Hivos Annual Report 2011

Hivos Annual Report 2011

Table of Contents

1. Mission and Vision

Hivos Key Figures 2011

05

2. Report of the Board of Directors

08

3. The Hivos Approach

12

06

4. What We Do: The Four Programmes 15 16 Expression & Engagement programme 20 Rights & Citizenship programme 24 Green Entrepreneurship programme 28 Action For Change programme Hivos World Map

32

5. Doing Things Right

34

6. Our Partners

37

7. How We Are Organised

41

8. Annual Accounts 2011 and Independent Auditor’s Report

45

Appendices

64

Organisational chart Expenditure per country

16 20 24 28

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Hivos Annual Report 2011

1. Mission and Vision Mission

Themes

Hivos is a Dutch development organisation guided by humanist values. Together with local civil society organisations in developing countries, Hivos wants to contribute to a free, fair and sustainable world. A world in which all citizens – both women and men – have equal access to opportunities and resources for development and can participate actively and equally in decision-making processes that determine their lives, their society and their future. Hivos trusts in the creativity and capacity of people. Quality, cooperation and innovation are core values in Hivos’s business philosophy.

Hivos is committed to poor and marginalised people in Africa, Asia and Latin America. A lasting improvement in their situation is the ultimate measure for our work. One of the guiding principles of our philosophy is strengthening the social position of women.

Hivos works in the following areas: — culture, ICT & media and transparency (in the Expression & Engagement programme) — democratisation, human rights, gender and AIDS prevention (in the Rights & Citizenship programme) — sustainable economic development (in the Green Entrepreneurship programme) — responsible citizenship (in the Action for Change programme)

Core values — — — — — —

human dignity and self-determination pluralism and democracy focus on material and non-material aspects mutual solidarity and responsible citizenship respect for people’s cultural and social identity responsible management of nature and natural resources

Approach Hivos supports over 700 partners in 32 countries in Africa, Asia and Latin America. Hivos provides financial resources, knowledge and advice as well as political support to these local civil society organisations. In addition, we develop our own programmes and are active in the area of policy advocacy, both on the international stage and in the Netherlands. As a member of coalitions and a broker of contacts, Hivos belongs to a large number of networks. Civil society building and sustainable economic development are Hivos’s central policy themes. Our programmes are run mainly from our regional offices in Zimbabwe, India, Costa Rica, Indonesia, Kenya and Bolivia. These offices manage most of the relationships with the partner organisations, which they provide with advice and strategic guidance as well as capital, knowledge and contacts.

We also stimulate the building, sharing and application of knowledge for development through our extensive knowledge programme. Hivos operates under ISO certification and has the CBF (Dutch Central Bureau on Fundraising) Seal of Approval.

Cooperation Hivos cooperates with many NGOs and other civil society organisations, companies and public authorities in the Netherlands, Europe and the South. Complementarity and joining forces are crucial in achieving our goals.

In the Netherlands we cooperate with Free Press Unlimited, IUCN NL and Mama Cash, with which we participate in the co-financing programme as the Hivos Alliance. In the European context, Hivos actively collaborates with like-minded development organisations in Alliance2015.

Hivos engages in international policy advocacy preferably on recognisable themes and in close cooperation with prominent southern or international partner organisations.

In the Netherlands, Hivos also collaborates with related organisations in Partos; a national platform for civil society organisations.

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Hivos Annual Report 2011

Hivos Key Figures 2011 amounts x EUR 1,000

Portfolio

Total income

99,668

Income from own fundraising Income from third-party campaigns Government grants – co-financing MFS-2 Hivos Government grants – co-financing MFS-2 alliance partners Government grants – miscellaneous Reallocation of released funds Other income

1,516 5,866 47,602 3,410 38,845 1,186 1,243

Programme Liabilities (new liabilities)

93,663 Green Entrepreneurship 30,869 Rights & Citizenship 46,531 Expression & Engagement 8,189 Action for Change 4,664 MFS-2 alliance partners through Hivos as lead agency 3,410

Outstanding liabilities to partner organisations

89,712 Loans/participations Hivos Triodos Fund (HTF)

67,455 Number of partner organisations

708

Organisation Operational cost

15,739 Of which management and administrative costs 1,782 Results (after appropriation) -399 Reserves 7,257

Number of employees

315

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Hivos Annual Report 2011

Liabilities by programme 5

%

8

%

Expression & Engagement 8% Rights & Citizenship 53% Green Entrepreneurship 34% Action for Change 5%

34

%

53

%

Liabilities by region 2

Africa Asia Latin America Worldwide The Netherlands

%

13

%

19

%

19% 15% 51% 13% 2%

15

%

51

%

Hivos Network

708

By region Africa Asia Latin America Worldwide The Netherlands Total

228 213 153 95 19 708

By programme Expression & Engagement Rights & Citizenship Green Entrepreneurship Action for Change Total

170 304 218 16 708

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Hivos Annual Report 2011

2. Report Of The Board Of Directors For Hivos, the past year was marked by change and renewal.

It was the first year of our 2011-2015 business plan. The title ‘Citizens in Action’ succinctly reflects the goal of our work in the coming years: to enhance the empowerment and resilience of citizens in poor countries. We launched new initiatives that build on existing activities.

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Hivos Annual Report 2011

Hivos invested heavily in the areas of transparency and accountability of governments in Africa, AIDS prevention in Guatemala and Indonesia, and business development in Zimbabwe received extra attention in 2011. Our internal organisation also required a lot of attention. As a result of our decentralisation process and the reduced government grant for Hivos, for the first time in our history a number of employees were forced to leave the organisation. Decentralisation was completed with the opening of two new regional offices.

It is hard for many people in the South to gain control over their lives. The prevailing political and economic context is often a tremendous obstacle. Nonetheless, citizens were able to make unexpected breakthroughs.

Citizens in the Arab World in action Unexpectedly, 2011 was the year in which citizen activism took on a new and globally visible form. The Arab Spring, which started with small-scale protests, sometimes by just one individual, blossomed into a game changer in international relations. That ‘Spring’ has led to a number of very divergent developments: predominantly non-violent resistance in Tunisia and Egypt, scenes of war in Libya and Syria, Western military action against Qadhafi, and the inability to reach political solutions in Syria. The region is in turmoil and the process has not yet come to its conclusion.

The common thread in these developments is the enormous level of energy that was unleashed in society. Suddenly citizens in the Arab World actually took a stand against oppression and corruption. Both new and traditional media proved to be powerful tools in mobilising the population.

After the revolution, however, the need also grew for organisations that would effectively defend the rights and interests of citizens, especially women, and strengthen their position. Organisations that have been active in these areas for many years – with support from Hivos – played an active role.

Hivos organised meetings with bloggers and activists, facilitated contact between women’s organisations in the region and European policymakers, and campaigned for women’s rights. Citizens who had access to free information and the right resources were able to create change themselves.

It is an approach Hivos has advocated for many years and which we will continue to develop.

Shifting poverty Change was also visible closer to home, with dwindling household budgets and the threat of a bankrupt Europe.

Countries like China, India and Brazil emerged as possible rescuers. Although Europe is still a very prosperous continent, these are signs of global economic shifts. They are already visible in the area of development cooperation, where Africa is increasingly relying on the BRIC countries (Brazil, Russia, India and China). This is a positive development, but the

phenomenon of emerging economies has a downside too – the increase in inequality within these countries. A different approach to development is required now that most poor people live in countries where the macroeconomic figures are on the rise, also in Africa. Freedom and redistribution of wealth must become top priorities.

The Netherlands The financial crisis in the Eurozone and the additional government budget cuts have fuelled the debate in the Netherlands about the future of development cooperation.

In this climate the Dutch government’s line of policy, which focuses on economic self-interest in development cooperation, has become even stricter. Whilst the same can be said about the critical social and political view of the outside world, large groups in Dutch society continue to show solidarity in fighting poverty and, in their own way, actively contribute to this goal.

What is Hivos doing in light of these developments? As waiting is not our style, last year we initiated an open debate on the future of development cooperation and the role of civil society organisations that operate in this field. Under the header of Future Calling, we invited critics to join us in discussion with the aim of developing new ideas and unleashing new energy. Not only was this necessary and useful, but also exciting and inspiring. We will complete this initiative by mid-2012 and draw conclusions about possible strategies for the future of Hivos in the medium term.

Decentralisation We devoted much attention and energy to our internal organisation. The cutbacks and new regulations from our largest donor, the Dutch Ministry of Foreign Affairs, took up a lot of time. We had to say goodbye to a number of staff members and adjust our plans. We also had to get used to the practical consequences of decentralisation. For employees at the head office, this meant transferring programme management to the regional offices and letting go of themes they had been involved in for many years.

But 2011 was also a year of renewal. Our programmebased approach took shape in more and more countries with initiatives that focus on scaling up, integrating the expertise of stakeholders, partners and Hivos. Many funders and institutions responded positively to this. The Global Fund to Fight AIDS, Tuberculosis and Malaria awarded Hivos the status of principal recipient in Guatemala and Indonesia.

In association with American funders such as the Hewlett Foundation, the Omidyar Network, the Ford Foundation and the Open Society Foundations, Hivos developed programmes in field of transparent and accountable governance and minority rights. Hivos also received support from the bilateral agencies of the UK, Denmark, Switzerland and Norway for a number of activities.

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Hivos Annual Report 2011

The programme-based approach can only be successful if there is a thorough understanding of the local context as well as an active local presence. In 2011, Hivos opened two new regional offices in Bolivia and Kenya, bringing the total to six. This led to a reduction of staff at the head office in the Netherlands and an increase in the regions. The number of employees at the regional offices and those hired to implement specific projects increased. In total, Hivos had 315 employees, of whom 203 at the regional offices and 112 in the Netherlands. Parallel to decentralisation we will strengthen the role of actors in the South in the formulation of Hivos’s policy. In all regions we will engage people from different walks of life to participate at key decision-making moments in the policy cycle. We expect that this practice will have been fully incorporated in our approach in 2012.

In recent years we have focussed increasingly on developing and implementing larger programmes to which Hivos brings added value. To this end we established local offices in a number of countries to facilitate the successful implementation of such programmes. This also required a concentrated effort in the area of internal control and quality systems. Hivos introduced a new project registration database and project administration system to support our global operations, which was an important step in this direction.

Strengthening the professionalism of our employees remains essential for the success of our programmes. Therefore the Hivos Academy, an extensive staff training programme that was completed in 2011, will be prolonged and enter its second phase in 2012.

Campaigns Promoting global citizenship is one of our core tasks.

Spreading information about the work of Hivos partners and mobilising Dutch citizens to contribute to development are central to our activities in the Netherlands. Three campaigns within the Action for Change programme give tangible shape to this aspiration. Hivos wants to contribute to a better perception of development processes and the role of civil society in the South. We also want to stimulate behavioural and policy change in the North, among the public as well as in businesses and politics. An example is the Stop Child Labour campaign, which was given an extra boost with funding from the European Union and the Dutch National Postcode Lottery.

With the 100% Sustainable Energy campaign we draw attention to people’s role in climate change and to the importance of access to sustainable energy in developing countries. This became tangible with the plan to make the Indonesian island of Sumba entirely reliant on renewable sources and to mobilise Dutch citizens and businesses to support this project. The third campaign, Women@Work, about the labour rights of women, started in 2011 and focuses mainly on the position of women in the flower industry.

We also continued to highlight the position of gays, especially on Pink Saturday, and ran the satirical Internet campaign Subtitle the Tyrant, in which we drew attention to human rights and freedom, including Internet freedom.

Results In 2011, 708 partner organisations in the South received financial support from Hivos. They are the main actors in determining and implementing the programme objectives.

Hivos continued to invest in the quality of their work through specific organisation-building and capacity-development programmes. Hivos continued to create opportunities for new initiatives through renewal of the partner base (on average 15 percent a year).

We are pleased to observe that partners were able to forge ahead despite, at times, considerable political and economic opposition. In the field of human rights, LGBT groups are becoming increasingly vocal. Today, one hundred countries have some sort of Pink Saturday. Nevertheless, in many countries their rights are still under great pressure. The number of initiatives in the area of government transparency and accountability grew significantly and gained worldwide recognition. It makes us proud that Rakesh Rajani, Director of our Twaweza programme in East Africa, had the opportunity to talk about this work at the launch of the Open Government Partnership, led by President Obama.

Even with the ongoing debate about the usefulness and necessity of microfinance, our partners in this area were able to provide over 8 million people with access to financial services. Together with Triodos Bank, we continued our support for microfinance institutions. In 2011, 42 partners in the South received capital and advice from the Hivos Triodos Fund (HTF). After revaluation at market price, the volume of the issued loans and participations was 67.4 million euros, compared with 65.4 million euros in 2010. Despite the sombre economic prospects, the number of Dutch citizens that contributed to HTF loans through their savings plans continued to increase. The amount in savings they made available through the North-South Savings Plan in collaboration with Triodos Bank grew from 89.7 million euros in 2010 to 93.2 million euros in 2011. The number of participants in this savings plan grew by over 2 percent to 8,644. For Hivos, the savings programme is one of the most important instruments in mobilising the active support of Dutch citizens for its work.

In all, Hivos reached 16.5 million people with its work. A total of 99.7 million euros was available for Hivos’s work, of which 93.7 million euros was allocated to partners in the South. We ended the year with a loss of 399 thousand euros. Although this is an exception, maintaining the financial sustainability of the working organisation remains a structural concern.

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Hivos Annual Report 2011

In the coming years we will tighten our financial policy in order to secure this in a healthy way.

In 2011, Hivos again succeeded in increasing the number of funding sources. The grant share (co-financing) from the Ministry of Foreign Affairs has successfully been reduced to 50 percent of our income. We obtained the remaining 50 percent through contracts and cooperation with other financiers.

In conclusion In this annual report we render account to our donors, stakeholders and partners. We provide you with a summary of the most noteworthy activities of Hivos in 2011 – not only the success stories but also those aspects that did not work so well. Development and international cooperation are complex and sometimes volatile undertakings that require a long-term perspective, and this calls for optimism, trust in the power of people and ongoing commitment. Our ultimate goal is to bring about more freedom and promote justice in the world, with better opportunities for all its citizens.

The Hague, April 2012 Manuela Monteiro, Executive Director Ben Witjes, Director of Programmes and Projects

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Hivos Annual Report 2011

3. The Hivos Approach Development cannot be steered from the outside, but it can be encouraged. This is why Hivos trusts in the power and creativity of people in developing countries. Given the opportunity and the means, they can earn their own livelihood, stand up for their rights and shape their lives.

Poverty is more than a lack of material wealth. It is caused above all by unequal social and political relationships, both at the national and the international level.

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Hivos Annual Report 2011

We believe that direct poverty alleviation goes hand in hand with fighting unequal and unjust power relationships. Groups with little or no prospects must be given a greater say in political, economic and cultural processes. However, organisations are needed to bring about effective and permanent change. By joining forces, citizens can offer effective responses to the state and to economic powers. This is why we support over 700 partner organisations in 32 countries – support in the form of money, but also by giving local organisations access to knowledge and networks or by setting up programmes and campaigns with them.

What sets Hivos apart? What is development cooperation ‘guided by humanist values’, as set out in our statutes? When Hivos was founded in 1968, its founders were inspired by principles such as individual freedom, personal responsibility and self-determination. As such, Hivos distinguished itself – and still does – from the existing, mostly church-based organisations in the sector. It is reflected in our work by the emphasis that is given to self-determination, identity, empowerment and the strength of people themselves.

Strategies Hivos works on structural poverty alleviation. This means that Hivos focuses not only on improving the circumstances and position of people living in structural poverty, but also on removing the root causes of poverty and oppression. Hivos works towards this goal together with its partners, both in the partner countries and internationally, including the Netherlands. We follow a threefold strategy in which direct poverty alleviation, civil society building and advocacy mutually reinforce one another.

