INTERNATIONAL DEVELOPMENT COOPERATION NEW STYLE: from government-to-government Aid to private sector-to-community Partnership, facilitated by governmental risk-sharing support ONLY if its development criteria are being met. We are working on a (pilot)"cookstove bond" for the purchase of efficient cookstoves and solar lanterns by some 200.000 poor households, to be repaid by affordable monthly micro-payments. The bond will be placed with (social) investors. The bond will have a government "wrap" (guarantee) that if it would not be fully repaid AND all pre-set social impact criteria have been met, the government will pay. A perfect form of complementarity of objectives and synergy of resources where they might be best used. This structure can also be used in other sectors than clean/renewable energy, such as sanitation, health, infrastructure, etc.

A governmental guarantee scheme (similar to the well-established and successful official export credit insurance/investment guarantee schemes) should offer opportunities to steer and accelerate the governmental agenda on climate (offer a carbon floorprice at, say, Euro35/ton until 2020), biodiversity, etc.

Multiple agendas by multiple stakeholders with everyone meeting his objectives: that's the challenge and opportunity: more binding&bundling across themes, sectors, societies! A new polder....?!

DUTCH POLITICS: look for what binds us, not what separates, and then bundle forces for those shared priorities; we don't want stagnating partisanship between party-lines like in the US Senate, rather we need active ad hoc partnerships, if we cannot reach an overall accord.There is nothing wrong with issue-specific, changing majorities, lead by a minority government which binds people and bundles issues!

DUTCH CABINET FORMATION: there are good strategic & tactical reasons why the new UK government has exempt international development cooperation from major budget cuts. But equally, there are very good reasons to do more and, foremost, better with ODA budget allocations. If only government would change its lense: "return on collaboration" with private sector in NL and in south can not just increase efficiency and effectiveness, but also more by providing a major leveraging effect: social impact bonds , premier risque, insurance/guarantee systems should be at the heart, making use of complementarity of functions, focus on communities small scale entrepreneurship, greening the economy, sustainable&responsible value chains.

Worldconnectors (www.worldconnectors.nl) wrote a paper on this: "The Business role in development cooperation" (chaired by Nanno Kleiterp/CEO FMO and myself).

THIS THE MOMENT

KNOWING OUR BOUNDARIES: we are clearly exceeding our planetary boundaries, ref my earlier blog on Malthus, Marx and Murphy (12 October 2015!). But the issue of knowing your boundaries is much broader, including the financial sector.

Strategic boundaries for banks are even more relevant in the context of the explicit or implicit backstop of society in case of bank failures. In my view, the strategic boundaries in particular of "system-banks" should be set by the direct interest and the real economy of the "home-country/ies" of such bank.

So look at trade and investment flows of outbound and inbound clients in such home-country. Why take a significant, long term risk on a foreign sovereign or banking system if this has no relationship with the better functioning of the real economy in the home-country. Why not invest in (green) innovation in your own home country rather than have significant sovereign bond oriented investment portfolios in countries which are not core to the real economy of your home country?

FORWARD LOOKING FINANCIAL SECTOR NEEDED: The financial sector, i.e. banks, long term investors (like pension funds, insurance companies), stock exchanges, rating agencies, auditors, research firms have major role to play to transform our old economy into a new with recognition for the costs and returns associated with Natural Capital and Human/Social Capital. Read most recent (july 2010) TEEB report "Business&Biodiversity" on www.teebweb.org for the enormous opportunities which the new, green &responsible economy will offer to business!

HEROES: Atiur Rahman, Governor of the Central Bank in Bangladesh; I have met many central bankers in my banking career, but he was the first one who has a genuine interest in the real economy of his country and sensing very frequently in the field how the banks & mfi's are serving their clients and society.

CHANGE IS ACCELERATING: June 2010: the creation of IIRC (International Integrated Reporting Committee, with GRI as one of founding members and GRI chair Mervyn King as vice-chair; following the requirement for this by the Johannesburg Stock Exchange; www.iirc.org) and the publication of the Business& Biodiversity Report by TEEB ("The Economics for Biodiversity & Ecosystems": www.teebweb.org) are 2 major events shaping the future of sustainable business.

Moreover, the rethinking of Dutch ODA (Official Development Cooperation) i.a. by Worldconnectors (www.worldconnectors.nl) towards more entrepreneurship/community/private sector in "south", more public-private cooperation and financial instruments (such as Social Impact Bond as announced by me at the YES/Rework Summit in Leksand in Sweden in June) in "north" will result in more efficient, effective, sustainable initiatives for a "better world".

Effective change in the private sector is accelerating, even while political initiatives addressing "global public goods" seem to stagnate.