Aid for Trade at a Glance

Frequency :
Biennial
ISSN :
2223-4411 (online)
ISSN :
2223-4403 (print)
DOI :
10.1787/22234411
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This biennial joint OECD-WTO publication provides a comprehensive analysis of trends and developments in aid that aims to help developing countries integrate into the global economy and benefit from trade opportunities. Case stories and self-assessments by partner countries, bilateral and multilateral donor agencies, providers of South-South co-operation, and regional economic communities provide the basis for this analysis, coupled with OECD aid data and findings from evaluations and econometric studies.

Also available in: French, Spanish
 
Aid for Trade at a Glance 2011

Aid for Trade at a Glance 2011

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Author(s):
OECD, WTO
18 July 2011
Pages :
400
ISBN :
9789264117471 (PDF) ; 9789287037800 (print)
DOI :
10.1787/9789264117471-en

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This joint OECD-WTO publication provides a comprehensive analysis of trends and developments in aid that aims to help developing countries integrate into the global economy and benefit from trade opportunities. Over 260 case stories and 140 self-assessments by partner countries, bilateral and multilateral donor agencies, providers of South-South co-operation, and regional economic communities provide the basis for this analysis, coupled with OECD aid data and findings from evaluations and econometric studies.

The picture is positive: aid for trade is bettering the lives of many men and women in developing countries. The case stories paint an encouraging picture of the wide variety of trade-related activities in a large number of developing countries that are being supported by a range of donors. Increasingly, aid for trade is being integrated in broader development strategies, with objectives focusing on competitiveness, economic growth and poverty reduction. Donors are harmonising their procedures and aligning their support around these strategies. Aid-for-trade flows continue to grow and reached USD 40 billion in 2009 – an increase of 60% since 2005.
 
Developing countries and donors must continue their efforts to improve the effectiveness and the results of aid for trade. Although progress has been made in joint monitoring and evaluation, strengthening mutual accountability and managing aid to achieve trade results remain challenging. A joint, streamlined approach to measuring progress towards developing countries’ trade related targets will reinforce country ownership – a critical factor in ensuring that aid for trade enhances trade capacity and promotes economic growth and development.

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  • Foreword
    The publication Aid for Trade at a Glance: Showing Results highlights that the international community has responded effectively to the challenge of helping developing countries, and in particular the least developed ones, overcome structural and capacity limitations that undermine their ability to maximise the benefits of trade opportunities. It provides clear evidence that the Initiative has resulted in the prioritisation of trade in development strategies, has galvanised support to tackle the bottlenecks that undermine the ability of producers to connect to global markets, and has bettered the lives of many men and women in developing countries.
  • Acknowledgements
    Aid for Trade at a Glance 2011: Showing Results was prepared under the aegis of the OECD Development Assistance Committee (DAC) and the Trade Committee and in close co-operation with the WTO Committee on Trade and Development. Financial support by the European Union and the Government of Finland is gratefully acknowledged.
  • Acronyms
  • Executive Summary
    The 2011 monitoring report Aid for Trade at a Glance: Showing Results analyses a vast amount of unique information from a wide range of sources about what works in aid for trade, what does not work and where improvements are needed. The bulk of this information has been gathered from 2691 case stories and 146 self-assessments that were submitted by partner countries, bilateral and multilateral donor agencies, providers of South-South co-operation and regional economic communities. Together with the aid-for-trade data extracted from the OECD/CRS database, findings from trade-related evaluations, empirical studies and references to the broader trade and development literature, the report paints a positive and vibrant picture of aid for trade in action.
  • Introduction
    Trade can be a powerful engine for economic growth, poverty reduction and sustainable development. Yet harnessing the power of trade can be difficult for some developing countries, particularly the leastdeveloped ones. These countries often lack the capacity – in terms of information, policies, institutions, infrastructure and a vibrant private sector – to integrate and compete effectively in expanding regional and global markets. The Aid-for-Trade Initiative, launched in 2005 at the Hong Kong WTO Ministerial Conference, has established a comprehensive framework for tackling these trade-related bottlenecks. The Initiative aims to link aid and trade in a holistic strategy for reducing poverty in developing countries.
  • Objectives , priorities and strategies
    This chapter answers four questions. What has changed in aid-for-trade objectives, priorities, strategies and policies since the last round of monitoring? What drove these changes? How has demand evolved? And what is the outlook for aid for trade?
  • How have Aid -for -Trade flows evolved ?
    In 2009, aid-for-trade commitments reached approximately USD 40 billion, a 60% increase from the 2002-05 baseline. Non-concessional lending to trade-related sectors doubled to reach USD 51 billion. Half of all aid for trade is provided in grant form, mainly to the poorest developing countries. Disbursements have been growing steadily at 11-12% for each year since 2006 - reaching USD 29 billion in 2009 - indicating that past commitments are being met.
  • How is aid for trade delivered?
    This chapter presents the findings of the 2011 aid-for-trade monitoring survey of donor and partner country adherence to these key aid effectiveness principles. More specifically, it assesses whether the delivery of aid for trade has improved since the previous survey in 2009. The commitment to the Paris principles by both partner countries and donors on aid for trade remains strong. Compared to the situation in 2009, the 2011 survey finds that country ownership over aid for trade has advanced the furthest among the five Paris principles. That is to say, many partner countries are mainstreaming trade into national development strategies. They are consulting broadly involving the private sector, civil society organisations and relevant government agencies to formulate trade strategies and priority project proposals. Donors continue to work towards harmonising their procedures and aligning their support around national priorities relating to trade. But progress appears to be uneven and partner countries note that more remains to be done, including addressing particular challenges in accessing aid for trade. Putting the aid effectiveness principles into practice necessitates continued attention and efforts. Donors and partner countries note that the challenges in delivering aid for trade effectively are not unique to this initiative, but are, in fact, part and parcel of the broader aid effectiveness agenda.
  • What are expectations and results?
    This chapter focuses on the results of aid for trade, based on the views of partner countries, donors and providers of South-South co-operation expressed in the self-assessment questionnaires. It analyses what each stakeholder expects from aid-for-trade interventions, what policies best support these results and what has been achieved so far. This analysis is complemented by references to the broader trade and economic literature.
  • What do the case stories tell us?
    The purpose of the case stories was to probe more deeply into the objectives, challenges, and processes of trade-related assistance so as to better understand the results of such assistance – particularly, what worked well in the provision of aid for trade, what were the key ingredients of success, and what governments and practitioners could learn from these experiences.
  • Conclusions
    The third aid-for-trade monitoring exercise has generated a vast amount of unique information from a wide range of sources about what works in aid for trade, what does not work and where improvements are needed. The bulk of this information has been generated through 269 case stories and 140 self-assessments submitted by partner countries, bilateral and multilateral donor agencies, providers of South-South cooperation and regional economic communities. Together with the aid-for-trade data extracted from the OECD/DAC CRS aid activities database and findings from evaluations and econometric studies, these assessments provide a mostly positive picture of the results of the Aid-for-Trade Initiative. In particular, the analysis shows that...
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