Direct poverty alleviation gives people the means to escape poverty: money to set up a small business (microfinance), knowledge to gain access to markets, and education and technical resources to generate income. Civil society building, strengthening local organisations and advancing civil society as a whole are central to Hivos’s philosophy. Poverty, injustice and inequality will continue to exist as long as people are not able to assert their common interests. Effective organisations and a strong civil society are essential for direct poverty alleviation and advocacy. Advocacy – aimed at local, national and international governments, institutions and businesses – is essential to make laws, regulations and markets work in favour of marginalised groups. Most partner organisations are active in this area in some way. With its own activities in this area, Hivos aims at influencing the policies and behaviour of policymakers, entrepreneurs, civil society organisations and citizens.

Knowledge is essential for development, and therefore also for Hivos’s work. This is why we have an extensive knowledge programme that integrates different types of knowledge and makes this available to the partners and other actors in the field of development cooperation. Improving the position of women is an important aspect of Hivos’s work in all areas.

That is why Hivos not only supports women’s organisations, but also asks partners who are active in other areas to integrate women’s rights and interests in their work.

Choice of countries and local presence Hivos works in 32 countries. We have a local presence in most regions. In addition to our head office in The Hague we have had regional offices in Costa Rica, India, Indonesia and Zimbabwe for a number of years. In 2011, two additional offices were set up, in Kenya and Bolivia. Hivos employees cooperate at a distance in ‘virtual’ international teams. We have also set up local offices in a number of countries so that we can have a closer relationship with our partners. It is through these offices that Hivos implements large programmes in cooperation with international funding institutions. In due course the local offices should, where possible, continue their activities as financially independent entities.

Partner policy Hivos supports local organisations with financial resources, but also with knowledge, contacts and advocacy. Hivos selects its partners according to its mission, vision and strategy.

Some partners are active in international policy advocacy while others are active at the level of local communities.

Membership organisations are of particular interest to us.

Hivos partners draw up their own plans, which are then assessed as to their viability in terms of capacity and strategy.

We intentionally aim at giving a chance to budding initiatives that do not yet meet all the requirements. Hivos prefers to give core funding to partner organisations, rather than only fund their activities. This gives them the opportunity to invest in strengthening their own organisation and to learn from their experiences. In order to limit dependence on Hivos as the only donor, the period of funding is in principle limited to ten years. In view of the uncertainty with respect to our own multi-annual funding from the Dutch co-financing system in particular, this guideline will be revised.

Future For the period up to and including 2015, our business plan Citizens in Action will continue to be the guiding principle for Hivos’s policy. In the South we will increasingly set up programmes in which Hivos develops ideas and brings actors together. These programmes comprise a number of so-called multi-actor initiatives. The head office will focus on advocacy to support activities in the South as well as on knowledge and learning in order to contribute to better strategy and results.

Additionally, the head office will provide support services and quality monitoring. In terms of financial strategy, Hivos will continue to focus on a high level of independence from the Dutch government. The share of co-financing in the total Hivos budget is expected to have structurally decreased to around 60 percent by 2015.

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Hivos Annual Report 2011

4. What We Do: The Four Programmes In the past year Hivos supported the work of over 700 local organisations in developing countries and undertook activities in both the South and in the Netherlands and Europe. All these activities took place in the context of four programmes, and contributed in various ways to achieving their objectives.

This chapter discusses the four programmes. Our aim here is not to be complete but rather to explore a number of themes in more depth for each programme.

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Hivos Annual Report 2011

Expression & Engagement programme Successful civil society building is not possible if people cannot express themselves, or if some people are more free than others to do so. The Expression & Engagement programme therefore seeks to create space for expression, diversity and artistic freedom where and when it is needed, for instance through cooperation with bloggers, artists and activists, exploring alternative platforms, channels, venues and productions.

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Hivos Annual Report 2011

The programme improves the quality and diversity of the media in developing countries, broadens access to these media, increases citizen participation and strengthens independent media. Only then can those in power be addressed on the need for dialogue, transparency and accountability.

Expression & Engagement wants to stimulate social debate, encourage social dialogue and motivate citizens to take action.

This implies promoting socially committed art and building a healthy cultural infrastructure because only a dynamic culture can challenge, inspire, set standards and offer unexpected perspectives.

Results in 2011 — In a number of countries, Hivos-managed funds contributed to better training of journalists and better quality media, resulting amongst other things in bringing more corruption cases to light.

— Media programmes and access to Internet and other platforms in Africa gave citizens the tools to call governments to account on policy and the need to improve services like education, healthcare and drinking water.

— Festivals and other cultural productions supported by Hivos reached one million people worldwide and led to debate on social issues.

Empowered citizens, better policy In many countries, citizens’ rights are well anchored in the constitution. This was, and still is, often accompanied by much struggle. It is important work, to which Hivos and its partners have been committed for many years. However, this is only one side of the story. Citizens may have many rights, but if these do not result in improvements in their daily life, a better constitution and regular elections are just an afterthought to them. Take East Africa, for example. Governments in Kenya, Tanzania and Uganda, often supported by substantial aid budgets from rich countries, have pledged to provide their citizens with a basic level of services – healthcare, education and clean drinking water. However, in many countries this is not self-evident. Wells are not working, children are taught by incompetent teachers and hospital care is of dubious quality.

Vote for another party, then? Elections are often controversial.

Moreover, many countries have a long history of dictators and authoritarian rulers. There is little or no true freedom of speech. People have never learned to question the authorities and to denounce abuses.

For Tanzanian Rakesh Rajani, who has been involved with Hivos for many years, that is the core issue. He came up with a unique, innovative approach: creating critical mass amongst

citizens through information and inspiration. From the outset, Hivos and the Hewlett Foundation have supported Rajani in developing the idea – the Twaweza programme. Later, SNV Netherlands Development Organisation and the Swedish and British development agencies contributed as well. Twaweza, the Swahili name, says it all: We can do it! Twaweza has a clear vision – real change does not come from the outside. If people have access to reliable and practical information and concrete opportunities to work with others to take action, they will hold the government to its promises. Twaweza does this on a large scale – a ten-year programme in three countries which reaches millions of East Africans through existing networks: media, trade unions, religious organisations and businesses.

The driving force behind many Twaweza initiatives is the proliferation of mobile phones and new media. In Kenya, multimedia project ShujaazFM motivates and inspires millions of young people to get involved in local and national political issues, such as questions about unemployment and corruption.

ShujaazFM, a comic strip and a radio programme, lets users influence the topics and characters via SMS. Besides innovation, information and inspiration, Twaweza also stands for unconventional methods and taking risks. In East Africa education is, in principle, guaranteed; there are schools everywhere and education is compulsory. This says nothing, however, about the quality of education. Twaweza collected information about the reading and numeracy skills of primary school children on a large scale; this revealed that in recent years the quality of education has declined alarmingly. That message got through to the central government of Kenya and to international donors, all of which promised improvement.

But for Twaweza, this was not sufficient. Schools should receive the number of teachers and the financial support that the state has promised them. In 2012, Twaweza will experiment with a new approach, known as cash on delivery.

This approach involves selecting a group of schools and looking for ways to remunerate the teachers based on the quality of their teaching rather than on the number of hours they are employed – hours which are not always worked

Number of partners:

170

Liabilities:

€ 7,000,000 People reached:

5,300,000

Main partnerships Hewlett Foundation, Omidyar Network, Open Society Foundations, Metropolis, Free Press Unlimited

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Hivos Annual Report 2011

because the teachers do not always show up. In the coming years, Hivos and Twaweza will not shy away from experiments. A rigorous evaluation of the results is an intrinsic part of this approach. Only then can you discover what does and does not work and in turn, that leads to new knowledge.

Openness New media and access to mobile phones are powerful tools for empowerment and participation of citizens. They are part of the breeding ground for new international approaches to good governance and the relationship between government and citizen, also called transparency & accountability. Key concepts here are transparency by those in power, availability of information (open data), citizen engagement and the use of new technology. This new approach received a major boost through the foundation in 2011 of the Open Government Partnership, a global initiative of President Obama and seven other government leaders, including those of Brazil, South Africa and Indonesia. On that occasion Twaweza director Rakesh Rajani spoke, as a representative of civil society, about the importance of openness for enhancing citizen participation. A number of international organisations, including Hivos, will promote and monitor this agenda on behalf of civil society.

Hivos has been active in this domain for a number of years.

Together with a group of American and British donors, such as Ford Foundation, Open Society Foundations, Omidyar Network, Hewlett Foundation and DFID, Hivos is part of the Transparency and Accountability Initiative (TAI).

TAI is committed to achieving more openness by governments and companies in the exploitation of raw materials and natural resources. Hivos and Omidyar Network have set up the African Transparency and Technology Initiative (ATTI).

Throughout Africa, ATTI supports interactive platforms that enable citizens to speak out about local government services. This allows citizens to get in contact directly with administrators, express their complaints and wishes, and thus influence policy. Together with local partners, ATTI engages in topics including openness in the mining sector in Ghana, the digital accessibility of legislation in Nigeria, and the digital mapping of violence against women in the Democratic Republic of Congo.

Promoting fair elections is an important topic which Hivos has been working on for many years. Under the heading ICT Election Watch, programmes to enable citizens to act as observers at elections have been set up in East Africa and Southern Africa. Partner organisations Ushahidi and Sodnet in East Africa have devised a method to rapidly combine and disseminate individual messages, by texting or Internet, in order to uncover irregularities at polling stations.

This proved to be a good weapon against electoral fraud in Zimbabwe, where partner Kubatana used it very effectively.

In the past year this method has also been successfully deployed in Zambia and Uganda. There are also lessons to be drawn from this programme; increasing the transparency of the election process alone is not enough to enforce better policy. In particular, more cooperation with other parties such as the media, human rights organisations, election observers and, where possible, with the official election commissions is required.

There is also an increasing interest in this topic in the Netherlands. The role of the Internet in democratic processes has been well and truly established. This was confirmed at the Freedom Online conference organised at the end of 2011 by the Dutch Ministry of Foreign Affairs. The need to protect bloggers and online activists was discussed with much vigour.

Hivos, which was invited as a speaker, drew attention to its cooperation with Arab bloggers and called for a clear policy on this issue from the Ministry of Foreign Affairs.

In 2011, we were able to continue our support to cultural organisations and cultural productions in the South. Our relationship with Open Society Foundations, with which we have been cooperating for several years in the area of media and culture, including in Central Asia, deserves special mention.

Worldwide, the space for freedom of speech and cultural expression – partly due to the activities of Hivos and its partners – has increased. Our support for platforms and networks in the area of culture and media has enabled artists, journalists and bloggers to raise critical voices, has boosted the public debate and has promoted the activities of more independent media.

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Hivos Annual Report 2011

Mapping the unmapped Somewhat lost, Lucy looks at the GPS device she is using for the first time as she walks down the street. She stops briefly in front of a shop that sells mobile phone credit and is unsure about the measurement she has just carried out. Once she has recorded the precise coordinates and has pressed the right button, she continues walking – deeper into the slum.

She walks through unpaved streets lined with houses of wood and clay, under rusty corrugated iron roofs, between scratching chickens and open sewers, her device always at the ready. She stops at large water tanks and rows of market stalls, at toilets used by hundreds of people and at the few private clinics and police stations. She makes a note of everything.

A little further on, Mildred, holding her GPS meter, stands outside a café with blaring speakers. Behind a curtain which serves as a door, a group of men sit around plastic tables drinking beer; they can hardly understand each other. It is still midday, but they will spend all their money on drinking. By the time night falls they will be well and truly drunk; women would be well advised to avoid this area. Mildred writes it down.

At the end of the afternoon the GPS devices are connected to laptops. Soon after, their walks and notes are transformed into coloured lines and yellow dots on a black background.

Winding streets become visible, as do intersections, squares and the infamous railway. Kibera comes to life before the eyes of the ‘mappers’. The slum, which the Kenyan authorities deny exists, is put on the map.

When the map is done, the real work begins. Icons for hospitals, schools, shops and water points are put in the right place and provided with background information. But warnings also appear on the map: places women are advised to avoid, spots where fires start more often and areas with cholera. Residents are involved in updating the map and can send text messages to report new incidents. With each report the map becomes more accurate and, like Kibera itself, changes with each day.

Six months later, Joshua and his camera team walk along the railroad from Karanja to Soweto East. He is taking action after receiving a text message about a sudden clearance operation by the municipality of Nairobi; dozens of houses have been razed to the ground. Arriving at the now derelict piece of land, he speaks with former residents who desperately seek their belongings in the piles of wood, plastic and corrugated iron which, yesterday, were still homes. “We had no idea,” says one. “The court case was still ongoing,” says another. Joshua nods, the camera captures.

The map is updated with Joshua’s news.

The residents of Kibera have the means to make themselves visible in an environment in which they do not seem to exist. Armed with GPS meters, mini cameras and mobile phones, they have decided to represent themselves. They are on the map. Kibera exists.

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Hivos Annual Report 2011

Rights & Citizenship programme The Rights & Citizenship programme supports people in creating a society in which they can participate freely and fully, regardless of gender, ethnicity, sexual orientation or religious beliefs. There is usually little room to manoeuvre for this endeavour. Although the work of activist citizens and their representative organisations can be life-threatening, it is always needed somewhere.

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Hivos Annual Report 2011

For people to participate in society freely and fully, it should be made clear to governments that they must create space for everyone and allow citizens to participate in decision-making processes. The social recognition and acceptance of everyone’s rights, particularly those of women, LGBT and people living with HIV/AIDS, must always be central.

The Rights & Citizenship programme therefore supports citizens and representative organisations that pursue and strengthen fundamental political rights, organisations that represent the rights of poor and marginalised groups, and organisations that denounce human rights violations.

Results in 2011 — In Kenya and Iraq, partners contributed to the creation of laws against female circumcision through successful political advocacy and awareness campaigns.

— The long struggle of Hivos partners for the recognition of gay rights has contributed to a resolution at the Human Rights Council of the United Nations Convention against discrimination based on sexual orientation and gender identity.

— In many countries, partners critically raised the issue of human rights violations and corruption with the government, and in some cases they were involved in advisory boards.

Arab Spring For many years, rulers in the Arab World could do as they pleased. Protest against their rule was suppressed or bought off with oil revenues. To the outside world this ‘stability’ was attractive, and in case of interventions, such as the American invasion of Iraq, the resulting democracy was certainly not exemplary. Thus it was to everyone’s surprise that a revolutionary wave swept across the Arab World in 2011. Dictatorships fell (Tunisia, Egypt, Libya) or proved no longer unassailable, as in Syria. The driving force behind the changes were ordinary citizens who took to the streets to protest against oppression and to reclaim their dignity. By using new media, dissent was able to spread rapidly. Internet videos appeared on regional satellite channels and reached fellow protesters.

International pressure on the regimes increased.

Hivos is a strong supporter of the citizens’ initiative. In the Middle East and North Africa we have in recent years worked on strengthening the emerging civil society, especially by supporting women’s organisations and human rights activists.

For example, we have been working for many years with Karama, a regional organisation that promotes women’s rights in the Arab World. Through its network, Karama reaches local women’s groups across the entire region. In many cases the work of these and other activists was extremely difficult, but they represent a new generation adept at responding to new opportunities. They soon turned to international audiences to gain support for their democratisation struggle.

They visited the Netherlands and other European countries to talk to politicians, policymakers and the public about the current circumstances of Arab women. Hivos organised and facilitated visits by Arab activists to politicians and policymakers in the Netherlands and Europe and brought them in contact with Dutch media. This allowed us to put political participation of women in this region on the political agenda.

The Minister of Foreign Affairs made the position of women in the Arab World a spearhead of his policy and took the initiative within the European Union in this matter.

In association with the University of Amsterdam, in April 2011 we organised the conference ‘Middle Eastern Perspectives on the Revolutions’, which gave an impressive overview of developments in different countries, presented by prominent activists themselves. They spoke with Dutch Members of Parliament and European institutions. Parliamentarians and policymakers expressed great interest in their stories and analyses of the context; this fed their thoughts for future policymaking. The Hivos Knowledge programme Civil Society in West Asia provided input for a report by the Advisory Council on International Affairs.

