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From ‘merchants and ministers’ to ‘neutral brokers’: how the Dutch do water diplomacy

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The Netherlands has been a leading participant in water diplomacy efforts due to a self-proclaimed water management expertise. An extensive discourse analysis of an advisory report finds that the Netherlands in framing itself as a ‘neutral broker’ pursues multiple objectives in its water diplomacy efforts. The article shows that these include much self-interest, and that this small nation’s mercantilist ambitions are alive and well. It also illustrates how to apply a linked series of discourse analysis methods to key policy texts in a way that is feasible for non-specialists.

Water diplomacy as a geopolitical tool

“An old cliché about who the Dutch really are – a mix of merchants and [religious] ministers – applies to foreign policy as well.” (Lechner 2008: 247)

Water conflicts loom large in the present world. Think about Israel/Palestine/Jordan, India/Pakistan, Turkey/Syria/Iraq, US/Mexico and conflicts in the Mekong and Nile basins. There are many more on a smaller scale. Water diplomacy seems to be the only solution to prevent bloodshed and ensure regional stability.

Two things are essential for understanding water diplomacy:

  1. There is no multilateral and universally accepted system in place to manage transboundary water conflicts and tensions. The two UN conventions (New York 1997 and Helsinki 1992) failed to build a global regime, although they partly succeeded in advancing some governance norms. This gave space for so-called ‘third-parties’ – states, NGOs, foundations – to try to mediate and resolve conflicts, including far away.
  2. ‘Third parties’ explicitly pursue self-interest when engaging in water diplomacy. This means pursuing the goals of enhancing their own international prestige and authority, facilitating exports of goods and services, and shaping global governance norms. Merrill Lynch and the Bank of America estimated that the water industry market could be worth US$800–1,000 billion annually by 2030.Water diplomacy is one of the areas where countries compete to get a share of that huge pie. They do so by promoting their own private sector through technical cooperation and also promoting their own image through promoting and using venues and mechanisms of conflict resolution. The Netherlands is one such country with global aspirations in the water sector, including water diplomacy.

In search of a ‘niche’ for water diplomacy

Third-party water diplomacy offers opportunities for the Dutch water sector. It may win a lot of good will internationally and especially from some powerful riparian actors if successful mediation or prevention of conflicts in transboundary basins occurs. In some cases of strategic importance, such as the conflicts in the Nile and Mekong basins, technical cooperation is an important element of transboundary cooperation through services such as dam construction and maintenance, flood early warning systems or extraordinary releases, and exchange of monitoring and water flow information. Setting up these systems can generate revenues.

Furthermore, there are indirect ways of wielding influence internationally — for example through setting global norms of ‘good transboundary governance’ that would be more accepting of private involvement or that would allow for an internationally-funded river basin organisation to play an active role.

Another possible pathway to influence is by promoting particular venues where transboundary disputes can be discussed, such as the Permanent Court of Arbitration and the International Court of Justice, both conveniently located in The Hague. If these courts can wield authority over transboundary conflicts and the Dutch government has some influence over the two courts (by virtue of being a host country), then there is a clear interest for the Netherlands.

Analysing seemingly contradictory objectives

However, aggressive promotion of own self-interest in water diplomacy raises questions. The aims of helping achieve peace on the one hand and pursuing economic self-interest and geopolitical influence on the other may, at least in some cases, be conflicting. This observation led us to research how the acceptance of the Netherlands as a third-party actor in water diplomacy by the riparian parties as well as the wider international community can be furthered despite such seemingly contradictory objectives.

We looked at an advisory report (van Genderen and Rood, 2011) to the Dutch government on water diplomacy, from a key phase of policy reorientation, to find out how the Netherlands positions itself as a leader in water diplomacy efforts globally in relation to its objectives to benefit economically. We looked at the different rhetorical tools used in the report to manage the seeming contradiction by applying a series of discourse analysis techniques: 1) content analysis (word frequency tables plus collocations for key terms, showing the terms that accompany them); 2) text and argumentation analyses, following the approach of Scriven-Toulmin-Gasper (e.g. Gasper, 2000; Gasper and Roldan, 2011); 3) metaphor analysis in the formats by Schmitt (2005) and Steger (2007); and 4), growing out of the previous three steps, a  frame analysis using the WPR format developed by Bacchi (2009).

