Assessing Aid for Trade: Effectiveness, Current Issues and Future Directions

Table of Contents:
List of tables and figures Abbreviations and acronyms Contributors 1. Aid for Trade: Effectiveness, Current Issues and Future Directions - An Overview by Mohammad A. Razzaque and Dirk Willem te Velde 1.1 Background 1.2 Chapters in the volume 1.2.1 Part I: Effectiveness 1.2.2 Part II: Current issues 1.2.3 Part III: Future directions 1.3 Concluding remarks PART I. EFFECTIVENESS OF AID FOR TRADE 2. Impact of Aid for Trade: A Survey of Empirical Evidence by Isabella Massa 2.1 Introduction 2.2 Aid for Trade variables: definition and measurement issues 2.3 Country coverage 2.4 Sector coverage 2.5 Estimation approaches 2.5.1 Gravity models 2.5.2 Control groups 2.5.3 Miscellaneous 2.6 Empirical findings on Aid for Trade effectiveness 2.6.1 Type of Aid for Trade flow 2.6.2 Recipient country's income level 2.6.3 Recipient sector of aid 2.6.4 Geographical regions of recipient countries 2.7 Conclusions 3. Towards a Quantitative Assessment of Aid for Trade by Massimiliano Cali and Dirk Willem te Velde 3.1 Background and motivation 3.2 The effectiveness of Aid for Trade 3.2.1 Expected pathways 3.3 Empirical literature on aid effectiveness 3.4 The effects of Aid for Trade: an empirical framework 3.4.1 Aid for Trade and the costs of trading 3.4.2 Aid for Trade and exports 3.4.3 Data 3.5 Empirical results 3.5.1 Costs of importing, and time of exporting and importing 3.5.2 Aid for Trade and exports 3.6 Policy implications and future research Appendix 3.1 Defining 'Trading Across Borders' 4. Aid for Trade and the Integration of Small and Vulnerable Economies into the Global Economy by Massimiliano Cali, Mohammad A. Razzaque and Dirk Willem te Velde 4.1 Background 4.2 The rationale behind Aid for Trade in SVEs 4.3 SVEs accessing Aid for Trade 4.3.1 Main programmes of relevance for SVEs 4.3.2 Eligibility criteria and implementation 4.4 Aid for Trade flows to SVEs 4.4.1 Current and past flows by donor 4.4.2 AfT to SVEs 4.4.3 Types of Aid for Trade provided to SVEs 4.5 How Aid for Trade could help SVEs integrate into the global economy 4.5.1 A simple model 4.5.2 How effective have the programmes been? 4.5.3 Specific programmes 4.6 Empirical analysis on the effects of Aid for Trade on SVEs 4.6.1 The empirical models 4.6.2 Data 4.6.3 Results 4.7 Conclusions and policy implications 5. Aid for Trade: Impact on Sub-Saharan Africa by Massimiliano Cali and Mohammad Razzaque 5.1 Introduction 5.2 Trade and economic performance of sub-Saharan Africa: how AfT could help 5.3 Empirical methods 5.3.1 AfT and the costs of trading 5.3.2 AfT and exports 5.3.3 Data 5.4 Results 5.4.1 Aid for Trade and the cost of trading 5.4.2 Aid for Trade and exports 5.5 Summary and policy implications Annex 5.1 The full working of the theoretical model Annex 5.2 The Affinity of Nations Index 6. Aid for Trade in Practice: Addressing Political Economy Barriers to Improve Development Outcomes by Yurendra Basnett and Jakob Engel 6.1 Introduction: Aid for Trade within a changing global economy 6.2 The Aid for Trade project cycle as a series of complex collective action problems: an analytical framework 6.3 Needs identification 6.3.1 Identifying binding constraints 6.3.2 Mainstreaming Aid for Trade priorities 6.4 Selecting the most effective structure for AfT delivery 6.4.1 Loans, grants and pooled funds 6.4.2 Regional Aid for Trade 6.5 Design and implementation of AfT 6.5.1 Matching supply and demand 6.5.2 Donor-recipient co-ordination 6.5.3 Intradonor co-ordination 6.5.4 Interdonor co-ordination 6.5.5 Interministerial co-ordination 6.5.6 Government-REC co-ordination 6.6 Monitoring and evaluation 6.6.1 Responding to pressure to show results 6.6.2 Attributing impact within a coherent results chain 6.6.3 Quantifying results 6.6.4 Robustness of M&E procedures 6.7 Conclusion 7. Assessing the Effectiveness of Aid for Trade: Lessons from the Ground by Vinaye Ancharaz, Paolo Ghisu and Christophe Bellmann 7.1 Introduction 7.2 Evaluating Aid for Trade: why, how and what? 7.2.1 Why evaluate AfT? 7.2.2 Evaluation methods and difficulties 7.2.3 Evidence 7.2.4 The ICTSD-SAWTEE methodology 7.3 Aid for Trade global trends 7.3.1 Aid for Trade: is it additional? 