Obviously, the real work must be done in the countries themselves. What happens after the revolution, or in countries where the changes have only just begun? And who will benefit from the new political order? These were central issues in the discussions Karama organised in Cairo for women’s organisations in the region. Essential to these discussions, which were attended by representatives of Dutch political parties as well as Hivos, were sharing information, learning from each other and having access to international networks. Representatives from all Arab countries came to the Egyptian capital. The urgency was and is great, as new constitutional laws are being drafted in many countries. If women and their organisations are not involved in these processes, they risk becoming marginalised again.

In Syria, demonstrations were mercilessly crushed. The situation has escalated into widespread violence and the regime refuses to reach a compromise. Against this backdrop it was extremely difficult for our partners to continue their work.

Number of partners:

304

Liabilities:

€ 44,300,000 People reached:

2,800,000

Main partnerships Global Fund to Fight AIDS, Tuberculosis and Malaria, Mama Cash, IKV-PC, ILGA, Ford Foundation

22

Hivos Annual Report 2011

A number of activists were imprisoned and tortured, and in some cases their fate remains unknown. Others had to move abroad and continued their activities there as much as possible. Through contacts in their country they were still able to play a major role in spreading information about political developments, human rights violations and the role of women in the protest movement. That information was very useful in the periodic reviews of the United Nations’ Human Rights Commission and also found its way to policymakers and the media. This contributed to sustained political pressure on the regime. As an active member of the MENA (Middle East and North Africa) Platform, Hivos had numerous consultations with the Ministry of Foreign Affairs in the Netherlands. We worked closely with IKV Pax Christi in particular. Obviously, under these circumstances a number of planned activities could not go ahead.

We also support the International Gay and Lesbian Association (ILGA). A new initiative is the Global Transgender Equality (GATE) network. This collaboration gives transgenders more confidence to secure a place in international forums that discuss human rights. GATE also started a fund for local transgender organisations.

The rebellious mood also reached Iraq, where we have been supporting organisations in the field of human rights and empowerment of women for many years. However, the climate has deteriorated: the incumbent parties continue to fight each other, public facilities are still inadequate and political violence remains a problem. As our Iraqi partners have emphasised, institutions are weak, democracy has been curtailed and the threat of civil war is re-emerging. Nonetheless, our partners in the field of women’s rights were able to bring about a number of legislative amendments. A prominent example is the ban on female circumcision in the legislation of the autonomous Kurdish region in northern Iraq. In contrast, the oppression and violence against gays and youth subcultures has increased. Hivos will undertake more activities in 2012 to put female circumcision and violence against gays under the spotlight and to take action against these injustices.

Being open also involves taking risks; in a number of countries the persecution and discrimination of gay men increased after they became more visible in public life. In Uganda, politicians are still threatening the passing of a bill that will impose harsh penalties on manifestations of homosexuality. Persecution is commonplace in Iran, and in many countries that do not have anti-gay laws, there are radical social groups that take the law into their own hands.

Promoting gay rights In many countries the rights of gays, lesbians and other sexual minorities like transgender and bisexual people are far from guaranteed. Hivos has been working for many years on this issue and on bringing about change. We do this by helping local groups of gay and lesbian activists that have just started up, to strengthen themselves, but also by putting gay rights on the global agenda and supporting international networks.

Internationally, Hivos has been one of the largest financiers of movements that fight discrimination and violence against sexual minorities. In 2011, we cooperated with around 70 organisations that represent the interests of sexual minorities.

In addition to funding, Hivos also contributes to capacity development and training for these mostly new organisations.

In many countries the existence of gays is simply denied. But as gay organisations become more vocal, people can no longer ignore them. For Hivos, partners that operate internationally are a basic condition for generating global change in this field.

Around one hundred countries now recognise the International Day Against Homophobia. Hivos supports IDAHO, the organisation that has made this day possible.

Coming out publicly is daunting and not without danger, yet necessary to fight prejudice and taboos. In Kenya, Hivos partners organised the first gay film festival. Although the festival received mixed reactions, the public was generally positive about greater diversity. Gay organisations in Kenya also campaigned to repeal discriminatory laws. This campaign was used as a model of how to get civil society organisations, governments and international actors involved in promoting gay rights.

Under these circumstances, strong organisations of gays remains sorely needed. In East Africa, Hivos has been working on strengthening these groups for many years. However, this focussed too much on individual activities. In 2011, we therefore embarked on a new phase with the Jisort programme, which Hivos is running with local funds and partners with the support of the Ford Foundation. Jisort is a large-scale programme to train the staff of these groups and ensure that they improve their internal organisation. This is not always easy. Many groups started as small associations and were often affiliated with prominent people in the movement.

Turning such an association into a professional organisation requires a lot of skill, but this should not stand in the way of their activism.

The Jisort programme focuses on 25 gay organisations. In 2011, this led to demonstrable results in 60 percent of cases.

Elsewhere on the continent the results were also varying. In South Africa the programme reached and strengthened small groups, while the movement in Zambia has remained weak.

In the future, Hivos will continue to develop these kinds of programmes for capacity development on a larger scale.

At the beginning of 2012 Hivos received the good news that the Dutch National Postcode Lottery approved our funding application for part of our gay rights programme. Together with Human Rights Watch, we can implement the Supporting the LGBT Community in Eastern and Southern Africa programme, for which Hivos will receive 1.2 million euros from the Dutch National Postcode Lottery.

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Hivos Annual Report 2011

Unstoppable After exactly 25 seconds she walks into view. She carries the photos she needs to show the world under her arm. In the YouTube video, the seated men in suits she walks past look even greyer, and under the fluorescent lights the conference room looks even more unfriendly. She strides forward at a brisk pace, her head held high – Hanaa Edwar is unstoppable.

No one had anticipated that images of the live conference would be broadcast across the world and that the BBC and CNN would write about it. Nothing indicated that this might happen.

Halfway through his speech, Iraqi President Nouri al-Maliki asks his “friends at the UN” to understand that some human rights organisations in Iraq are “criminal and murderous” and that protesters are “terrorists”, but even Ad Melkert, UN special envoy for Iraq, did not feel compelled to comment on this. When he spoke shortly after Maliki, he discussed in detail the improved human rights situation in the country.

There was no mention of the four young protesters who had been beaten and arrested by the secret service just a week earlier. Not yet, that is.

Hanaa is just out of camera view when she holds up the photos of a radio journalist, an actor, a graduating computer engineer and a secondary school student, but her message can be clearly heard. “Where are these people?”

Some of the men in suits stand up and try to calm her. It is pointless. “Where is the right to protest, where is the right of assembly?” More men stand up, the camera angle changes. “Are we, human rights organisations, being accused of terrorism here?” When she has said

what needed to be said, Hanaa walks away from the camera and calm returns to the room. In the eyes of the world, the security guards remain civilised.

During Hanaa’s protest the scorching heat in the city was not perceptible: in the Green Zone, the hermetically sealed centre of power, the air conditioning was working and the water was fresh and cool. A few miles away, however, in a hermetically sealed prison complex of the secret service at the airport of Baghdad, the situation was different. That’s where the four men were. Mu’ayad, Jihad, Ali and Ahmad had been standing in the blazing sun for many hours, their hands tied behind their backs. Like many Arab youths, they had risen against old powers and corruption and, as is so often the case, their protest was brutally suppressed.

In post-war Iraq, intimidation and torture remain a favourite weapon of those in power.

Hanaa is not deterred by this. She may be small in stature, but she is known and feared. She lives for her work and is not afraid of anything. Even outside the camera’s view, she remained unharmed.

Two days after her protest, the four boys were released again and two days after their release, they were back in Tahrir Square in Baghdad.

24

Hivos Annual Report 2011

Green Entrepreneurship programme In 2050, there will be nine billion mouths to feed. So far, each expansion of the required agricultural land has led to a significant increase of greenhouse gas emissions. Climate change threatens productivity. This affects poor people – particularly women – the most. Energy consumption must be minimised and made more sustainable, with equal opportunities for all and respect for biodiversity. This is no small challenge.

25

Hivos Annual Report 2011

The Green Entrepreneurship programme relies on the role of enterprising men and women in rural areas in green socioeconomic development. More than anyone else, they have the potential to provide the world with food, halt climate change, maintain biodiversity and create employment. To achieve this, their productivity must be increased and their operations made more efficient, for example through proper funding, biogas installations or smart partnerships with governments and market parties.

Small-scale producers in developing countries serve local markets, use little energy for this and take responsibility for their environment. They know the difference between profit and exploitation. Sustainable economic development in rural areas is in good hands.

Results in 2011 — Microfinance institutions supported by Hivos reached a total of over 8 million people, 80 percent of whom are women.

— Small-scale food producers set up 300 new organisations, rural women united themselves in 130 new organisations and 200 small businesses were established in rural areas.

— In 2011, the biogas programmes in Africa and Indonesia resulted in the construction of over 10,500 installations that provide as many households with renewable energy.

Since 2009, nearly 16,000 poor families have been able to install a biogas digester.

Microfinance new style In the past year, microfinance received harsh criticism. What was once believed to be the magic formula for poverty reduction became associated with exorbitant interest rates, stacking of loans and social coercion. In addition, the influx of commercial capital was aimed mainly at the most profitable microfinance institutions (MFIs) in urban areas. Researchers also doubt the sustainable income effects of microcredit. We share that criticism, but we also believe that microfinance remains an important tool in giving marginalised groups access to financial services; a necessary – albeit insufficient – condition for poverty reduction. In our view, MFIs must offer a broad range of financial products, such as savings and insurance products in addition to loans. Hivos supports MFIs in improving their transparency regarding costs and other conditions, and encourages partners to report on their social performance as well as their financial figures. To this end, we also work with trade organisations.

Hivos and Triodos Bank, which jointly set up the Hivos Triodos Fund (HTF) in 1994, have been working on strengthening MFIs that offer a mixed package for many years. HTF provides loans and participations to MFIs that

are already operating at break-even point and have a well-oiled internal organisation, while Hivos supports starting MFIs directly with seed capital and institutional strengthening, including training, improving systems, and rating. In 2011, 42 organisations were supported in this way.

MFIs can lower the costs for their clients and reach more people by using smart techniques. Our partner Musoni in East Africa has proved this. Musoni is a pioneer in the use of mobile phones for the provision and repayment of loans. It is the only organisation in the world that operates completely through mobile communication. In 2011, 6,500 loans were provided, all through connecting mobile phones to the management system. In the coming years, Musoni aims to expand its reach throughout East Africa.

The Hivos 2011-2015 business plan and the new HTF strategy focus strongly on reaching rural areas. The strategy focuses increasingly less on traditional MFIs that provide small loans, and much more on institutions that support farmers, small businesses and producers’ organisations in improving the sustainability of their operations. Through this ‘greening’ we can establish a closer relationship between financial services and our activities in the field of sustainable production and renewable energy. In order to achieve wider impact we have, for example, set up specialised funds in Zimbabwe to provide loans to rural businesses, from small-scale farmers to processing companies and energy suppliers. In India, too, a fund is being set up for the development of product chains.

We also helped small companies and producers’ organisations in Bolivia and Tanzania obtain capital through such structures.

Through HTF we support Eco II Enterprise, an organisation that helps promote agriculture, renewable energy and sustainable tourism. Other programme objectives in the near future include setting up a fund in East Africa and funding for coffee farmers in Latin America. The second joint fund set up

by Hivos and Triodos Bank, Triodos Sustainable Trade Fund, provides short-term trade finance to producers’ organisations and export companies in order to increase small producers’ access to the international market. In the past year, a total package of services was put in place to improve the position of small farmers.

Number of partners:

218

Liabilities:

€ 28,400,000 People reached:

8,400,000

Main partnerships Triodos Bank, ECOM, IIED, IUCN NL, Oxfam Novib

26

Hivos Annual Report 2011

Biodiversity – naturally good Although this word conjures up associations with plants and animals, biodiversity is also about genetic material and ecosystems. Not only does it constitute the ecological capital of life and the economy, but also the means of livelihood for large groups of poor, rural people: small-scale producers and fishermen, forest dwellers and nomadic pastoralists. Food, raw materials and climate are all dependent on biodiversity.

Conservation of biodiversity, food security and poverty reduction go hand in hand. With a growing world population, changing dietary patterns and increasing urbanisation, food security and the conservation of biodiversity and ecosystems have become increasingly important issues. Around 70 percent of the world’s food production is still in the hands of smallscale producers: farmers, nomadic pastoralists, fishermen and forest dwellers. They cannot survive without the natural diversity of crops and animals and are also the most vulnerable to climate change. But with the need for increased food production, the focus has shifted mainly to large-scale, uniform agro-industry, and the interests of marginalised groups and biodiversity conservation are compromised even further.

The number of species has been declining for many years.

Therefore, ensuring food security and economic development must be based on prudent use of natural resources so that this decline is halted.

Hivos is keen to contribute to the enormous effort this requires. In the South, many of our activities are related to biodiversity conservation and food security. A number of Hivos partners have successfully sought sustainable, yet profitable farming practices. In Costa Rica, CEDECO developed a method to calculate the ‘environmental costs’ of a particular production process (number of species lost, water consumption and CO2 emissions). With this method, companies can determine their ‘use of the ecosystem’ and compensate for this financially. That money will be given to cooperatives of small farmers who work in an environmentally friendly way and whose crops remove greenhouse gases from the air. Hivos and CEDECO are working on a programme to offer this form of compensation on a large scale to companies across Latin America.

In 2011, Hivos continued its partnership with a large number of cooperatives of small farmers to introduce organic farming, grow food crops in combination with forestry (agro-forestry) and protect the seeds of important species. The organic sector in East Africa has grown significantly thanks to many years of hard work. In previous years, Hivos focused strongly on providing access to the international market for organic and fair trade products; we are now shifting the emphasis to existing product chains and trying to make these sustainable.

Steady progress is being made, partly due to businesses showing an increasing interest in these products. In association with coffee wholesaler ECOM and cooperatives of small coffee

farmers in East Africa, we developed a production model based on intensive sustainable methods that improve crop yields and quality. This has benefits for everyone: higher income for farmers, attention to environmental requirements, and guaranteed supply for the company. This approach is now being adopted elsewhere and we will, in the coming years, develop more programmes along these lines. We also cooperate with the Dutch company Kruidenier Foodservices in marketing bananas and pineapples from South America in this way.

Because of the many themes related to biodiversity we believe it is necessary to continually renew and assess our level of understanding in this area. For this reason Hivos and Oxfam Novib, with which we have managed a biodiversity fund for many years, have set up a specific knowledge programme. Its aim is to establish to a better foundation for the practice of our partners in this area and to provide knowledge input for the international debate on food security and biodiversity. In 2011, Hivos issued a number of publications on food security and biodiversity conservation. These activities are consistent with the existing knowledge programme Small Producer Agency in the Globalised Market. Within that framework we seek – together with the International Institute for Environment and Development (IIED, London) and an international network of experts – better methods to increase the capacity of small farmers to withstand both economic and environmental challenges.

In the Netherlands, Hivos Executive Director Manuela Monteiro was a member of the Taskforce on Biodiversity and Natural Resources. This group of public and private actors has advised the Dutch government on ways to embed biodiversity conservation in policy processes. Adherence to this advice will be promoted and monitored in the Platform for Biodiversity, Ecosystems and Economy, in which Hivos also participates.

Hivos Triodos Fund amounts x EUR 1,000

2011

2010

Organisations

Amount

Organisations

Amount

Loans Participations Guarantees

32 10

35,225 32,181

30 33,311 10 32,021 -

Total

42

67,406

40 65,332

Africa Asia Latin America Worldwide

11 13 16 2

17,075 19,920 29,885 526

11 16,183 14 27,154 13 21,434 2 561

Total

42

67,406

40 65,332

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Hivos Annual Report 2011

Blood, sweat, and progress Subarudin takes a break. Leaning against the wall of a house in East Java, he looks satisfied with the work he has done this morning.

His purple T-shirt is stained with sweat and he is still holding his pick-axe. “This is my thirtieth,” he says proudly.

