The success of budget support varied between countries. The Netherlands adhered to the national Poverty Reduction Strategy Papers (PRSPs) and in many cases also supported Sector Wide Approaches; the latter having been a response to the lack of ownership and the failure of projects and programs of the past to take the macro-environment sufficiently into account.
Moreover, in Africa and for many donors, including the Dutch, agriculture was not considered to be a driver of economic development that would eventually lead to industrialization and economic development to support domestic funding of public services and infrastructure. As stated in the 2010 report of the Dutch Scientific Council for Government Policy (WRR), the agricultural sector was not seen as a motor for development and industrialization became the main goal despite evidence that agricultural/rural development in some Asian countries was proven to have been essential to catalyze industrial development at a later stage[2].
The IOB report (2008) noted that the neglect of agriculture in developing countries, especially in Africa, had a negative impact on economic growth. This was also highlighted in 2012 in the ‘Tracking Development’ study funded by the Dutch Ministry of Foreign Affairs. In this study successful Asian countries were compared with ‘similar’ African countries. One of the main conclusions was that the success of the Asian countries hinged on agricultural development in rural areas as a precursor to industrial development.[3]
[1] What are Structural Adjustment Policies? (SAPs) | IB Development Economics | The Global Economy
[2] https://english.wrr.nl/publications/reports/2010/01/18/less-pretention-more-ambition
[3] World Development Report 2008
https://digitallibrary.un.org/record/1305297
IOB report 2008
Tracking Development
https://www.ascleiden.nl/publications/asian-tigers-african-lions-comparing-development-performance-southeast-asia-and-africa
