THE HAGUE, 07/11/09 - In emerging economies where the government is dominant the Netherlands wants to involve its embassies more closely with the acquisition of orders for Dutch companies. "Economic diplomacy" is to be given an impulse, according to a letter to parliament from Foreign Minister Maxime Verhagen.

In big emerging economic powers like China and India, the government plays a much bigger role in the economic domain than in the traditional trading partners. "The Dutch government will have to pursue its international economic relations more actively and assertively to prevent Dutch companies and expertise institutions from being put at a disadvantage," according to Verhagen. "This primarily means, alongside economic services, economic diplomacy."

Companies cannot themselves buy or hire in the networks and 'economic intelligence' of the Dutch diplomatic service abroad. But this is in fact often essential for winning orders. "Especially in emerging markets like China, India, Brazil and Russia, but also in countries like Poland."

According to Verhagen, economic diplomacy boosts Dutch prosperity by 100 to 200 million euros annually. The Netherlands Foreign Investment Agency (NFIA), which has its own staff at Dutch diplomatic legations, on average makes local approaches via websites, e-mail, telephone and seminars to over 18,000 foreign companies a year. "On an annual basis, about 150 investment projects are realised in the Netherlands. This brings in on average half a billion euros in investments and 3,000 direct jobs."

"In the coming period, I want to make economic diplomacy more central in Dutch foreign policy. This calls for a government-wide effort. I will to this end broach closer partnership with those colleagues who can themselves contribute via their international contracts and via the deployment of their specialist attaches in Dutch representation abroad. This means especially but not exclusively the Economic Affairs Minister and State Secretary."

Cutbacks at embassies and consulates already announced earlier will mainly affect consular services for Dutch citizens. "One can think of fewer visits to Dutch (nationals) in foreign prisons or restricting aid to people who get into difficulties abroad." Verhagen is not announcing any closures of posts. He does however want to push more for consular partnership with other EU countries, for example in provision of visas.

In total, around 100 jobs will disappear at foreign posts. The Netherlands currently has 160 embassies, 340 honorary consulates and 50 specialised offices of other ministries. These have a total workforce of 2,280 local staff and 1,475 Dutch officials dispatched abroad.