The foundation of the biogas digester is almost finished. When his break is over, Subarudin puts the finishing touches to the concrete container in the deep pit. A blue tarpaulin protects him and his work from the sun and the rain. Twenty years ago, when he was learning to be a bricklayer, it seemed obvious that he would be building mostly houses. Until recently this was indeed his profession, but now he only works on biogas digesters. He is particularly proud of number 30: “Nowadays I only use materials I can get locally. It’s a simple but sturdy construction”. Once Subarudin has finished his work, the plant will last at least fifteen years.

Further along, on the other side of the volcano, Fatchiyah switches off her stove.

Mist still lingers in the trees of Nongkojajar. When the water she has boiled has cooled down a bit she takes it outside and crouches besides one of her four cows. She washes all the udders thoroughly before she milks the cows.

Only when the water has been properly boiled can she be certain that bacteria will not spoil the milk.

Fatchiyah and her husband Yusuf began with two cows eleven years ago and had to save a lot of money to buy the third and fourth. Like so many dairy farmers in Indonesia, they used to spend a large part of their income on fuel. They used liquid petrol gas inside and firewood outside to

boil water for the cows. Burning wood was bad for the lungs and eyes, and gas was expensive. Of the 120 euros they earned per month they sometimes only had 80 euros left after their energy expenses.

That’s different now, because Subarudin built a biogas digester on Fatchiyah and Yusuf’s yard. A few days after Subarudin had completed the plant, Fatchiyah boiled a pan of water on her new biogas stove for the first time. Yusuf fills the digester daily with cow dung and uses what remains as fertiliser for the new field of flowers and chilli peppers next to their house. The couple has to pay ten euros a month to repay the installation costs. “If things go well we want to buy a pick-up truck to expand our business,” says Fatchiyah.

Subarudin also dares to dream. His income has doubled recently. Not because he earned less per hour when he was only building houses, but because

there is an ongoing demand for biogas digesters. He no longer has to wait for work; number 31 is waiting for him.

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Hivos Annual Report 2011

Action For Change programme Economics, politics and culture have become globally intertwined. This creates employment opportunities and possibilities for combating problems or learning about how other people are managing their living environment. But the current world order is also founded on an unequal distribution of power and wealth, on a system in which our behaviour in the North is having harmful consequences for people in other parts of the world. The recent crises have again demonstrated that changes there are not possible without action here.

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Hivos Annual Report 2011

With the Action for Change programme, Hivos wants to contribute to changes in the North that are necessary to improve lives in developing countries. These changes must take place within governments and companies, but also in households. Although that message is not always popular, it should not stop us; it is more urgent than ever.

Results in 2011 — Hivos and partners in the Stop Child Labour campaign addressed businesses in the Netherlands on having child labour present in the harvesting and processing of hazelnuts.

— With the Iconic Sumba Island, Hivos got thousands of people in the Netherlands – especially young people – involved in the issues of energy and climate change.

— In East Africa, the Women@Work campaign highlighted the position of women in the flower industry.

Sumba becomes 100% Sustainable With the 100% Sustainable Energy campaign, Hivos wants to contribute to full conversion to renewable forms of energy because the use of fossil fuels results in large-scale CO2 emissions, which contribute to climate change. Hivos is also working on sustainable energy for poor people in developing countries precisely because they lack access to energy.

An important campaign objective is to reduce CO2 emissions by encouraging behavioural change amongst consumers and businesses in the Netherlands. This ties in with the possibility offered by the Hivos Climate Fund to compensate for these emissions. In addition, Hivos works on policy advocacy with governments and international institutions like the World Bank to promote more sustainable forms of energy and to reduce the role of fossil fuels. Hivos also does this in collaboration with civil society organisations in developing countries.

In 2011, there were more disasters than ever attributed to climate change. In the Netherlands and Europe, however, scepticism about the role of mankind in this development prevailed, an attitude fuelled by the economic crisis.

Against this backdrop the ‘climate’ for measures to promote sustainable energy was unfavourable. For Hivos this was even more reason to increase efforts to reach policymakers and the public. Alternatives are possible: energy can be saved by simple actions and future CO2 emissions can be avoided by giving poor people access to renewable forms of energy such as biogas and small hydropower plants.

Central to the campaign, therefore, is the objective for the Indonesian island of Sumba to be fully reliant on renewable

energy within ten years. Most residents currently have no access to energy sources. It is difficult for the average Dutch citizen to imagine what this is like. That is why we organised a competition for the best video on how to live on an island without electricity and fuels - or rather, survive. This approach struck a chord and we were inundated with entries for Expedition Sumba; the winners will visit the island in 2012.

It also received positive reactions and practical support from a number of companies. Part of the Sumba project was made possible by energy company Greenchoice. Sawadee travel organisation gave customers the opportunity to contribute to the Sumba initiative when booking a trip and this proved successful.

It is not an easy task to motivate people to save energy. Hivos therefore devised a campaign to entice people in the Netherlands to reduce their energy consumption. Seduce to Reduce is based on the idea that people can be enticed by the design of their environment to do something. For example, in a building you can draw red lines on the floor that lead to the stairs; visitors will then be inclined to ignore the elevator. This ‘nudge’ concept was quite successful within a small circle of people, but it has yet to reach the public on a larger scale. In the coming year we will look for ways to bring this form of energy saving to the attention of a larger group of people.

A future without child labour With 215 million children worldwide working instead of going to school, there is an ongoing need to put child labour under the spotlight. With the ‘Stop Child Labour – School, the Best Place to Work’ campaign, Hivos and partners in the North and the South strive to fight child labour and promote education in Africa, Asia and Latin America. In the Netherlands, Hivos cooperates with the Algemene Onderwijsbond (AOb, Dutch General Education Union), FNV Mondiaal (federation of trade unions), ICCO & Kerk in Actie (Dutch development organisation), Stichting Kinderpostzegels Nederland (Dutch charity foundation for children) and the Landelijke India Werkgroep (LIW, National India Working Group). In Europe, Alliance2015 members IBIS (Denmark), Cesvi (Italy) and People in Need (Czech Republic), alongside Hivos, are the main partners.

Number of partners:

16

Liabilities:

€ 4,300,000 People reached:

500,000

Main partnerships IBIS, CESVI, People in Need, LBSNN, the Dutch National Postcode Lottery

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Hivos Annual Report 2011

The campaign also included a variety of activities in 2011.

In the Netherlands and Europe, politicians and companies were called to account with regard to their role and responsibility. An example of the latter was a campaign aimed at businesses to call attention to the position of children in the processing of hazelnuts in Turkey. These hazelnuts are mainly used in processed chocolate spread. The campaign attracted much media attention and also led to parliamentary questions. The European Parliament also paid attention to the issue. Hivos provided the Ministry of Economic Affairs, Agriculture and Innovation with information that was pertinent to answering these questions.

In the context of the campaign, Hivos called for transparency and action on child labour on the part of businesses. In response, several companies in the hazelnut processing sector commissioned an independent investigation into their supply chains and introduced guidelines that require their suppliers to exclude child labour. In addition to individual companies, Hivos also conducts consultations with the Dutch Food Industry Federation, the trade association of food processing companies. As a result, the federation has called on its members to seriously investigate possible cases of child labour and to take action against this.

The manufacture of products such as carpets and bricks may be associated with child labour; the campaign therefore also focused on the companies involved in these production chains and offered them the campaign action plan for child labour free companies. Hivos and the other campaign participants also contributed to the Child Labour Platform of the Sustainable Trade Initiative. One of the ways in which they contributed was to provide information for the publication ‘Business practices and lessons learned on addressing child labour’ of this Platform.

We are committed to creating Child Labour Free Zones in countries where child labour is common practice. These are areas where all parties – parents, employers, teachers, trade unions, government and children – work together to eliminate child labour and make it possible for all children up to fifteen years of age to go to regular full-time school. The Dutch Minister for Development Cooperation Ben Knapen embraced the concept and asserted in Dutch Parliament that Child Labour Free Zones are an exemplary method to eliminate child labour. This approach was also mentioned in the Human Rights Memorandum and other policy documents of the Ministry of Foreign Affairs. In addition, a representative of the campaign was invited to a hearing on human rights in the Parliament.

Introducing Child Labour Free Zones is only possible with strong local partners who are motivated and equipped to implement this model in practice. In 2011, our partner MV Foundation in India, where the campaign was started at this organisation’s initiative, celebrated the fact that over the years it has helped to get one million children out of work and into regular full-time school. Needless to say, we are very proud to cooperate with this organisation. Moreover, because of its experience MV Foundation can play a big role in boosting similar initiatives elsewhere. Partners from Latin America visited MV Foundation in early 2011 in India to learn from their successful approach against child labour in practice.

In 2011, MV Foundation took part in a workshop organised

by Stop Child Labour in Uganda for African partner organisations to strengthen their capacity in the area of advocacy. MV Foundation provided concrete tools to gain more support for the concept of Child Labour Free Zones.

Hivos believes strongly in such forms of South-South cooperation. The Ministry of Foreign Affairs supported the exchange programme through its Human Rights Fund.

In early 2012 we received the good news that the Dutch National Postcode Lottery has honoured the campaign application with a grant of 3,189,588 euros. That money will be used for the ‘The beginning of the end of child labour’ with the objective of at developing Child Labour Free Zones in Africa.

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Hivos Annual Report 2011

School for all Halfway through the maths class Najah is called to the front. She makes her way between the desks and takes a piece of chalk from the ledge under the blackboard. “If three times P divided by eight is 24, what is P?” asks the teacher.

Confident, Najah turns to the board and does the calculation.

The class looks on. The classroom is crowded, dusty and hot. Dressed in blue uniforms, the children sit at old brown desks. On the wall are faded posters with verb conjugations, multiplication tables and plant names, but the light coming through the windows is so bright that it is almost impossible to read them. Outside, the Ugandan sun burns in the sky.

Already finished, Najah puts two thick lines under the number 64. When the teacher confirms with a nod that the answer is correct, the class gives her a round of applause. A little shy from all the attention, she hides her face behind her notebook. When she sits down the children are silent again and the lesson continues.

Najah sits next to a boy who is not wearing a blue uniform. He has borrowed one of her pens. Neither of them had anything to eat in the afternoon break.

Primary education is free in Uganda, but many parents cannot afford to pay for a uniform, three meals and the right school materials. Yet since last year, all the children in Najah’s village go to school.

Najah, too, no longer works. Everything is gradually improving.

Kitubulu is on the road that connects the airport in Entebbe to the capital city Kampala. The great Lake Victoria is just a stone’s throw away. People here fish, farm, and trade; cars are washed, hair is

cut and baskets are woven. But not by children. The village is one of the first ‘Child Labour Free Zones’ in Uganda.

Parents, employers, teachers, trade unions, the authorities and children in the village are convinced that child labour is not a necessary evil, just evil. Everyone does what he or she can to eliminate child labour.

Najah’s mother is also convinced. Until recently, every morning between seven and eleven she took her daughter to the fields next to the village to earn a little extra money. Najah only went to school after work. This is what all the mothers did; they needed the extra income. But since the children no longer work, wages have risen. Employers can no longer use cheap child labour and are therefore forced to pay more to adults like Najah’s mother.

When Najah was taken from the fields and went to school full-time, her mother bought some notebooks, pens and a

uniform. After a brief bridging period she was allowed to join a class with children of her own age. Her school is still overcrowded, teaching materials are scarce and the village is becoming more prosperous only very slowly, but Najah is learning, playing and has made friends.

She can be a normal child. When she grows up she wants be a nurse.

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Hivos Annual Report 2011

Hivos World Map

The Netherlands

Guatemala Costa Rica

Cuba Honduras

Senegal

Nicaragua

Burkina Faso

Ecuador Peru Liabilities Latin America

â‚Ź 42,800,000

Bolivia

Liabilities Africa

Namibia

â‚Ź 16,000,000 Hivos Head Office Hivos Regional Offices Hivos Local Offices Countries where Hivos worked in 2011

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Hivos Annual Report 2011

Liabilities Asia

€ 12,600,000

Syria Iraq Iran

Kyrgyzstan

India Cambodia Ethiopia Uganda

Zambia

Kenya Tanzania Malawi

Indonesia Timor-Leste

Zimbabwe South Africa Total Liabilities Hivos Liabilities Worldwide

€ 12,600,000

€ 84,000,000* Countries

32

Regional Offices Local Offices

6

Partners:

6

* excluding management costs

708

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Hivos Annual Report 2011

5. Doing Things Right As a professional organisation, Hivos wants to know on an ongoing basis if its work results in the desired outcome. We also want to learn from practice: what works and what does not, and under what circumstances. Evaluation, progress monitoring, results measurement and control are the most important tools to give us a better understanding of how we are doing.

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Results measurement Measuring results remains a topic of heated debate – for Hivos as well. Not because the need is contested, but because the question is whether what you want to know is that which you can measure, or because results may only become visible in the long term. In this discussion Hivos prefers to take a non-dogmatic position; however, there are a few guiding principles which we uphold. One is that results measurement must, in the first place, lead to improved effectiveness of the partners. This means that partners should preferably determine the methods and indicators of their results measurement themselves (but in agreement), rather than these being imposed by donors. It also means that Hivos may accept results that cannot be fully determined objectively but which, after being analysed by the partners, do contribute to a better intervention strategy. Another assumption is that while the social change processes our partners contribute to can be influenced, they certainly cannot be planned. Models are needed, but they can never fully capture or replace reality and are therefore no more than a tool – useful, but not an end in itself.

The social changes which our partners are committed to often take a long time to accomplish. The result of some efforts only becomes visible after ten years. When it comes to processes that unfold over a long period of time and which have been subject to many different social forces, it is not straightforward to determine who was responsible for the result, especially if the measurement has to meet high academic standards. For Hivos this is no reason not to do it or to think that such results cannot be counted on. That would be a far too linear, onedimensional approach to the complex world in which our partners operate.

Just because Hivos opts for a non-dogmatic approach does not mean that we have a loose approach to monitoring and evaluation; on the contrary. Clear agreements on results are made with each partner organisation and these are laid down in the contract. Our partners report annually on progress based on indicators appropriate to their situation. Hivos programme officers visit the partners and their projects in the interim to discuss the results (and sometimes lack of results).

Partners and projects are evaluated by external researchers through random sampling; this way our monitoring is regularly subjected to a reality check.

gent. As a result it is almost impossible for organisations to perform these evaluations on their own. Hivos and other MFS organisations therefore decided to join forces and outsource the performance of evaluations to third parties. WOTRO, an independent academic institution whose task it is to assess research proposals in terms of academic quality and financing, is now responsible for the evaluations. The selection of projects and researchers is based on the WOTRO quality criteria. Neither Hivos nor any of the other MFS organisations have any influence on this selection. The methodology has also drastically changed. A baseline and a control group will be used for an important part of the projects to be evaluated.

Cooperation was urgently needed, as the approach involving (scientifically reliable) baselines and control groups would be very expensive for individual organisations and because in this way the required funding ratio would be attained sooner. Due to the necessarily long preparation period, no programme evaluations took place in 2011. The value of these evaluations lies precisely in the rigour and research independence of this methodology, and this takes time.

Although no programme evaluations were started or completed in 2011, at the end of that year a draft report of the Policy and Operations Evaluation Department of the Dutch Ministry of Foreign Affairs (IOB) was issued with an assessment of the quality of programme evaluations of the MFS grantees in 2007-2010. Although the IOB is critical in its report, it also notes significant improvements compared to the 2003-2006 period. For Hivos, knowing that things can still be improved is important, but the observation that the efforts of recent years have borne fruit is just as important. Whereas Hivos was still in the rear in 2006, we can now take pride in a place among the frontrunners. In many important respects the quality of the evaluations organised by Hivos has demonstrably improved. We would like to maintain this trend in the evaluations that we organise ourselves. These evaluations will serve not so much to make statements about the effectiveness of an entire Hivos policy field, as was previously the case, but rather will focus on innovations and sub-fields. Although this will be at the expense of the general validity of the results of the programme evaluations, it will also provide a better understanding of which approach works and why.

