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Scale and Types of Funds for Aid for Trade

Working papers

Written by Massimiliano Cali

Despite the fact that aid for trade is widely recognized as an essential component of a successful World Trade Organization (WTO) Doha Round (WTO 2005), there is as yet no agreement on the exact rationale and scale of the funds required for this type of assistance to take form.1 Moreover, there is a paucity of analysis of whether past aid for trade spending was in types of aid relevant to the potential needs of recipients, which should form the basis of the allocation of aid for trade. 2 The object of this chapter is to contribute to the analysis of these issues in two main ways: (i) by providing some possible estimates of the scale of funds which may be needed on the basis of a narrow definition of aid for trade; and (ii) by analyzing past aid for trade spending3 and assessing possible ways in which this may (or may not) match current needs. This is important as it shows the scale of funds previously available for broad trade-related needs as well as the priorities set by donors in allocating the funds across various types of broad aid for trade activities.
Massimiliano Calì