Globalisation is in a process of transition. Five years after the global financial crisis erupted, some areas of ‘globalisation management’ – notably the financial sector – have been closely scrutinised, resulting in new regulation. Institutions like the World Trade Organization (WTO), and the global trading system more broadly, have received praise for helping to avoid the same degree of protectionism that undermined global efforts to recover from the great depression of the 1930s.
Two major multilateral agencies have elected BRICS candidates (that is, candidates from Brazil, Russia, India, China or South Africa) as their Directors-General in the last two months. Are we seeing signs of increased leadership in global governance from the BRICS countries?
As a WTO member, least developed countries (LDCs) gain a voice in the shaping of the global trading system. That voice may be too feeble and drowned in the cacophony to make any real impact; nevertheless, it counts. Moreover, as part of the most favoured nation group of trading countries, LDCs receive enforceable guarantees that they will not be disadvantaged from benefits accruing to the rest of the body. The membership also comes with costs, not the least of which is trying to become a member.
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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.
Historical and contemporary experiences show that international trade can play a critical role in accelerating economic and social development. The track record of East Asian economies, in particular, emphasises its key contribution to achieving high and sustained economic growth. Many of these countries went from being poor developing countries to high-income countries within a generation.
What future for Aid for Trade? The fourth global Aid for Trade (AfT) review at the WTO from 8-10 July 2013 is an ideal moment to reflect. The concept of Aid for Trade has come a long a way since its inception at the Hong Kong ministerial in 2005 when it established AfT as a commitment. Aid for Trade now represents a third of ODA and more and more donors and recipients have increased their attention to trade.
