have the

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ability to shape outcomes through the use of soft power as their main power resource. Hard power is not necessary to shape outcomes (Thorhallson, 2012, p. 144).

The arguments above on soft power lead to the third expectation, which is as follows:

Expectation III: The Dutch government is expected to have adopted water management, as an important part of development cooperation policy, in order to strengthen its reputation and credibility and use these as instruments to exert soft power.

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Chapter 3 – Research Design & Methodology

3.1 Research Design

This thesis contains a qualitative research design. Since X is unknown, this research focuses on determining what factor causes Y (Toshkov, 2016, p. 298). The research type is positive, and explanatory, since the goal of the research is to explain how Dutch development cooperation policy developed and why water management has been adapted as an important part of Dutch development cooperation policy (Toshkov, 2016, p. 24, 35-36). So, the focus of the thesis is on the analysis of how Dutch water management development policy has developed over time, why water management is involved so much in Dutch (development) policy and where and when the focus on water management started.

The research contains a single case study, with the adaption of water management within Dutch development policy as the single case. Furthermore, the focus will be on within-case analysis, with deductive reasoning, since existing theories will be tested in order to elucidate the motives of the Dutch government to prioritize water management as an important theme within their development cooperation policy (Toshkov, 2016, p. 260).

The data is collected through qualitative research of documents, along with qualitative interviewing. Interviewees are several different actors (experts) active within the area of Dutch water management. For instance, a government official working for a ministry engaged in water management affairs, someone professionally active within companies engaged in partnerships with the Dutch government and Dutch water projects, but also Dutch companies that execute water projects in the Netherlands as well as on an international level.

Empirical research is conducted through the analysis of policy documents, along with in-depth interviews. In order to provide a proper research frame, data from the Ministry of Foreign Affairs, with specific focus on the documents of the department of international trade & development cooperation, is analysed. Related government documents, for instance from the Ministry of Infrastructure and Water Management, as well as companies that are active in Dutch water management and the Dutch water sector, are included in the analysis too. Documents from the regional water authorities and several programmes, such as the Blue Deal and the International Water Ambition, are analysed too. These policy documents have been analysed in order to discover when water management was adopted as a core theme within development policy. This research was necessary to determine when the focus of the Dutch with regard to water management as a core theme started and in what policy area this

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focus started in the beginning. This is interesting because it is possible that the water focus started in another policy area first, before it became a core theme within Dutch development policy. In order to trace the moment when water management became such an important theme within Dutch development cooperation policy, a historical overview of water management in the Netherlands and water management as a focus theme within Dutch policy in general is included in chapter four. Eventually, the analysis of policy documents in chapter four will offer an insight in the development of water management as a focus theme within development cooperation policy over time.

In order to examine how water management became prioritized in development policy, the actors that have been involved in the development of water management regarding development policy are analysed. Whether main actors, or important drivers, were responsible for the involvement of water management in development policy is researched.

The importance of international development policies cannot be neglected in the analysis of this thesis. International policies and frameworks that address water management will be examined in the analysis is well, because they tend to be important regarding Dutch development cooperation policy. Especially, the Millennium Development Goal framework and Sustainable Development Goals framework, designed by the United Nations, are suggested to be important determinants for development policy. Especially in the SDGs, there is an extensive and specific goal on water: SDG 6. This will offer interesting insights with regard to the analysis. Therefore, these frameworks are included in the analysis as well. Along with these national and international policy documents, there will be a number of reports that are included in the analysis as well.

In the table below an overview is provided of the main policy documents that are included in the analysis.

Policy Document Published by

Blue Deal Dutch Water Authorities

Cabinet Agreements of 1973, 1998, 2007,

2010, 2012 Parlement.com/PDC

Factsheet Water Department Inclusive Green Growth First Dutch SDG Report Ministry of Foreign Affairs

Government Reports International Trade and Development Cooperation 2015, 2016, 2017

Ministry of Foreign

International Water Ambition Affairs Ministry of Infrastructure & Environment

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challenges. Policy Review.

IOB Evaluation. Policy review of the Dutch cooperation with the development

organizations of the United Nations.

