In developing countries, transport and storage are aid-for-trade winners

By Anna Patricia Valerio 14 August 2015

A bridge in Bangladesh. Transport and storage sector is the biggest recipient of aid-for-trade financing. Photo by: Marufish / CC BY-SA

Listed as a priority in the Addis Ababa Action Agenda, aid for trade, according to the resulting document from the third International Conference on Financing for Development, “can play a major role” in mobilizing international trade for development, especially in least-developed countries.

Trade, a note from the Organization for Economic Cooperation and Development and the World Trade Organization clarified, is “not a ‘sector’ — it covers a wide range of activities and encompasses not just goods, but also services.”

Aid for trade has a similarly wide-ranging scope. OECD divides the areas to which aid for trade is directed into several broad sectors: transport and storage, communication, energy, banking and financial services, business and other services, agriculture, forestry, fishing, industry, mineral resources, trade policies and regulations, and tourism.

In LDCs, where there is often a lack of trade capacity in terms of information, institutions and infrastructure, aid for trade can help ease the much-needed integration into the world market.

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About the author

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Anna Patricia Valerio

Anna Patricia Valerio is a Manila-based development analyst focusing on writing innovative, in-the-know content for senior executives in the international development community. Before joining Devex, Patricia wrote and edited business, technology and health stories for BusinessWorld, a Manila-based business newspaper.


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