Aid for Trade at a Glance 2009

Maintaining Momentum

image of Aid for Trade at a Glance 2009

Numerous barriers prevent developing countries - in particular the least developed - from taking advantage of trade opportunities that could help them reduce poverty. The Aid-for-Trade Initiative has successfully built awareness of the support these countries need to surmount these barriers. As a result, more and more developing countries are raising the profile of trade issues in their development strategies and donors are responding by increasing the resources they provide to build trade capacity in areas such as policy, institutions and infrastructure.

This aid-for-trade monitoring report - the second of its kind - documents the success of the initiative to date. It examines trends and developments and presents a comprehensive analysis of donor and partner country engagement. In addition, it addresses the regional dimension of aid for trade and showcases three cross-border infrastructure projects. Finally, the report provides fact sheets that help in assessing the outcomes and impacts of aid for trade.

The main conclusions are positive. Nonetheless, the outlook is affected by the current global economic crisis. Aid for trade is now, and more than ever, essential to help suppliers from developing countries build capacity and penetrate global markets. The key message of the report is clear: aid for trade must remain an essential component of development assistance. It offers a number of steps, in this respect, that can advance the aid-for-trade dialogue.

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Charting the Flows

Sustaining Trends

In 2007, as was the case in 2006, aid for trade grew by more than 10% in real terms. Total new commitments from bilateral and multilateral donors in 2007 stood at USD 25.4 billion, while non-concessional lending provided an extra USD 27.3 billion in trade-related financing. The increase of USD 4.3 billion in aid for trade was not at the cost of social sector programmes, such as health or education. Furthermore, prima facie evidence indicates that a very large majority of commitments do result in actual disbursements.

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