The publication Aid for Trade at a Glance 2009: Maintaining Momentum was released on 6 July 2009 during the 2nd Aid for Trade Global Review 2009 and officially presented by OECD Secretary-General Angel Gurría and WTO Director-General Pascal Lamy.
The Aid for Trade at a Glance 2009: Maintaining Momentum report presents the results of the second monitoring exercise of the Aid-for-Trade Initiative and documents its success so far. It examines trends and developments, and presents a comprehensive analysis of donor and partner country engagement. In addition, it addresses the regional dimension of aid for trade and showcases three cross-border infrastructure projects. Finally, the report provides country factsheets that help assess the outcomes and impacts of aid for trade.
Although the main conclusions of the report are positive, the outlook is affected by the current global economic crisis. However, aid for trade is now and more than ever essential to help suppliers from developing countries build capacity to compete in global markets. The key message of the report is clear: aid for trade must remain an essential component of development assistance. In this respect, the report offers a number of steps to advance aid-for-trade dialogue.
The first chapter of the report puts recent developments in aid for trade in the context of the financial crisis and global economic downturn. It outlines the challenges facing developing countries and discusses how aid for trade can provide an immediate stimulus, averting the worst consequences of the downturn while laying the groundwork for future sustainable growth.
As part of the second aid-for-trade monitoring exercise, 89 partner countries submitted an aid for trade self-assessment questionnaire. This chapter presents the main findings, reviewing strategies, policies and practices. A majority of partner countries are mainstreaming trade in their national strategy. The most frequent priorities identified include network infrastructure, competitiveness, and export diversification.
Aid for trade increased 21% in real terms between 2002-05 (baseline) and 2007, with commitments totaling USD 25.4 billion in 2007. What’s more, growth is happening where it is most needed. Low-income countries have seen their share of total aid for trade increase from 44% to 54%, while 59% (USD 4.7 billion) of the additional funds went to Sub-Saharan Africa. This chapter provides a comprehensive review of trends in aid-for-trade flows since the launch of the initiative.
Aid for trade is increasingly important in donor programmes and is likely to remain so or be expanded over the medium term. Donors are scaling up resources, bolstering in-house expertise and raising awareness among policy-makers and practitioners at headquarters and country level. Furthermore, several donors note that the current crisis reinforces the rationale for aid for trade's high profile. These findings are based on the donor self-assessment questionnaire submitted by 38 bilateral donors and 19 regional and multilateral organisations.
With financial support for regional aid for trade programme doubling between 2002-05 and 2007, this chapter looks at the challenges of providing aid for trade at the regional level. It also shows how partner countries are benefiting from regional aid for trade and identifying common priorities for regional integration. It also highlights how South-South and triangular co-operation have become an important element in the promotion of regional integration initiatives, and presents three case studies of regional aid-for-tade programmes.
The Aid-for-Trade Initiative has succeeded in mobilising more and better aid for trade. It has initiated a dialogue between government ministries, with key national stakeholders and the international aid and trade community. However, maintaining momentum, particularly in light of the economic crisis, requires a broader dialogue between governments, civil society, the private sector and donors. It needs to be shown that aid for trade is worthwhile. Doing so requires identifying targets and setting out strategies to meet them.
Aid for Trade data (from the Query Wizard for International Development Statistics)
For information on the statistical methodology used, see this CRS Explanatory Note on the Creditor Reporting System.
OECD/WTO background papers
For further information on the report and OECD work on aid for trade, please e-mail us.