Report to the tprb from the director-general on the financial and economic crisis and trade-related developments

Aid for trade

43. 
    Total Aid for Trade grew by US$4.4 billion in real terms, as measured against the baseline, to reach US$25.4 billion in 2007.²⁵ Most of the increase (approximately 60 per cent) went to support infrastructure programmes in Sub-Saharan Africa.²⁶ Assistance for trade-related infrastructure continues to attract the highest volume of commitments at 53.7 per cent of total Aid for Trade. Commitments to build productive capacity experienced a marginally higher growth of 21.4 per cent to reach 43 per cent of total flows. In contrast, assistance for trade policy regulation grew 3.8 per cent (falling back in 2007 after a 58 per cent surge in 2006). In 2008, donors were invited to report on the new CRS category trade-related adjustment support, but few provided data for 2007.
    

(Constant 2006 US$ million)²⁷

44. 
    The United States and Japan remain the largest single providers of bilateral Aid for Trade, with US$4.6 billion and US$4.4 billion in 2007, respectively. They, together with the EC, are well on their way to meet their 2005 aid for trade pledges. Other important bilateral donors include France, Germany, the Netherlands, Spain, and the United Kingdom. In total, bilateral donors accounted for 62 per cent of total Aid for Trade in 2007 - down 2.3 per cent on 2006.
    

45. 
    In 2006 and 2007, multilateral and regional donors significantly expanded their Aid for Trade programmes. Their commitments increased by 31.3 per cent compared to the baseline to reach US$9.6 billion in 2007. The World Bank, through the International Development Association (IDA), was the largest multilateral provider of concessional Aid for Trade in 2007 providing 18.3 per cent of the total. The EC, not including member states, provided 10.7 per cent of Aid for Trade in 2007. The Asian Development Bank and the African Development Bank (AfDB) are also important providers of Aid for Trade in their respective regions – the latter allocating more than 60 per cent of its total sector allocable ODA to Aid for Trade.
    
46. 
    Overall, Aid for Trade accounted for approximately 31.8 per cent of total sector allocable ODA in 2007, below the average 33.5 per cent registered during the 2002-2005 baseline period. This drop, despite an overall increase of US$4.35 billion, reflects even higher levels of donor support for social sectors, such as education and health. Consequently, the increase in the volume of Aid for Trade is provided additionally and not to the detriment of spending on social sectors.
    
47. 
    India, Iraq, Vietnam, Afghanistan, and Indonesia were the top five recipients of Aid for Trade in 2007, accounting for almost 28 per cent of the total. Asian countries received approximately 38.5 per cent of all Aid for Trade (US$9.8 billion in 2007).²⁸ Africa follows with 37.3 per cent (US$9.5 billion in 2007). Furthermore, as the figure above demonstrates, Africa's share of global Aid for Trade is rising, in particular when measured on a per capita basis. Aid for Trade flows to the Americas and Oceania are also increasing.
    

(2006-2007 average)