Ministry of Foreign Affairs

Letter to the Parliament WASH Strategy

2016-2030 Ministry of Foreign Affairs

Millennium Development Goal Framework United Nations Policy Notes Development Cooperation

2013 & 2018

Ministry of Foreign Affairs/Rijksoverheid Sustainable Development Goal Framework United Nations

Theories of Change 2015 & 2018 Ministry of Foreign Affairs WASH Strategy 2016-2030 Ministry of Foreign Affairs

Figure 1

In addition to the analysis of the policy documents, there have been conducted seven interviews. Interviewees are 2 government officials: one of the Ministry of Foreign Affairs and one for the Ministry of Infrastructure & Water Management, a policy officer working for a critical NGO, one interviewee works for the Netherlands Water Partnership, the fifth interviewee works for a regional water authority, the sixth interviewee is a former director of several Dutch water organizations and the last interviewee works for Deltares, a Dutch knowledge-based institution. All interviewees are familiar and work, or have worked, in the Dutch water sector. The table below provides an overview of the interviews.

Interviewee Position Date of interview

1 Civil servant Ministry of

Infrastructure & Water Management

09-11-18

2 Policy Officer critical NGO

(Both Ends)

12-11-18

3 WASH Specialist 13-11-18

4 Secretary of the NWP NGO

Water Platform and

Secretary of the ‘Kernteam Internationaal’, Topsector Water & Maritiem, Project Officer Netherlands Water Partnership

16-11-18

5 Process Manager and

Coordinator international projects regional water authority

20-11-18

6 Senior Water Advisor

Ministry of Foreign Affairs

07-12-18

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and International

Organisations knowledge-based institute (Deltares)

Figure 2

Eventually, the data derived from the policy documents and the interviews will be triangulated and combined in order to draw a proper conclusion on the research question.

3.2 Concepts

In order to properly address the research question of this thesis it is important to define the following concepts: ‘water management’, ‘economic power’, ‘influence from international organizations’, ‘soft power’, ‘reputation’, ‘credibility’ and ‘small state’.

Water Management

In this thesis, a broad definition of water management is applied. There is a distinction between the management of water resources, safe and clean water provisions, including access to sanitation and drinking water, the creation of safe deltas and water productivity within agriculture possible. However, in this thesis all these topics will be discussed under the denominator of water management, since these water management topics are part of the focus of the Ministry of Foreign Affairs in its development cooperation policy concerning water management (Government of the Netherlands, n.d.).

Economic Power

It is important to define economic power with regard to the first expectation in the theoretical framework. In general, power is on influencing the behaviour of others, or the ability to influence outcomes. Power also includes the ability of a state to have its own preferences and the ability to administer these preferences (Greig et al., 2007, p. 210). Economic power is an important aspect of the power a state possesses, along with military power (Greig et al., 2007, p. 213-214). In neoliberalism economic power is the power resource where is focused on (Greig et al., 2007, p. 57, 214). In general, the focus shifted from military to economic power in politics. Main reason for this shift was that military force became less important, and a less favourable option, within international politics in general (Greig et al., 2007, p. 213).

Economic power is an important part of a state’s general power (Chugaiev, 2017, p. 116). Economic power is the ability of a state to endure the impact of other states in the system and

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the ability of a state’s economy as a whole to influence international economic relations (Chugaiev, 2017, p. 116). Economic power is an important determinant for other resources of power of a state, such as scientific, demographic, ideological and political power (Chugaiev, 2017, p. 116). Besides, economic power resources often provide a foundation for soft power for small states (Braveboy-Wagner, 2010, p. 409). An indicator for economic power in this thesis is the ability of the Dutch government to influence the behaviour of development states, or the policies of development states, using their economic power in their foreign policy. Within economic power, as a power resource, rewards and threats are used to coerce other states into the desired behaviour (Keohane & Nye, 1998, p. 86). The ability to influence the preferences of foreign governments through development policy and establish trade relationships with these countries through development cooperation policy is an indicator for economic power as well.

If there are economic interests at stake in development countries, the Dutch can use their economic power in their foreign policy/development policy to influence the policies of the foreign governments. They can also use their economic power to put pressure on the foreign government to obtain the desired behaviour.

Influence from International Organizations

Since the second expectation provides an argument on the influence of international organizations on foreign policy it is important to define the concept properly. In order for an international organization to be influential, the organization requires legitimacy and trust from its member states (Fang & Stone, 2012, p. 537). Although it is often costly for national governments to adjust their policies according to the policy change an IO is urging for, IOs do have the ability to influence a government’s policy (Fang & Stone, 2012, p. 539). Fang & Stone argue that IOs are often demanding for policy change when a crisis is lurking (2012, p. 538-539). It is evident that if a government agrees on the threat of the expected crisis, the government will adjust its policies according to the demanded policy change of the IO. There is a number of IOs that do not directly demand for policy changes, but that exercise influence on governments if they are confident that their signal is completely credible (Fang & Stone, 2012, p. 540). However, trust in the organization is the most important indicator for policy change. Besides, persuasion is very important with regard to the ability of the IO to influence governments, and consequently policies (Fang & Stone, 2012, p. 540-541). Governments are more willing to change their policies if the demanded policy-change aligns with their own preferences. For the Netherlands, this might be an important indicator for the reason that the