7.3.2 AfT to LDCs 7.3.3 Other trends 7.4 Insights from country experiences in managing AfT 7.4.1 Utilisation of AfT funds 7.4.2 Ownership at country level: mainstreaming of trade and multi-stakeholder co-ordination 7.4.3 Donors' responses to countries' trade and development needs 7.4.4 From implementation to impact 7.5 Conclusion and the way forward PART II. SELECTED CURRENT ISSUES IN AID FOR TRADE 8. Regional Aid for Trade Effectiveness and Corridors by Bruce Byiers and Dan Lui 8.1 Introduction 8.2 Regional Aid for Trade in sub-Saharan Africa: an overview 8.2.1 Regional Aid for Trade flows 8.2.2 Evaluation to date of regional Aid for Trade and its effectiveness 8.3 Improving the effectiveness of regional Aid for Trade: challenges and opportunities 8.3.1 The policy context for regional AfT effectiveness: principles and policy responses 8.3.2 Key challenges to improving regional Aid for Trade 8.3.3 Implementation issues around regional AfT 8.4 The corridor approach and regional AfT effectiveness 8.4.1 Corridors overview 8.4.2 Corridors in policy 8.4.3 Corridors in practice 8.5 Conclusions 8.5.1 AfT flows 8.5.2 Institutions 8.5.3 Corridors as a tool for more effective AfT? 9. Regional Aid for Trade and Aid Effectiveness: Examples from East and West Africa by Liz Turner and Anna Fink 9.1 Introduction 9.2 Regional Aid for Trade and aid effectiveness in Africa 9.2.1 The AfT initiative 9.2.2 AfT and aid effectiveness 9.2.3 Regional AfT 9.2.4 The growing importance of regional AfT 9.2.5 Development partner engagement in regional AfT and aid effectiveness 9.3 Regional organisations and implementation of regional programmes 9.3.1 East African Community 9.3.2 Economic Community of West African States 9.3.3 Lessons learnt for aid effectiveness 9.4 Development partner support for regional Aid for Trade 9.4.1 Regional AfT and aid effectiveness in East Africa 9.4.2 Regional AfT and aid effectiveness in West Africa 9.5 Key findings and conclusions 9.5.1 Key findings 9.5.2 Conclusions 9.5.3 Areas for further investigation 10. Aid for Trade and Value Chains in Small and Vulnerable Economies and Least Developed Countries by Collin Zhuawu 10.1 Introduction 10.1.1 Value chains and supply chains: analytical perspectives 10.2 Empirical evidence on the participation of SVEs and LDCs in GVCs 10.3 Aid for Trade and the integration of LDCs and SVEs in global trade 10.4 Aid for Trade and value chains in small states and LDCs 10.5 Lessons learnt and recommendations 11. Aid for Trade and Global Value Chains (GVCs): Engaging with High-value Agriculture GVCs and Developing Trade by Jodie Keane 11.1 Introduction 11.2 Trends in global trade, global value chains and the role of Aid for Trade 11.2.1 GVC governance structures 11.2.2 The role of Aid for Trade 11.3 The use of AfT to help producers to enter and participate in high-value agricultural GVCs 11.4 Upgrading producers to meet standards in Kenya 11.4.1 Initial donor interventions 11.4.2 Successes and continued challenges 11.4.3 Structure of the cut flower GVC 11.5 Conclusions 12. Aid for Trade and Infrastructure Development for Agriculture by Marie-Agnes Jouanjean 12.1 Introduction 12.2 Hard infrastructure: on the importance of roads for development and trade in agriculture 12.2.1 Impact of infrastructure on trade: evidence at the regional and international scales 12.2.2 Bring the market to the poor or the poor to the market? Impact of roads on local market development 12.2.3 Which types of infrastructure for which impacts: market access, agricultural productivity and poverty reduction 12.2.4 Evidence of the impact of roads infrastructure on changes in agricultural technology 12.3 Soft infrastructure: key intermediate logistical infrastructures 12.3.1 Competition in transport services 12.3.2 Extension services 12.3.3 Storage capacity 12.3.4 SPS institutions and inspection infrastructures 12.4 Conclusion 13. Aid for Trade Adjustment: Implications for Small and Vulnerable Economies and Least Developed Countries by Sacha Silva 13.1 Introduction 13.2 The marginal role of trade-related adjustment 13.2.1 Adjustment in overall aid flows and strategies 13.2.2 Main TRA donors, regions and sectors 13.3 The adjustment needs of SVEs and LDCs 13.3.1 A typology of TRA 13.3.2 A multiplying SVE/LDC trade agenda 13.3.3 Adjustment as strategic priorities: on paper 13.4 Sources and solutions: (i) definitions 13.4.1 Novelty, vague definitions and misclassifications 13.4.2 Multilateral flows 13.4.3 Category or marker? 