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The International Architecture of Aid for Trade Informal Experts’ Workshop BMZ, Berlin 29-30 January 2007 Remigi Winzap Joint SECO-OECD/DEV Project
The International Architecture of Aid for Trade
Informal Experts’ Workshop
BMZ, Berlin 29-30 January 2007
Remigi Winzap
Joint SECO-OECD/DEV Project
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Global Global MappingMapping ofof AidAid for for TradeTrade ActivitiesActivities
(c) (c) Main results
Introduction: Introduction: AidAid for for TradeTrade
(a) (a) Methodology
(b) Limitations(b) Limitations
Ways Forward: Ways Forward: Monitoring and EvaluationMonitoring and Evaluation33
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1. Introduction: Aid for Trade
WTO Aid for Trade Task Force definition of Aid for Trade (AfT) includes:
(1) Trade policy and regulations
(2) Trade development
(3) Trade-related infrastructure
(4) Building productive capacity
(5) Trade-related adjustment
(6) Other trade-related needs
Trade-related Technical
Assistance
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1. Introduction: Aid for Trade
WTO Aid for Trade Task Force (2006):
“Projects and programmes should be considered as Aid for Trade if these activities have been identified as trade-related development priorities in the recipient country’s national development strategies.”
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Global Global MappingMapping ofof AidAid for for TradeTrade ActivitiesActivities
(c) (c) Main results
Introduction: Introduction: AidAid for for TradeTrade
(a) (a) Methodology
(b) Limitations(b) Limitations
Ways Forward: Ways Forward: Monitoring and EvaluationMonitoring and Evaluation33
11
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2. Global Mapping of Aid for Trade Activities
Mapping bilateral, regional and international AfT programmes
- Institutions involved
- Volumes committed
- Sectors prioritised
- Regional/country groups
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2. Global Mapping of Aid for Trade Activities
(a) Methodology
Bilateral donors
- DAC reporting and non-DAC reporting
Multilateral agencies
Trust Funds
- ITC, JITAP, Integrated Framework (IF) and WTO
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2. Global Mapping of Aid for TradeActivities
(a) Methodology
Analysis based on funding data
Major specialised international organisations(e.g. WTO, UNCTAD)
-> implementing role
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2. Global Mapping of Aid for TradeActivities
(a) Methodology
Three broad AfT categories:
1. Trade policy and regulations
2. Building productive capacity (including trade development for non-DAC reporting countries and agencies)
3. Trade-related Infrastructure
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2. Global Mapping of Aid for TradeActivities
(a) Methodology
Data sources:
- OECD/DAC CRS Aid Activity Database
- Joint WTO/OECD Trade Capacity Building Database
Commitments (not disbursements)
2001-2004 annual averages
Deflators
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Global Global MappingMapping ofof AidAid for for TradeTrade ActivitiesActivities
(c) (c) Main results
Introduction: Introduction: AidAid for for TradeTrade
(a) (a) Methodology
(b) Limitations(b) Limitations
Ways Forward: Ways Forward: Monitoring and EvaluationMonitoring and Evaluation33
11
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2. Global Mapping of Aid for TradeActivities
(b) LimitationsGlobal mapping of AfT activities reported by donors
-> not possible to identify “gaps”
- between needs and supply of A4T
- in terms of sectors covered
Includes activities that are not explicitly trade-related
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Global Global MappingMapping ofof AidAid for for TradeTrade ActivitiesActivities
(c) (c) Main results
Introduction: Introduction: AidAid for for TradeTrade
(a) (a) Methodology
(b) Limitations(b) Limitations
Ways Forward: Ways Forward: Monitoring and EvaluationMonitoring and Evaluation33
11
22
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2. Global Mapping of Aid for Trade Activities
156UNDP
01010WTO
21012UNCTAD
8715UNIDO
10616FAO
16218ITC
Trade Development
Trade Policy and
RegulationsTotal AfT
Major Implementing Agencies (USD million)*
* Note: Annual averages over 2001-2004 at constant 2004 pricesSource: WTO/OECD database
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2. Global Mapping of Aid for TradeActivities
