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Aid for Trade at a Glance 2011

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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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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.

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