THE Dutch embassy in Bulgaria provides an interesting case study of using economic development efforts as a means of diplomacy.
Their approach to business development in Bulgaria is a model example of how to partner with local businesses and strengthen them while achieving their own diplomatic and economic objectives. As a European Union member state, the Netherlands has taken a keen interest in assisting Bulgaria to ready itself for accession, and the Dutch embassy in Bulgaria has focused on increasing Bulgarian use of pre-accession funding.
I came in contact with the Dutch embassy in Sofia through my work as a USAID-sponsored volunteer business consultant. I work with Business Centre Serdon, a locally-owned consultancy, that has worked with the Dutch embassy on three large projects during the past year.
The Dutch history as merchants informs their culture and approach to business. This trait is the element that sparked the economic section of the Dutch embassy's interest in a one-on-one type of trade mission. They wanted Dutch businesses to be able to come to Bulgaria and meet with counterpart businesses with whom they could partner, use as a distributor or producer, or create a franchise relationship. Government institutions in The Hague prefer to use the services of a Bulgarian consultancy for their knowledge of local business and contacts with major private and public organisations.
This led Jan van Laar, first secretary and head of the economic section of the embassy, to approach a small locally-owned consultancy that he knew could give him personalised service and their full attention. He was impressed by their commitment to customising each match making, and he was impressed with their solid work ethic, which he does not always find in Bulgaria.
In Van Laar's words, "Once you have specified your wishes and needs for organising an event, be it an exhibition and symposium or a match making, like busy ants they work their way through it." The managing director of Business Centre Serdon, Gergana Valova adds, "I like working with the Dutch because they acknowledge our know-how and understanding of the market. The Dutch are meticulous and do not rely on published lists of companies to create business matchmaking. They take the time, with us, to uncover every matchmaking possibility."
The Dutch presidency of the European Union (during the second half of 2004) demonstrated the initiative, involvement and commitment of the embassy in Bulgaria with regard to the host country's economy, culture and future integration into the EU. These characteristics were reflected in the fact that events initiated by the embassy occurred almost every week. Because of these hectic six months of Dutch EU presidency, the embassy needed to work in concert with local partners who could provide high levels of service and quality.
Business Centre Serdon first partnered with the Dutch in April 2004, when a delegation of 30 representatives of the Dutch business community came to Bulgaria to meet potential business partners. Business Centre Serdon organised the event with both a Romanian consultancy and the Dutch Agency for International Business and Cooperation (EVD). The Dutch companies were interested in investment in the region, choosing to visit both Bulgarian and Romania, in an effort that could be replicated by other Western countries seeking investment in South East Europe and particularly pre-accession countries. The event in Bulgaria took place over a day and a half, during which Dutch and Bulgarian business owners and representatives participated in about 150 meetings in Sofia and throughout the country. The intensity of this schedule, and the commitment to creating Dutch-Bulgarian partnerships, was only possible through the efforts of the EVD. The Dutch have always preferred personal contacts, especially in business. However, they wanted to ensure, to a certain degree, that the people they met in Bulgaria would bring them concrete business opportunities.
Not afraid of being pioneers, the embassy initiated the "out-of-Sofia" event concept. Being concerned about the extremely low use of Instrument for Structural Policies for Pre-accession (ISPA) Funds, Van Laar decided to address the issue where it matters most, namely Varna, Burgas and Dobrich. According to the Bulgarian Ministry of Regional Development and Public Works, ISPA provides financial support for investment in the areas of environment and transportation to hasten the compliance of accession countries' legislation with European legislation. In the environment sector, ISPA promotes projects that contribute to implementation of EU environmental legislation. ISPA concentrates on investment intensive environmental directives, which are very costly for a country like Bulgaria to implement. Recognising the importance of these funds, Van Laar planned an event, with the help of Business Centre Serdon, which would address the issues of water treatment and waste management in the Black Sea region, one that has attracted much media attention for its potential overbuilding and environmentally insensitive construction. The event included a forum, entitled "Dutch Bridge to Bulgarian Ecological Development", followed by a mini trade fair where Dutch experts in ecological matters could discuss local issues in greater depth.
In 2005, Meeuwes Brouwer, agricultural attache at the Dutch embassy in Bucharest, decided to create a strong Dutch presence at the AGRA Fair in Plovdiv. First, the Dutch committed to participating in the fair with a booth for all six days. The Dutch booth was custom-designed by a Sofia design house with bright splashes of the Dutch national colour, orange. The booth was officially opened by ambassador Baroness Henriette van Lynden and attended by the then Bulgarian Minister of Agriculture, Mehmed Dikme. In addition, Business Centre Serdon conceived and organised, with the office of the agricultural attache, a seminar: "Dutch Approach to Horticulture" which took place in front of a packed hall of 130 horticulture experts.
Each diplomatic mission in Sofia chooses to create relationships in order to achieve their objectives. The Dutch have proved to be leaders in creating opportunities for Dutch business owners to invest in Bulgaria. Their "win-win" approach to business allows Dutch business to profit from knowledge and technology transfer, in fields such as water treatment and horticulture, and it allows the Bulgarian people to benefit as well. This approach is an exemplary model in the development of Bulgaria.