Since its establishment in 1965 the main purpose of the Dutch development cooperation ministry have been the alleviation of poverty and the promotion of economic self-reliance. The fundamental changes in international relations at the end of the eighties have contributed to a shift in development policies. During the nineties a process of policy reorientation and the creation of a number of special programmes took place.

The first couple of years of the twenty-first century were a diffuse period. The key word was 'regauging' existing instruments and institutions. This even resulted for a short period in the abolition of the post of minister for development cooperation. However in 2003 the post of minister was reinstated, which mirrored a realignment of policy. This 'new development policy' of the Netherlands was outlined in a policy memorandum entitled ‘Mutual Interests, Mutual responsibilities: Dutch Development Cooperation en route to 2015’. The basis of this policy is the United Nations' Millennium Development Goals (MDG). The Netherlands sees attainment of the MDG as a touchstone for the effectiveness of development cooperation.

• The Netherlands will continue to allocate 0.8% of its Gross National Product (GNP) to development cooperation. Notwithstanding the policy changes, poverty reduction will remain the main objective of Dutch development policy. The following themes are key: education (15% of the development budget), environment and water (0.1% of GNP), AIDS prevention and reproductive health care.
• Given the need to maximise capacity, manpower and resources, the number of bilateral partner countries will be reduced from 49 to 36. The number of sectors in each country will be limited to two or three at the most.
• At least 50% of the Netherlands’ bilateral development budget will be used to reduce poverty and promote economic growth in Africa. Environmental and water programmes will be stepped up.
• Results and accountability will be the forces behind Dutch development cooperation. A new appraisal system and assessment framework will be introduced for country and sector policies.
• Partnerships will be sought with citizens, private enterprises, knowledge and research institutes, civil society organisations and government authorities.

Within the Foreign Affairs Ministry (BUZA) a special three-dimensional programme of cooperation with CEE countries is coordinated. These activities are financed from the non-ODA part of the HGIS budget. The Societal Transformation Programme (MATRA) supports Dutch initiatives enabling CEE citizens to actively participate in the transformation and democratisation of their society. A programme for economic transformation in CEE countries is supported. In this context special attention is paid to Joint Implementation activities. The transfer of economic expertise from the Dutch business sector to recipient countries in the CEE is also promoted.

Within the Ministry of Economic Affairs, the Directorate General for Foreign Economic Relations (BEB) is responsible for the selection of policies for the administered programmes after consultation with other ministries, the countries involved, the Dutch business community and the Dutch embassies. (For the MATRA Small Embassy Projects Programme or MATRA-KAP see under funding services). The organisation NCDO is responsible for the administration of the programme (see chapter 1.6 Special agencies).

The Directorate-General for International Cooperation (DGIS) coordinates and carries out development cooperation policy and manages the development cooperation budget.

The Secretary-General and the Directors-General are each responsible for several departments engaged in either policy-related or support activities. There are four types of department:

• Regional departments develop and carry out coherent, effective policy on the world's regions and countries. They include the North Africa and Middle East Department (DAM), the Sub-Saharan Africa Department (DAF), and the Western and Central Europe Department (DWM);
• Policy theme departments combine knowledge and expertise in one foreign policy area in clusters of foreign policy areas, or ‘themes’, such as security policy, the environment, education, health, and humanitarian aid. They include the Security Policy Department (DVB), the Human Rights and Peacebuilding Department (DMV), and the Environment and Development Department (DML). The specialist knowledge of the policy theme departments is combined with the local knowledge of six regional departments;
• Multilateral departments deliver the Dutch contribution to multilateral forums. They also send Dutch delegates to international organisations. There are two: the European Integration Department (DIE) and the United Nations and International Financial Institutions Department (DVF);
• Support departments serve the entire Ministry in areas like finance, personnel, information systems, organisation, and communications.

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