Aid for Trade at a Glance 2017

Promoting Trade, Inclusiveness and Connectivity for Sustainable Development

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This edition of Aid for Trade at a Glance focuses on trade connectivity, which is critical for economic growth, inclusiveness and sustainable development. Physical connectivity enables the movement of goods and services to local, regional and global markets. It is closely intertwined with digital connectivity which is vital in today’s trade environment. Yet, the Internet remains inaccessible for 3.9 billion people globally, many of whom live in the least developed countries.

This report builds on the analysis of trade costs and extends it into the digital domain, reflecting the changing nature of trade. It seeks to identify ways to support developing countries – and notably the least developed – in realising the gains from trade. It reviews action being taken by a broad range of stakeholders to promote connectivity for sustainable development, including by governments, their development partners and by the private sector. One message that emerges strongly is that participation in e-commerce requires much more than a simple internet connection.

Chapters were prepared by the World Bank, the United Nations Conference on Trade and Development (UNCTAD), the International Trade Centre (ITC), the Organisation for Economic Co-operation and Development (OECD), the World Trade Organisation (WTO), The International Telecommunication Union (ITU), and Business for eTrade Development.

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Aid for inclusive trade and poverty reduction

A growing body of evidence highlights the effectiveness of aid for trade in generating positive trade outcomes. The focus on capturing trade outcomes such as increases in exports or reductions in trade costs, however, is now being complemented by an increasing focus on tracing the direct and indirect impacts of aid interventions on poverty reduction, in particular for women. In that context, this chapter has three main objectives. The first is to demonstrate that poor physical and digital connectivity are among the factors keeping people in poverty. The second is to provide evidence on how infrastructure and digital connectivity are contributing to poverty reduction, market access, financial inclusion and women’s economic empowerment. The third is to highlight some of the key points emanating from the 2017 aid-for-trade monitoring and evaluation exercise, including how combined efforts from various stakeholders can facilitate inclusive development and contribute to eradicating poverty.



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