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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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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.

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