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SDG framework, established by the UN, has been so influential on development cooperation policy. In particular, this might be an explanation of the influence of SDG 6 on development cooperation policy regarding water management. Water management has always been an important issue for the Dutch, so emphasis by an IO on this issue area fits within the Dutch policy preferences. Summarizing, the influence from international organizations is mainly on the ability of the IO to shape a governments policy according to the preferred policy-change of the IO. The extent to which the government adjusts its policy accordingly is dependent on the persuasion and trust the IO is able to exercise (Fang & Stone, 2012, p. 541).

Soft Power

The concept of soft power as discussed in chapter two is rather broad. Therefore, it is outlined here concise.

To summarize, soft power is the capacity of one actor (A) to shape the preference of an other actor (B) (Nye, 2008, p. 95). It is mainly on the ability that actor A can convince actor B to do what actor A wants him to do. Otherwise, actor A has to force actor B to do what actor B does not want (Nye, 2008, p. 95). While hard power is based on influence, soft power relies on persuasion (Nye, 2008, p. 95). Soft power relies on three resources: a country’s foreign policies, its political values and its culture (Nye, 2008, p. 96). Credibility and reputation are becoming increasingly important resources of power within soft power (Nye, 2008, p. 100). Soft power is the ability to get others to do what you want them to do, and consequently strive for the same outcomes (Nye, 2008, p. 103). Within soft power it is important to frame the message accordingly to the audience one wants to address and eventually persuade (Nye, 2008, p. 103). It is important to have in mind if one wants to address a domestic audience or a foreign audience, when framing the message. The same message might be received differently by different audiences (Nye, 2008, p. 104). A mistake often made by politicians is assuming that others do not have the same information they have, and therefore have other preferences. However, this assumption is wrong as all information goes through different cultural filters resulting in different preferences (Nye, 2008, p. 103).

For this thesis there will be analysed whether the Netherlands exerts soft power through its development cooperation policy. Soft power is rather hard to measure, since it is not always directly visible. In order to analyse whether soft power is exerted through the Dutch foreign policy, there is analysed if the Dutch government or other actors active within the Dutch water sector have a significant influence on other countries through the Dutch development cooperation policy. Indicators for soft power might be the extent to which the Dutch

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government is able to influence and shape international policies regarding water management as a result of their expertise in the area. Moreover, a positive image, and projection, of Dutch foreign policy possibly allows the Dutch to exert soft power and to shape international policies regarding water management (Cooper & Shaw, 2013, p. 66).

Reputation

Reputation is an important concept with regard to the case discussed in this thesis. The strong reputation of the Dutch with regard to water management has a long history. The Dutch reputation with regard to water affairs also leads to an internationally acknowledged expertise in the area of water management. Hence, It is important to define the concept.

Reputation is mainly about ‘what the organization wants to be known for’? In this thesis this might be translated into what the Dutch want to be known for in their development cooperation policy and what the effects and impact of their policy is. This does not have to reflect actual practices within the organization, moreover it on the image the organization wants to present to the external environment of the organization. Reputation also offers organizations an identity (Busuioc & Lodge, p. 93). Reputation in the case analysed in this thesis will consequently be on the image that the Ministry of Foreign affairs has regarding its development cooperation policy and the image of its projects in development countries. For this thesis it is important to analyse whether the Dutch reputation regarding water management proves to be an important determinant for the involvement of water management as such an important theme within development cooperation policy. Therefore, there will also be addressed whether the Dutch reputation regarding water management and water management projects is one of the reasons why water management became incorporated as core theme within development cooperation policy. Reputation is also directly connected to influence by some scholars, which might provide an indicator for this thesis too. The creation of a strong image abroad is important in this view (Thorhallsson, 2012, p. 143).

Credibility

About this concept one can be fairly concise. Credibility with regard to policy and politics is foremost on the assumption that a policy will be carried out the way that it is argued to be carried out by the policy-maker (Masson & Drazen, 1994, p. 1). Vigorous policies will eventually lead to a diminished credibility in the government (Masson & Drazen, 1994, p. 1). Besides, credibility and reputation are strongly interrelated. If reputation increases, credibility will also increase, and vice versa (Masson & Drazen, 1994, p. 1). Nowadays, governments

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compete over credibility and not solely governments, but there is also competition between governments and non-state actors (Nye, 2008, p. 100).

