Aid for Trade in Asia and the Pacific: 12 Things to Know

Feature | 15 October 2013

Trade is one of the most effective ways to help developing countries and economies escape the poverty trap. The Aid for Trade initiative helps least developed countries strengthen their capabilities to meet market demand and overcome economic obstacles.

  1. Aid for Trade was launched in 2005 as a mechanism to address trade-related obstacles for developing countries. The initiative encourages governments and donors to recognize the role that trade can play in development.
    Source: World Trade Organization
  2. By supporting efforts by developing countries to adapt to the shifting nature of the trading system, Aid for Trade also builds stronger links to regional and global value chains.
    Source: ADB report Aid for Trade in Asia and the Pacific: Driving Private Sector Participation in Global Value Chains
  3. As the global economy continues to adjust in the aftermath of the global financial crisis, countries have taken on a broader view of the development agenda and the ways in which both aid flows and investment flows can play a part in building trade capacity.
    Source: ADB report Aid for Trade in Asia and the Pacific: Driving Private Sector Participation in Global Value Chains
  4. The emerging regional architecture led by production networks will continue to be a key driver of trade-led growth in Asia and the Pacific.
    Source: ADB document Aid for Trade in Asia and the Pacific: Its Role in Trade-Driven Growth
  5. The Regional Technical Group on Aid for Trade, formed in 2009, provides a regional forum to discuss Aid for Trade issues, share good practices, build partnerships, and consider a coordinated approach to operationalizing Aid for Trade in the medium-term.
    Source: ADB publication Aid for Trade in Asia and the Pacific: Its Role in Trade-Driven Growth
  6. Aid for Trade can help slash transit times, improve connectivity and provide the right policy environment for the private sector to thrive.
    Source: ADB Video Aid for Trade Critical to Growth
  7. There has been a rapid increase in South-South trade and investment in recent years. In part this reflects the growing economic role of rising powers such as the People's Republic of China (PRC) and India.
    Source: ADB report Aid for Trade in Asia and the Pacific: Driving Private Sector Participation in Global Value Chains
  8. Aid for Trade related investments in Bangladesh, Bhutan, Nepal and the areas of India which physically connect the three economies, will enhance underdeveloped exports in South Asia, leading to increased incomes and equitable growth, and a reduction in poverty and hunger.
    Source: ADB publication Aid for Trade: An Investment-Benefit Road Map from South Asia
  9. Asia's experience shows that public-private dialogues can enable governments to more effectively prioritize reform agendas and better target development assistance.
    Source: ADB report Aid for Trade in Asia and the Pacific: Driving Private Sector Participation in Global Value Chains
  10. Investing in regional infrastructure projects toward a "seamless Asia" could potentially boost developing Asia's real income in 2020 by $1.6 trillion, which is equivalent to 10% of developing Asia's gross domestic product (GDP).
    Source: ADB document Aid for Trade in Asia and the Pacific: Its Role in Trade-Driven Growth
  11. One outcome of the global crisis is the consensus that Asia must reconsider its export-led growth model, rebalancing its sources of growth away from traditional markets like the US and Europe for manufactured exports toward regional and domestic markets.
    Source: ADB document Aid for Trade in Asia and the Pacific: Its Role in Trade-Driven Growth
  12. Total Aid for Trade to ADB member countries increased by an average annual 13% from 2006-2011, but with large differences among recipients. The top 5 recipients in terms of total Aid for Trade during the period were India, Afghanistan, Viet Nam, Indonesia, and the PRC.
    Source: ADB report Aid for Trade in Asia and the Pacific: Driving Private Sector Participation in Global Value Chains