Inspections and financial accountability Programme evaluations Between 2003 and 2010, Hivos organised a large number of programme evaluations itself. These evaluations (always performed by external, qualified researchers) were related to a particular policy area and looked back five to ten years. The main purpose of these programme evaluations was to account for the MFS (Dutch government) grants. Within the current grant scheme (MFS-2) which began in 2011, the requirements for programme evaluations became significantly more strin-

Hivos asks its partners to provide, in addition to a detailed substantive report, a thorough financial account (audited by an external auditor). Only partners with a one-time, short-term contract or partners that receive less than 25 thousand euros from Hivos are not required to submit an auditor’s report. The annual report must disclose the financial situation of the entire organisation and should not be limited to Hivos’s contribution.

This allows Hivos to gain insight into the quality of the partners’ financial management as well as the legitimacy of

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expenditures. Hivos assesses whether the financial reserves are reasonable, expenditures are in line with the budget and whether partners have sufficient income from other sources.

Hivos may also conduct inspections itself – financial audits – of the partner organisations. Suspected fraud may be a cause to do so, but also the observation that a partner’s financial and administrative management needs some support. If partners do not fulfil the obligation to disclose their financial situation in a timely manner, or worse, if there is mismanagement or fraud, Hivos’s sanction policy will be applied.

In 2011, Hivos conducted inspections of partner organisations in Nicaragua, India and Indonesia. The inspections in Nicaragua and India were both performed at a large, very successful partner organisation. In both cases we had to conclude that the focus on results had been at the expense of focus on financial management and administrative thoroughness. Fortunately, we were also able to establish that there is no reason to doubt the financial integrity of these organisations. Because Hivos believes it is extremely important to exclude the risks relating to financial management as much as possible, we strongly urged partners to take measures such as strengthening the internal audit function. Agreements were also made on following up the recommendations.

The inspections in Indonesia took place in smaller organisations, and this was reflected in the findings and recommendations. These ranged from switching to computerised accounting, recording financial procedures and consulting tax advisers in good time. We made agreements with all the organisations on following up the recommendations. This will be reviewed during the regular field visits.

In 2011, there were no reports of fraud, and Hivos did not find any other irregularities indicating corruption or fraud in the partner organisations. In this respect, 2011 compares positively with previous years.

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6. Our Partners Hivos attaches great importance to the voices of everyone involved in some fashion in Hivos’s work. We also work closely with some stakeholders to achieve our objectives.

The principal stakeholders in Hivos’s work are the partner organisations in the South, the Dutch public, the government, the business sector and – last but certainly not least – Hivos’s own staff. Regular consultations are held with those stakeholders.

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Hivos has long-term partnership agreements with a number of organisations, funds, knowledge institutions and businesses, including the Hivos Alliance for the implementation of the MFS-2 co-financing programme and the European Alliance2015 network.

American foundations Since 2005, Hivos has been working with the Open Society Foundations (OSF), an initiative of philanthropist George Soros. The OSF work to build vibrant and tolerant democracies whose governments are accountable to their citizens. That mission fits like a glove with Hivos policies. The partnership focuses primarily on the strengthening of alternative and autonomous cultural infrastructures and innovative arts initiatives and to promote reform in the arena of cultural policy, particularly in Central Asia. OSF is also a partner in the Transparency and Accountability Initiative, with which Hivos is affiliated.

Hivos works with the Ford Foundation in a wide range of fields: gay rights, women’s rights, financial services and sustainable production. The scope of the partnership extends to East Africa, Southern Africa, Latin America and India. The partnership between Hivos and the William and Flora Hewlett Foundation began in 2008. They were actively involved with us in the development and funding of the Twaweza programme in East Africa, described above. Like Hivos, the foundation attaches a great deal of importance to innovative approaches to social issues. Hivos works with Arcus to promote the rights of sexual minorities. Since 2010, Hivos has also been collaborating with the Omidyar Network. Together with that philanthropic investment company, Hivos has invested 2 million dollars in the Africa Transparency and Technology Initiative (ATTI) in East Africa.

Through this initiative, Dutch municipalities that are affiliated with LBSNN contribute to better education and business development in Nicaragua.

In the field of AIDS prevention, we continued our involvement with Stop Aids Now! (SAN!), an initiative of Aids Fonds, Cordaid, ICCO, Hivos and Oxfam Novib. These organisations combine their expertise and put their partners in touch with each other in order to develop new and effective strategies.

Hivos is an active member of Partos, the sector organisation for non-governmental development organisations in the Netherlands. Partos, with more than one hundred member organisations, performs the advocacy role for the sector and stimulates quality improvements among its members. This role is becoming more and more important, for example in the political and societal debate about development cooperation.

Hivos is an active participant and is involved in the policy advocacy work group. In 2010, Hivos’s Executive Director was appointed deputy chair of Partos.

Hivos Alliance In 2009, Hivos, IUCN NL, Mama Cash and Free Press Unlimited formed a strategic partnership called Hivos Alliance.

Together, these organisations implement programmes under the MFS-2 co-financing system, based on a long-term strategic plan for the 2011-2015 period.

With IUCN NL, the partnership focuses on biodiversity.

With Mama Cash, we have been working for years to strengthen the women’s movement in the South. The jointly managed Riek Stienstra Fund for the emancipation of lesbian women in developing countries came to an end in 2011. With Free Press Unlimited, we set up an updated media programme under the Hivos Alliance and the application for the 20112015 co-financing programme.

Dutch organisations Hivos feels a connection with a number of Dutch organisations that operate according to similar philosophies. This results in specific partnerships. The partnerships with Oxfam Novib, SNV and LBSNN deserve special mention. Our partnership with Oxfam Novib has a long history, and encompasses numerous areas. We took a major step forward with this partnership in 2009, by making arrangements about our respective roles in the South. The principal partnership project in 2011 involved setting up the knowledge programme about biodiversity.

Hivos works in close partnership with SNV to implement the biogas programmes in Africa, Indonesia and Nicaragua. The technical experience that SNV has gained from similar programmes in Nepal and elsewhere has proven to be invaluable in setting up these activities. We work with the National Council of City Links between the Netherlands and Nicaragua (LBSNN) to implement the Caminando Juntos programme.

Alliance2015 In 2000, Hivos was one of the founders of Alliance2015, its principal strategic partnership in Europe. The network, which has activities in 76 countries, takes its name from the UN Millennium Development Goals, which need to be achieved by 2015. The other members are Acted (France), Concern (Ireland), Welthungerhilfe (Germany), Ibis (Denmark), Cesvi (Italy) and People In Need (Czech Republic). In 2010 (no data are available as yet for 2011) the combined expenditure totalled 550 million euros, compared with an income of 635.3 million euros. The Alliance members devote more than 65 percent of their expenditure to the Millennium Development Goals and almost 30 percent on emergency relief.

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Hivos Annual Report 2011

Stakeholders Partner organisations and civil society in the South Hivos regularly organises consultations with partner organisations on every continent. Generally those consultations are conducted as part of the definition of a new Business Plan. In 2011, the first year of the present long-term plan, consultations with partners took place through conferences about specific themes. The regional offices and local representatives regularly organise meetings at which partner organisations and other local actors have the opportunity to express their views on Hivos’s policies in specific spheres of operations. That is an important factor in identifying new issues and adjusting our strategy if necessary. The presence of Hivos offices in the separate regions, to which East Africa and South America were added in 2011, is important for ensuring regular and easy communication with partners.

In its 2011-2015 Business Plan, Hivos expresses the ambition to incorporate more input from the South’s civil society in its policies. Last year we devoted particular attention to the manner in which representatives of that civil society can best advise Hivos’s regional offices. The original idea of forming an advisory council for each separate regional office was replaced by a set-up in which civil society representatives and representatives of other Southern actors play a part at various points in Hivos’s annual policy cycle. This serves to safeguard the diversity of opinions as well as flexibility.

For the same reasons, Hivos will include individuals in its Supervisory Board from the regions in which it is active.

A decision was reached to appoint three members from the South. The procedure will be set in motion in 2012, after which three of the current members of the Supervisory Board will step down.

No new survey into the level of satisfaction among our partners about their relationship with Hivos was conducted in 2011. The most recent poll dates back to 2009; a new survey is scheduled for 2012.

Government and parliament As Hivos’s largest donor, the Dutch Ministry of Foreign Affairs is naturally an important stakeholder. Hivos also feels that it is important to keep Dutch politicians informed on a regular basis about our work and about the practice of development cooperation in general. The principal issue in 2011 was the future of development cooperation, both as an element of Dutch policy and in the international context. In the context of the debate surrounding this topic within the framework of our own Future Calling initiative and of the Hivos knowledge programme, we worked with the Ministry to organise a meeting with Michael Edwards, a leading expert in this field.

Hivos also regularly met with the Ministry and spokespersons in the Dutch Parliament to discuss a wide range of themes. In 2011, those themes included the developments in the Middle East and North Africa, freedom on the Internet, women and development and sustainable energy. Hivos also attaches a great deal of importance to maintaining good relationships with the Dutch embassies. Staff members at Hivos’s regional offices play a central role in this respect. The interactions with the embassies in Tanzania and Bolivia in 2011 provide good examples of a complementary relationship and good coordination. In Tanzania, the cooperation concerned the Tanzania Media Fund, while in Bolivia it led to the prolongation of the embassy’s participation in the Women’s Fund.

Business sector In recent years, we have started collaborating more and more with businesses in a range of areas. As such, Hivos considers the business sector to be a logical group of stakeholders in its work. Conversely, many businesses have displayed a great deal of motivation to help in the realisation of development projects. Since as far back as 1994, Hivos has been working in close partnership with Triodos Bank. This takes shape primarily in the Hivos Triodos Fund (HTF) and the North-South Savings Plan (see also in Chapter 4: ‘What we do: the four programmes’ the section on the Green Entrepreneurship programme). HTF combines the knowledge about banking and development processes: knowledge that is used for providing microfinance and other financial services. The capital for HTF originates from the savings of Dutch clients who place their money in North-South accounts with Triodos Bank. The joint savings in 2011 amounted to 93.2 million euros.

Enterprises such as Loyens & Loeff, Yacht and PwC provide knowledge and expertise, free of charge, to improve the operations of Hivos and its partners. The partnership with Kruidenier Foodservices, one of the largest companies in its field in the Netherlands, resulted in the sourcing of fruit produced in Latin America by means of sustainable methods.

The partnership with Logica in the past years thus allowed our partner MV Foundation to improve its efforts in the fight against child labour in India. The experiences of this partnership were described in the brochure ‘Beyond Philanthropy’ issued in 2011 by Hivos and Logica.

With Rabobank Foundation, Hivos works to promote sustainable energy in developing countries. In this partnership, the network of fifty Hivos partners that are active in this field is linked with the financial services of Rabobank Foundation.

In 2011, Rabobank Foundation’s credit facilities extended the first small loans to farmers who wanted to build biogas digesters. Businesses also participate in the Hivos Climate Fund: by compensating for their greenhouse gas emissions they contribute to a sustainable energy supply in the South.

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Dutch public and private donors More and more, private donors and interested parties are demanding interactive forms of communication. They wish not only to be kept informed about Hivos’s work, they also wish to see what partners are doing in the various countries – and they wish to share their thoughts with one another and with Hivos staff. The Hivos website offers them the means to do so.

Not only does it provide a list of our partner organisations, with weblinks, the site also has a growing community of people who feel a sense of active involvement in development cooperation. This network saw a strong growth to 3,500 members at home and abroad in 2011, compared with 1,700 in 2010. One resounding success was the web campaign Subtitle the Tyrant, where people could add captions of their own choosing to short fragments of speeches by dictators.

This resulted in eight thousand clips, which were viewed by 300,000 visitors.

Hivos also maintains a highly active presence on social networks such as Facebook, Twitter and YouTube. On Twitter, Hivos already has three thousand followers (1,400 in 2010).

Almost three thousand people follow Hivos’s activities by way of our digital newsletter. The special website of the Hivos knowledge programme (www.hivos.net) encourages visitors to take part in discussions about specific themes.

Relationships with donors are also maintained by means of the three-monthly Hivos Magazine and the monthly digital Newsletter. The members of the Humanist Alliance (of which Hivos is one) organise annual networking days for staff and supporters. The Dutch public is also kept informed about Hivos’s work on a regular basis in Wereldbericht (‘World Message’) in the electronic newsletter of humanist broadcasting company HUMAN. Our partnership with the National Postcode Lottery allowed Hivos to inform a wider audience about the impact of our programmes on day-to-day life in developing countries.

Hivos staff Hivos considers its staff to form its social capital, and deliberately fosters a sense of openness and active participation. As such, investing in its people fully reflects Hivos’s policies. That is why all activities relating to internal training, for individuals and for teams, have been gathered in the Hivos Academy. The flagship of that programme is the Hivos Curriculum for Professionals in Development Cooperation, which we set up in partnership with Context.

The Curriculum was evaluated in 2011, and the findings will be used during the coming year for setting up a follow-up programme that will serve as the basis for our future internal training policy. (See also Chapter 7, which describes the internal organisation).

Last year, regular lunchtime lectures were again organised on issues relating to policy and practice, following visits from partner organisations or within the context of partnerships in the Netherlands. Information sharing via HoRoScope, Hivos’s intranet, is becoming increasingly important. With that network, we seek to encourage staff at the head office, the six regional offices and the local offices to stay informed about everything that is happening in the entire organisation and to feel involved with Hivos as a whole, even as the geographic spread increases.

The Future Calling project was also launched in 2011.

The purpose of that project is to look ahead into the future not only of Hivos but of development cooperation as a sector, using debates, online discussions and other forms, to generate ideas. Hivos’s staff members play an important part in this debate, and are also offered the opportunity to enter into a dialogue with outsiders. Future Calling will be continued during the first six months of 2012 and should result in a series of recommendations.

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7. How We Are Organised What does Hivos’s internal organisation look like, and how is Hivos managed and supervised? These are questions that are becoming more and more relevant in this day and age.

Transparency and openness are important values for Hivos, as is evidenced by our management structure, where we have visibly defined the limits of powers and where we clearly separate supervision, management and implementation.

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The management and oversight of Hivos is organised according to the Supervisory Board model. In the management and working organisation, Hivos seeks to balance the need for flexibility that is so characteristic of our field with proper accounting and effective control systems. To achieve this, the Hivos organisation has built-in internal and external checks and balances.

Management and advisory bodies The Supervisory Board supervises the actions of the Board of Directors and the performance of Hivos as an organisation. Management responsibility in the legal sense rests with the Board of Directors (the directors as stipulated in the Foundation’s Articles). The Board of Directors comprises the Executive Director and the Director of Programmes and Projects.

The Executive Director held the following additional positions in 2011: member of the board of WOTRO (until September), member of the Development Cooperation committee of the Advisory Council on International Affairs (AIV), deputy chair of Partos and member of the Taskforce Biodiversity and Natural Resources. In her capacity as Executive Director, she represented Hivos on the Supervisory Board of the Hivos Triodos Fund, in the Directors’ Council (advisory body) of Stop Aids Now!, on the board of the Humanist Alliance and on the board of Alliance2015. The Director of Programmes and Projects also served as chair of the Supervisory Board of the Triodos Sustainable Trade Fund.

A council of individual advisers, which is made up of committees of experts in the various fields relating to Hivos’s themes, fulfils the societal advisory function.

Internal organisation Regional presence Most of the programmes are carried out by Hivos staff in the various regions. The opening of two new regional offices in Kenya and Bolivia irrevocably shifted the balance from ‘The Hague’ in the Netherlands to the regions. That development took shape as a gradual process. Since the late-1980s, Hivos has delegated the responsibility for implementing many of its programmes in the South to the regional offices. The local presence allows communications with partners to run more smoothly and ensures that information about the local context is more complete as well as becoming available sooner. Staff members come from the regions in question, which eliminates the risk of language problems. As a consequence, we have the flexibility to respond properly to changing circumstances. The six regional offices, whose spheres of operations are Southern Africa, East Africa, India, Indonesia & Timor Leste, South America and Central America & Cuba, were responsible for 74 percent of expenditures in 2011.

