Most of the challenges of delivering Aid for Trade effectively are not specific to trade, but permeate all development assistance. Nevertheless, the complexity and interdependence of trade with a country’s overall development strategy makes some challenges particularly critical, and the application of the Paris Declaration on Aid Effectiveness acutely relevant.
Prioritizing among the multifaceted supply-side needs (such as poor infrastructure, limited access to finance and technology, lack of human and institutional capacities, etc.) typical of many developing countries demands a clear vision and a favorable political economy context. Strong country ownership, donor coordination, alignment and harmonization are particularly important given the magnitude of the trade agenda. At the same time, the number of donors and actors in Aid for Trade keeps increasing.
Aid for Trade is an area where non-traditional DAC donors have much to offer, especially, in terms of technical co-operation and the dissemination of know-how, i.e. policies and regulatory approaches which they have applied successful in their integration efforts. Their experiences are also closer related to the development levels of the partner countries.