Aid for Trade at a Glance 2019

Foreword
Aid for trade facts and figures
Acknowledgements
Table of contents
Acronyms and abbreviations
Executive summary
CHAPTER 1 Setting the scene
	INTRODUCTION
		Figure 1.1. Export diversification by country and product category
		Figure 1.2. Export diversification by markets reached and by country
	ECONOMIC DIVERSIFICATION AS A POLICY PRIORITY
		Box 1.1. Why economic diversification matters to developing countries and the LDCs
		Table 1.1. Methodology to identify economic and export diversification priorities
	EXPORT DIVERSIFICATION: PROGRESS AND CONSTRAINTS
		Figure 1.3. Progress reported by respondent in economic diversification
		Figure 1.4. Long-term trend of export diversification and value of global exports
		Figures 1.5-1.7., Product diversification, by sub-region
		Figures 1.8.-1.9., Product diversification, by income groups and region
		Figure 1.10. Economic diversification at the sectoral level, by region
		Figure 1.11. Export diversification by agricultural products, by region
		Figure 1.12. Export diversification in industrial products, by region
		Figure 1.13. Top constraints to economic diversification for partner countries
		Figure 1.14. Top constraints to economic diversification, by LLDC, LDC and SIDS respondents
		Box 1.2. What factors constrain economic diversification
		Figure 1.15. Top constraints to economic diversification, by region
	ECONOMIC EMPOWERMENT
		Box 1.3. Economic empowerment as a priority
		Box 1.4. Joint Declaration on Trade and Women’s Economic Empowerment
		Figure 1.16. Aid for Trade can contribute to the achievement of the 2030 Agenda
	CONCLUSIONS
CHAPTER 2 Aid for trade, economic diversification and empowerment
	OVERVIEW
	FINANCING SUSTAINABLE DEVELOPMENT
		Figure 2.1. Cross-border finance to developing countries, 2000-2016
		Figure 2.2. Destinations of external financing in 2016
		Figure 2.3. The availability of financing resources at different income levels
		Figure 2.4. Amounts mobilised from the private sector through development financeinterventions 2012 – 17 by income group and sector
		Table 2.1. My views on how aid for trade is helping to mobilise other forms of development finance
		Figure 2.5a. and 2.5b. Private philanthropy for trade development 2017(USD million, disbursements, 2017)
		Table 2.2. My View on South-South co-operation
		Figure 2.6. Aid for trade disbursement by income group, concessionality and category2006-17
		Figure 2.7. Aid for trade disbursement by region 2006-17
		Figure 2.8. Aid for trade disbursement by income group 2006-17
	IS AID FOR TRADE WORKING?
		Table 2.3. Empirical findings on the impact of aid for trade
		Figure 2.9. Aid for trade impacts
		Figure 2.10. Aid-for-trade success factors
	EMPOWERMENT THROUGH ECONOMIC DIVERSIFICATION.
		Table 2.4. My view on economic diversification
		In my view by Sigrid Kaag, Minister for Foreign Trade and Development Cooperation, The Netherlands
		Figure 2.11. ODA committed to building productive capacity 1973-2017
		Table 2.5. My view on the role of agriculture
		Table 2.6. My view on the role of developing the private sector
		Table 2.7. My view on the role of a business enabling environment
		Table 2.8. My views on improving access to finance
		Table 2.9. My views on the role of tourism
		Table 2.10. My view on Trade Development
	BUILDING TRADE RELATED INFRASTRUCTURE
		Table 2.11. My views on trade-related infrastructure
		Figure 2.12. ODA commitments to trade related infrastructure
		Table 2.12. My views on the contribution of Energy
		Table 2.13. My views on the contribution of ITC
	SUPPORT IN 2017
		Figure 2.13. Aid-for-trade commitments by category, USD billion, constant price 2017
		Figure 2.14. Trade-related OOF commitments by category, USD billion, 2017 constant
		Figure 2.15. Aid-for-trade commitments by region, USD billion, 2017 constant
		Figure 2.16. Trade-related OOF commitments by region, USD billion, 2017 constant
		Figure 2.17. Aid-for-trade commitments by income group, USD billion, 2017 constant
		Figure 2.18. Trade-related OOF commitments by income group, USD billion, 2017 constant
