The Netherlands is a shareholder in all the major international financial institutions, i.e. the World Bank, the IMF and the regional development banks. These institutions make an important contribution to global financial stability and to improving the standard of living in developing countries. Membership of these institutions enables the Netherlands to achieve certain foreign policy objectives, particularly in the field of development cooperation.
The Netherlands and the IMF
The International Monetary Fund helps to stabilise the international monetary and financial system, offers financial assistance (under certain conditions) to countries experiencing payment difficulties and provides technical assistance. As an open economy, the Netherlands benefits considerably from a stable international monetary and financial system. Macroeconomic stability and a stable international monetary environment are also essential to sustainable economic growth and efforts to combat poverty, as well as to increasing the effectiveness of development aid.
The Netherlands shares a seat on the IMF’s Executive Board with Israel, Cyprus and a number of Balkan and Eastern European states. Together, these countries form one of 24 constituencies at the IMF. The Dutch executive director is the official representative of the constituency, which has 4.52% of the votes in the Executive Board, making it the fifth largest constituency at the IMF.
The Netherlands and regional development banks
The main aim of the regional development banks is to combat poverty and promote economic growth in their region. To this end, they make loans and provide technical assistance to their members. The banks obtain their funds from the member states, from loans on the capital market and from interest from income. The Netherlands is a member of five regional development banks:
- African Development Bank
- Asian Development Bank
- Inter-American Development Bank
- International Fund for Agricultural Development
- European Bank for Reconstruction and Development
The Netherlands and the World Bank group
The Netherlands has been a member of the World Bank group since its establishment, on the principle that global cooperation is necessary to combat world poverty. The World Bank has various financial instruments to promote this goal. The Netherlands shares a seat on the World Bank’s Board of Executive Directors with Israel, Cyprus and a number of Balkan and Eastern European states. Together, these countries form one of 25 constituencies at the World Bank. The Dutch executive director is the official representative of this constituency, which holds 4.5% of the votes in the Executive Board, making it the fourth largest constituency at the World Bank.