The Development Dimension

Club du Sahel et de l'Afrique de l'Ouest

ISSN :
1990-1372 (en ligne)
ISSN :
1990-1380 (imprimé)
DOI :
10.1787/19901372
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A series of OECD books analyzing  the development aspects of policies in other domains, such as economic, financial, environmental, agricultural or trade policies. By systematically taking the development dimension of member country policies into account, OECD analysis and dialogue can help change behaviour in support of development in an ever more integrated, interdependent global economy.

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Trade for Growth and Poverty Reduction

Trade for Growth and Poverty Reduction

How Aid for Trade Can Help You do not have access to this content

Anglais
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Auteur(s):
OCDE
Date de publication :
23 mars 2011
Pages :
92
ISBN :
9789264098978 (PDF) ; 9789264101050 (imprimé)
DOI :
10.1787/9789264098978-en

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Trade promotes economic growth, alleviates poverty and helps countries reach their development goals. However, developing countries – in particular the least developed – face difficulties in making trade happen and turning trade into economic growth. The Aid for Trade Initiative – launched at the 2005 World Trade Organisation conference in Hong Kong – aims at helping these countries to take advantage of trade opportunities and to reap the benefits of their integration into the world economy. The Initiative has been a success: it has not only raised awareness among both donors and developing countries about the role of trade in development, but also helped secure increased resources.

Trade for Growth and Poverty Reduction: How Aid for Trade Can Help explains how Aid for Trade can foster economic growth and reduce poverty, and why it is an important instrument for a development strategy that actively supports poverty alleviation. Unlocking this potential requires carefully designed and sequenced trade reforms. While developing countries have many trade-related needs, but financial resources and political capital for reforms are limited, it is an important priority to tackle the most binding constraints to trade expansion. This report describes the diagnostic tools available, evaluates their strengths and weaknesses, and suggests a dynamic framework to guide the sequencing of reform and donor support.

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  • Cliquez pour accéder:  Foreword
    History has shown that trade can be a powerful engine for economic growth and, depending on its pace and pattern, reduce poverty. Trade can therefore be an important tool to help countries reach their development goals. However, particularly in the case of the least developed countries, harnessing the power of trade often remains challenging.
  • Cliquez pour accéder:  Acknowledgements
    This report was written by Jean-Jacques Hallaert (jean-jacques.hallaert@oecd.org) of the OECD Trade and Agriculture Directorate and Masato Hayashikawa (masato.hayashikawa@oecd.org) of the OECD Development Co-operation Directorate, under the supervision of Doug Lippoldt and Bill Nicol. It was commented by the joint meeting of the OECD Development Assistance Committee and the Working Party of the Trade Committee. The authors are grateful to John Smith for editing the report, to William Hynes, Gimin Kang, Frans Lammersen, Laura Munro, and the participants of the Fourth China-ASEAN Forum on Free Trade and Poverty Reduction in Guilin, China, for their valuable inputs and comments on earlier drafts, and to Isabel Huber for editing support. Valuable assistance was provided by Jacqueline Maher of the OECD Trade and Agriculture Directorate, and by Sandra Hassine and Susan Hodgson of the OECD Development Co-operation Directorate.
  • Cliquez pour accéder:  Executive Summary
    Trade can be a powerful engine for economic growth, poverty reduction and development. Although debated, this is the main conclusion of a large body of empirical literature on trade and growth. Harnessing the power of trade is often difficult for developing countries, particularly the least developed ones, because of supply-side domestic constraints. The Aid for Trade Initiative launched in 2005 at the Hong Kong WTO Ministerial Conference addresses these constraints.
  • Cliquez pour accéder:  Background
    This report explains how Aid for Trade can foster economic growth and reduce poverty, and why it is an important instrument for a development strategy that actively supports poverty alleviation. In the face of limited financial resources and political capital for reforms, developing countries must prioritise among the many needs and tackle the most binding constraints to trade expansion. The report describes the diagnostic tools available, evaluates their strengths and weaknesses, and suggests a dynamic framework to guide the sequencing of reform and donor support.
  • Cliquez pour accéder:  Trade Objectives of the Aid for Trade Initiative
    The WTO Hong Kong Ministerial Declaration clearly makes the expansion of developing countries’ trade the core objective of the Aid for Trade Initiative. However, as emphasised by the Task Force on Aid for Trade the purpose of the Initiative is not to support trade per se, but trade inasmuch as it contributes to growth and poverty reduction. This chapter examines the four objectives which are among the most common and mirror those that find strong support in the trade and growth literature.
  • Cliquez pour accéder:  Increasing the Benefits of Trade for the Poor
    This chapter explains the potential impact of Aid for Trade on poverty reduction. It examines various policy measures that can best reinforce the impact of trade on poverty reduction (e.g. building productive capacities, connecting the poor to markets and addressing the distributional impact of adjustment costs), particularly in cases where these measures affect the most vulnerable segments of the population. The need for a tailored, country-based approach to economic integration is underlined.
  • Cliquez pour accéder:  Constraints on Expanding Trade
    This chapter describes the diagnostic tools and methods that can be used to pinpoint the trade-related needs and constraints preventing developing countries from expanding trade. The list of trade-related needs is often very long. Thus, there is a need to identify the most binding constraints and prioritise reforms. The chapter suggests combining the different diagnostic tools and methods in an appropriate framework to achieve this prioritisation. Combining them can help overcome the shortcomings and limitations of each. It can also provide evidence for use in confirming the conclusions of any single approach and reduce the risks of misdiagnosis or capture by vested interests. Finally, combining them can identify the most binding constraints on which aid-for-trade interventions and reforms should focus first.
  • Cliquez pour accéder:  Conclusion
    This report has shown that trade is central to economic growth and poverty reduction, with Aid for Trade providing a framework within which the opportunities of trade can be more fully realised. In this concluding chapter, the report also points to a range of other policy actions that will be needed in order for Aid for Trade to be fully effective. Aid for Trade, delivered in conjunction with effective complementary policies that reduce the risk and vulnerability of the poor, can help developing countries translate opportunities to trade into economic growth and poverty reduction.
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