Dutch initiative for co-operation with emerging markets

by Ramani Kangaraarachchi

Investments in the private sector in developing countries are expected to contribute significantly to the alleviation of poverty, provided certain conditions are met.

The Netherlands Minister for Development Co-operation has identified the private sector as the engine of economic growth and job creation. The Ministry has initiated a Program for Co-operation with Emerging Markets (PSOM) to share some of the initial financial risks that companies face when investing in new products or technologies in emerging markets in developing countries.

Counsellor Deputy Head of Mission Royal Netherlands Embassy Harry J.J. Van Dijk told an awareness seminar organised by the European Chamber of Commerce Sri Lanka that the objective of the programme for co operation with emerging markets is to reduce poverty by supporting sustainable economic development and this goal is achieved by encouraging durable trade and investment relationships between Dutch companies and local companies in PSOM countries, he said.

Projects supported by PSOM are initiated and implemented by Dutch companies, in cooperation with local counterparts and it is specially suitable for companies who have trade experience and are interested in investing in a PSOM country.

Its contribution for the least developed countries is 60% and the total budget for PSOM is Euro 48 million per annum. Sri Lanka is also among PSOM countries in Asia. Sri Lanka has exported 108 million US dollars worth of goods to Netherlands in 2004 which includes apparels, tobacco, tea and food items according to Dijk.

General Manager EU chamber Sujeevan Perera said that the seminar was organised to give a better understanding for the prospective Sri Lankan businessmen on the PSOM and to help in matchmaking.