Aid for trade and beyond

Development Perspectives

Dr San Bilal

•  Important role played by trade in development

•  Trade can lead to different growth trajectories

•  Importance of adjustment policies and domestic agenda/reforms

•  Need aid for trade-related: (1) policies and regulation (2) adjustments (3) building productive capacity (4) infrastructures

•  Aid effectiveness principles

Aid for Trade logic

Page 2

Increasing Aid for Trade…

Page 3

With increasing focus on poor countries…

Page 4

And Africa and Asia…

Page 5

Over 1/3 of overall AfT provided by the EU

Page 6

•  Better targeted AfT

•  On LDCs (only 22% of EU AfT in 2009) and ‘countries most in need’

•  Improving complementatory between AfT and broader development policies

•  Targeting small and rural operators

•  Improving AfT at regional level

•  Better support HRs, labour rights and social protection, sustainable development

•  Enhanced effectiveness, cooperation within EU and with emerging players

EC Trade, Growth and Development Communication

Page 7

•  Increasing attention to regional level

•  International and regional banks key role (WB, AfDB, ADB)

•  Bilateral donors: the EU (France, Germany, UK); the US; Japan…

Regional dimension of AfT (= 18% of tot AfT in 2009)

Page 8

•  National – regional nexus

•  Coordination and complementarity

•  Implementation issues

•  Ownership and prioritisation

•  Capacity constraints

•  Donors coordination

•  Focus on policies and infrastructure / TF

•  Multiplication of regional programmes + EPAs

Regional challenges

Page 9

•  Bridging sectors:

e.g. AfT with Agriculture and rural development / food security

•  Involvement / ownership from private sector

•  Access to finance

•  Multiplication of fora: national, regional, continental, international and by sector

Sectoral challenges

Page 10

Eg. Productive capacity

Page 11

•  Go beyond aid: private capital

•  Leverage aid to mutiple pool of resources

•  New sources and instruments:

blending (grants and loans), private-public partnership

FDI, portfolio investment, capital markets, private equity, sovereign funds

•  Domestic resources mobilisation

•  Emerging players

v Capacity challenge !!!

Innovative sources of financing

Page 12

AfT and other official flows (OOF)

Page 13

•  Effectiveness & monitoring: show results and learn lessons (e.g. OECD/WTO)

•  Involve private sector: leverage & impact

•  Connect to emerging players: South-South Cooperation

•  Address broader policy objectives & ensure bridging/coherence: - industrial policy, policy space, - sustainability, inclusiveness and equity = build synergy and complementary

•  Strenghten ownership and coordination

•  …

Way forward

Page 14

Thank you

San Bilal: sb@ecdpm.org

www.ecdpm.org

Page 15