Hivos’s presence on the ground has been increased in recent years, with the appointment of representatives at the national level. In 2011, Hivos had offices in Ecuador, Guatemala, Nicaragua, Tanzania, Timor Leste and South Africa. The offices in Mozambique and Zambia were closed. Most of these country offices have been established to carry out and manage large scale Hivos programmes that are mainly financed by institutional donors. In 2012, a decision will be made about whether or not to appoint local representatives in West Asia.

Head office The head office in The Hague deals mainly with policy development, quality control, ICT, policy advocacy (through campaigns) and knowledge and learning. Programme management from the head office now only concerns the global partners and the Western Asia region. This development reflects the increasing emphasis on programmes implemented directly by Hivos and on the input of partners and others involved in our policies.

Moving closer to our partners serves to give that input more substance and to increase effectiveness. Last year Hivos put a great deal of effort into counteracting the possible disadvantages of drastic decentralisation, for example risks to the uniformity of policy, internal culture and communications. The introduction of an integrated financial and project accounting system was an important step in this process. In 2012, we will continue to increase the intensity of our internal communications, while giving further shape to the second phase of our organisation-wide training programme (the Hivos Academy).

Thematic specialisation and local presence are characteristic of Hivos’s organisational structure. Since 2005, the organisation has been structured according to thematic lines. The considerable investments in knowledge activities have resulted in five specific knowledge programmes relating to Hivos’s principal themes. In 2011, the focus shifted to increasing specialisation by concentrating on four programmes, which are headed up by heads of programmes (formerly the heads of bureaus). Content-wise, the senior advisors, who are also based at the head office, fulfil an important role in the areas of knowledge management, programme development and the development of networks within those programmes.

Bureaus and departments The day-to-day management of Hivos is conducted by the Board of Directors. Management also comprises the four heads of programme and the head of the Audit and Evaluation bureau. The six directors of the regional offices are also part of management, albeit at a distance. The programmes are coordinated and implemented by four bureaus: Sustainable Economic Development; Democratisation, Rights, AIDS and Gender; Culture, ICT and Media; and External Relations. The bureau of Audit and Evaluation is responsible for monitoring that project funds are spent correctly and for monitoring the

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reliability of the accounting and financial organisation as a whole. Hivos also has bureaus that are responsible for various specialist areas that are not linked to the themes. Besides implementing the Action for Change programme, External Relations is also responsible for external communications and fundraising. The Audit and Evaluation bureau gathers expertise in fields such as quality control, results measurement, monitoring and programme evaluation. The Office for Donor Relations (ODR) is responsible for access to institutional funds.

ODR assists the bureaus and regional offices in their international fundraising efforts. The Financial Accounting and ICT departments are responsible for operations at the head office and for supporting the processes at the regional offices.

The ICT department acts as the system administrator for business-wide processes, for example project accounting and maintaining connections between the head office and the regional offices. Hivos’s human resources policy is the responsibility of the Human Resources department.

Personnel and organisation The decentralisation process has had a visible impact on the workforce. In 2011, Hivos had a total of 315 employees (2010: 256), of whom 112 were based at the head office in The Hague (2010: 127) and 203 worked in the regions (2010: 129); 11 of them worked at the local offices as expatriates. Last year, all employees working on major direct programmes were included in this number for the first time.

In total, the workforce represented 287 full-time equivalents, of which 96 FTEs were based at the head office and 191 in the regions, compared with a total of 245 FTEs in 2010.

Staff members at the regional and local offices – not including the expatriates – are employed based on local terms of employment, and come from the respective regions.

The positions of expatriates are governed by the Expatriates (Legal Position) Regulations 2010 (Rechtspositieregeling Expatriates 2010).

Hivos’s mission and its humanist foundations determine the general direction of the Foundation’s human resources policy, which is based on the following principles: — Justice: equal treatment and equal opportunities, with space for tailor-made solutions; respect for individuals; — Legal certainty: clarity about the rights and obligations of employees and about the requirements and opportunities with Hivos; — Openness and clarity in communications; — Individual responsibility of employees (and management) for the results; — Space for initiative and creativity.

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8. Annual Accounts 2011 and Independent Auditor’s Report 1. Financial management report 2. Balance sheet as at 31 December 2011 3. Statement of income and expense for the year

ended 31 December 2011 4. Cash flow statement for the year

ended 31 December 2011 5. Accounting principles 6. Notes to the balance sheet as at 31 December 2011 7. List of programme funds for 2011 8. Notes to the allocation of expense for 2011 9. Notes to the results for 2011 10. Remuneration of the Board of Directors

46 48 50

Independent auditor’s report

62

52 53 55 57 58 59 61

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Hivos Annual Report 2011

1. Financial management report

The prediction that 2011 would not be an easy year came about. The significant cuts in the co-financing grant (more than 20% compared with 2010) had consequences principally for the partners in the South. It also had clear repercussions within the Hivos organisation; we found ourselves ending the year with a deficit and we were forced to lay off a number of colleagues.

The launch of two new regional offices diverted programme management from the Netherlands and was a well-considered investment in Hivos’s financial sustainability for the future.

It did, however, place a heavy burden on the organisation’s implementation capacity during the first six months of 2011.

Despite these developments, the efforts to mobilise resources for the programmes of Hivos and its partners were continued with added intensity, which resulted in a large number of new commitments from donors. In 2011, 50% of the organisation’s income came from other sources than the co-financing grant.

As such, Hivos is on track to achieving one of the financial targets of the business plan Citizens in Action (2011-2015), although this cannot be said for the financial target of reinforcing the organisation’s equity. As the financial year closed with a deficit, there was less disposable income.

However, this decrease was largely foreseen and Hivos’s Board of Directors and the Supervisory Board felt that it was justified on grounds of good employment. Much of the deficit was caused by the non-recurring expenses as a result of the decentralisation the budget cuts and related layoffs.

Following a sharp decline in 2010, income rose by 33% in 2011, slightly exceeding the projections. The increase compared with 2010 was caused by, among other factors, the start of the MFS-2 co-financing programme. The budget allowed some space for renewal of our programmes.

Following a cautious start, caused by the protracted uncertainty about the final amount of the cuts, that renewal came about during the last six months of 2011, with new contracts with new partners and initiatives.

Besides MFS-2, the largest grant in 2011 came from the Global Fund to Fight AIDS, Tuberculosis and Malaria.

We were awarded a grant of over EUR 16 million for our AIDS programme in Guatemala, with an option for renewal after three years. In Indonesia, too, the Global Fund was willing to finance our regional AIDS programme.

In Zimbabwe, Hivos received additional funding for a large

agricultural programme (Zimbabwe Agriculture Development Trust), which indicates that the donors are aware of this programme’s potential.

Results and reserves After appropriation, a loss of 399 thousand euros was recorded. As explained above, the deficit was not unforeseen, though it was higher than budgeted. The principal reason for the deficit in 2011 lies in the high non-recurring expenses relating to layoffs of staff charged with managing the MFS programme. In the Netherlands, the effects of the cuts were magnified by the decentralisation and the transfer of the programme management to the two new regional offices. The fact that the deficit was higher than budgeted stems chiefly from the substantial difficulties of obtaining a fair fee for the costs of programme development and management. Although we succeeded in mobilising additional finances for our partners and projects, we were less successful in realising a corresponding increase to cover costs. International donors are not always inclined to contribute to overheads, even though they profit from the knowledge and expertise that Hivos (and other organisations) have acquired.

The business plan Citizens in Action (2011-2015) sets out the goal of increasing the Foundation’s disposable equity to 60% of the operating costs. It is uncertain whether that goal is achievable. The Foundation’s disposable equity dropped in 2011, and a deficit is also projected for 2012.

Hivos has decided to no longer retain (and where possible increase) its equity purely for financing a redundancy programme if necessary, but instead to use it specifically to improve the Foundation’s position on the international market and as such to support the organisation’s financial sustainability. This will be given shape by using additional funds for programme development, even if no concrete financier has been found. This ensures that Hivos retains the initiative and will be in a better position to respond to the opportunities offered by partners and donors.

The reserves underwent a slight reshuffling. Since the guidelines of the Netherlands’ Central Bureau on Fundraising (CBF) only permit the Foundation to have appropriated reserves, it was decided to add the general reserve to the appropriated reserve for business operations. The appropriated reserve for programme

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management is linked to existing commitments in respect of partners and projects, and is earmarked for financing management activities. In 2012, Hivos will revise the system designed to supplement that reserve to ensure that it more closely reflects the entire rhythm of project cycle and project management. This will have an impact on the volume. The programme management reserve is currently included in the calculation of the goal, described above, of increasing the Foundation’s disposable equity to 60% of its annual operating costs. Considering the developments on the international market, the revision of the system and the restrictions attached to many grants, Hivos has decided to redefine its goal for the targeted disposable equity in 2012.

However, the guideline of the Dutch Association of Fundraising Organisations, VFI, for ‘reserves of charities’ will remain the deciding factor for the maximum continuity reserve. At present Hivos is well below that maximum.

Hivos pursues a conservative investment policy and does not have any portfolio investments, with the exception of a participation in Triodos Bank as part of the financing of HTF and as such of Hivos’s objective.

Risks Until recently, Hivos regarded the requirement in the MFS co-financing system that at least 25% of the Foundation’s budget was to be drawn from other sources than grants from the Dutch government as its greatest risk. This has changed. That requirement still represents a substantial challenge, but it has become part of the organisation’s day-to-day work – work that we have proved capable of doing with a fair degree of success. We feel confident that the measures we have taken, such as decentralisation and investments in programme development, will again prove effective in 2012.

This does not alter the fact that the situation on the international market is not very favourable. The budgets of several of Hivos’s principal donors are under pressure.

That is true of the Dutch government, but also of the Global Fund, for example. As such, there are no guarantees that we will be able to maintain the present level of commitments. However, we believe that by investing in the development of new programmes, for example in the field of transparency & accountability, green energy, sustainable agriculture and improvement of the position of women and girls, and by gathering more in-depth knowledge of what approach works in a particular context we will be able to continue the present level of financing.

As explained above, Hivos’s financial sustainability is under pressure. Although the requirements that are made of Hivos in terms of project supervision and accountability are becoming more detailed and more labour-intensive,

the programme management fees are not adjusted accordingly. As such, we will subject our operating costs to a very critical examination and continue to press for adequate programme management fees.

One of Hivos’s most important assets is its good name.

Damage to the Foundation’s reputation as a result of fraud or corruption represents one of the greatest risks. Hivos began long ago to randomly conduct financial inspections of its own at partners. The intensity of that inspection programme will be raised – not because practice shows that the risk of fraud has increased, but because we prefer to prevent problems rather than solving them once they emerge. The internal financial audits at the regional and country offices will also be conducted with added intensity.

Future Support for development cooperation in the Netherlands is waning – and as a consequence, as matters now appear, the budget for development cooperation is diminishing accordingly. This will undoubtedly affect Hivos’s position: if not immediately, then some years from now. At the international level, too, many governments and affiliated funds are cautious, and it is proving difficult to obtain adequate compensation for Hivos’s efforts. In financial terms the future will be interesting, therefore. The budget for 2012 again shows a deficit, as we have earmarked additional resources to reinforce our starting position on the international market. In addition, in light of the developments at international donors (including the Dutch government), in 2012 we will reassess the system that we use for calculating and maintaining the required continuity funds and appropriated reserves.

But Hivos would not be Hivos if we could not look to the future with a degree of optimism. Not only do we see many opportunities in areas in which Hivos has traditionally been active – transparency & accountability, gender, sustainable agriculture, public common goods – Hivos is also comfortable working together with other actors besides ‘the usual suspects’, for example the business sector and knowledge institutions. Combined with our strong network of partner organisations and our roots in the countries where we work, this means that we will look at the opportunities, not at the threats.

The Hague, April 2012 Manuela Monteiro, Executive Director Ben Witjes, Director of Programmes and Projects

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Hivos Annual Report 2011

2. Balance sheet as at 31 December 2011 After appropriation of the results (amounts x EUR 1,000)

Assets

31-12-2011

Tangible fixed assets 1) Buildings for business operations Furniture and fixtures for business operations Cars for business operations Buildings for objective

503 297 26 50

Tangible fixed assets Intangible fixed assets 1) Software for business operations

1,072

Total

1)

Itemised in Chapter 6: Notes to the balance sheet

929

18,769 3,000 22,273

25,958 6,155 31,931

Claims, prepayments and accrued income

Cash at bank and in hand

929

19,273 3,000

Prepayments and accrued income

Cash at bank and in hand 1) Cash at bank and in hand

1,011

1,072

Financial fixed assets Claims, prepayments and accrued income Claims for grants Government, co-financing EU funds Other funds

549 410 0 52 876

Intangible fixed assets Financial fixed assets 1) Reserved cash Participations/subordinated loans

31-12-2010

21,769

34,041 6,998 40,371 64,044

81,410

4,390

2,276

68,434

83,686

37,763

18,646 37,763

18,646

130,418

126,041

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Hivos Annual Report 2011

2. Balance sheet as at 31 December 2011 After appropriation of the results (amounts x EUR 1,000)

Liabilities Reserves and funds 1) Reserves Appropriated reserve, business operations Appropriated reserve, programme management Reserve for translation differences Other reserves: General reserve

31-12-2011

31-12-2010

2,611 4,461 185

980 4,146 296 2,480 7,257

Funds Appropriated fund, Private Funds Appropriated fund, Riek Stienstra Fund Appropriated fund, Nat. Postcode Lottery Appropriated fund, Stop Aids Now! Appropriated fund, Refunds + Interest Appropriated fund, Currency valuation

1,308 27 120 200 3,152 596

Reserves and Funds Long-term liabilities General loan fund Participation in North-South Plan Guarantees issued

7,902 461 15 12 1,602 370

5,403

2,460

12,660

10,362

85 722 22,398

85 725 20,759 23,205

Long-term project liabilities Government, co-financing EU projects Other projects

16,722 5,678 38,717 Long-term liabilities

Current liabilities Current project liabilities Government, co-financing EU projects Other projects

Current liabilities Total

1)

7,331 2,984 30,528 61,117

40,843

84,322

62,412

9,219 1,979 17,397

Taxes and pension premiums payable Accruals and deferred income

Itemised in Chapter 6: Notes to the balance sheet

21,569

22,834 4,386 21,604 28,595

48,824

168 4,673

341 4,102

33,436

53,267

130,418

126,041

50

Hivos Annual Report 2011

3. Statement of income and expense for the year ended 31 December 2011 amounts x EUR 1,000

Income Income from direct fundraising Donations and gifts Legacies Climate fund CO2 compensation Income from direct fundraising

B

Income from third-party campaigns Grants from governments of which MFS-2 grant of Alliance partners Other income Total income

D

Actual 2011

Budget 2011

Actual 2010

Budget 2012

1,048 169 299 1,516

1,250

1,250

1,250

1,292 42 61 1,395

1,250

5,866

7,250

4,022

7,250

91,043 3,410

86,331 3,410

68,344

83,910 3,605

1,243

800

1,439

800

99,668

95,631

75,200

93,210

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Hivos Annual Report 2011

3. Statement of income and expense for the year ended 31 December 2011 amounts x EUR 1,000

Expense Spent on objectives/Programmes (new commitments) Green Entrepreneurship (2010: Access to Opportunities) Rights & Citizenship (2010: Civil Choices) Expression & Engagement (2010: Civil Voices) Action for Change (2010: Public Support and Policy Advocacy) MFS-2 programmes of Alliance partners Non-allocated programme expenses Total expenditure on objectives Costs spent on objective as a % of total income (= C / D) Costs spent on objective as a % of total costs (= C / F)

Actual 2011

Budget 2011

Actual 2010

Budget 2012

30,869 46,531 8,189 4,664 3,410

34,190 33,272 17,517 5,198 3,410

24,792 35,243 9,729 3,621

33,000 32,000 19,970 2,000 3,605

318 C

93,663 94,0% 96,2%

93,587 97,9% 97,1%

73,703 98,0% 96,1%

90,575 97,2% 97,0%

A

313 20,6%

272 21,8%

302 21,6%

272 21,8%

Costs of third-party campaigns Costs of obtaining government grants

99 1,513

114 749

52 891

114 749

Total costs of generating income

1,925

1,135

1,245

1,135

1,782 1,8%

1,659 1,7%

1,711 2,2%

1,700 1,8%

97,370

96,381

76,659

93,410

2,298

(750)

(1,459)

(200)

450

2,760 40

Spent on generating income Costs of direct fundraising Direct fundraising: costs as a % of income (= A / B)

Management and accounting costs

E

Management and accounting costs as a % of total income (= E / F)

Total costs

Results before appropriation

F

Added to/withdrawn from: – Other reserves: general reserve – Appropriated reserve for business operations – Appropriated reserve for programme management – Appropriated reserve for business operations – Appropriated reserve for translation differences – Appropriated funds for Programmes

2,480 (2,480) (315) 450 111 (2,943)

Total addition/withdrawal

(2,697)

450

1,531

0

Results after appropriation

(399)

(300)

72

(200)

(1,269)

52

Hivos Annual Report 2011

4. Cash flow statement for the year ended 31 December 2011 amounts x EUR 1,000

Using the indirect method Cash flow from operating activities Results before appropriation Movements in reserves and funds Amortisation and depreciation Movements in claims for grants Movements in other claims Movements in long-term liabilities Movements in long-term and current project liabilities Movements in current liabilities

2011

2,298

20,073

(70) (382) (504)

Cash flow from investing activities Cash flow from financing activities Income from long-term liabilities Repaid on long-term liabilities

(258) (673) (239)

0 0

Movements in cash at bank and in hand

Movements in cash at bank and in hand

2,421

(956)

Cash flow from financing activities

Recapitulation Cash at bank and in hand at end of financial year Cash at bank and in hand at start of financial year

(1,459) 211 236 28,568 (730) 1,245 (26,029) 379

444 17,366 (2,114) 1,636 45 398

Cash flow from operating activities Cash flow from investing activities Additions to tangible fixed assets Additions to intangible fixed assets Additions to financial fixed assets

2010

(1,170)

0 0 0

0

19,117

1,251

37,763 18,646

18,646 17,395 19,117

1,251

53

Hivos Annual Report 2011

5. Accounting principles

These are the annual accounts of the Hivos foundation in The Hague. The annual accounts have been prepared in accordance with the Guidelines for Reporting by Fundraising Institutions and with due observance of the Financial Regulations for the MFS co-financing system of the Ministry of Foreign Affairs/ Development Cooperation.

