Recent Figures on Aid for Trade

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Recent Figures on Aid for Trade in Latin America
and the Caribbean WTO Symposium on Evaluation
Geneva, September 15, 2008 Carolyn Robert
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AIM

• Show picture of Aid for Trade flows which are
  taking place
• WTO Task force recommended that donors and
  multilateral and regional institutions report
  regularly on AfT activities, including flows

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How the Inter-American Development Bank defines
AID for Trade

• No official definition of AfT
• Traditional lending, technical assistance and
  non-financial instruments are used to support the
  different elements of the broader Aft agenda,
  including trade capacity building and
  infrastructure development (transport, energy and
  communications).
• Trade and Integration priority area of
  intervention.
• AfT connecting the dots

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How the IDB allocates AID for Trade

• The identification and measurement of aid for
  trade is conducted on a case-by-case basis
  depending on the objective and components/activiti
  es of the projects, and whether they are trade
  related or not as defined by the WTO Task Force.
• No necessary correlation with the OECD CRS
  Database
• IDB counts both concessional and non-concessional
  flows

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• How Much AID for Trade
• Total AFT
• (2005-2008 YTD)

Note 2008 partial year includes operations
approved before Sept.1. Excludes infrastructure
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• How Much is Concessional

• Approx.US175 million (2005-2007)
• Average US60 million a year, which represents
  approx. 8 of total financing per year (average)

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• How AfT strictu sensu is distributed

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Commitments (2005-2008 YTD)
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• National and/or Regional?
• Distribution of Commitments (2005-2008YTD)
• Main instruments for financing regional programs
• -Regional Technical Cooperation
• -Regional Public Goods
• -Regional Initiatives (such as IIRSA, PPP)

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Commitments (2005-2008YTD)
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• In sum
• -Although the Bank has no definition and no
  official codification Financing for Trade-related
  activities, including those contemplated in the
  broader AfT agenda, constitutes a significant
  part of IDB financing to Latin American and
  Caribbean
• Between 2005-2007 there has been a continues
  increase in the total amount of trade-related
  financing provided by the IDB
• Significant amount of such financing, is through
  non-concessional lending, which reflects the fact
  that in the region many countries are middle
  income countries, and have limited access to
  concessional resources.
• Significant part of concessional financing also
  is being directed to regional programs.
• Infrastructure constitutes an important share of
  the non-concessional lending, although trade
  development is significant.

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1) Ensuring the Development Effectiveness of IDB
products -Need to measure outcomes in
trade-related assistance, -Need to establish
baseline indicators for measuring progress in
trade-related assistance not related to physical
infrastructure/investment.
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• A proposal for a new Development Effectiveness
  Framework (DEM)
• adoption of methodologies for

• Measuring results
• Redesigning the incentive structure to reward
  results
• Enhancing borrowers capacity to evaluate results

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2) Address needs from middle income countries,
which have limited access to concessional
financing 3) Design and put in place new
financing mechanisms and instruments which
promote increase of aid concessional and
non-concessional- for regional programs 4)
Enhance coordination among lenders and donors
regarding AfT in the region, including the design
and implementation of complementary strategies.
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Recent Figures on Aid for Trade in Latin America
and the Caribbean WTO Symposium on Evaluation
Geneva, September 15, 2008 Carolyn Robert
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(No Transcript)
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• How Much AID for Trade
• Total AFT (2005-2008 YTD)

Note 2008 partial year includes operations
approved before Sept.1.