1. Aid for Trade for SPECA Countries
Jean-Jacques Hallaert
Senior Trade Policy Analyst
Trade and Agriculture Directorate, OECD
Ministerial Conference
“Aid for Trade Roadmap for SPECA”
Baku, Azerbaijan
December1-2, 2010

2. What is the OECD involvement?
Promote coherence between aid and trade
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
2) Enhance donor co-ordination and alignment
3) Maximize aid effectiveness
Monitor aid-for-trade flows & commitments

3. Monitoring Aid for Trade
DEMAND
RESPONSE
OUTCOME
IMPACT
Partner country assessment
i.e. Questionnaires
Donor assessment
and
Trade performance
Economic growth
Poverty reduction
Development indicators
OECD/CRS
Case stories
Case stories

4. AfT commitments reached USD 41.7 bn.
in 2008
Source: OECD/CRS (millions of 2008 US$)

5. Asia is the largest recipient…
2008: + USD 5.3 bn

6. …but is SPECA marginalized ?
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.

7. Donors priority
Source: 2009 DAC REPORT ON AID PREDICTABILITY

8. Aid for Trade in SPECA (1)

9. Aid for Trade in SPECA (2)
SPECA countries attract
5% of global AfT flows ( )
o/w Afghanistan = 3%
Is it a good performance?
AFT per capita
( in 2008 USD)
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
SPECA (all) 70 SPECA (excl. AFG) 29 ________________________ ALL recipient countries 26 ALL (excluding SPECA) 25
But is this Aid effective?
Does it meet the needs?
Does it target the most binding constraints to trade expansion?

10. What did AfT to SPECA finance? (1)

11. Sectoral allocation: what did AfT to SPECA finance? (2)

12. Looking forward: Donors’ commitments

13. What can be done to attract more AfT?
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
DEMAND
RESPONSE

14. 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.

15. Further information Questionnaires: www.oecd.org/dac/aft/questionnaire
Case stories:
Aid for Trade in 2008:
Aid for Trade Statistical Queries:
OECD/WTO: “Aid for Trade at a Glance 2009”:
Aid for Trade web page:
“Binding Constraints to Trade Expansion: Aid for Trade Objectives and Diagnostic Tools” (OECD Trade Policy Working Paper #94):
“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):