The annual accounts have been compiled to reflect the appropriation of the results. All amounts in the explanatory notes are denominated in euros, unless stated otherwise. The principles have remained unchanged since the previous financial year. In these annual accounts, the balance sheets and statements of income and expenses of the Hivos offices in Zimbabwe, India, Indonesia, Costa Rica, Kenya, Bolivia and South Africa have been consolidated with the annual accounts of the Hivos head office in The Hague. The Hivos Board of Directors has full control over all those offices.

1. Objective of the Hivos Foundation and nature of the business operations The foundation’s objective according to its Statutory Articles is to provide aid, in the broadest sense of the word, to developing countries, based on humanist principles.

2. Principles for the valuation and presentation of assets and liabilities Projects approved during the reporting year are presented as costs. The related grants, including the remuneration for programme management, are presented as income. Allowance not yet realised for programme management is recorded under the appropriated reserve for programme management.

Any part of the programme income that has not yet been spent is added to the appropriated reserve for programme funds.

Tangible fixed assets: Land and buildings are stated at acquisition price plus additional costs or replacement value less straight-line depreciation over the estimated future useful life.

Any impairments that are projected on the balance sheet date are taken into account.

No provision for major repairs has been formed for the future costs of major repairs to the buildings. The costs are taken directly to the results.

Other fixed assets are presented at acquisition or manufacturing price including any directly attributable costs, less straight-line depreciation over the estimated future useful life and impairments.

Intangible fixed assets have been stated at acquisition price less amortisation. Impairments are taken into account.

Financial fixed assets: Reserved cash is cash used as security for liabilities, as required by the Ministry of Foreign Affairs/ Development Cooperation’s guidelines for loans and guarantees.

Participations in and subordinated loans granted to partner organisations are valued at 1 euro.

Claims for grants are claims on governments and other entities arising from liabilities that the Foundation has entered into based on agreements to that effect as part of its programme; they include the related remuneration for programme management.

Claims, upon initial recognition, are presented at the fair value of the consideration and denominated in euros. Allowances for bad debts are deducted from the claim’s book value.

Cash at bank and in hand is presented at face value and denominated in euros. Assets denominated in foreign currencies have been translated at the exchange rates prevailing on the balance sheet date. Exchange rate differences have been accounted for in the statement of income and expense.

Provisions are formed for liabilities and risks related to the business operations. They do not pertain to specific assets.

Long-term liabilities, upon initial recognition, are presented at fair value and denominated in euros.

Liabilities denominated in foreign currencies have been translated at the last-available exchange rates on the balance sheet date. Exchange rate differences have been accounted for in the statement of income and expense.

Project liabilities are all liabilities that the Foundation has under financing agreements concluded with partner organisations.

3. Principles for determination and presentation of the results Income and expense are presented in the statement of income and expense and allocated to the period to which they pertain.

This allocation is based on consistent practices. The balance sheet is compiled with due consideration of the amounts that pertain to a particular period but were received or paid during another period. Losses are presented as soon as they are foreseeable; income is presented once it has been realised.

54

Hivos Annual Report 2011

Legacies are presented in the year in which their amount can reliably be determined.

Grant income, including the allowance for programme management, is accounted for in the year in which the claim becomes definite.

Adjusted grant amounts are deducted from the grant income during the year in which the grant awarded changes.

New project liabilities are accounted for in the year in which the liability becomes definite.

All costs, with the exception of extraordinary costs, are allocated to various cost categories, based on business criteria and with due observance of the relevant Guidelines of the Dutch Association of Fundraising Organisations, VFI: spent on objectives / generating income / management and accounting costs.

Wages, salaries and social security charges are presented in the statement of income and expense in accordance with the terms of employment, insofar as they are payable to employees.

4. Principles for the compilation of the cash flow statement The cash flow statement has been compiled according to the indirect method. The cash resources in the cash flow statement comprise cash at bank and in hand. Cash flows denominated in foreign currencies have been translated at an average exchange rate. Income and expense relating to interest have been presented in the cash flow from operating activities.

Transactions that do not involve incoming or outgoing cash flows are not included in the cash flow statement.

55

Hivos Annual Report 2011

6. Notes to the balance sheet as at 31 December 2011 amounts x EUR 1,000

Assets Tangible and intangible fixed assets The accumulated acquisition prices of and amortisation and depreciation on the fixed assets as at 31 December are as follows: acquisition price 31.12.2010

disposals

acquisition price after

accummulated amortisation and deprec.

2011

disposals

31.12.2010

disposals

accummulated amortisation and deprec.

book value

additions

amortisation and depreciation

book value

2011

after disp.

1.1.2011

2011

2011

31.12.2011

Tangible fixed assets for business operations buildings (10-50 yrs) 1) furniture and fittings (3-10 yrs) cars (5 yrs) Tangible fixed assets for objective building in Harare (50 yrs) 2) Subtotal: tangible fixed assets Intangible fixed assets for business operations software (4 yrs)

Total fixed assets

1,086 3,309 65

(2,173)

106 4,566

(2,173)

946 5,512

(2,173)

1,086 1,136 65

537 2,899 65

106

54

2,393

3,555

946

17

3,339

3,572

(2,173)

(2,173)

(2,173)

537 726 65

549 410

46 157

503 297 26

54

52

2

50

1,382

1,011

70

205

876

17

929

382

239

1,072

1,399

1,940

452

444

1,948

44 26

1) The office premises with land and gardens in The Hague, at Raamweg 15 and 16, listed in the Land Register as Municipality of The Hague, section X, number 472, 5 ares and 55 centiares in size, and number 522, 5 ares and 55 centiares in size, were purchased for EUR 635,292 in 1987. The value for purposes of the Dutch Valuation of Immovable Property Act (Wet waardering onroerend zaken) in 2011 was EUR 1,475,000.

2) The office premises in Harare, stand 2956, Salisbury Township, 2855 centiares in size, was purchased for EUR 76,245 at the end of 1994. Any book profit realised on the sale of these office premises will accrue to the Southern Africa programme, whereas a loss will be charged to the Foundation.

Financial fixed assets Reserved cash Hivos’s bank accounts, North-South Plan Deposit & guarantee for Hivos’s bank accounts

2011 945 18,328

2010 937 17,832

Total reserved cash

19,273

18,769

These funds serve to cover the deposit for the Hivos Triodos Fund (HTF) and the guarantee provided to Stichting Triodos Sustainable Trade Fund (TSTF).

Participations/subordinated loans

3,000

3,000

The subordinated loans total EUR 15,185,448 and were provided to Hivos Triodos Fund (HTF) for the purpose of financing HTF participations in local credit institutions in the South. The value of the loans has been set at EUR 1. The current value of the participations to which the subordinated loans are linked is EUR 33,349,171.

The participations can be broken down as follows: 1) Triodos Bank NV, 43,817 depositary receipts of shares with a purchase value of EUR 2,999,932. The net asset value of these

depositary receipts as at 31/12/2011 was EUR 3,242,458.

Cash at bank and in hand: Cash at bank and in hand is at the Foundation’s disposal.

56

Hivos Annual Report 2011

Liabilities Reserves The reserves serve to guarantee the continuity of the business operations in the short and medium term.

Appropriated reserve for bus. operations

Balance at 1 January 2011

980

Appropriated reserve progr. management

Appr. reserve for translation differences *)

Other reserves: general reserve

Total reserves

4,146

296

2,480

7,902

2,4803) -2,480

10,330 10,975 -645

Added Withdrawn Total movements 2011:

2,480 849 1,631

7,850 1) 7,535 2) 315

111 -111

Balance at 31 December 2011

2,611

4,461

185

0

7,257

*)

The Hivos offices abroad use local currencies. For consolidation into the Hivos annual accounts, which are denominated in euros, the 2010 and 2011 end-of-year exchange rates have been used for the balance sheet. The average exchange rate for 2011 has been used for the statement of income and expense.

The resulting differences are settled in the reserve for translation differences.

1) Approved programme management fee (related to commitments in 2011) 2) Realised programme management fee (related to cash expenditure in 2011) 3) Balance as at 1/1/2011 added to the appropriated reserve for business operations 31-12-2011

Appropriated reserve for business operations Continuity reserve for business operations Maintenance to buildings Implementation of business plan for 2011-2015 ICT

Education (Hivos Academy) Balance at 31 December 2011

2,081

Added from results

Withdrawn and added to results

2,480 1)

110 0 200 220

2,611

399 2) 450

2,480

01-01-2011

849

110 450 200 220

980

1) Transfer of balance as at 1/1/2011 Other reserves: general reserves 2) Consolidated results for 2011 after appropriation

Funds Programme funds

Income category

Direct fundraising Riek Stienstra Fund National Postcode Lottery (NPL) Stop Aids Now! (SAN!) Refunds and interest Currency revaluation

direct fundraising direct fundraising third-party campaigns third-party campaigns government grants all categories

Balance at 31 December 2011

31-12-11

Added

1)

1,308 27 120 200 3,152 596

913 12 1,328 7953) 1,395 226

5,403

4,669

Withdrawn 2)

66 1,208 607 -155

1,726

01-01-11

461 15 12 1,602 370

2,460

1) Additions are the income for 2011 2) Withdrawals are the new programme commitments for 2011 3) Reflects the 900,000 regular NPL contribution for 2011 plus 428,000 outstanding from the regular NPL contribution for 2010

Other Information: Pension charges: Stichting Hivos of The Hague is affiliated with the PFZW pension fund. This pension scheme can be qualified as a defined benefit scheme. Pursuant to Article 310 of RJ Guideline 271, this scheme may be presented as a defined contribution scheme, meaning that only the pension charges need be presented in the statement of income and expense.

Commitments and contingencies not included on the face of the balance sheet: The following long-term rental obligations have been entered into: – Raamweg 17, ground floor and 1st floor. Lessor: Van Rossum, beleggingsmakelaardij & bedrijfsvoering.

The rental obligation until 31/12/2015 is EUR 61,015.44 (price level for 2012).

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Hivos Annual Report 2011

7. List of programme funds for 2011 amounts x EUR 1,000

Programme funds: movements in claims for grants

Total funds

Co-financing Ministry of Foreign Affairs

European Union

Other funds

Claims for grants Balance as at 1 January 2011

81,410

34,041

6,998

40,371

Movements in project liabilities for 2011 Programme management fee for 2011 Add: claims for grants in 2011

84,059 7,850 91,909

42,366 5,236 47,602

3,795 272 4,067

37,898 2,342 40,240

109,559

55,685

4,910

48,964

Less: grants received in 2011 Movements in currency valuation at 31/12/2011 Reconciliation up to year-end 2011

Balance as at 31 December 2011

Programme funds: movements in project liabilities

Project liabilities Balance as at 1 January 2011 Add: movements in project liabilities for 2010 Less: transferred for projects in 2011 Movements in currency valuation at 31/12/2011 Reconciliation up to year-end 2011

Balance as at 31 December 2011

268 16

64,044

Total funds

268 16

25,958

Co-financing Ministry of Foreign Affairs

6,155

European Union

31,931

Other funds

89,667

30,165

7,370

52,132

84,059

42,366

3,795

37,898

84,781

46,858

3,508

34,415

767 0

268

89,712

25,941

767 (268)

7,657

56,114

58

Hivos Annual Report 2011

8. Notes to the allocation of expense for 2011 amounts x EUR 1,000

Appropriation

Objective

Expense

Green entrepreneurship

Grants and contributions Publ. and communication

26,772

Income raised

Rights & Expression Action for Citizenship & Change Engagement

41,882

6,068

3,499

MFS-2 Alliance partners

3,410

Total

Direct fundraising

Thirdparty campaigns

Government grants

Total income raised

Total 2011

Budget 2011

Total 2010

81,631

78,178

62,543

Total mngt. & account.

81,631

194

188

97

29

508

137

2,865

3,453

1,508

981

8,807

138

Costs of housing

166

161

83

25

435

8

3

39

50

71

556

604

533

Office and general expenses

758

737

377

113

1,985

21

11

165

197

547

2,729

2,292

2,128

Employee costs

137 82

1,265

1,485

1,073

645

600

596

11,365

10,847

10,623

Amortisation, depreciation and interest Operating costs

Totals

114

110

56

17

297

9

3

44

56

91

444

450

236

4,097

4,649

2,121

1,165

12,032

313

99

1,513

1,925

1,782

15,739

14,793

14,116

30,869

46,531

8,189

4,664

93,663

313

99

1,513

1,925

1,782

97,370

92,971

76,659

3,410

59

Hivos Annual Report 2011

9. Notes to the results for 2011

Budgeted versus actual results Income The income available for Hivos’ objective in 2011 totalled EUR 99.7 million, where EUR 95.6 million had been budgeted. The additional income came primarily from grants from national and multilateral governments; income from third-party campaigns fell short of projections. The largest grant besides the MFS co-financing grant came from the Global Fund to Fight AIDS, Tuberculosis, and Malaria, for a three-to-five-year programme in Guatemala (more than EUR 16 million).

Although the long-term trend indicates otherwise, a relatively high income was realised in Latin America in 2011. Besides the financing for its anti-HIV/AIDS programme in Guatemala, in Nicaragua and Bolivia Hivos also succeeded in obtaining follow-up financing for two major programmes aimed at improving the position of women.

In Zimbabwe, additional income was realised for an agricultural programme that was developed in partnership with SNV. The programme’s potential led DFID and Danida to increase their original commitments.

As lead member of the ‘People Unlimited 4.1’ Hivos Alliance, Hivos realised EUR 3.4 million in income for the other members of the Alliance (Free Press Unlimited, Mama Cash and IUCN NL). All that income was passed on to the Alliance members.