CHAPTER 3 Promoting economic diversification and structural transformation through industrialisation
	INTRODUCTION
		Figure 3.1. Relationship between GDP growth and manufacturing growth, 1970-2017
		Figure 3.2. Labour productivity growth index: Developing economies
	INDUSTRIALISATION FOR ECONOMIC DIVERSIFICATION AND STRUCTURAL TRANSFORMATION
		Figure 3.3. An increasing trend in global manufacturing value added, 1990-2017
		Figure 3.4. The virtuous circle of manufacturing consumption: The global economy
		Figure 3.5. Share of manufactured goods in global export markets
		Box 3.1. Arab region: setting up regional accreditation to overcome technical barriers to tradeand promote regional integration
		Figure 3.6. Manufacturing employment shares by development group
		Figure 3.7. Average manufacturing-induced employment by country group
		Figure 3.8. Decomposition of CO2 emissions production from 1995 to 2013
		Figure 3.9. Industry-level CO2 emission per unit of real value added
		Figure 3.10. Share of domestic absorption in final demand for manufactured goods
		Box 3.2. Quality Infrastructure for Trade Facilitation (QI4TF) tool to support market access
		Box 3.3. UNIDO’s Programme for Country Partnership (PCP)
		Figure 3.11. Principal constraints to economic diversification
	THE CHANGING NATURE OF INDUSTRIALISATION AND PRODUCTION PROCESSES
		Figure 3.12. Trends in formal manufacturing employment by region, 1970, 1990, 2010 and 2016
		Figure 3.13. Use of industrial robots in different industries
	CONCLUSIONS
CHAPTER 4 Aid for trade in challenging contexts
	INTRODUCTION
	THE IMPERATIVE OF ECONOMIC DIVERSIFICATION IN THE LDCs
		Box 4.1. Boosting export diversification in Togo
		Box 4.2. Export diversification in Chad: The promise of gum arabic
		Box 4.3. The New Deal of Engagement in Fragile States and the Peacebuilding and Statebuilding Goals(PSGs)
		Box 4.4. Channels of trade impact in policical stability and conflict
		Figure 4.2. Trade, remittances and FDI flows to the LDCs and the g7+ LDCs, 2006-2017
		Figure 4.3. Export concentration in the g7+ LDCs
	AID FOR TRADE TO SUPPORT ECONOMIC DIVERSIFICATION IN THE LDCs
		Figure 4.4. Aid-for-trade flows to the LDCs and the g7+ LDCs, average 2006-2017
		Figure 4.5. Aid-for-trade disbursements to the g7+ LDCs, per capita, 2013-2017
		Figure 4.6. Disbursements by aid-for-trade category, 2006-2017
		Figure 4.7. DTIS Action Matrices: mapping priorities of the g7+LDCs
		Box 4.5. Strengthening value addition of main cash crops in Comoros
		Figure 4.8. Top sectors in the LDCs supported through aid for trade, 2006-2017
		Figure 4.9. Breakdown of ODA to the New Deal’s Peace Building and State BuildingGoals, by PSG, g7+ LDCs, 2006-2017
		Box 4.6. New employment opportunities in the g7+ LDCs: roads for development in Timor-Leste
	CONCLUSIONS
CHAPTER 5 Economic diversification: lessons from practice
	WHY ECONOMIC DIVERSIFICATION MATTERS
		Figure 5.1. Export diversification in Sub-Sharan Africa, 2017
		Figure 5.2. Export diversification in selected developing country regions, 2017
		Figure 5.3. Distribution of employment by aggregate sectors, global and country incomegroupings, 1991 and 2018 (percentages)
		Box 5.1. Chile and Zambia: contrasts in diversification trajectories
	DEFINING ECONOMIC DIVERSIFICATION
	THE POLICY AND INSTITUTIONAL FRAMEWORK FOR DIVERSIFICATION
	THE INCENTIVE FRAMEWORK FOR DIVERSIFICATION
		Box 5.2. Rwanda’s export diversification path
		Figure 5.4. Competition policy and economic diversification
	THE IMPERATIVE OF REDUCED TRADE COSTS
	INTERVENTIONS THAT TARGET SPECIFIC MARKET, POLICY AND INSTITUTIONAL FAILURES
		Box 5.3. Stimulating product upgrading through supplier development programs
	POLICIES TO SUPPORT ADJUSTMENT
	FINAL THOUGHTS
CHAPTER 6 The critical role of trade Facilitation in supporting economic diversification and structural reforms
	INTRODUCTION
	TECHNICAL AND CAPACITY BUILDING SUPPORT AND ITS IMPACTS
		Figure 6.1. Regional Distribution of WB-TFSP Activities (by number of countries)
		Table 6.1. WB-TFSP collaboration with other organisations
