Aid for Trade is an initiative by the World Trade Organization (WTO), as well as a policy concept in international economic and trade development, concerned with helping developing countries and particularly the least developed countries build trade capacity and infrastructure. [1] [2] [3]
Aid for Trade is included in Sustainable Development Goal 8 concerning "decent work and economic growth", which is one of the 17 Sustainable Development Goals which were established by the United Nations General Assembly in 2015. Target 8.a aims to "Increase Aid for Trade support for developing countries, in particular, least developed countries, including through the Enhanced Integrated Framework for Trade-related Technical Assistance to Least Developed Countries." [4]
In 2018, aid for trade commitments remained stable, at $58 billion, based on current prices. [5] South and Central Asia received the highest share thereof (31.4 per cent), followed by sub-Saharan Africa (29.2 per cent). [5] Lower-middle-income countries received 37.5 per cent of aid for trade, followed by least developed countries (36.8 per cent). [5]
Aid for Trade includes measures to help countries develop trade strategies, plans or projects and implementation, such as building roads, ports, and telecommunications that link domestic and global markets, or investing in industries and sectors to help diversify exports. [6] [7]
Many have credited Aid for Trade with economic improvements in developing countries, [8] [9] while others point out that not all trade initiatives are successful and some of the funding is lost to corruption. [10]
The OECD and WTO established an 'aid-for-trade monitoring framework' to track progress in implementing the Aid-for-Trade Initiative. It consists of the following elements: [2]
According to the UN, in 2017, the global total value of Aid for Trade disbursements exceeded USD 43 billion, with an additional c. USD 15 billion committed. [3] Increasing Aid for Trade support is included as an objective in the United Nations Sustainable development goal 8 "decent work and economic growth" indicator 8.a. [11]
The EU and its member states are the largest contributor of Aid for Trade. [12]
In 2018, aid for trade commitments remained stable, at $58 billion, based on current prices. [5] South and Central Asia received the highest share thereof (31.4 per cent), followed by sub-Saharan Africa (29.2 per cent). [5] Lower-middle-income countries received 37.5 per cent of aid for trade, followed by least developed countries (36.8 per cent). [5]
The Aid for Trade initiative was launched at the World Trade Organization Ministerial Conference in December 2005, [13] [2] and in 2007, the WTO started implementation of its February 2006 recommendations of the Aid for Trade Task Force as it moved into its first stage.
The purpose of the Global Review is to provide strong monitoring and evaluation for the Aid for Trade agenda. Global Review events have been held under the themes of “Maintaining Momentum”, “Showing Results”, and “Connecting to Value Chains” in 2009, 2011 and 2013 respectively.
Aid for Trade is included in the Sustainable Development Goal 8 about "decent work and economic growth" which is one of the 17 Sustainable Development Goals which were established by the United Nations General Assembly in 2015. The official wording for Target 8.a is to "Increase Aid for Trade support for developing countries, in particular, least developed countries, including through the Enhanced Integrated Framework for Trade-related Technical Assistance to Least Developed Countries." [4]
This target has one indicator. Indicator 8.a.1 is the "Aid for Trade commitments and disbursements".
The indicator 8.a.1 is measured as total Official Development Assistance (ODA) allocated to aid for trade in 2015 US$.
The least developed countries (LDCs) are developing countries listed by the United Nations that exhibit the lowest indicators of socioeconomic development. The concept of LDCs originated in the late 1960s and the first group of LDCs was listed by the UN in its resolution 2768 (XXVI) on 18 November 1971.
Official development assistance (ODA) is a category used by the Development Assistance Committee (DAC) of the Organisation for Economic Co-operation and Development (OECD) to measure foreign aid. The DAC first adopted the concept in 1969. It is widely used as an indicator of international aid flow. It refers to material resources given by the governments of richer countries to promote the economic development of poorer countries and the welfare of their people. The donor government agency may disburse such resources to the government of the recipient country or through other organizations. Most ODA is in the form of grants, but some is measured as the concessional value in soft (low-interest) loans.
Capacity building is the improvement in an individual's or organization's facility "to produce, perform or deploy". The terms capacity building and capacity development have often been used interchangeably, although a publication by OECD-DAC stated in 2006 that capacity development was the preferable term. Since the 1950s, international organizations, governments, non-governmental organizations (NGOs) and communities use the concept of capacity building as part of "social and economic development" in national and subnational plans. The United Nations Development Programme defines itself by "capacity development" in the sense of "'how UNDP works" to fulfill its mission. The UN system applies it in almost every sector, including several of the Sustainable Development Goals to be achieved by 2030. For example, the Sustainable Development Goal 17 advocates for enhanced international support for capacity building in developing countries to support national plans to implement the 2030 Agenda.
The Organisation for Economic Co-operation and Development's (OECD) Development Assistance Committee (DAC) is a forum to discuss issues surrounding aid, development and poverty reduction in developing countries. It describes itself as being the "venue and voice" of the world's major donor countries.
Success in export markets for developed and developing country firms is increasingly affected by the ability of countries to support an environment which promotes efficient and low cost trade services and logistics.Ttrade facilitation and economic development policies reflect the idea that trade can be a powerful engine for accelerating economic growth, job creation, and poverty reduction.
