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Shaping policy for development

An overview of Lagoro IDP camp in Kitgum District, northern Uganda, 20 May 2007. Manoocher Deghati/IRIN
Tue, 12/03/2013 - 17:30 -- Anonymous (not verified)
Boys use long poles to guide their Houseboat on the Meghna River
Boys use long poles to guide their Houseboat on the Meghna River

License: Creative Commons
Credit: Scott Wallace / World Bank
Source: Flickr

Exploring the impact, effectiveness and future of Aid for Trade

Yurendra Basnett, Jakob Engel, Jodie Keane, Sheila Page, Isabella Massa, Marie-Agnes Jouanjean, Jane Kennan, Clara Brandi, Bruce Byiers and Dan Lui

Aid for Trade (AfT) accounts for about a third of all overseas development assistance. ODI has been engaged in shaping its direction since before the launch in 2005 to help developing countries improve their trade capacity and address the impact of trade preference erosion. Since 2005, biennial global reviews of AfT held in Geneva have monitored the progress thus far.

The fourth Global AfT Review, 8 – 10 July 2013 in Geneva, could be transformative for the AfT agenda. The concept of AfT has been evolving with changing needs and demands. Aid is under stress due to the economic crisis in traditional donor countries, while non-aid flows have been increasing. There are more non-traditional actors supplying AfT. In these changing circumstances, what should be the future agenda of AfT?

Together with DIE and ECDPM the International Economic Development Group at the Overseas Development Institute has been studying Aid for Trade – what works, why and in what circumstances – since 2005. The main research has been funded under Development Progress.  But we have also undertaken recent research on AfT for the Asian Development Bank, African Development Bank, UNIDO, Commonwealth Secretariat and International Center for Trade and Sustainable Development. We have also advised DFID and UNDP on AfT programming at the country level.

International Economic Development Group
German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE)
European Centre for Development Policy Management (ECDPM)
Golden opportunities in Ethiopia
Golden opportunities in Ethiopia

License: Creative Commons
Credit: Simon Davis/DfID
Source: Flickr

The future of Aid for Trade at the World Trade Organization

Event - Panel - 4 December 2013 12:45 - 14:15 (GMT+01 (BST))
​At the Bali Trade and Development Symposium which took place on the sidelines of the Ninth World Trade Organization (WTO) Ministerial Conference, this panel session asked how the Aid for Trade initiative can be reinvigorated so that it responds to changes and strengthens the WTO in years to come. Speakers included Yurendra Basnett and Jodie Keane from ODI, Ratnakar Adhikari, Mohammed Razzaque and Eamon Cassidy. The panel was moderated by Dirk Willem te Velde. 
Dirk Willem te Velde

A role for Aid for Trade in development post-Bali

Opinion - Articles and blogs - 3 December 2013
'It is clear from our research that AfT can be seen as a successful initiative in promoting resources – one that owes much to the leadership of organisations and individuals in developed and developing countries.'
Marie-Agnes Jouanjean

Aid for Trade facilitation goes beyond cutting red-tape

Opinion - Articles and blogs - 3 December 2013
'An agreement on red tape, as being negotiated at the WTO under its Trade Facilitation banner, is only the beginning. Deeper commitments by governments, perhaps with the help of donors through Aid for Trade, are needed to make trade easier and investment in Global Value Chains more alluring to the private sector.'

Future directions for Aid for Trade

Publication - Discussion papers - 29 November 2013
This report questions the future direction for the Aid for Trade (AfT), recommending that for the initiative to become more effective it must narrow its focus. The report suggests that Aid for Trade should concentrate on helping developing countries trade by building their productive capacity, reducing the cost of trading and increasing trade infrastructure.

Targeting infrastructure development to foster agricultural trade and market integration in developing countries: an analytical review

Publication - Research reports and studies - 3 September 2013
Marie-Agnès Jouanjean
This paper reviews evidence on the effect of investment in rural infrastructure on market access, trade and in particular agricultural trade, and on conditions and complementarities pertaining to the maximisation of the benefit to agricultural development and poverty reduction.

Assessing Aid for Trade: effectiveness, current issues and future directions

Publication - Books or book chapters - 31 July 2013
Dirk Willem te Velde and Mohammad A Razzaque
This volume, comprising 16 chapters prepared by 20 renowned experts from a range of international organisations, think tanks and academic institutions, including Commonwealth Secretariat, ODI, ECDPM, DIE, ICTSD, Saana Consulting, WTI Advisors, and Columbia University, provides a comprehensive review of the Aid for Trade initiative.
Unloading sacks of rice at Beira Port Run by Cornelder in Mozambique
Unloading sacks of rice at Beira Port Run by Cornelder in Mozambique

License: Creative Commons
Credit: IFDC Photography
Source: Flickr

Global Aid for Trade Review side event: Aid for Trade effectiveness – current issues and future directions

Event - Public event - 8 July 2013 16:30 - 18:00 (GMT+01 (BST))

This side event at the World Trade Organization's Fourth Global Review of Aid for Trade brought together a range of contributions to an ODI-COMSEC volume on Aid for Trade (Aft) and featured presentations and facilitated discussions on empirical evidence on the effectiveness of AfT; on AfT and global value chains; and on future directions on AfT.