(c) Main results: GlobalTotal global support to AfT averaged 22 % of total official development assistance (ODA) over 2001-2004
Support to “trade policy and regulations” very small (3 % of total AfT)
Around 20 donors in “trade-related infrastructure” and building productive capacity
Four donors dominate in all regions and A4T categories: Japan, IDA, the United States (US) and the European Commission (EC)
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2. Global Mapping of Aid for TradeActivities
(c) Main results: Trust Funds (TF)
TF account for 0.2 % of the total AfT volume (or 0.4 per cent if trade-related infrastructure is excluded)
Switzerland top donor of all TF in AfT activities
US largest contributor to the WTO trust fund
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2. Global Mapping of Aid for Trade Activities
235SE144CH936NO
673DE271DK148DE1 023SE2 208US
885NO280CA189DK1 225DK2 605SE
1 138NL430CH219UK 1 152DE2 811NL
1 241SE983UK 228NO1 462NL3 787NO
1 775US1 738NO342CA4 266CH5 064CH
11 770Total5 419Total1 683Total15 023Total33 894Total
WTOIFJITAPITCAll TF
Contributions to Trust Funds (USD thousand)*
* Note: Annual averages over 2001-2004 at constant 2004 prices
Source: WTO/OECD database
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2. Global Mapping of Aid for TradeActivities
(c) Main results: Regions
Asia largest recipient followed by Africa
Two major donors in Asia: Japan and the US
Limited A4T support to America and Europe
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2. Global Mapping of Aid for TradeActivities
Global Support for AfT by Category and Region
0% 20% 40% 60% 80% 100%
BPC
TrI
TPR
Total A4T
Africa Asia America Europe Global Programmes
Source: WTO/OECD database; OECD/DAC CRS database
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2. Global Mapping of Aid for TradeActivities
(c) Main results: Regions
Germany and Spain important actors in Europe
Regional development banks only present in their region of competence
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2. Global Mapping of Aid for TradeActivities
(c) Main results: Income groups25 % of total AfT to least-developed countries (LDCs)
US and Japan lowest shares of support to LDCsamong all major donors
Japan main donor of AfT to other low income countries (OLICs)
Over 70 % of the US support to AfT to middle income countries (MICs)
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2. Global Mapping of Aid for TradeActivities
Global Support for AfT by Income Group and Category
0% 20% 40% 60% 80% 100%
BPC
TrI
TPR
Total A4T
LDCs OLICs MICs Unallocated
Source: WTO/OECD database; OECD/DAC CRS database
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Global Global MappingMapping ofof AidAid for for TradeTrade ActivitiesActivities
(c) (c) Main results
Introduction: Introduction: AidAid for for TradeTrade
(a) (a) Methodology
(b) Limitations(b) Limitations
Ways Forward: Ways Forward: Monitoring and EvaluationMonitoring and Evaluation33
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3. Ways Forward: Monitoring and Evaluation
WTO multilateral process of monitoring and evaluating AfT in 2007
OECD will contribute
Monitoring and evaluation at three levels
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3. Ways Forward: Monitoring and Evaluation
Three levels:
1. Global review based on WTO/OECD database and OECD/DAC database
2. Self-assessments by donors
3. Results-based evaluations at individual country level, e.g. Tanzania and Zambia
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3. Ways Forward: Monitoring and Evaluation
Country level:
- Mainstreaming trade into national development strategies is more relevant than ever before
- Appropriate framework or mechanism needed
- The report provides a first attempt to identify “gaps”, duplications and co-ordination challenges in the delivery of AfT
- > Two case studies: Tanzania and Zambia
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Lessons Learned from Tanzania and Zambia
1. Matching demand for and supply of AfT closely linked to government budget process
2. T + Z have developed own intricate frameworks of institutional arrangements and forums
3. Aid modalities vary significantly across countries and sectors
4. WTO/OECD database and the DTIS of the Integrated Framework show serious information gaps
-> Need to strengthen local ownership and capacity in identifying and reporting AfTactivities at country level
Thank you for your attention
