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                                           Evaluating Aid for Trade

Aid for Trade programmes aim to help developing countries overcome the supply side and trade-related infrastructure constraints that inhibit their ability to benefit from market access opportunities. While trade-related development is not new, the Aid for Trade Initiative was formally launched following the 2005 Hong Kong WTO Ministerial Conference.

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The video above of the Paris Declaration Evaluation showcases the joint work done by donors in the development of the Padma bridge in Bangladesh. Donors have come together on this important transport project, which will link the Southwest to the Northern and Eastern regions of the country. While the transport sector is by nature trade-oriented--all programmes or projects devoted to rehabilitating, maintaining or constructing transport infrastructure are meant to lead to enhanced trade and economic growth, evaluations of transport programmes demonstrate that pro-trade results are too often lacking.

In 2011 Finland reviewed their Aid for Trade (AfT) programme. One of the key findings of the report is that Aid for Trade thinking is not mainstreamed across sectoral/thematic projects and programmes classified as AfT. A significant proportion of these do not have trade-related objectives or outcomes. One of the main reasons for this is that linkages between projects/programmes defined as wider AfT and potential trade outcomes are either not well understood or not considered important. A clearer conceptual framework is needed, which would also provide the opportunity to make clearer linkages between AfT, trade, growth, poverty reduction and sustainable development.                                                                    
  Based on the apparent improvements in economic performance (economic and export growth) in the main countries receiving Aid for Trade from Japan, positive conclusions could be reached regarding the "effectiveness of results," as Japan’s AfT played some role in improving economic performance. AfT target items were effectively implemented in Viet Nam and Lao PDR, the countries visited for conducting the field survey. Report recommends more future coordination with The influence of emerging donors and the private sector in the field of AfT has been rising.

 

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