Dirk Willem te Velde presented findings from ODI research exploring the effectiveness of AfT.

Exploring the impact, effectiveness and future of Aid for Trade: key messages

Publication - Research reports and studies - 5 July 2013
Overseas Development Institute, European Centre for Development Policy Management, German Development Institute / Deutsches Institut für Entwicklungspolitik
This note summarises ODI research examining Aid for Trade (AfT) and suggests how the AfT initiative can improve development outcomes.
Maputo harbour cranes, workers offloading rice imports
Maputo harbour cranes, workers offloading rice imports

License: Creative Commons
Credit: Eric Miller
Source: World Bank

Measuring poverty impact: the monitoring and evaluation of UK and EU aid for trade and private sector development support

Event - Public event - 5 March 2013 12:30 - 14:00 (GMT+00)

Given the continued relevance of Aid for Trade (AfT) and a growing emphasis on the role of the private sector in development, the importance of clearly demonstrating development impacts on the ground is more important than ever.  This public event builds upon the influential work of the ODI’s International Economic Development Group and follows the AfT Policy Dialogue, organised by the OECD in collaboration with ODI.

Containers in Zanzibar port
Containers in Zanzibar port

Containers near the port of Zanzibar, Tanzania
License: Creative Commons
Credit: twocentsworth
Source: Flickr

Policy dialogue on aid for trade

Event - Conference - 16 - 17 January 2013

This conference will discuss how Aid for Trade can remain relevant for its purpose by delivering and managing aid for trade and development results; easing the binding constraints to trade expansion; promoting regional aid for trade programmes; reducing the thickness of borders; linking to value chains; and engaging the private sector.

Yurendra Basnett

Taking stock of Aid for Trade

Opinion - Articles and blogs - 21 July 2011

Aid for Trade, which accounts for a third of total aid, has been effective in improving trade performance of developing countries, but there remain challenges. Whilst David Cameron was making the case for trade in Africa important discussions   were taking place atthe 3rd Global Review of Aid for Trade.

Better regulations and better negotiations as tools for trade: where aid for trade can and cannot help

Publication - Discussion papers - 29 March 2011
This note is intended to cover a sequence of trade needs and the role (if any) of aid for trade for conforming to legal (and customary) standards and rules in trade; establishing the institutions to enforce and set the rules; improving the application of rules; negotiating changes in rules affecting trade; and identifying and prioritising the changes in rules likely to help each developing country's trade.

The potential impact of the Aid for Trade initiative

Publication - Discussion papers - 31 March 2007

The Aid for Trade initiative marked international acceptance of the limitations of trade as a tool for development and of a role for the WTO in aid. Although many in developing countries would gain from a WTO settlement, there are small gains or even costs for some developing countries. This paper looks at the issues relating to the Aid for Trade initiative.

Aid for Trade: a New Issue in the WTO

Publication - Discussion papers - 1 January 2007

This paper will first review what types of aid would meet WTO-related needs, and the types needed more broadly to help countries use trade as part of their development strategies. Secondly, it will consider how to decide which needs and which countries or regions should receive Aid for Trade.

Regional Aid for Trade

Publication - Discussion papers - 1 January 2007

Aid for trade was brought into sharp focus in the current World Trade Organization (WTO) Doha Round trade negotiations, though not part of the single undertaking. Aid for trade is concerned with helping developing countries totrade or adjust to trade liberalisation. Several issues are not yet addressed adequately in the current discussions, such as additionality of aid for tradefunds, the role of private sector, over-reliance on donor co- ordination atcountry level to safeguard effective aid for trade, and the lack of regionalaid for trade (RAFT).

A Critical Assessment of the EU's Trade-Related Assistance (TRA) to third countries – lessons from the past, policy options for the future

Publication - Research reports and studies - 14 February 2006

This paper discusses the rationale for trade-related assistance (TRA) (support for Trade Policy and Regulation, Trade Development, Adjustment to Trade, Supply Side Measures), and the role of the EC in this. It provides an overview of EC TRA on the basis of a detailed list of individual TRA projects and attempts to do this also on the basis of the budget.

Trade and Aid: Partners or Rivals in Development Policy?

Event - Public event - 8 February 2006 13:00 - 15:00 (GMT+00)

This meeting saw the launch of a new book, Trade and Aid, Partners or Rivals in Development Policy? edited by Sheila Page. The discussion examined our current understanding of how aid and trade work, and assessed current policy initiatives.