Aid for Trade 10 Years On – What’s Next?

This paper assesses the achievements and challenges of the World Trade Organization- (WTO) led Aid for Trade Initiative. After listing the achievements, the paper asks what the emphasis of the Initiative should be; how to expand the partnership, enhance the effectiveness and, most importantly, how to retain donor interest for building trade capacities in developing countries. Next it considers whether different aid modalities might improve results. In conclusion, the paper suggests that the best aid for trade and development results are obtained in countries that focus on making trade an effective instrument for economic growth and poverty reduction through programmes which take a regional approach to tackling trade-related binding constraints while using finance from a combination of different donors, including providers of South-South cooperation and with engagement of the private sector.