It is also important to keep in mind that governments have to take into account their credibility at home, as well as their credibility among their foreign audiences (Nye, 2008, p. 106). So, regarding credibility there are also different audiences that have to be taken into account.

Credibility and reputation are concepts that strongly relate. In order to build a strong reputation, a state must be credible and vice versa. Good tracking records and successes of previous water management projects are indicators of both credibility and reputation.

Small State

There are various criteria to define a small state. Often small states are defined by what they are not, instead of the qualities they do possess (Ingebritsen, 2006, p. 6). Most common criteria for the definition of a small state are: Other criteria often used to define a small state are: population size, geographic size and the influence of the state with respect to the international system (Hey, 2003, p. 2). There is no common definition for a small state (Hey, 2003, p. 3). For long, a state’s size has been determined by its role in the international system and moreover its military power (Hey, 2003, p. 3). Regarding population size there are a number of thresholds used by scholars in order to define whether a state is a small state (Hey, 2003, p.2). Numbers vary from up to 1 million, to less than 10 million (Hey, 2003, p.2). Population size is often the main determinant in order to define whether a state is small or not. Sometimes larger states are included in this definition too, because they lack the capability and ability to manage their institutions accurately (Thorhallsson, 2012, p. 136). A state’s Gross Domestic Product (GDP) is considered to be a determinant of the definition of a small state as well. Especially international organizations, such as the World Trade Organization and the International Monetary Fund use this in their small state definition (Thorhallsson, 2012, p. 136). According to Thorhallsson there are many reasons why states are willing to become member of influential international organizations: these organizations offer a platform where their voices can be heard, these organizations offer these states recognition of their sovereignty and international peace and stability is of great importance for small states since they lack military power resources (Thorhallsson, 2012, p. 142).

The Netherlands is not a typical example of a small state since it has a relatively high population size and its GDP is relatively high too. Within small state literature there is a classification between small states that divides them into two groups. The first group consists

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of small states that have a population between 10 and 15 million and are economically advanced and the second group has a population from 20 to 30 million people, but also a underdeveloped economy (Ingebritsen et al., 2006, p. 81). However, within the European context this boundary is set different. In this context the boundary is set at the population size of the Netherlands, meaning that all European countries are considered small states except for Romania, Italy, Great Britain, Turkey, France, Germany, Spain, Ukraine, Poland and Russia (Ingebritsen et al., 2006, p. 6). Using other criteria for instance a state’s territory or GDP would strengthen the argument that the Netherlands should be considered a middle power (Ingebritsen et al., 2006, p. 6). However for this thesis, the Netherlands will be considered a small state. Taken into consideration that the Netherlands does not provide a typical example of a small state, since its economy performs quite well.

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Chapter 4 – The Development of Dutch Development policy: An Overview

In this chapter an overview is provided of the development of water management as an important theme within Dutch development cooperation policy. In order to properly understand how this policy has developed, there will be some context provided on why water management is important to such great extent for the Netherlands and how it consequently became an important theme in development cooperation policy. The development of the policy will be analysed on a national level, as well as on an international level, since international organizations such as the UN also have an influence on a state’s policies, and this appears to be the case in Dutch policies too.

4.1 Organization of the Dutch Water Sector

In order to understand why water management has become such an important theme within development cooperation policy, it is important to examine why water management became an important focus theme for the Dutch in the first place and how the Dutch water sector is organized.

Dutch water governance is very well structured and highly decentralized. There are four levels of governance. The European level is on top, since European Union legislation has to be complied upon. Secondly, there is the national level, with as its main actor the Dutch government and more specifically the Ministry of Infrastructure & Water Management. The executive body for the policies of the Ministry is Rijkswaterstaat, which performs the operational tasks for the Ministry. Rijkswaterstaat (RWS) is also part of the Ministry, it is not simply an independent institution. Third level are the provinces: the twelve Dutch provinces are concerned with the oversight of the municipalities and regional water authorities. Along with this supervision, the provinces have several water management duties, for instance the control of groundwater management. The fourth level is the local level. Water management on this level is performed by 21 regional water authorities and 388 municipalities. The Dutch regional water authorities, or Waterschappen, are what makes the organization of the Dutch water sector unique. The Waterschappen are responsible for the management of regional waters and rivers. Waterschappen are the oldest illustration of democratic government in the Netherlands and have been present since the Middle Ages (Unie van Waterschappen, n.d.). The first water authority was established in 1122 (Remijn & De Ruijter, 2017, p. 1-2).

The Development of Water Management as a Focus Theme within Dutch Development Cooperation Policy