Aid for Trade in Asia and the Pacific: Driving Private Sector Participation in Global Value Chains | Asian Development Bank

Aid for Trade in Asia and the Pacific: Driving Private Sector Participation in Global Value Chains

Publication | October 2013
Aid for Trade in Asia and the Pacific: Driving Private Sector Participation in Global Value Chains

The formation of a Regional Technical Group on Aid for Trade for Asia and the Pacific was a key recommendation to emerge from the Aid for Trade Regional Review Meeting at ADB headquarters in Manila in 2007 and the Global Aid for Trade Review Meetings at the World Trade Organization in Geneva in 2007 and 2009. Reflecting the principles of country ownership of Aid for Trade, the Regional Technical Group operates under the stewardship of Regional Technical Group co-chairs, representatives of Cambodia and Japan. The Regional Technical Group comprises members from recipient and donor countries involved in formulating and implementing Aid for Trade policies and development agencies in the region.

ADB is a member and serves as the Secretariat to the Regional Technical Group. The Regional Technical Group started as a pilot project to provide an informal regional forum for discussing Aid for Trade issues and proposals, sharing good practices, taking stock of available analytical work on Aid for Trade in the region, and building partnerships among actors and stakeholders. It seeks to formulate an integrated approach to operationalize Aid for Trade in the medium term.

The content of this report is based on discussions at several meetings of the Regional Technical Group. It also takes into account external consultations at the World Trade Organization and other forums.

This report analyzes the overall context in which Aid for Trade can facilitate development through trade, based on experiences from Asia and the Pacific, where Aid for Trade has supported key trade related investments. It also expands on the regional production component of Asia's impressive trade-led growth. It highlights the specific role value chains play in promoting the assimilation of Asia's developing countries into dynamic production networks which can thereby promote growth.

Main findings

There are five main findings of the Regional Technical Group report:

  1. Aid for Trade has played an important role in helping Asian economies build the productive capacity to integrate further into the global economy.
  2. Domestic development strategies in Asia and the Pacific are increasingly incorporating measures that target improvements in the investment climate.
  3. Effective public-private dialogues are an essential feature of modern development strategies in Asia and the Pacific.
  4. Aid for Trade can promote and work together with other financial flows, which together can enhance Aid for Trade's positive impacts on trade capacity.
  5. Despite important successes, Asia's challenged states must more actively diversify Aid for Trade resources beyond their existing focus on physical infrastructure.


  • Executive Summary
  • Introduction
  • Aid for Trade in Context: A Better Investment Climate for Plugging into Global Value Chains
  • Promoting Public-Private Dialogues
  • Improving the Investment Climate by Engaging Non-ODA Financing
  • Challenges in Different Contexts
  • Conclusions
  • Annexes
  • References