Aid for Trade aims to help countries overcome the constraints that inhibit their ability to benefit from market access opportunities. The almost 300 case stories featured in this joint WTO-OECD co-publication show clear results of how Aid for Trade programs are helping developing countries to build human, institutional and infrastructure capacity to integrate into regional and global markets and to make good use of trade opportunities.
AID FOR TRADE AND VALUE CHAINS IN AGRIFOOD
The combined analysis of the survey results and a number of aid-for-trade case stories suggests that the boundary between public and private actions has become thinner. Efforts undertaken by lead firms to improve their value chains’ efficiency include capacity building efforts (from infrastructure to skill-building) that are very similar to those undertaken as part of the Aid-for-Trade Initiative. A new generation of programs adopting a joint public-private approach to agricultural development is bringing all the elements together. These programs, such as the African (Accelerated) Agribusiness and Agro-industries Development Initiative (3ADI) and Grow Africa initiatives, offer promising prospects for maximizing the impact of both aid-for-trade and private sector investment.
AID FOR TRADE AND VALUE CHAINS IN TEXTILES AND APPAREL
In view of the importance of the textiles and apparel sector as a first-stage manufacturing activity for low-income countries, direct support to the sector has, with some exceptions, not exerted a major influence on market dynamics since 2005. Nevertheless, the survey of private sector operators clearly indicates that assistance to trade facilitation, access to finance and trade-related infrastructure can play an important role in promoting connectivity of developing countries’ firms to the textiles and apparel value chains.
AID
FOR TRADE AND VALUE CHAINS IN TOURISM
There is evidence that donors and
implementing organizations are recognizing the need for a coordinated approach towards technical assistance projects in the area of tourism. A number of recent projects try to strengthen simultaneously the tourism sector itself and supplying sectors, like handicraft or agriculture. The implementation of such projects is facilitated by increased co-ordination among international agencies, notably in the context of the United Nations Steering Committee on Tourism for Development.4
Support to such multi-faceted tourism
projects through the allocation of Aid for Trade could turn out to have
significant benefits for beneficiary countries, notably in terms of employment
creation and poverty reduction. Such projects can also have the potential to
lay the fundaments for further growth, in particular if they manage to trigger
increased private sector investment.
AID
FOR TRADE AND VALUE CHAINS IN TRANSPORT AND LOGISTICS
Infrastructure development only brings
maximum benefits if it is combined with other components of a comprehensive Aft
agenda. Transport sector regulation is important, because it governs the
conditions under which operators can do business, and often determines the
conditions under which they can access key international gateways. Customs and
border procedures also matter, as they can have serious impacts on delays and
uncertainty faced by traders. The multilateral Agreement on Trade Facilitation,
currently under negotiation at the WTO, would help promote more efficient
customs and border procedures to allow goods to cross borders more quickly and
more cheaply and ensure legal certainty between.
Trading partners. Finally, private
sector development is also key, as the private sector is the engine of
technological upgrading in the sector, a role that is enhanced as the transport
and logistics GVC develops further.
Coordination and collaboration: The case
studies examined in this paper show that the best results are achieved when
multilateral and bilateral donors, as well as partner countries and the private
sector, are all engaged in improving transport and
logistics performance. It is important for the process to be driven by partner
country priorities, with the private sector playing a key role in their
development. In terms of donor collaboration and coordination, different
agencies clearly have comparative advantage in different areas, but transport
and logistics work is inherently multi-dimensional. It therefore requires
coordinated input from a range of sources.