		Box 6.1. UNCTAD Trade Facilitation Program
		Figure 6.2. TFA Measures: Highest Technical Assistance and Capacity Building Demand
		Figure 6.3. TFA Measures: Support Types Requested
		Figure 6.4. TFA Measures: Requests for Awareness-Raising and Capacity Building Support
		Figure 6.5. TFA Measures: Highest Demand for Legislation Support
		Figure 6.6. TFA Measures: Requests for ICT, Infrastructure and Equipment Support
		Box 6.2. Comments from developing country respondents on trade facilitation
		Figure 6.7. Percent of Countries Supported on Specific TFA Measures
		Box 6.3. TRS+ - a fuller picture of time incurred
		Figure 6.8. Forms of Assistance Provided 2017-2018
		Figure 6.9. Public Sector Recipients of Support
		Table 6.2. Percentage of countries aligned: comparison of Tracking Tool Assessments andCategory A Notifications
		Box 6.4. Select country impacts reported
		Table 6.3. Results of time release studies
		Box 6.5.The OECD Trade Facilitation Indicators (TFIs)
		Figure 6.10 Percentage Improvement in World Bank Trade Facilitation IndicatorsWB-TFSP Countries (2016-2019)
		Box 6. 6. Helping SMEs Internationalise through Trade Facilitation
		Box 6.7. Montenegro Trade Facilitation Strategy
	FACILITATION OF E-COMMERCE TRADE
		Figure 6.14. De minimis Customs Duty Amounts in 98 Countries(Global Express Association)
		Box 6.8. WCO Immediate Release Guidelines
		Figure 6.15. TFA Article 7.1 Pre-arrival Processing: Implementation Notifications
		Box 6. 9. Trade Facilitation and E-commerce: Two sides of a coin
		Figure 6.16. Elements very important to create an environment conducive to ecommerce.
		Box 6.10. Correlation between TFA implementation and B2C internet use rating per region
		Figure 6.18. Average percent of implementation of TFA measures and B2C internet use ratingper region
	CONCLUSION
CHAPTER 7 Export diversification at the time of slowbalisation
	EXPORT DIVERSIFICATION STRATEGIES – THEN AND NOW
		Figure 7.1. Share of Manufacturing in exports, 1995-2017
		Figure 7.2. Herfindahl Hirschman index of product concentration of exports, 1995-2017
		Figure 7.3. GVC Participation Growth rate (%), 2000-2010 and 2010-2017
	SERVICES TRADE AND SOUTH-SOUTH INTERREGIONAL TRADE
		Figure 7.4. Services exports by main groups of economies, 2010-2018
		Box 7.1. Trade in services and employment
		Figure 7.5. Employment in the services sector (% of total), 2000, 2010 and 2018
		Figure 7.6. Services Trade Restrictions Index by sector, regional averages
		Figure 7.7. Exports by technological category and partner, selected regions, 1995-2017
		Figure 7.8. Share of medium and high technology goods in African exports by destination
	SOUTH-SOUTH REGIONAL REGULATORY COOPERATION
	THE ROLE OF AID FOR TRADE
CHAPTER 8 Empowering youth for sustainable trade
	INTRODUCTION
	YOUTH SKILLS FOR EXPORT READY COMPANIES
		Figure 8.1. Youth unemployment rates across countries
		Figure 8.2. Skill shortages and youth employment in SMEs
		Box 8.1. Building skills for tourism in Myanmar: An ILO STED case study
		Table 8.1. Checklist of best practices to skill youth for employability and exports
	PROMOTING SELF-EMPLOYMENT AND ENTREPRENEURSHIP
		Figure 8.3. Youth entrepreneurship ratesby country and gender
		Figure 8.4. Young managers hire more young people
		Box 8.2. Mashrou3i youth entrepreneurship in Tunisia
		Box 8.3. Youth IT start-ups in the Zaatari refugee camp in Jordan
		Figure 8.5. Self-reported youth entrepreneurial competencies, by gender
		Table 8.2. Checklist of best practices to support youth entrepreneurship
	GOVERNMENTS CAN STIMULATE YOUTH EMPOWERMENT
		Figure 8.6. Access to finance is more of an obstacle for youth-led firms
		Figure 8.7. How Aid for Trade can best contribute to youth economic empowerment
		Figure 8.8. Staffing needs in the Tunisian textile and clothing sector
		Figure 8.9. Barriers to hiring Gambian youth, by sector
		Table 8.3. Checklist of best practices in government strategy for youth economic empowerment
	CONCLUSIONS AND RECOMMENDATIONS
CHAPTER 9 Emerging lessons from aid for trade in support of women’s economic empowerment
	CONTEXT
