The Second Global Aid for Trade Review hosted by the WTO in early July revealed areas of consensus on the way forward. One after the other, heads of international organizations called for moving on to the implementation phase, resisting protectionism, more trade finance, a stronger role for the private sector and completing the Doha round. Strengthening the regional dimension of Aid for Trade, encouraging country ownership and better impact evaluation were also high on the agenda. “If Aid for Trade was urgent in 2007, it is essential today – it is the investment that will allow many developing countries prepare to exit the crisis by enhancing their trade capacity,” stated WTO Director-General Pascal Lamy at the event.

We believe in the importance of Aid for Trade in creating positive change within countries. It is our responsibility to translate the broader trade imperatives into reality for the private sector on the ground and to ensure that this brings benefits to those who need them most.

Aid for Trade has long been recognized as a sure path to employment, investment and sustainable development. Now more than ever, says UNCTAD, developing countries depend on its guidance.

Patricia Francis, executive director of ITC, speaks candidly about aid for trade, opportunities in this financial crisis and the role of ITC.

As the economic crisis evolves, at least one emerging trend tells a positive tale: there is a growing awareness of Aid for Trade and its role in promoting economic growth worldwide.

In the light of rapidly evolving economic recession, low-income countries are facing new challenges. But the crisis is also presenting these countries with opportunities to refocus their development strategies in this changing world economy.

“The crisis has a human face,” Pascal Lamy, Director General of WTO told participants attending the Second Global Review of Aid for Trade. “Poverty alleviation targets, whether as part of the MDGs (Millennium Development Goals) or otherwise, have become more challenging to achieve due to, among other things, the decline in export demand for goods.

The Second Global Review on Aid for Trade held in Geneva on July 6-7, 2009 represented an important milestone to take stock of the gains made since the First Aid for Trade Global Review in 2007. The Inter-American Development Bank (IDB) is very proud to be a partner of this initiative in the Latin American and Caribbean region.

Export-led growth has seen the Asia and Pacific region prosper immensely over the past four decades, yet many countries still continue to experience lagging growth and severe poverty. The Asian Development Bank (ADB) estimates that as many as 900 million people in developing Asia live on less than $1.25 a day. Even within the more prosperous countries, rich and poor regions exist side by side, portraying the two faces of Asia as a striking reality.

Aid for Trade has met with controversy since its beginnings. Now further challenged by the economic crisis, it is essential that it develops new, forward-thinking mechanisms.

Since its inception, Aid for Trade has spurred debate among stakeholders in a way few other developments could. Now, four years since it came to light in the 2005 Hong Kong Ministerial Declaration, Aid for Trade is still polarizing the opinions of political leaders and development economists worldwide.

ITC’s chief economist assesses the impact of the global financial crisis on developing countries, and recommends responses for international and domestic policy.

The publications and online resources in the column on the right present the outcomes of the Second Global Aid for Trade Review and showcase examples of Aid for Trade activities implemented at regional and country levels.