INTER-AMERICAN DEVELOPMENTE BANK TRADE AND INTEGRATION SECTOR

1. INTER-AMERICAN DEVELOPMENTE BANK TRADE AND INTEGRATION SECTOR Recent Figures on Aid for Trade in Latin America and the Caribbean WTO Symposium on Evaluation Geneva, September 15, 2008 Carolyn Robert

2. IDB Recent figures on AfT in LAC INTER-AMERICAN DEVELOPMENT BANK – TRADE AND INTEGRATION SECTOR AIM • Show picture of Aid for Trade flows which are taking place • WTO Task force recommended that donors and multilateral and regional institutions report regularly on AfT activities, including flows

3. IDB Recent figures on AfT in LAC INTER-AMERICAN DEVELOPMENT BANK – TRADE AND INTEGRATION SECTOR How the Inter-American Development Bank defines AID for Trade • No official definition of AfT • Traditional lending, technical assistance and non-financial instruments are used to support the different elements of the broader Aft agenda, including trade capacity building and infrastructure development (transport, energy and communications). • Trade and Integration: priority area of intervention. • AfT: connecting the dots

4. IDB Recent figures on AfT in LAC INTER-AMERICAN DEVELOPMENT BANK – TRADE AND INTEGRATION SECTOR How the IDB allocates AID for Trade • The identification and measurement of aid for trade is conducted on a case-by-case basis depending on the objective and components/activities of the projects, and whether they are trade related or not as defined by the WTO Task Force. • No necessary correlation with the OECD CRS Database IDB counts both concessional and non-concessional flows

5. IDB Recent Figures on AfT in LAC INTER-AMERICAN DEVELOPMENT BANK – TRADE AND INTEGRATION SECTOR • How Much AID for Trade • Total AFT • (2005-2008 YTD) Note: 2008 partial year – includes operations approved before Sept.1. Excludes infrastructure

6. IDB Recent Figures on AfT in LAC INTER-AMERICAN DEVELOPMENT BANK – TRADE AND INTEGRATION SECTOR • How Much is Concessional • Approx.US$175 million (2005-2007) Average US$60 million a year, which represents approx. 8% of total financing per year (average)

7. IDB Recent Figures on AfT in LAC INTER-AMERICAN DEVELOPMENT BANK – TRADE AND INTEGRATION SECTOR • How AfT strictu sensu is distributed

8. IDB Recent Figures on AfT in LAC INTER-AMERICAN DEVELOPMENT BANK – TRADE AND INTEGRATION SECTOR Commitments (2005-2008 YTD)

9. IDB Recent Figures on Aft in LAC INTER-AMERICAN DEVELOPMENT BANK – TRADE AND INTEGRATION SECTOR • National and/or Regional? • Distribution of Commitments (2005-2008YTD) • Main instruments for financing regional programs: • -Regional Technical Cooperation • -Regional Public Goods • -Regional Initiatives (such as IIRSA, PPP)

10. IDB Recent Figures on AfT in LAC INTER-AMERICAN DEVELOPMENT BANK – TRADE AND INTEGRATION SECTOR • Commitments (2005-2008YTD)

11. IDB Recent Figures on AfT in LAC INTER-AMERICAN DEVELOPMENT BANK – TRADE AND INTEGRATION SECTOR • In sum • -Although the Bank has no definition and no official codification Financing for Trade-related activities, including those contemplated in the broader AfT agenda, constitutes a significant part of IDB financing to Latin American and Caribbean; • Between 2005-2007 there has been a continues increase in the total amount of trade-related financing provided by the IDB; • Significant amount of such financing, is through non-concessional lending, which reflects the fact that in the region many countries are middle income countries, and have limited access to concessional resources. • Significant part of concessional financing also is being directed to regional programs. • Infrastructure constitutes an important share of the non-concessional lending, although trade development is significant.

12. Challenges ahead INTER-AMERICAN DEVELOPMENT BANK – TRADE AND INTEGRATION SECTOR 1) Ensuring the Development Effectiveness of IDB products: -Need to measure outcomes in trade-related assistance, -Need to establish baseline indicators for measuring progress in trade-related assistance not related to physical infrastructure/investment.

13. Ensuring the Development Effectiveness of IDB products INTER-AMERICAN DEVELOPMENT BANK – TRADE AND INTEGRATION SECTOR • A proposal for a new Development Effectiveness Framework (DEM) • adoption of methodologies for • Measuring results; • Redesigning the incentive structure to reward results; • Enhancing borrowers capacity to evaluate results

14. Challenges ahead INTER-AMERICAN DEVELOPMENT BANK – TRADE AND INTEGRATION SECTOR 2) Address needs from middle income countries, which have limited access to concessional financing; 3) Design and put in place new financing mechanisms and instruments which promote increase of aid –concessional and non-concessional- for regional programs; 4) Enhance coordination among lenders and donors regarding AfT in the region, including the design and implementation of complementary strategies.

15. INTER-AMERICAN DEVELOPMENTE BANK TRADE AND INTEGRATION SECTOR Recent Figures on Aid for Trade in Latin America and the Caribbean WTO Symposium on Evaluation Geneva, September 15, 2008 Carolyn Robert

17. IDB Recent Figures on AfT in LAC INTER-AMERICAN DEVELOPMENT BANK – TRADE AND INTEGRATION SECTOR • How Much AID for Trade • Total AFT (2005-2008 YTD) Note: 2008 partial year – includes operations approved before Sept.1.