		Box 9.1. Beijing Platform for Action 1995 “Women in the Economy”
	ASSESSING INCORPORATION OF GENDER PERSPECTIVES IN AID FOR TRADE
		Figure 9.1. Main goals donors and partner countries want to achieve through aid for trade
		Figure 9.2. Views on aid-for-trade contribution to the SDGs
		BOX 9.2. The Gender Marker
		Figure 9.3. Trends in Gender Marked Aid for Trade(USD billion, 2016 constant)
		Figure 9.4. Sector breakdown of gender marked aid for trade 2016-17(USD billion, 2016 constant)
		Figure 9.5. Sector breakdown of Gender Marked aid for trade in proportion 2016-17
		Box 9.3. In my view
		Figure 9.6. Areas of aid for trade that donors and partner countries believe can bestsupport women’s economic empowerment
		Figure 9.7. Distribution of Income-groups and regions of gender marked ODF 2016-2017
		Figure 9.8. Average share of gender focused aid for trade per year 2016-2017
		Box 9.4. Women’s economic empowerment in “Aid for Trade” by Australia and EU
	STRATEGIES AND GUIDELINES IN INCORPORATING GENDER PERSPECTIVES IN AID FOR TRADE
		Box 9.5. Applying a gender lens in supporting private investment by G7 Development Finance Institutions
		Box 9.6. Guidelines on trade, infrastructure, extractive Industries, and tourism
		Table 9.1. Types of activities incorporating gender dimensions in aid for trade
	SUMMARY AND CONCLUSIONS
		Box 9.7. In my view – Ann Linde, Minister for Foreign Trade, Sweden
Aid-for-trade country profiles
	Explanatory notes on aid-for-trade country profiles
	Afghanistan
	Albania
	Angola
	Antigua and Barbuda
	Bangladesh
	Barbados
	Belize
	Benin
	Bhutan
	Brunei Darussalam
	Burkina Faso
	Burundi
	Cambodia
	Cape Verde
	Central African Republic
	Chad
	Colombia
	Comoros
	Democratic Republic of Congo
	Costa Rica
	Côte d’Ivoire
	Dominican Republic
	Ecuador
	El Salvador
	Equatorial Guinea
	Ethiopia
	Gabon
	Gambia
	Georgia
	Grenada
	Guatemala
	Guinea
	Guinea-Bissau
	Honduras
	Indonesia
	Iraq
	Kazakhstan
	Kenya
	Kiribati
	Kyrgyz Republic
	Lao People’s Democratic Republic
	Lesotho
	Liberia
	Madagascar
	Malawi
	Maldives
	Mali
	Mauritania
	Mauritius
	Mexico
	Mongolia
	Myanmar
	Nepal
	Niger
	Nigeria
	Pakistan
	Palau
	Panama
	Papua New Guinea
	Paraguay
	Peru
	Philippines
	Saint Kitts and Nevis
	Saint Vincent and the Grenadines
	Samoa
	São Tomé and Príncipe
	Senegal
	Seychelles
	Solomon Islands
	Sri Lanka
	Sudan
	Tajikistan
	Tanzania
	Thailand
	Togo
	Tonga
	Tuvalu
	Uganda
	Ukraine
	Uzbekistan
	Vanuatu
	Bolivarian Republic of Venezuela
	Viet Nam
	Yemen
	Zambia
	Zimbabwe
ANNEXES
	Statistical Notes
	ANNEX A Aid-for-trade key data
		Table A.1. Aid for trade by category
		Table A.2. Aid for trade by category and region
		Table A.3. Aid for trade by category and income group
		Table A.4. Aid for trade by individual provider
		Table A.5a. Top 20 providers of aid for trade in 2017, commitments
		Table A.5b. Top 20 providers of aid for trade in 2017, disbursements
		Table A.6. Aid for trade by individual recipient country
		Table A.7a. Top 20 recipients of aid for trade in 2017, commitments
		Table A.7b. Top 20 recipients of aid for trade in 2017, disbursements
		Table A.8. Aid-for-trade regional and global programmes
		Table A.9. Aid for trade regional and global programmes by category
		Table A.10. Aid-for-trade grants and loans by category
		TABLE A.11. Aid-for-trade channels of delivery
		Table A.12. Aid for trade by provider and by category, commitments
		Table A.13. Aid for trade by provider and by category, disbursements
		Table A.14. Aid for trade by provider and by region, commitments
		Table A.15. Aid for trade by provider and by region, disbursements
		Table A.16. Aid for trade by provider and by income group, commitments
		Table A.17. Aid for trade by provider and by income group, disbursements
		Table A.18. Trade related other official flows by category
		Table A.19. Trade related other official flows by individual provider
		Table A.20. Trade related other official flows by individual recipient country
	DAC List of ODA recipients by income group
	ANNEX C DAC List of ODA-eligible countries by region
	ANNEX D Aid for trade: sectors and definitions