Aid used for trade is helping developing countries diversify

Container

(Unsplash, 2019)

This article is brought to you in association with OECD.


Using development aid to build trade capacity in poor countries is helping to improve economic diversification and to economically empower marginalised groups, yet progress remains geographically uneven, according to the latest OECD-WTO report on Aid for Trade.

Aid for Trade at a Glance 2019: Economic Diversification and Empowerment says that 47 developing countries (mostly in Africa), out of the 88 surveyed, report progress in diversifying their economies since the OECD-WTO Aid for Trade Initiative was launched in 2006, a picture backed up by trade statistics. Most progress has been seen in agricultural sectors followed by services and industry. Countries still struggling to use international commerce to diversify their economies are the least-developed countries or those that are small islands, landlocked, resource-dependent or ravaged by conflict.

“Aid for Trade is working. It is having a real impact where it is most needed,” said OECD Secretary-General Angel Gurría, launching the report at the WTO’s 2019 Global Review of Aid for Trade in Geneva. “That said, the path towards economic diversification is complicated by subdued trade growth and a decline in FDI. Rising trade tensions and protectionism are hurting growth prospects and any shift away from rules-based trade hits the most vulnerable countries and people hardest.”

Past reports have consistently found Aid for Trade to be an effective way of driving economic development at both the micro and macro levels by creating the conditions for trade to drive investment and create jobs. The 2019 report notes that the specific – and mutually reinforcing – goals of diversification and empowering small business, youths and women to participate in and benefit from trade will be key for achieving the Sustainable Development Goals.

The 2019 report says USD 409 billion in official development assistance (ODA) and USD 346 billion in concessional loans has been used since 2006 to boost trade in developing countries by investing it in areas like infrastructure, regulation or providing access to technical assistance. Another USD 100 billion in ODA and loans from donor countries was committed in 2017, and assistance between developing countries provided another USD 9 billion.

Every US dollar invested in aid for trade has been found to generate USD 8 worth of exports in developing countries and nearly USD 20 of exports in least-developed countries, depending on the country and the type of investment. Open, rules-based trading contributes to global welfare by helping to diffuse goods, services, technology and knowledge, though many developing countries still face numerous supply-side constraints.

In the past 30 years, five countries have shed their least-developed country status. Two more – Vanuatu and Angola – are on track to do so in 2020-21 and 10 others are moving in the right direction at a good pace. Another 35 least-developed countries show little progress.

the sting Milestones

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Cameron’s Conservatives and UKIP are exploiting and cultivating anti-EU immigration sentiment but Labour party isn’t?

Why and How: Advocating for the inclusion of Palliative Care in Universal Health Care

Aung San Suu Kyi defends Myanmar from accusations of genocide, at top UN court

CLIMATE CHANGE FOCUS: Climate-proofing Timor-Leste

Financial abuse of elderly ‘rampant, but invisible’, says UN expert

Charlotte in Ghana

Rising landmine blast toll in Afghanistan highlights long-term care needs of survivors

Eurozone: Even good statistics mean deeper recession

The Recruitment of Children as Soldiers Explained

GSMA Mobile 360 – Latin America at Mexico City: Intelligently Connecting to a Better Future, in association with The European Sting

UN Children’s Fund chief condemns ‘horrific’ Kabul bomb attack

4 key steps to support cross-border payments and digital trade growth

Can one FTA and 110 lobby meetings make the dirty oil clean in Europe?

Migrants: ‘A powerful driver’ of economic growth, ‘dynamism and understanding’

Medical Studies During COVID-19: How the Pandemic Affects this Generation of Doctors-to-be

5 reasons why biodiversity matters – to human health, the economy and your wellbeing

Companies that put employees first perform better

The 4 types of leader who will thrive in the Fourth Industrial Revolution

Climate Change Revolution: by-laws for the world

Is there a drug for every disease?

Mobile Technology Saving Lives: Changing healthcare systems with simple technological solutions

Digital development: technology-enabled, but human-centric

International Women’s Day: Where does she belong?

The final countdown towards achieving 2030 Agenda

It’s 100 years since US women got the right to vote, but how has gender equality changed?

Here’s how China is going green

How each country’s share of global CO2 emissions changes over time

Road safety: Data show improvements in 2018 but further concrete and swift actions are needed

Application of EU Law in 2020: Protecting our agreed rules and shared values during a pandemic

GSMA Mobile 360 – Africa: Rise of the Digital Citizen, Kigali 16 – 18 July 2019, in association with The European Sting

European Commission steps up protection of European intellectual property in global markets

Commission reports on progress in risk reduction in the Banking Union and calls for faster progress on Capital Markets Union ahead of EU Leaders’ meetings

From sun-powered trikes to mind-controlled TV – 10 top gadgets unveiled at CES 2020

Unemployment and immigrants haunt the EU; who can offer relief?

Norway initiates WTO dispute complaint against US steel, aluminium duties

UN Climate Action Summit concludes with insufficient EU and global pledges

‘Great Pacific Garbage Patch’ clean-up project launches trial run: UN Environment

The future of suicide and depression prevention

Study finds sharks are ‘functionally extinct’ in 20% of reefs observed

The rise of alternative medical practices in modern sports

These are the skills young people will need for the green jobs of the future

Understanding and demystifying the new outbreak of Coronavirus

In dreams and in love there are no impossibilities

Do you dare to go to China?

Libya ‘in race against time’, but dissolving conflict ‘a realistic prospect’, Security Council hears

These are the world’s 10 most innovative economies

State aid: Commission approves €300 million public support for the development of ultrafast broadband network in Greece

Immigrant integration policies have improved but challenges remain

COVID-19: MEPs call for measures to close the digital gap in education

Eurozone: Economic sentiment-business climate to collapse without support from exports

St. Vincent and the Grenadines breaks a record, as smallest ever Security Council seat holder

Indonesia is buzzing with entrepreneurial spirit. And others in ASEAN aren’t far behind

The way to entrepreneurship in the developing world

EU countries should ensure universal access to sexual and reproductive health

Advanced economies still have plenty of work to do to reach Sustainable Development Goals

UN chief hails victory of ‘political will’ in historic Republic of North Macedonia accord

UN calls for support to implement Central Africa’s newly minted peace agreement

Why practicing medicine privately at home is still a (difficult) option?

Gender gap in medicine: from when, why and until when?

It’s time for the circular economy to go global – and you can help

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s