Aid for Trade for SPECA Countries
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Aid for Trade for SPECA Countries
Jean-Jacques HallaertSenior Trade Policy Analyst
Trade and Agriculture Directorate, OECD
Ministerial Conference“Aid for Trade Roadmap for SPECA”
Baku, AzerbaijanDecember1-2, 2010
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What is the OECD involvement?
4) Monitor aid-for-trade flows & commitments
1) Promote coherence between aid and trade
2) Enhance donor co-ordination and alignment
3) Maximize aid effectiveness
• 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
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Monitoring Aid for TradeMonitoring Aid for Trade
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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
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AfT commitments reached USD 41.7 bn. in 2008
Source: OECD/CRS (millions of 2008 US$)
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Asia is the largest recipient…
2008: + USD 5.3 bn
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……but is SPECA marginalized ?but is SPECA marginalized ?
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DISBURSEMENTS
SPECA countries: less than 5% percent of global flows.
Excluding Afghanistan: only 1.4%.
COMMITMENTS
A risk: the marginalization of the region.
In real terms, Aid for Trade increased in 2008 by:
• +35% World• +40% Asia• +8% only for SPECA
AND declined by 16% for the region if Afghanistan is excluded.
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Donors priority
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Source: 2009 DAC REPORT ON AID PREDICTABILITY
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Aid for Trade in SPECA (1)Aid for Trade in SPECA (1)
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Aid for Trade in SPECA (2)Aid for Trade in SPECA (2)SPECA countries attract
5% of global AfT flows (2002-2008) o/w Afghanistan = 3% Is it a good performance?
AFT per capita(2002-2008 in 2008 USD)
SPECA (all) 70SPECA (excl. AFG) 29________________________ALL recipient countries 26ALL (excluding SPECA) 25
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Different metrics can be used AFT per capita is one of them
SPECA as a region is rather successful
Only Turkmenistan (2$) 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?
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What did AfT to SPECA finance? (1)
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Sectoral allocation: what did AfT to SPECA finance? (2)
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Looking forward:Donors’ commitments
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• 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.
Partner country Donors
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What can be done to attractmore AfT?
DEMAND RESPONSE
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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.
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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