Deepening economic integration via regional co-operation has emerged as a key priority
in the reform strategies of most developing economies over the past decade. This is
evidenced by the explosive growth in bilateral and regional trading agreements in
which they now participate. Regional aid for trade can help developing countries spur
regional economic integration, enhance competitiveness, and plug into regional production
networks.
Based on a rich set of experiences regarding regional aid for trade projects and programmes,
the study finds that regional aid for trade offers great potential as a catalyst for
growth, development and poverty reduction. The study recommends greater emphasis on
regional aid for trade as a means of improving regional economic integration and development
prospects. While regional aid for trade faces many practical implementation challenges,
experience has shown that associated problems are not insurmountable but do require
thorough planning, careful project formulation, and prioritization on the part of
policy makers.