Expense Expenditure related to Hivos’s objective totalled EUR 93.7 million in 2011 (including the contribution for the Hivos Alliance members). This means that expenditure related to the Foundation’s objective came to 94% of the total income and 96% of the total expense.

The percentage spent on the Foundation’s objective compared with the total income was slightly lower than budgeted.

Unspent income has been allocated to programme funds and will be spent in 2012.

Expenditure on programmes shows relatively large deviations from the budget. The budget is based on the business plan.

Although the proportions within the ‘working supply’ of proposals at institutional funds more or less matches that business plan, it is difficult to predict what proposals will be

successful and when. As a consequence, relatively major fluctuations also appear from one year to the next in the amounts of total income and expense.

Costs of direct fundraising came to EUR 313,000. Although this amount is higher than had been budgeted, because income was also higher than budgeted, as a percentage of income the costs remained slightly below budget (20.6%). Despite the relative success, the costs of direct fundraising are an important area of concern for Hivos. The relatively low volume of funds means that any minor change will immediately impact the ratio between expense and income.

The costs of direct fundraising are composed as follows: the full employee costs for the staff responsible for direct fundraising (2.1 FTEs) plus a mark-up per FTE for material costs (accommodation, office supplies, ICT). The mark-up is calculated by translating the total of the relevant material costs to Hivos’s total employee costs. The costs of mailing campaigns and other promotional material are also allocated to this item.

Costs of fundraising on the international market are showing a marked increase. This is a necessary development and reflects the growing share of those funds in Hivos’s total income.

Nevertheless, the increasing costs of international fundraising mean more pressure on programme management, since the market for international funds takes little, if any, account of costs of fundraising, meaning that those costs must be funded from the programme management. The costs of international fundraising are allocated as follows: the full employee costs of the Office for Donor Relations, 25% of the costs for the heads of programmes, directors of regional offices and senior advisers and 5% of the costs for other programme staff.

Hivos’s management and accounting costs are low compared with other major charity organisations. This is partly thanks to the Foundation’s own efforts, but is also caused by the fact that Hivos passes on most of its income to organisations in the South.

The management and accounting costs are allocated in accordance with the guidelines of the Dutch Association of Fundraising Organisations (VFI). The employee costs for the Executive Director and the management support staff, for quality and control and for the Finance department are allocated to the management and accounting in their entirety.

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Hivos Annual Report 2011

The proportion of these positions in the overall workforce at the head office is used to allocate employee costs for the Human Resources department. The costs of the ICT and Facility Management department are allocated based on the number of jobs.

Financial results On balance, the Foundation realised a positive result of EUR 2.3 million before appropriation in 2011. After appropriation, a loss of EUR 399,000 remains, which will be taken to the appropriated reserve for business operations.

The positive result before appropriation derives from the fact that a portion of the income was not immediately transformed into commitments towards partners and projects, partly because the income was only realised late in the year and partly in order to compensate the budgeted drop in co-financing resources in 2012. In total, EUR 2.9 million was added to the appropriated fund for programmes. The financial resources in that appropriated fund may only be used for financing partners and projects. A further addition of EUR 315,000 was made to the appropriated reserve for programme management. Those resources are earmarked for covering the implementation costs arising from liabilities that were entered into in 2011 but will be paid later. The allocations are partially balanced by a EUR 450,000 withdrawal from the appropriated reserve for business operations and a EUR 111,000 withdrawal from the appropriated reserve for translation differences. The purpose of the appropriated reserve for translation differences is to compensate for fluctuations resulting from the circumstance that more and more of Hivos’s implementation costs are incurred in other currencies that the euro. The withdrawal from the appropriated reserve for business operations had been budgeted and was intended as cover for the additional costs relating to the decentralisation (in particular staff layoffs in the Netherlands).

In accordance with the Guidelines of the Dutch Central Bureau on Fundraising, which only permit appropriated reserves, the general reserve has been combined with the appropriated reserve for business operations.

Allocation of expense The table entitled ‘Notes to the allocation of the expense’ shows a slight increase in the grants and contributions (financial resources made available to partner organisations) compared with the budget. This reflects the higher income realised in 2011. The increase compared with 2010 is substantial: a result of Hivos’s hesitance in 2010 to enter into new commitments, particularly in light of the uncertainty surrounding the MFS-2 co-financing grant.

The operating costs are also higher than budgeted. The principal items are employee costs and office and general expenses. The increase is caused by two developments. More than before, Hivos now also implements projects of its own, for which it is forced to take on employees or temporary workers. Examples include the AIDS programmes in Guatemala and Bolivia that are financed by the Global Fund, where Hivos is also involved in the logistics; the biogas programme in Indonesia; and the Stop Child Labour campaign, which is carried out directly by Hivos. In addition, the increased diversity of financing also results in more programme staff – although diversification is positive in terms of financial sustainability, as matters stand it has not yet benefited the Foundation’s efficiency. The increase is visible primarily at the regional offices and country offices. Staff increases automatically result in higher general office and general expenses.

Worldwide, Hivos grew from 256 to 315 employees in 2011, as a result of a somewhat erratic trend. The first six months of the year saw a decrease in response to the cuts in the MFS co-financing programme and the forthcoming transfer of duties to two new regional offices, followed by an increase during the last six months of the year as a result of the launch of two new regional offices and the launch, near the end of the year, of several new programmes, including at the offices in Indonesia and Zimbabwe. Over 60% of the workforce operates at the regional and country offices, where they are responsible for programme management (selecting and monitoring partner organisations) and programme development. The responsibilities of the head office staff in The Hague include programme and policy development, programme management for Western Asia, central services such as finance, ICT and quality systems and the implementation of the Action for Change programme in the Netherlands.

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Hivos Annual Report 2011

10. Remuneration of the Board of Directors

The Supervisory Board determines the remuneration policy, the amount of the remuneration of the Board of Directors and the amounts of other elements of remuneration. At the request of the Remuneration Committee, this package was once more confirmed in 2011. It relies on the VFI Advisory Regulations for the Remuneration of Directors of Charities, which uses weight criteria to define maximum standards for annual incomes. This means that the remuneration policy and the amount of the remuneration of the Board of Directors fall within the scope defined in the guidelines of the Wijffels Code and within the standard defined by the Dutch Ministry of Foreign Affairs for MFS co-financing organisations. The latter compliance is examined separately by the auditor as part of the MFS report. The relevant actual annual incomes of the Board of Directors for 2011 were

EUR 108,314 (1 FTE/12 months) for the Executive Director Ms. M. Monteiro and EUR 74,677 (1 FTE/12 months) for the Director of Programmes and Projects Mr B. Witjes.

The BSD scores, as it is commonly known (the scores for weight criteria based on the VFI Advisory Regulations as they applied in 2010) were 443.7 and 408 points, respectively.

These remunerations remained below the relevant ceilings (Wijffels Code, VFI, MFS organisations).

The policy is updated periodically. The package was evaluated by the Remuneration Committee during 2011.

The results of that evaluation will be presented to the Supervisory Board in 2012. The Supervisory Board will base its decision on the VFI Advisory Regulations for the Remuneration of Directors of Charities.

The amounts and composition of the remuneration is shown in the table below.

M.M. Monteiro Executive Director

B. Witjes Director of Programmes and Projects

Employment

Nature (duration) hours part-time percentage

permanent

permanent

38

36

105.56%

100.00%

1/1-31/12

1/1-31/12

gross wages/salary

100,105

68,960

holiday allowance

8,008

5,517

–

–

200

200

period Remuneration (in EUR)

Annual income

end-of-year bonus, 13th/14th month variable annual income Total Social security charges (employer’s contribution) Taxable allowances/additions Pension charges (employer’s contribution)

108,314 *

74,677 *

4,994

7,291

–

–

15,196

9,954 1)

Other future remuneration

–

840

End-of-employment payments

–

–

Total remuneration for 2011

128,503

92,762

Total remuneration for 2010

133,389

24,664 2)

* ) Relevant to the DG-norm Ministry of Foreign Affairs.

1) Reservation for sabbatical leave 2) October-December 2010.

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Hivos Annual Report 2011

Independent auditor's report To: the Managing Board of Hivos Foundation

We have audited the accompanying financial statements 2011 of Hivos Foundation, The Hague, which comprise the balance sheet as at 31 December 2011, the statement of income and expenditure for the year then ended and the notes, comprising a summary of accounting policies and other explanatory information.

Managing board’s responsibility The managing board is responsible for the preparation and fair presentation of these financial statements in accordance with the Guideline for annual reporting 650 “Charity organisations” of the Dutch Accounting Standards Board. Furthermore, the management board is responsible for such internal control as it determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. This requires that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the foundation’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the foundation’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the management board, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

PricewaterhouseCoopers Accountants N.V., Thomas R. Malthusstraat 5, 1066 JR Amsterdam, P.O. Box 90357, 1006 BJ Amsterdam, The Netherlands T: +31 (0) 88 792 00 20, F: +31 (0) 88 792 96 40, www.pwc.nl ‘PwC’ is the brand under which PricewaterhouseCoopers Accountants N.V. (Chamber of Commerce 34180285), PricewaterhouseCoopers Belastingadviseurs N.V. (Chamber of Commerce 34180284), PricewaterhouseCoopers Advisory N.V. (Chamber of Commerce 34180287), PricewaterhouseCoopers Compliance Services B.V. (Chamber of Commerce 51414406), PricewaterhouseCoopers B.V. (Chamber of Commerce 34180289) and other companies operate and provide services. These services are governed by General Terms and Conditions (‘algemene voorwaarden’), which include provisions regarding our liability. Purchases by these companies are governed by General Terms and Conditions of Purchase (‘algemene inkoopvoorwaarden’). At www.pwc.nl more detailed information on these companies is available, including these General Terms and Conditions and the General Terms and Conditions of Purchase, which have also been filed at the Amsterdam Chamber of Commerce.

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Hivos Annual Report 2011

Opinion In our opinion, the financial statements give a true and fair view of the financial position of Hivos as at 31 December 2011, and of its result for the year then ended in accordance with the Guideline for annual reporting 650 “Charity organisations� of the Dutch Accounting Standards Board.

Amsterdam, 12 April 2012 PricewaterhouseCoopers Accountants N.V. Original signed by H.A. Wink RA MBA

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Hivos Annual Report 2011

Organisational chart

by 31-12-2011

Board of Directors Executive Director Manuela Monteiro Director of Programmes and Projects Ben Witjes

Review, Evaluation and Control

Sustainable Economic Development

Head of Bureau Jappe Kok

Head of Bureau Carol Gribnau

Financial Accounting

Democratisation, Rights, AIDS and Gender

Financial Controller Frans van den Broek

Office for Donor Relations Coordinator Ria Hulsman

Head of Bureau Tini van Goor

Regional Office South America Director Corina Straatsma

Regional Office Central America Director Dineke van den Oudenalder

Culture, ICT and Media Head of Bureau Loe Schout

Human Resources

External Relations

Coordinator Joyce Kuis

Head of Bureau Mirna Hovius

Regional Office East Africa Director Will Janssen

Regional Office Southern Africa ICT & Facility Coordinator Martin van Eden

Director Margreet van Doodewaard

Regional Office Southeast Asia Director Jan Jaap Kleinrensink

Regional Office India Director Jamuna Ramakrishna

Ecuador Doris Ortiz

Guatemala Mirjam Musch

Nicaragua Dineke van den Oudenalder

Tanzania Rakesh Rajani

South Africa Jon Campbell

Timor Leste Jan Jaap Kleinrensink

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Hivos Annual Report 2011

Expenditure per country Country

Amount in euros

Africa Africa-wide * Kenya Malawi Mozambique

4,817,408 4,004,639 953,174 451,259

Namibia Regional East Africa South Africa Tanzania Uganda Zambia Zimbabwe Regional Southern Africa *

379,799 6,505,557 1,103,521 3,865,550 2,164,839 620,562 7,045,458 1,751,521

Total

33,663,288

Asia Cambodia India Indonesia Iraq Iran Kyrgyzstan Regional: Asia-wide * Regional: West Asia * Sri Lanka Syria East-Timor

Total Latin America Belize Bolivia Cuba Ecuador El Salvador Guatemala Honduras Regional: Central America * Nicaragua Peru Regional: South America *

113,477 3,618,695 5,806,780 471,158 810,047 191,755 4,328,483 262,763 47,236 274,798 741,045

16,666,238

51,000 4,731,989 356,399 872,521 80,179 5,422,390 585,722 2,580,521 4,586,570 869,133 1,418,829

Total Worldwide * Netherlands

21,555,252 11,694,762 1,200,993

Hivos total

84,780,534

* Including HTF expenses

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Hivos Annual Report 2011

Regional Offices

Local Offices

Regional Office Central America

Latin America Guatemala

Del Centro Comercial Plaza Mayor 320 este, sobre el Boulevard Rohrmoser, Pavas San José, Costa Rica T +506 2231 0848 | +506 296 0706 F +506 2232 2974 hivosro@hivos.or.cr

19 Avenida 0-89 Zona 15 Vista Hermosa II, Guatemala T +502 2369 7776 | +502 2369 7778 F +502 2369 7775 info@hivos.org.gt

Regional Office South America

Ecuador

Calle 12 de Calacoto, No. 10 La Paz, Bolivia T +591 2277 3530 hivosbolivia@hivos.bo

Toledo N 24-660 y Coruña Quito, Ecuador T +593 2 290 0318 | +593 2 290 0110 +593 2 223 4049 | +593 2 290 4581 F +593 2 290 4580 dortiz@hivos.nl or dortiz@hivos.ec

Regional Office Southern Africa 20 Phillips Avenue Belgravia P.O. Box 2227 Harare, Zimbabwe T +263 4 706 704 | +263 4 250 463 +263 4 706 125 F +263 4 791 981 chuma@hivos.co.zw

Regional Office East Africa ACS Plaza, 3rd Floor Lenana Road P.O. Box 19875 00202 Nairobi, Kenia T +254 20 3861 372 / 3 / 4 info@hivos.or.ke

Nicaragua

De la entrada de Residencial Lomas del Valle 1 cuadra al oeste y 20 mts. al norte m/d.

Managua, Nicaragua T +505 2705 761

Africa Tanzania P.O. Box 38266 Dar es Salaam, Tanzania T +255 266 4301 / 4 F +255 266 4308

Regional Office India

South Africa

Flat no. 402, Eden Park No. 20 Vittal Mallya Road Bangalore – 560001, India T +91 80 2221 0514 F +91 80 2227 0367 hivos@hivos-india.org

Postnet Suite 515, Private Bag X113, Melville 2109, Johannesburg, South Africa T +27 11 726 1090 F +27 11 726 5576 info@hivos.co.za

Regional Office Southeast Asia

Asia Timor Leste

Jl. Kemang Selatan XII no1 Jakarta Selatan 12560, Indonesia T +62 21 789 2489 | +62 21 7883 7577 F +62 21 780 8115 hivos@hivos.or.id

Rua Cardoso Dias No.17, Bairro Central, Dili, Timor Leste, Indonesia T +670 443 0030 F +670 331 2578 rdelarosa@hivos.or.id or asantos@hivos.or.id

Colophon Photography: Cover: Hollandse Hoogte Page 08 Gerdien Ten Cate Page 11 Marjolein van Rotterdam Page 12 Ronald de Hommel Page 14 Thomas v. der Osten-Sacken Page 16 Juan Espinoza Page 19 Siebe Anbeek Page 20 Robert Goddyn Page 23 Asa Carlman Page 24 Panos Page 27 Harrie Oppenoorth Page 28 Gerdien Ten Cate Page 31 Peter de Ruiter Page 34 Jeroen van Loon Page 37 Pamberi Trust Page 41 Edwin van Unen The writers of this annual report have tried to establish the rights to the photographs used. If you believe that you can derive any rights from a particular image, please contact us.

Design, layout and production Tangerine Design, Rotterdam Printer Quantes, Rijswijk Hivos – April 2012

Hivos Raamweg 16 P.O.Box 85565 2508 CG The Hague The Netherlands T +31 (0)70 376 55 00 F +31 (0)70 362 46 00 info@hivos.nl www.hivos.nl/en