The Global System of Trade Preferences among Developing Countries(G.S.T.P) is a preferential trade agreement, currently encompassing 42 members (“participants”), signed on 13 April 1988 with the aim of increasing trade between developing countries. It was negotiated within the framework of the United Nations Conference on Trade and Development (UNCTAD). The Agreement entered into force on 19 April 1989 and was notified to the then General Agreement on Tariffs and Trade (GATT), predecessor of the World Trade Organization (WTO), on 25 September 1989. The 42 members of GSTP include as well 7 LDCs.
The Enhanced Integrated Framework for Trade-Related Assistance for the Least Developed Countries is a global development program with the objective of supporting least developed countries (LDCs) to better integrate into the global trading system and to make trade a driver for development. The multi-donor program was launched on 1 January 2007 as the successor of the Integrated Framework for Trade-Related Technical Assistance to the Least-Developed Countries, which existed from October 1997 to December 2006. The second phase of the EIF has started on 1 January 2016 and will last for 7 years.
The Sustainable Development Goals (SDGs) or Global Goals are a collection of seventeen interlinked objectives designed to serve as a "shared blueprint for peace and prosperity for people and the planet, now and into the future." The short titles of the 17 SDGs are: No poverty (SDG 1), Zero hunger (SDG 2), Good health and well-being (SDG 3), Quality education (SDG 4), Gender equality (SDG 5), Clean water and sanitation (SDG 6), Affordable and clean energy (SDG 7), Decent work and economic growth (SDG 8), Industry, innovation and infrastructure (SDG 9), Reduced inequalities (SDG 10), Sustainable cities and communities (SDG 11), Responsible consumption and production (SDG 12), Climate action (SDG 13), Life below water (SDG 14), Life on land (SDG 15), Peace, justice, and strong institutions (SDG 16), Partnerships for the goals (SDG 17).
Policy coherence for development (PCD) is an approach and policy tool for integrating the economic, social, environmental and governance dimensions of sustainable development at all stages of domestic and international policy making. It is the aim of Policy Coherence for Development to make foreign relations to be as ecologically, economically and socially coherent as possible and thereby to make international co-operation for international development more effective.
Dorothy (Ng’ambi) Tembo is a Zambian economist and trade and development expert. She is the deputy executive director of the International Trade Centre (ITC), a joint agency of the United Nations and the World Trade Organization.
Sustainable Development Goal 15 is about "Life on land". One of the 17 Sustainable Development Goals established by the United Nations in 2015, the official wording is: "Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss". The Goal has 12 targets to be achieved by 2030. Progress towards targets will be measured by 14 indicators.
Sustainable Development Goal 14 is about "Life below water" and is one of the 17 Sustainable Development Goals established by the United States of America in 2015. The official wording is to "Conserve and sustainably use the oceans, seas and marine resources for sustainable development". The Goal has ten targets to be achieved by 2030. Progress towards each target is being measured with one indicator each.
Sustainable Development Goal 17 is about "partnerships for the goals." One of the 17 Sustainable Development Goals established by the United Nations in 2015, the official wording is: "Strengthen the means of implementation and revitalize the global partnership for sustainable development". SDG 17 refers to the need for the nonhegemonic and fair cross sector and cross country collaborations in pursuit of all the goals by the year 2030. It is a call for countries to align policies.
Sustainable Development Goal 13 is to limit and adapt to climate change. It is one of 17 Sustainable Development Goals established by the United Nations General Assembly in 2015. The official mission statement of this goal is to "Take urgent action to combat climate change and its impacts". SDG 13 and SDG 7 on clean energy are closely related and complementary.
Sustainable Development Goal 12, titled "responsible consumption and production", is one of the 17 Sustainable Development Goals established by the United Nations in 2015. The official wording of SDG 12 is "Ensure sustainable consumption and production patterns". SDG 12 is meant to ensure good use of resources, improve energy efficiency and sustainable infrastructure, provide access to basic services, create green and decent jobs, and ensure a better quality of life for all. SDG 12 has 11 targets to be achieved by at least 2030, and progress towards the targets is measured using 13 indicators.
Sustainable Development Goal 11, titled "sustainable cities and communities", is one of 17 Sustainable Development Goals established by the United Nations General Assembly in 2015. The official mission of SDG 11 is to "Make cities inclusive, safe, resilient and sustainable". The 17 SDGs take into account that action in one area will affect outcomes in other areas as well, and that development must balance social, economic and environmental sustainability.
Sustainable Development Goal 10 is about reduced inequality and is one of the 17 Sustainable Development Goals established by the United Nations in 2015. The full title is: "Reduce inequality within and among countries".
Sustainable Development Goal 9 is about "industry, innovation and infrastructure" and is one of the 17 Sustainable Development Goals adopted by the United Nations General Assembly in 2015. SDG 9 aims to build resilient infrastructure, promote sustainable industrialization and foster innovation.
Sustainable Development Goal 8 is about "decent work and economic growth" and is one of the 17 Sustainable Development Goals which were established by the United Nations General Assembly in 2015. The full title is to "Foster sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all." Progress towards targets will be measured, monitored and evaluated by 17 indicators.
Sustainable Development Goal 1, one of the 17 Sustainable Development Goals established by the United Nations in 2015, calls for the end of poverty in all forms. The official wording is: "No Poverty". Member countries have pledged to "Leave No One Behind": underlying the goal is a "powerful commitment to leave no one behind and to reach those farthest behind first". SDG 1 aims to eradicate every form of extreme poverty including the lack of food, clean drinking water, and sanitation. Achieving this goal includes finding solutions to new threats caused by climate change and conflict. SDG 1 focuses not just on people living in poverty, but also on the services people rely on and social policy that either promotes or prevents poverty.