The G-20, which meets next month in South Korea, is in the position to help promote the use of development assistance for trade-related schemes, a World Bank official says.
The group “should consider the global aid-for-trade agenda a top priority,” John Wilson, a World Bank lead economist, writes in the blog, “Let’s Talk Development.”
Wilson notes that donors are on track to meet commitments for the aid for trade agenda hammered out in a multilateral policy discussion after the World Trade Organization’s Hong Kong Ministerial meeting in 2005.
“However, much better strategic coordination in identifying specific capacity needs in developing countries – and in monitoring aid effectiveness in trade-related assistance – is needed,” he argues. “The G-20 is uniquely placed to steer and help shape an agenda to coordinate, target, and monitor aid. It can also shape an agenda and focus new directions in trade facilitation – projects in policy and regulatory reform – to complement the already large flows of aid for infrastructure.”
The G-20 can also help promote the aid for trade agenda by establishing a platform for capacity building and knowledge transfer on trade policies, lowering trade barriers to exports from poor nations, tapping the private sector, and developing an action plan for financing the monitoring and evaluation of aid for trade projects, Wilson says.