San Bilal, ECDPM
Workshop: Trade and Investment for Development
European Parliament, Policy Department and Committee on International Trade
29 March 2012, Brussels
Critical perspectives on governance by SDGs Conference
Aid for trade and beyond development perspectives
1. Aid for trade
and beyond
Development Perspectives
Dr San Bilal
2. Aid for Trade logic
• Important role played by trade in
development
• Trade can lead to different growth trajectories
• Importance of adjustment policies and
domestic agenda/reforms
• Need aid for trade-related:
(1) policies and regulation
(2) adjustments
(3) building productive capacity
(4) infrastructures
• Aid effectiveness principles
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6. Over 1/3 of overall AfT provided
by the EU
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7. EC Trade, Growth and
Development Communication
• Better targeted AfT
• On LDCs (only 22% of EU AfT in 2009) and
countries most in need
• Improving complementatory between AfT and
broader development policies
• Targeting small and rural operators
• Improving AfT at regional level
• Better support HRs, labour rights and social
protection, sustainable development
• Enhanced effectiveness, cooperation within EU
and with emerging players Page 7
8. Regional dimension of AfT
(= 18% of tot AfT in 2009)
• Increasing attention to regional level
• International and regional banks key role
(WB, AfDB, ADB)
• Bilateral donors: the EU (France, Germany,
UK); the US; Japan…
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9. Regional challenges
• National – regional nexus
• Coordination and complementarity
• Implementation issues
• Ownership and prioritisation
• Capacity constraints
• Donors coordination
• Focus on policies and infrastructure / TF
• Multiplication of regional programmes + EPAs
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10. Sectoral challenges
• Bridging sectors:
e.g. AfT with Agriculture and rural
development / food security
• Involvement / ownership from private sector
• Access to finance
• Multiplication of fora: national, regional,
continental, international and by sector
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12. Innovative sources of financing
• Go beyond aid: private capital
• Leverage aid to mutiple pool of resources
• New sources and instruments:
blending (grants and loans), private-public
partnership
FDI, portfolio investment, capital markets,
private equity, sovereign funds
• Domestic resources mobilisation
• Emerging players
v Capacity challenge !!! Page 12