The Development Dimension Aid For Trade And Development Results A Management Framework

This study presents a tool to help design logical frameworks for results-based management of aid for trade.

One of the most effective ways to realise the potential of trade as a tool for development and poverty reduction is through meaningful market access. That being said, increasing the trade capacity of less advanced developing countries so that they become more dynamic players in the global economy requires a wide range of support. At the 2005 Hong Kong WTO Ministerial Conference, ministers called for the expansion of Aid for Trade to help developing countries benefit from WTO agreements and expand their trade, while recognising that such aid should not substitute for successful market access outcomes in the core areas of the Doha Development Agenda. In effect, the current suspension of talks in Geneva may provide a breathing space to make Aid for Trade fully operational in time for the completion of the negotiations. It is therefore important to keep up the momentum to ensure that Aid for Trade does deliver its promises. Aid for Trade: Making it Effective sets out how much aid the members of the OECD Development Assistance Committee (DAC) are already providing towards trade-related activities. It reviews the effectiveness of existing programmes, and argues that reinforcing mutual accountability at the local level, together with a global review mechanism, i.e. applying the Paris Declaration on Aid Effectiveness, would enhance the impact of Aid for Trade. In particular, strengthening country ownership and management for results are essential to ensure that Aid for Trade delivers larger benefits from the multilateral trading system to the least developed and developing countries, and enables them to develop effectively.

This book looks at what the trade and development community needs to know about aid-for-trade results, what past evaluations of programmes and projects reveal about trade outcomes and impacts, and how the trade and development community could improve the performance of aid for trade interventions.

This report draws on key findings and recommendations emerging from available donor evaluation reports, assesses factors that have contributed to the success (or failure) of past programmes, and provides guidance for enhancing the effectiveness and impact of future trade-related assistance.

This edition analyses how trade can contribute to economic diversification and empowerment, with a focus on eliminating extreme poverty, particularly through the effective participation of women and youth. It shows how aid for trade can contribute to that objective by addressing supply-side capacity and trade-related infrastructure constraints, including for micro-, small- and medium-sized enterprises notably in rural areas.

This book looks at what the trade and development community needs to know about aid-for-trade results, what past evaluations of programmes and projects reveal about trade outcomes and impacts, and how the trade and development community could improve the performance of aid for trade interventions.

Worldwide, the number of poor people increased during the past decade, despite technological improvements, more open trade, and improved policy frameworks in developing countries. Regional conflicts, adverse shifts in terms of trade, and marginalization of poor countries in the new global economy explain this outcome. This highlights the need to reform development assistance and improve its effectiveness. Making Development Work examines the four key principles of the Comprehensive-Development Framework, a World Bank initiative currently being piloted in twelve developing counties. The initiative promotes a holistic long-term vision of development, domestic ownership of development programs, and focus on results; and stronger partnership between government, the private sector, and the civil society. The first section of the volume describes the evolution in development thinking that culminated in this new consensus. The second focuses on country ownership of development policies and programs. Based on empirical evidence, it proposes a new view of the aid relationship as a mutual-learning process. The third section focuses on results and on the ways aid agencies might enhance development impact of their operations. It concludes with a preliminary assessment of strategies for scaling up from specific projects to sector and programmatic approaches, and suggests ways to adapt them to counter conditions. The experience of a bilateral aid agency, U.S. Agency for International Development (USAID), is examined in this context. The fourth section focuses on partnership, emphasizing that aid agencies must be explicit about the kinds of partnerships they seek with countries and the kinds of strategic selectivity they will exercise. The final chapter pulls together the lessons of development experience at various levels of operation. It outlines key tensions between comprehensiveness and selectivity, ownership and conditionality, speed and broad-based ownership, focus on results and poor local evaluation capacity, and enhanced country focus and globalization. Promising approaches to manage these tensions are put forward to replace one-size-fits-all prescriptions with client empowerment and social learning. Making Development Work offers rich lessons on improving the effectiveness of aid. It will be of particular interest to development practitioners, students and professors of development economics studies. Nagy Hanna is a lead corporate strategist and evaluation officer at the World Bank. He has published extensively on development, management, and knowledge. Robert Picciotto is director-general of Operations Evaluation at the World Bank.

'A compelling contribution to our evolving understanding of the links between trade, aid and security and what the international community needs to do to ensure peace and development in the world.' Achim Steiner, Executive Director, United Nations Environment Programme 'For far too long the international community ahs stood by while countries around the world descend into conflict and anarchy. We need to understand how we can engage more effectively with fragile and failing states. Trade, Aid and Security is an important step in this direction.' Jan Pronk, Special Representative of the UN General Secretary in Sudan and Former Minister of Development and the Environment, The Netherlands. 'As we begin to contemplate what the post-Iraq world will look like it is vital that we reflect on the limits of the utility of hard power and the importance that development can play in avoiding failed states before they fail, preventing conflicts and more successfully re-building states. This timely book makes a most important contribution to that process.' Lord Paddy Ashdown, UN High Representative for Boznia and Herzegovina, 2002 2006 Leader of UK Liberal Democrat Party, 1988 1999 'As UN Special Representative to the Great Lakes Region of Africa I have seen the devastating impact of the trade in conflict resources with my own eyes. Amongst much else, this book shows how different trade and aid politics can tackle the trade in conflict resources and make a real contribution to secure societies. It is essential reading.' Mohamed Sahnoun, Special Representative of the UN Secretary General in Central and East Africa. Iraq, Afghanistan, Darfur. All resonate loudly on the international stage, exposing and illustrating the intractable links between global security, control over naturals resources be it oil, water, timber or 'conflict diamonds' and the manipulation of foreign aid and international trade policy. This volume, written by leading authorities from across the globe, introduces the linkages between trade, aid and security, and exposes how inappropriate or misused trade and aid policy can and do undermine security and contribute to violence and the disintegration of national states. On a practical level they demonstrate how six key areas of trade and aid policy can be used to help forge stability and security, reduce the likelihood of armed conflict, and assist economic and political recovery in our war-torn world.