More than six months after the Dutch elections took place, a long period of debates, negotiations and incertainty has finally come to an end. The new coalition of center-rightwing parties was sworn in last Thursday the 26th of October. Having Sigrid Kaag of the liberal-democratic party D66 as the new Minister for Foreign Trade and Development Cooperation in the third Rutte government (Rutte III), we can look forward to where the opportunities lie in the new coalition’s plans to make the world fairer and more sustainable. The Coalition Agreement, which tries to build a bridge between the political centre and the centre-right, is a smart piece of work in terms of reaching compromises. In the current international climate of societies progressively growing apart, that is a striking achievement.
In 1959, Germany and Pakistan signed the first Bilateral Investment Treaty (BIT) in the world. Without knowing, they marked a new era as many countries have followed their example since then. Currently, the international legal system that governs international investment flows consists of about 3000 BITs and other international investment agreements (IIAs). While originally these treaties were thought to be beneficial for the investor and the host state in terms of economic growth, increased foreign investment and development, many host states have suffered negative consequences instead of benefiting from them.
After months of lobbying of a group of NGOs, including Both ENDS, the United States Congress has opposed weakening of the investment criteria, the so-called ‘safeguards’ of the World Bank. The Congress sent a letter to the US Treasury, stating that the Banks’ social and environmental criteria for investments should not be weakened and the Treasury should oppose this. This is a great success for civil society organisations from around the world - including Both ENDS – which have been working for years to maintain and even improve the current investment criteria of the World Bank.