Mobilizing Aid for Trade in Latin America and the Caribbean
been an increase in non-concessional flows for trade will therefore be needed, as will means of assessing their effectiveness. Analysis of what is supported, and what the donor or beneficiary expects from the finance, will require more information than simple quantitative measures can yield. 1.5. Implementation Principles In 2005, aid donors and some recipients, including 10 LAC countries, endorsed the Paris Declaration on Aid Effectiveness (OECD, 2005). Its principles were cited in the Task Force recommendations. They include ownership: respecting the right and responsibility of the partner country to establish its development agenda; and alignment: to align development assistance with the development priorities and strategies set out by the partner country; along with harmonization of donor actions; managing for results; and mutual accountability (donors and recipients). These principles are essential to the effective provision of aid for trade but they may not be enough to maximize the initiative’s benefits. Two other goals or principles are also important. First, aid for trade should reflect not only country priorities but also the multilateral aim of making the global trading system more conducive to global development.7 Second, the regional dimension of aid for trade should be considered. Pursuit of these goals may require needs assessments that do not rely solely on the country strategy approach embodied in the Paris principles, as well as the participation of specialized regional or multilateral agencies—along with donors and recipients—in designing the broader aid-for-trade agenda. 1.6. Next Steps in the Aid-for-Trade Initiative Mobilizing stakeholders. Recent WTO efforts have focused on finding ways to implement the Hong Kong mandate and the Task Force’s recommendations. Because the WTO lacks the resources, in-country presence or experience to collect data, identify projects, monitor spending or evaluate the performance of donors and recipients, it must rely on other organizations to implement the initiative. Nonetheless, many donors lack structures to identify and meet needs at the regional level, and most of them have limited experience of working with the private sector. In preparation for drafting its first annual report on aid for trade and the first General Council discussion of the initiative’s implementation, in November 2007, the WTO is working with other organizations to fill these gaps. In late 2006, the Director General created an advisory group on aid for trade comprising the World Bank, IMF, OECD, United Nations Development Program (UNDP), UN Conference on Trade and Development (UNCTAD), UN Industrial Development Organization (UNIDO), the International Trade Center (ITC), and three regional development banks (ADB, Af DB and IDB). 7 Although, in the WTO, countries have accepted the Task Force recommendations, donor agencies in the same
countries cannot easily accept that aid flows would be subject to aims that are external to the donor and recipient. They argue that if recipients prefer to give priority to aims that are not fully consistent with multilateral objectives, then, in line with the Paris Principles, donors should align their programs with those aims.
Published on Sep 14, 2007
this report was prepared by the integration and trade sector (int) as a contribution to the regional meeting on mobilizing aid for trade: la...