The Netherlands' new Policy Memorandum: Implications for ODA

Introduction

The November 2023 general election in the Netherlands marked a significant political shift to the right, following the PVV securing 37 parliamentary seats. During the campaign, the PVV made clear its intention to dismantle existing climate commitments, vowing to put such agreements “through the shredder” and to “immediately stop development cooperation” to redirect resources to Dutch citizens.

The core principles driving these changes were formally codified in the February 2025 Policy Memorandum, which sets out a reorientation of Dutch ODA. From this point forward, development assistance will be explicitly aligned with the Netherlands’ economic, security, and migration interests.

With mounting domestic and international pressure to increase defense spending, and the government’s firm stance against raising debt levels, the ODA budget is expected to remain under continued strain. This Donor Tracker Insight will examine the new priorities and strategic direction outlined in the memorandum, as well as the key areas of funding that are slated for significant reductions or complete termination.

Key priorities

The Policy Memorandum, building on the coalition priorities, reorients the focus of Dutch development cooperation towards Dutch interests, in particular trade, economic growth, and investment; security and stability; and migration.

The memorandum sets out four key thematic priorities:

• Water management, in particular to leverage Dutch expertise in water infrastructure and coastal protection;
• Food security, helping local food production while strengthening supply chains of the strong and highly globalized Dutch agribusiness sector;
• Health, strengthening healthcare in developing regions, particularly maternal and child healthcare; and
• Humanitarian assistance will remain a priority, in the form of multiannual, flexible contributions to the UN, the Red Cross Movement, and the Dutch Relief Alliance.

Main budget cuts

On May 16, 2024, four coalition parties reached an outline agreement titled Hope, Courage, and Pride. As part of this agreement, the new conservative government announced in September 2024 a structural reduction of EUR2.4 billion ( US$2.6 billion) to the annual development budget beginning in 2027. This will reduce ODA from an estimated 0.62% of GNI in 2024 to 0.44% by 2029. Interim cuts of EUR350 million ( US$379 million) in 2025 and EUR550 million ( US$595 million) in 2026 have also been scheduled.

The Policy Memorandum indicates that the Netherlands will no longer treat certain areas as separate objectives and will phase out their budgets after fulfilling current contractual obligations. This includes ending financial support for women’s political participation, UN Women, and the Leading from the South program; cancelling vocational and higher education initiatives in Africa, including study grants; and ceasing support for development through sport, art, and culture. Additionally, budget reductions will affect climate efforts, such as ending funding for small-scale renewable energy projects and exiting regional climate funds.

Regional and institutional outlook

In coming years, a reorientation of geographic areas of focus of Dutch ODA can be expected. According to the Policy Memorandum, funding will be concentrated in West Africa (Sahel, Nigeria, Ghana), the Horn of Africa (Kenya, Ethiopia, Somalia, Sudan), North Africa and the Middle East (Tunisia, Morocco, Jordan, Iraq), as well as Ukraine. Geographically, assistance will concentrate on a more limited number of countries, mostly in neighboring regions. Activities outside these priority regions, such as the Great Lakes Region, will be phased out.

The Policy Memorandum also announced a reduction of support to the multilateral system. Core contributions to UNDP and UNICEF will be reduced by 50%, while activities with UN Women will be terminated entirely. International NGOs will no longer receive Dutch funding unless projects specifically align with national interests. Civil society support will be curtailed, particularly for climate, food security, and water initiatives, along with an end to lobbying efforts both domestically and internationally. Multilateral cooperation will also see significant cuts, including a 50% reduction in core contributions to UNICEF and UNDP, and halving the number of Dutch Junior Professional Officers placed at the UN.

While the government maintains commitments to certain areas, such as combating HIV/AIDS, preventing harmful cultural practices, and promoting clean trade, critics argue that these cuts will undermine the Netherlands' longstanding role in supporting global human rights and development. Organizations like Both ENDS and Partos have expressed concern that reducing support for civil society actors will weaken efforts to promote democracy, human rights, and sustainable development worldwide.

Sectoral outlook

Conclusion

The Dutch government's new policy reflects a strategic shift towards prioritizing domestic fiscal concerns over international development commitments, raising questions about the future of the Netherlands' role in global assistance and is a radical departure from ODA policy implemented by previous administrations. While the previous government focused on areas “the Netherlands is good at,” the current government’s priority is to focus exclusively on “what is good for the Netherlands,” putting Dutch interests as opposed to poverty reduction or Agenda 2030 at the core of the country’s ODA policy.