Aid for Trade at a Glance 2009: Maintaining Momemtum Joint by World Trade Organization

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By connecting producers and business to local markets, building strength and synergies over time, producers could become more specialised, develop comparative advantages and enhance their price competitiveness, better enabling them to penetrate international markets. Aid for trade as stimulus In the context of the economic crisis, prioritising infrastructure, behind the border issues and regional and local trade seems to be the most effective way to reignite economic growth and reduce poverty. Infrastructure projects can stimulate the economies of partner countries, providing an immediate boost for their economies, creating opportunities for local employment, strengthening local suppliers and producers and creating positive impacts around the economy through the multiplier effect.

Furthermore, they cite similar programmes as having been most effective at raising trade capacity; these include aid-for-trade policy analysis, trade facilitation, competitiveness and export diversification. Finally, partner countries have cited a substantial number of examples of good practice in aid for trade, affirming positive results from the mutual efforts of donors and partners to improve aid effectiveness. 1 Partner country responses by region and income group1 REGION INCOME GROUP Least developed countries Europe Far East Asia Cambodia; Lao (PDR) Middle East Yemen (Rep.

WTO: PRESS/554, 23 March 2009. 3. WTO Job(2009)30 4. DCD/DAC(2009)12/REV1 5. The Institute for International Finance estimates that net capital flows to emerging economies have declined to USD 467 billion in 2008, half of their 2007 level. It is projected that they could decline in 2009 down to USD 165 billion, less than one-fifth of their 2007 level. (Institute for International Finance, Capital Flows to Emerging Market Economies, 27 January 2009). 6. UNCTAD Investment Brief, Number 1, 2009. 7.

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