13.5 Sources and solutions: (ii) country/sector bias 13.5.1 Country bias 13.5.2 Sector bias 13.5.3 Addressing country and sector bias 13.6 Sources and solutions (iii): donor bias 13.6.1 TRA and donor reluctance 13.6.2 Making a stronger case for TRA 13.7 Conclusions: assessing trade-related adjustment costs 14. Aiding Exports: Lessons from Emerging Economies by Clara Brandi 14.1 Introduction 14.2 Successful export performance in emerging economies 14.2.1 Trade performance in China, India and Brazil 14.2.2 Introducing the framework for analysis 14.3 China 14.3.1 Trade-related infrastructure 14.3.2 Trade facilitation 14.4 India 14.4.1 Trade-related infrastructure 14.4.2 Trade facilitation 14.5 Brazil 14.5.1 Trade-related infrastructure 14.5.2 Trade facilitation 14.6 Lessons: what can we learn from past experiences? 14.6.1 Lessons for trade-related infrastructure 14.6.2 Lessons for trade facilitation 14.7 Conclusion 14.7.1 Ways forward on trade-related infrastructure 14.7.2 Ways forward on trade facilitation PART III. FUTURE DIRECTIONS 15. The Right to Trade: Rethinking the Aid for Trade Agenda by Joseph E Stiglitz and Andrew Charlton 15.1 Summary 15.2 Introduction 15.3 From 'Trade Not Aid' to 'Aid for Trade' 15.3.1 Questioning the benefits of liberalisation 15.3.2 Birth of Aid for Trade 15.3.3 Questioning the effectiveness of aid 15.4 Has bringing aid and trade together helped? 15.4.1 Have Aid for Trade programmes helped to promote trade and development? 15.4.2 Has the emergence of Aid for Trade increased the overall effectiveness of aid? 15.5 A proposal to support pro-development trade liberalisation 15.5.1 The 'right to trade' 15.5.2 Global Trade Facility 15.6 Conclusion 15A. A Summary of Commonwealth Roundtable with Joseph Stiglitz, on Aid for Trade - Perspectives on Progress and a Way Forward, held at Marlborough House, Commonwealth Secretariat, London, 29th August 212 by Emily Jones 15A.1 Introduction 15A.2 Presentation by Professor Joseph Stiglitz: 'The Right to Trade: a report for the Commonwealth Secretariat' 15A.2.1 The emergence of 'Aid for Trade' 15A.2.2 An evaluation of AfT 15A.2.3 Proposals on the way forward 15A.3 Feedback from participants 15A.3.1 The emergence of 'Aid for Trade' 15A.3.2 Links between trade, growth and development 15A.3.3 The evaluation of AfT 15A.3.4 The Global Trade Facility 15A.3.5 The 'Right to Trade' 15A.4 Conclusion 16. Future Directions in Aid for Trade by Dirk Willem te Velde 16.1 Introduction 16.2 Conception of Aid for Trade: providing global public goods 16.3 Decoupled Aid for Trade: building countries' capacity to trade 16.4 Connected, 'third-generation' Aid for Trade 16.4.1 Changing development finance flows 16.4.2 Changing trade patterns 16.5 Other perspectives on Aid for Trade: narrow and broad views 16.6 Conclusions

About the Author :
Mohammad A Razzaque is Adviser & Head, International Trade & Regional Co-operation in the Economic Affairs Division of the Commonwealth Secretariat. He has written extensively and edited several volumes on trade and development issues. He is the editor of Trade Hot Topics, which aims to communicate technical trade policy issues to wider readership. He holds a PhD from the University of Sussex and has previously taught at the University of Dhaka, Bangladesh. Dirk Willem te Velde is Head of the International Economic Development Group at the Overseas Development Institute. He has advised donor agencies, parliaments and multilateral bodies on responses to the global financial crisis and other areas. He has written and edited several books, journal articles and book chapters related to investment, trade and growth issues. He holds a PhD from Birkbeck College, University of London.