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Aid for Trade at a Glance 2013

Connecting to Value Chains

image of Aid for Trade at a Glance 2013

This joint OECD-WTO publication puts a spotlight on aid for trade to assess what is happening, what is not, and where improvements are needed. The analysis is focused on trends in aid-for-trade policies, programmes and practices. It shows that the Aid-for-Trade Initiative is delivering tangible results in improving trade performance and bettering people’s lives, notably those of women, in developing countries.

The report highlights that aid for trade plays an important role in enabling firms in developing countries to connect with or move up value chains. In fact, the emergence of value chains strengthens the rationale for aid for trade.

Stakeholders remain actively engaged in the Aid-for-Trade Initiative. The 2013 monitoring exercise was based on selfassessments from 80 developing countries, 28 bilateral donors, 15 multilateral donors, and 9 providers of South-South co-operation. Views were also received from 524 supplier firms in developing countries and 173 lead firms, mostly in OECD countries.

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Boosting value chains via regional aid for trade

This chapter shows that regional aid for trade has a critical role to play in boosting the participation of particularly low income and least developed countries in regional production networks, and in enabling them to connect and move-up value chains. The chapter highlights that one of the main motivations of the trend towards regional integration is the need to reduce barriers in regional production networks. Barriers to trade, bureaucratic bottlenecks, and infrastructure deficiencies reduce the attractiveness of countries as spokes in the hubs of the production networks. Regional aid-for-trade programmes – which have increased significantly since the 2002-05 baseline – are an effective means to address these constraints. The chapter highlights that while regional aid-for-trade programmes are inherently complex because of the need to involve and coordinate multiple governments, their various agencies and a multitude of private stakeholders, they constitute a cost-effective approach to helping countries achieve their trade and development objectives.

English Spanish, French

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