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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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Value chains and the development path

This chapter addresses how value chains offer a path to economic development. Based on the findings from the 2013 OECD /WTO survey, it assesses the resonance that value chains have in the aid-for-trade priorities and strategies of partner countries, bilateral and multilateral donors, and providers of South-South trade-related co-operation. The analysis in this chapter of the agri-food, ICT, textiles and apparel, tourism, and transport and logistics value chains highlights that developing country suppliers are integral to these value chains – and that developing countries use their participation to achieve growth, employment and poverty reduction objectives. The responses to the OECD-WTO questionnaire highlight that there is much scope to improve these countries’ participation. Many developing countries pay a competitiveness penalty due to inefficient border procedures, high tariffs and non-tariff barriers that unnecessarily constrain trade in goods or services; restrictions on the flow of information; impediments to foreign direct investment (FDI); and restrictions on the movement of people. The challenge for developing countries is to design and implement broad strategies that tackle these key barriers to integration and upgrading in value chains.

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