Is aid for trade adapting to new realities

This chapter discusses how the evolving trade and development context is shaping aid for trade. It illustrates how partner countries, donors and providers of South- South trade-related co-operation are using aid for trade to assist developing countries to enter (and establish their own) value chains. Using the findings from the OECD /WTO questionnaire responses, the chapter provides a broad overview of how aid-for-trade policies, priorities and strategies are evolving. It investigates how much resonance value chains have in establishing developing country objectives, and the extent to which value chains are considered in the programmes of donor agencies and providers of South-South trade-related co-operation. Partner countries are focusing on how they can reduce the thickness of their borders, improve the business environment, and create conditions that will assist their firms to connect to regional and global value chains. Donors are responding to these priorities. They are putting more emphasis on public-private co-operation, and are adapting their programmes to target-specific sectors and supply chains. Providers of South-South trade-related co-operation are continuing to scale up their support to enhance South-South trade.