Rabobank in developing countries In Brief THE WORD 13 EXOTIC BANKING Rabobank is a typical Dutch company, with that traditional Dutch entrepreneurial spirit that has taken it all over the world. Not only to places with healthy mature economies, but also to the chalienging world of developing countries where various specialised Rabo operations are at work. Generally forprofit, sometimes out of pure human generosity. TEXT Sharon Klein PHOTOGRAPHY Merlijn Doomernik The world is constantly changing. And countries that are seriously underdeveloped can, - with wisdom and energy - change within a decade to a respect- able economie power. Rabobank recognises this and thus gives special attention to such regions. Three Rabo operations direct their gaze towards develop ing countries: Rabobank Foundation, Rabo Develop- ment and Rabobank International. Each ploughs its own furrow, but increasingly with an eye to where the others' furrows are leading. The Rabobank Foundation is an institution opera- ting without profit motive. It seeks to improve the lot of those short on opportunities, both in the Netherlands and further afield. Outside its home land, the Foundation principally attacks poverty and stimulates communities to encourage economie independence. "We do it generally by providing know-how and financial resources", explains Bart Jan Krouwel, Managing Director Corporate Social Responsibility. "For example, we organise small-scale farmers into co-operatives and provide microcredits. Standing together, they can sell their crops to the large buyers at a greater profit". Rabo Development works differently. This part of the Rabo group supplies financial services in develop ing country locations where they are thin on the ground. "Actually, what we are doing is creating new Rabobanks in other parts of the world", says Arnold Kuijpers, Managing Director Rabo Development. "Banks that are well represented in country areas and that can serve all the many markets". Rabo Develop ment does this by taking a financial interest in a local bank and supplying parallel management and technical expertise, (the latter often under the name of Rabo International Advisory Services, or RIAS, the consultancy arm of Rabo Development). Rabo Development aims for profits. Kuijpers: "While profits in the short term are subordinate to the longer term development potential, we certainly do cover our costs. At the same time, our partner banks grow into mature and self-confident institutions contributing to Rabobank's presence in countries that will surely ultimately become important in the worid's economy". Rabo Development thus has a purely business objective but in the process gives a helping hand to rural economies, again especially in developing countries. Only when people have savings accounts, loans and insurance are they in a position to invest and grow. Also operating in developing countries around the world, Rabobank International provides corporate and retail banking to expand others' commercial activities and generate profits at home. In retail banking, the emphasis lies with expanding existing corporate services to farmers and the purchase of country banks. Here, the target is helping banks gen erate the returns expected by Rabobank. In the case of corporate banking in developing countries, Rabobank International targets - more than else- where - the food and agribusinesses. Consider, for instance, the financing of money flows, which ena- bles farming products to find their way to western consumers. Rabobank Foundation Ag e - 35 years Goal - improve the position of underprivileged groups Method - provide financial resources (usually as micro-credits) and know-how Profit motive - none Operational in - 25 countries including the Netherlands (75% of work is in developing countries, 25% in the Netherlands) Annual Budget - some EUR 12 million. Local banks contribute voluntarily; Rabo Nederland adds up to 0.5% of the profit of the Rabobank Group. Within 18 months the budget will reach EUR 15 million thanks to loan interest income Staff - four country visitors and five back-office staff- total nine Rabo Development Age - 3 years Goal - developing 'Rabobanks' in selected countries and support economies of developing countries Method - risk-bearing participation in strong banks in rural areas and providing them support Profit motive - profit targets in the longer term Operational in - Tanzania, Zambia, China, Mozambique, Paraguay and soon also Rwanda Balance sheet total - EUR 4,510 million Staff - 20 expatriates, up to 30 by year-end 08. Some 120 Dutch staff are seconded annually on short work visits for periods from one week to three months. ISSUE 15 JANUARY

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blad 'RI The Word / The Word' (EN) | 2008 | | pagina 13