Some of the points that are made are completely valid. The global oversight mechanism seems good in theory, but adding too much oversight can also be a burned. I definitely take some issues with the statement that government and policy reforms are more critical than infrastructure. While trade issues are usually policy based there are huge and costly problems in terms of infrastructure development and maintenance. It’s irrelevant if you don’t have tariffs on coconuts if you can’t get them to market to sell.
Overall the report and methodology seems concise and clear and points to a way forward for developing nations to come into the folds of the multilateral trade and aid system. Hopefully the global review mechanism will be incorporated to some extent since I think that is the most valuable aspect of the report.
Full Report Here
Showing posts with label OECD. Show all posts
Showing posts with label OECD. Show all posts
Wednesday, November 25, 2009
Aid for Trade: Making it Effective //Chapter 7: An Effective Aid for Trade Partnership: Local Accountability and Global Review
- Local accountability is key, and policy and government changes are the best use of financial resources.
- Multinational groups are better at raising money than distributing it.
The global review mechanism is vital in order to provide adequate oversight.
Chapter 7
- Multinational groups are better at raising money than distributing it.
The global review mechanism is vital in order to provide adequate oversight.
Chapter 7
Aid for Trade: Making it Effective // Chapter 6: Priorities for Improvement
- Three priorities, according to the authors: “(1) establishing a national dialogue to formulate and implement trade policy; (2) mainstreaming trade policy into national economic development and external assistance strategies; and, (3) aligning aid for trade with aid effectiveness principles.”
- Reform is more important than infrastructure in order to integrate into the international trade system.
Chapter 6
- Reform is more important than infrastructure in order to integrate into the international trade system.
Chapter 6
Aid for Trade: Making it Effective // Chapter 5: When is Aid Effective?
- “This chapter discusses key theoretical insights on how to ensure that aid can indeed lift the productivity and export competitiveness of recipient countries”.
- Market failures may actually be government and policy failures. Underinvestment in administration oversight and infrastructure can produce market failures.
- Few donors use local institutions and country systems for their programs, this can cause issues and is usually due to under developed local capacities and resources.
Chapter 5
- Market failures may actually be government and policy failures. Underinvestment in administration oversight and infrastructure can produce market failures.
- Few donors use local institutions and country systems for their programs, this can cause issues and is usually due to under developed local capacities and resources.
Chapter 5
Aid for Trade: Making it Effective // Chapter 4: The Global Aid Context: The Challenges of Scaling-Up
- The challenges of scaling-up include: “(1) maintaining a stable macroeconomic framework…[and] (2) improving public financial management while facing increasing disincentives to mobilize domestic resources”.
- LDC’s need to have a plan to absorb the probably increases in aid and aid for trade flows.
- Good development practices and plans are essentially to a healthy absorption.
- Human capital and infrastructure bottlenecks should be addressed early in order to enhance the absorption and increase scaling-up.
- Dutch Disease Effect happens when ”the expected scaling up of aid has renewed concerns about the potential of aid flows to create a real appreciation of the aid recipients currency and thereby dampen the export competitiveness of a country”
Chapter 4
- LDC’s need to have a plan to absorb the probably increases in aid and aid for trade flows.
- Good development practices and plans are essentially to a healthy absorption.
- Human capital and infrastructure bottlenecks should be addressed early in order to enhance the absorption and increase scaling-up.
- Dutch Disease Effect happens when ”the expected scaling up of aid has renewed concerns about the potential of aid flows to create a real appreciation of the aid recipients currency and thereby dampen the export competitiveness of a country”
Chapter 4
Tuesday, November 24, 2009
Aid for Trade: Making it Effective // Chapter 3: Donor Support
- “This chapter provides some more detailed trends in bilateral and multilateral donor support to the different categories of the aid for trade agenda, i.e. TRTA/CB and supple-side constraints (infrastructure and building productive capacity). “
- Support for TRTA/CB has decreased USD 200 million.
- Trade Policy and Regulations increased about USD 50 million. Trade development funding increased from USD 240 million to about USD 1.8 billion. Donor contributions to other multilateral funds and programs increased 70% from 2001 to 2003 but remained stable FY 2003 to 2004.
- Funding for trade related infrastructure has been on the rise, mostly due to some large reconstruction programs in the Middle East.
- Aid for trade (except in the case of infrastructure) requires less financing by grants than education and health projects.
Chapter 3
- Support for TRTA/CB has decreased USD 200 million.
- Trade Policy and Regulations increased about USD 50 million. Trade development funding increased from USD 240 million to about USD 1.8 billion. Donor contributions to other multilateral funds and programs increased 70% from 2001 to 2003 but remained stable FY 2003 to 2004.
- Funding for trade related infrastructure has been on the rise, mostly due to some large reconstruction programs in the Middle East.
- Aid for trade (except in the case of infrastructure) requires less financing by grants than education and health projects.
Chapter 3
Aid for Trade: Making it Effective // Chapter 2: The Scope of the Aid for Trade Agenda
- This chapter deals with Traditionally Trade Related Technical Assistance and Capacity Building (TRTA/CB) as it relates to developing trade and economic growth.
- Two categories are made to classify the activities: trade policy and regulations and trade development.
- Adjustment is (as always) a sore point, especially when adjustment costs are tied up in TRTA/CB and infrastructure.
- This paper limits the data to “only ODA targeted towards trade related technical assistance and capacity building, economic infrastructure and building productive capacity”.
Chapter 2
- Two categories are made to classify the activities: trade policy and regulations and trade development.
- Adjustment is (as always) a sore point, especially when adjustment costs are tied up in TRTA/CB and infrastructure.
- This paper limits the data to “only ODA targeted towards trade related technical assistance and capacity building, economic infrastructure and building productive capacity”.
Chapter 2
Aid for Trade: Making it Effective // Chapter 1: The Origins
Main Points from Chapter 1
Uruguay Round was groundbreaking for multilateral trade system for developing nations.
Many policies and agreements have been made by the WTO and between other member states
Aid for Trade should not be a substitute for the benefits that the conclusion of the Doha Development Rounds
Uruguay Round was groundbreaking for multilateral trade system for developing nations.
Many policies and agreements have been made by the WTO and between other member states
Aid for Trade should not be a substitute for the benefits that the conclusion of the Doha Development Rounds
