Aid for Trade at a Glance

DACAFT

 

Monitoring the Aid for Trade Initiative

Trade can be a powerful engine for economic growth and poverty reduction, but harnessing its power is difficult for many developing countries. This is particularly true for the least-developed countries, where there is often a lack of capacity - in terms of information, policies, procedures, institutions and infrastructure - to integrate and compete effectively in global markets. To address these capacity constraints, the World Trade Organization (WTO) has led the call for more and better aid for trade. Recommendations have been made to strengthen both the demand-side and the donor response, while working to better bridge the gap between these at the country, regional and global level. The WTO and OECD periodically put a spotlight on aid for trade to monitor what is happening, what is not, where improvements are needed and where aid for trade is having the desired effect.  Read more

News

 

» OECD Policy Dialogue on Aid for Trade, 16-17 January 2013

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This Policy Dialogue brought together policy makers, practitioners, academics, the private sector and civil society from developing and developed countries to discuss what needs to be done to continue delivering aid for trade results in this changing international environment for trade and development.

OECD Secretary-General Angel Gurría opened the meeting with keynote addresses followed by Karel de Gucht, EU Trade Commissioner and Pascal Lamy, Director General of the WTO.

Seven sessions with High-level panellists discussed:

  • How to manage aid for trade and development results;
  • How to identify and prioritise trade-related binding constraints;
  • How to promote regional aid for trade;
  • How to reduce the thickness of borders;
  • How to adapt to changing production patterns;
  • How to engage the private sector; and
  • Where next with aid for trade?

Participants had the opportunity to join the moderated debates from the floor.

Visit the Policy Dialogue on Aid for Trade website, for the conference material and further detail.

Recent blog posts:

»"Aid for Trade: Achieving success in a changing environment", by Angel Gurría (OECD Secretary-General), OECD Insights, 15 January 2013; also available at Business Fights Poverty.
»"Aid for Trade: Helping developing countries trade their way out of poverty", by Karel De Gucht (EU Trade Commissioner), OECD Insights, 14 January 2013; also available at Business Fights Poverty.
»"Aid for Trade: Renewing the impetus", by Pascal Lamy (Director General of the WTO), OECD Insights, 12 January 2013; also available at Business Fights Poverty.

Third Global Review of Aid for Trade

18-19 July 2011, WTO Headquarters, Geneva

» Access the review's official site

» Watch the video (9min 27s)

» What is aid for trade? (video, 8min)

» Tune in and join the debate on Twitter, #wto & #Aid4Trade

» Consult the speech by Angel Gurria, OECD Secretary-General

The Third Global Review offered an opportunity for the aid-for-trade community to come together and take stock of what the Aid-for-Trade Initiative has achieved since its inception in 2005, share their experiences and relate their future plans. Two publications were launched: Aid for Trade at a Glance: Showing Results and Strengthening Accountability in Aid for Trade (pdf).

 

Aid for Trade at a Glance 2011: Showing Results

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.

 

» Access the full publication (pdf)

» Policy Brief: Aid for Trade (pdf, 1,5MB)

» Access the 2009 edition

 

Aid-for-trade flows at a glance

(Click the image to access dynamic graphs)

Key facts:

  • In 2009, aid-for-trade commitments reached approximately USD 40 billion, a 60% increase from the 2002-05 baseline. Other official flows 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.
  • Aid for trade to sub-Saharan Africa increased by 40% to reach USD 13 billion and Africa now receives the largest share among the different regions.
  • The outlook for aid for trade is stable: last year in Seoul, South Korea, G20 leaders committed to at least maintain, beyond 2011, aid-for-trade levels reached over the years 2006-08. But some OECD countries are confronted with large budget deficits and find it difficult to respond adequately to the higher demand for aid for trade. Fortunately, there are positive signs that South-South co-operation continues to grow.

 

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