We used these methods in sequence. The content analysis helped in initial orientation and sharpening questions, the argumentation analysis investigated key sections in detail, the metaphor analysis explored then how the central issues are finessed, and the frame analysis synthesised the findings that emerged from the preceding stages.

Here are some of the things we found:

The Netherlands frames itself as a water diplomacy expert. The word “diplomacy” (152 counts) featured more than the word “conflict” (112 counts); “the Netherlands” (138 counts) was mentioned more frequently than the “UN” (86 counts). Also using collocation analysis and concordance analysis, we concluded that the report is not focused on a deeper understanding of the conflicts in specific river basins and ways of resolving them. Instead, its primary concern is the promotion of the Netherlands as a diplomacy agent with a specific ‘niche’.

The detailed text and argumentation analysis confirmed that there is an effort to establish the Netherlands as a credible, authoritative, capable and willing actor to be involved in conflict prevention. We examined the meanings communicated and the logic in the report’s ‘Conclusions’ section where it turns to recommendations for the Dutch government. There, the authors openly but carefully contradict the Minister of Development Cooperation (in 2011 this was Ben Knapen, now Minister of Foreign Affairs) and argue that the Netherlands is better suited to engage in conflict prevention than conflict resolution.

One of the possible benefits of this, along with smaller risks compared to mediation, is the larger role for the Netherlands water sector in all kind of activities that may go under ‘conflict prevention’. We also observed that the water engineering and management prowess of the Netherlands at home is treated as a prerequisite to engage in water diplomacy internationally – which is not self-evident.

Most importantly, neutrality is presented as a key enabler of the Dutch water diplomacy efforts. Using a metaphor analysis, we explored the report’s presentation of the Netherlands as a “neutral broker” in water diplomacy efforts. We looked at three key types of metaphors in the report – “neutral broker”, “conductor of an orchestra”, and games metaphors such as “win-win”, “zero-sum game” and “player” – and observed that the “neutral broker” metaphor (11 uses) dominated. This metaphor links from a source domain of business deals to a target domain of promoting peace (Kövecses, 2002). “Neutral broker” aptly hints at a desired combination of minister/preacher and merchant: a state that will act as an ”international hub”, “enabler”, “norm entrepreneur” and “mediator”, promoting peace (roles that are all suggested for the Netherlands in the report) while at the same time actively promoting its own country’s business.

Finally, we performed a frame analysis to synthesise findings and understand how the report frames the problem that it addresses, what solution it offers, and how this solution is legitimised. The earlier three techniques provide inputs and background to this. We use the format designed by Carol Bacchi called “What is the Problem Represented to Be?”. We found that the report produces three key effects of representation:

  1. The representation of attempted water conflict resolution as risky prompts a focus on conflict prevention. This steers the Netherlands’ external involvements away from conflict mediation towards a larger field with more economic opportunities, both technical and governance-related, namely conflict prevention.
  2. The perception that there are many developing countries in the world without technical knowledge and expertise in water governance and diplomacy leads to the promotion of Dutch assistance – with ‘economic spin-offs’ for the Netherlands.
  3. The presentation of the Netherlands as having a reputation for neutrality, which is foundational to use of the “neutral broker” concept, facilitates the efforts to secure its participation in water diplomacy.

Summary

The report that we studied framed the Netherlands as capable, neutral and willing to engage internationally (with partners in the Hague and around the world). At the same time, it implicitly framed the world (Global South river basins) as lacking expertise and in need of third-party mediation/involvement — hence the ‘niche’ for the Netherlands that has something to gain from such involvement. No serious engagement with counterarguments on these fronts was detected. The report’s orientation is in line with a business-oriented world order within which globally competing nations are there to uphold self-interest (in the competition between “Global Hydro-hubs”). The report seems to continue the historic trajectory of Netherlands’ foreign policy by combining its two paradigmatic roles: the “merchant” (pursuit of self-interest) and the “(religious) minister” (provision of advice and aid).

This post presents findings from our recent article in International Journal of Water Resources Development. The article is open access and can be accessed via the link.

References

Bacchi, C. (2009). Analysing Policy: What’s the Problem Represented to Be? Pearson Press.

Gasper, D. (2000) “Structures And Meanings – A Way To Introduce Argumentation Analysis In Policy Studies Education”. Africanus 30(1), 49-72.

