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Aid for Trade for SPECA Countries

Aid for Trade for SPECA Countries. Jean-Jacques Hallaert Senior Trade Policy Analyst Trade and Agriculture Directorate, OECD. Ministerial Conference “Aid for Trade Roadmap for SPECA” Baku, Azerbaijan December1-2, 2010. Promote coherence between aid and trade.

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Aid for Trade for SPECA Countries

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  1. Aid for Trade for SPECA Countries Jean-Jacques Hallaert Senior Trade Policy Analyst Trade and Agriculture Directorate, OECD Ministerial Conference “Aid for Trade Roadmap for SPECA” Baku, Azerbaijan December1-2, 2010

  2. Promote coherence between aid and trade 2)Enhance donor co-ordination and alignment What is the OECD involvement? 3) Maximize aid effectiveness Monitor aid-for-trade flows & commitments • An important contribution of the OECD • Aid for Trade at a glance reports • Using the Creditor Reporting System (CRS) • AfT data can be extracted online • The focus of this presentation

  3. Monitoring Aid for Trade DEMAND RESPONSE OUTCOME IMPACT • Partner country assessment • i.e. Questionnaires • Donor assessment • i.e. Questionnaires • and • Trade performance • Economic growth • Poverty reduction • Development indicators OECD/CRS Case stories Case stories

  4. AfT commitments reached USD 41.7 bn. in 2008 Source: OECD/CRS (millions of 2008 US$)

  5. Asia is the largest recipient… 2008: + USD 5.3 bn

  6. …but is SPECA marginalized ? • DISBURSEMENTS • SPECA countries: less than 5% percent of global flows. • Excluding Afghanistan: only 1.4%. • COMMITMENTS • A risk: the marginalization of the region. • In real terms, Aid for Trade increased in 2008 by: • +35% World • +40% Asia • +8% only for SPECA • AND declined by 16% for the regionif Afghanistan is excluded.

  7. Donors priority Source: 2009 DAC REPORT ON AID PREDICTABILITY

  8. Aid for Trade in SPECA (1)

  9. Aid for Trade in SPECA (2) AFT per capita (2002-2008 in 2008 USD) SPECA (all) 70 SPECA (excl. AFG) 29 ________________________ ALL recipient countries 26 ALL (excluding SPECA) 25 SPECA countries attract • 5% of global AfT flows (2002-2008) • o/w Afghanistan = 3% • Is it a good performance? • Different metrics can be used • AFT per capita is one of them • SPECA as a region is rather successful • Only Turkmenistan (2$) and Uzbekistan (10$) receive less than world average • But is this Aid effective? • Does it meet the needs? • Does it target the most binding constraints to trade expansion?

  10. What did AfT to SPECA finance? (1)

  11. Sectoral allocation: what did AfT to SPECA finance? (2)

  12. Looking forward:Donors’ commitments

  13. What can be done to attractmore AfT? Partner country Donors • The logic of AfT Initiative • Starts with partners’ demand. • Donors committed to respond (alignment) • Demand is crucial • Need to mainstream trade in development strategy • Let the donor community know • The Roadmap is very important • Answer the OECD/WTO questionnaires and case stories • Very high profile • Will be part of the AFT at a glance 2011 • Centrepiece of the WTO Global Review on AFT in July 2011 where all donors (and more) will gather. DEMAND RESPONSE

  14. Conclusions • SPECA as a region is rather successful in attracting AFT despite substantial differences across countries. • But there is a risk of marginalization. • And there is scope to increase inflows of AfT. • This requires • Mainstreaming trade in development strategy • Letting the world know what the region’s needs are: • The AfT Roadmap is a crucial step • Answer the OECD/WTO questionnaires and submit case stories • This will help orient donor support • Where it is needed • And increase its effectiveness i.e. its impact.

  15. Further information • Questionnaires: www.oecd.org/dac/aft/questionnaire • Case stories: www.oecd.org/dac/aft/casestories • Aid for Trade in 2008: http://www.oecd.org/dataoecd/45/17/45468870.pdf • Aid for Trade Statistical Queries: http://www.oecd.org/document/21/0,3343,en_2649_34665_43230357_1_1_1_1,00.html • OECD/WTO: “Aid for Trade at a Glance 2009”: http://www.oecd.org/document/56/0,3343,en_2649_34665_42835064_1_1_1_1,00.html#statistics • Aid for Trade web page: www.oecd.org/dac/trade/aft • “Binding Constraints to Trade Expansion: Aid for Trade Objectives and Diagnostic Tools” (OECD Trade Policy Working Paper #94): • http://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=546100 • http://www.olis.oecd.org/olis/2009doc.nsf/LinkTo/NT0000701E/$FILE/JT03275544.PDF • “Increasing the Impact of Trade Expansion on Growth: Lessons from Trade Reforms for the Design of Aid for Trade” (OECD Trade Policy Working Paper #100): • http://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=546100 • http://www.oecd.org/officialdocuments/displaydocumentpdf/?cote=com/dcd/tad(2010)4/final&doclanguage=en

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