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Future directions for Aid for Trade

Research report

Written by Yurendra Basnett

Research report

Aid for Trade (AfT) cannot be expected to solve every development problem; other effective aid instruments are also available. So, in the arsenal of these instruments, we need to ask where is AfT most effective, what specific problems should the initiative solve and how?

We at ODI have contributed to the growing body of evidence on its effectiveness, but what AfT should focus in the future remains open for debate. This report shares ideas on the elements that would enable the AfT initiative to travel in this direction and suggests that AfT should concentrate on helping developing countries trade by building their productive capacity, reducing the cost of trading and increasing trade infrastructure.
Yurendra Basnett