Gasper, D., and Roldan, B. (2011) “Progressive Policy Framing: Kofi Annan’s Rhetorical Strategy for The Global Forum on Migration and Development”. African Journal of Rhetoric, vol.3, pp. 156-195.  https://repub.eur.nl/pub/77719

Kövecses, Z. (2002) Metaphor: a Practical Introduction. Oxford: Oxford University Press.

Lechner, F. J. (2008). The Netherlands: Globalization and National Identity. New York: Taylor and Francis.

Mukhtarov, F., Gasper, D., Alta, A., Gautam, N., Duhita, M. S., & Hernández Morales, D. (2021). From ‘merchants and ministers’ to ‘neutral brokers’? Water diplomacy aspirations by the Netherlands–a discourse analysis of the 2011 commissioned advisory report. International Journal of Water Resources Development, 1-23.

Schmitt, R. (2005). Systematic metaphor analysis as a method of qualitative research. The Qualitative Report, 10(2), 358-394.

Steger, T. (2007). The Stories Metaphors Tell: Metaphors as a Tool to Decipher Tacit Aspects in Narratives. Field Methods, 19(1), 3-23.

Van Genderen, R., and Rood, J. (2011). Water diplomacy: A niche for the Netherlands. Netherlands Institute of International Relations ‘Clingendael’, with the Netherlands Ministry of Foreign Affairs and the Water Governance Centre.

Opinions expressed in Bliss posts reflect solely the views of the author of the post in question.

About the authors:

Dr. Farhad Mukhtarov is Assistant Professor of Governance and Public Policy at International Institute of Social Sciences (ISS), Erasmus University Rotterdam.

Des Gasper is professor of Human Development, Development Ethics and Public Policy, at ISS of Erasmus University Rotterdam.

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Economic diplomacy: bilateral relations in a context of geopolitical change by Peter A.G. Bergeijk and Selwyn J.V. Moons

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Economic diplomacy, although perceived as marginally important by neoclassical economists, is a highly relevant topic first and foremost because it works in practice, but also because it provides an essential policy answer to the increasing uncertainty of international transactions. In this article, Peter A.G. van Bergeijk and Selwyn J.V. Moons, editors of the recently released Research Handbook on Economic Diplomacy, briefly introduce the topic of economic diplomacy and highlight the value of the new publication, to which several ISS researchers have contributed.

The eminent breakdown of multilateralism and supranationalism due to Trump and Brexit has led to a revival of the debate on economic diplomacy, properly understood as a broad field that comprises those aspects of diplomacy that are aimed at:

  • the opening of markets to stimulate bilateral cross-border economic activities such as imports, exports, mergers and acquisitions and greenfield foreign direct investments;
  • the building and use of bilateral cultural, political and economic relationships between countries in order to assist domestic companies; and
  • the use of bilateral economic relationships, including (the threat) to discontinue these activities, as a tool of diplomacy.

Neoclassically oriented economists in the past have considered this topic of marginal interest only. Their analysis typically heralds the costs of government intervention and the benefits of free international trade and investment flows. Consequently, the economic analysis of positive and negative diplomatic interactions did not feature prominently on their research agenda. But it is increasingly being recognised that economic diplomacy is  a highly relevant topic, especially in Development Studies, (a) because economic diplomacy works (Moons 2017, 2018, Muniz 2018), (b) because it is more important for developing countries and emerging markets (Rhana 2018) and (c) because it provides an essential policy answer to the increasing uncertainty of international transactions (Bergeijk and Moons 2018).

Surprise and confusion

The international economic reality of 2018 is surprising and confusing. Europe struggles with its trans-Atlantic ally, and the UK’s exit and a new Italian government with an anti-EU attitude contribute to this sense of confusion. America is separating itself from its traditional partners (the EU, NAFTA, and the OECD). The trade relationships between the world’s economic #1 and #2 are more strained than ever before. Trust in the multilateral backbone of the world economy evaporates and US hegemonism is weakening. Clearly a new and better understanding of the interactions between governments is necessary because of the changing playing field and dynamics.

Brave new world

Four key stylized facts that apply to this new environment make the Research Handbook on Economic Diplomacy: Bilateral relations in a context of geopolitical change timely and highly relevant:

  1. In the brave new world of Trump and Brexit, trade and investment uncertainty increases significantly with a negative impact on trade and investment;
  2. Trump’s open confrontational approach to foreign policy as a form of negative diplomacy bears costs both in the US and abroad;
  3. Bilateral relationships become more relevant and valuable, especially for developing and emerging economies; and
  4. Bilateral economic diplomacy needs to be carefully designed and properly managed in order to generate optimal impact.

9781784710835Representing a move away from Eurocentric books on the topic, the Research Handbook offers relevant and focused contributions that provide three valuable lessons for current and future policies. First, in addition to the full coverage of positive interactions, our contributors also explicitly consider the impact of negative interaction. Second, the Research Handbook in addition to the analysis of OECD markets provides a comprehensive set of detailed empirical analyses of developing and emerging economies in Africa, Asia and Latin America. The contributions by 31 leading experts from industrial nations, emerging economies and developing countries in five continents provide a unique perspective on both the heterogeneous dynamics of economic diplomacy and the tools to analyse the impact and efficiency of economic diplomats both qualitatively (case studies, interviews) and quantitatively (macro-economic gravity models, micro-economic firm level data, surveys, meta-analysis, cost benefit analysis). Third, the Research Handbook provides detailed discussions of information requirements, data coverage and the impact of (changes in) the level and quality of diplomatic representation. The studies in the Research Handbook thereby reveal how and under which conditions economic diplomacy can be effective, providing clear guidance for evidence-based policy.

Evidence base

What are the major findings and implications of recent research? First, economic diplomacy works and this is true both for positive and negative interaction. One can build on positive interaction to strengthen economic ties and similarly the twitter tsunami of the current US president and his increasing reliance on economic sanctions will carry a significant cost (Rose, 2018). Second, uncertainty itself already reduces international specialisation: the threat of trade disruption and discontinuation of treaties in itself influences perceptions and thereby the behaviour of consumers, firms and governments. Third, a one-size-fits-all approach does not work. Economic diplomacy should be aimed at the niche where its contribution can be most significant: complex products, complex markets and countries with diverging political, cultural and historical background (Moons 2017).

Relevance for developing countries and emerging markets

Bilateral economic diplomacy is important for building a good country image and to promote an emerging market as a reliable trading partner with high quality export products, especially in developing countries. It is a relatively more significant determinant of bilateral exports among African states compared to regional integration (Afesorgbor 2018). New modes of economic diplomacy and (development cooperation) are being developed based on China’s pioneering approach to development (De Haan and Warmerdam 2018). Economic diplomacy, however, is not a panacea as Maharani (2018) clarifies while discussing challenges such as lacking exporter preparedness, substandard logistic infrastructure and budgets that remain below those of neighboring countries.

References:
Afesorgbor, S.K., Economic Diplomacy in Africa: The Impact of Regional Integration versus Bilateral Diplomacy on Bilateral Trade chapter 20 in Research Handbook on Economic Diplomacy: Bilateral Relations in a Context of Geopolitical Change, editors P.A.G. van Bergeijk en S.J.V. Moons, Edward Elgar: Cheltenham, UK
Bergeijk, P.A.G. van en S.J.V Moons (2018) ‘Introduction to the Research Handbook on Economic Diplomacy’, chapter 1 in Research Handbook on Economic Diplomacy: Bilateral Relations in a Context of Geopolitical Change, editors P.A.G. van Bergeijk en S.J.V. Moons, Edward Elgar: Cheltenham, UK
Bergeijk, P.A.G. van, S.J.V. Moons en C. Volpe-Martincus (2018) ‘The future of economic diplomacy research’, chapter 23 in Research Handbook on Economic Diplomacy: Bilateral Relations in a Context of Geopolitical Change, editors P.A.G. van Bergeijk en S.J.V. Moons, Edward Elgar: Cheltenham, UK
Arjan de Haan and Ward Warmerdam China’s foreign aid: towards a new normal? chapter 22 in Research Handbook on Economic Diplomacy: Bilateral Relations in a Context of Geopolitical Change, editors P.A.G. van Bergeijk en S.J.V. Moons, Edward Elgar: Cheltenham, UK
Moons, S.J.V (2017) Heterogenous Effects of Economic Diplomacy: Instruments, Determinants and Developments. PhD thesis ISS.

pag van bergeijkAbout the authors: 

Peter van Bergeijk (www.petervanbergeijk.org) is Professor of International Economics and Macroeconomics at the ISS.

DJ_20170714_0642Selwyn Moons has a PhD in economics from ISS. His research focus is international economics and economic diplomacy. Selwyn is currently working as Partner in the public sector advisory branch of PwC the Netherlands. Previously he worked in the Dutch ministries of Economic Affairs and Foreign Affairs.