Aid for Trade

About the Issue

“Aid-for-trade” (AfT) is the catch-all term for trade-related official development assistance (ODA) provided to developing countries. With the Doha Round in the doldrums, Aid-for-trade is gaining even more prominence within official aid and trade circles. Proponents basically share three common premises that provide the rationale for Aid-for-trade: (1) that trade is beneficial to developing countries; (2) that developing countries may face costs and other constraints that prevent them from fully benefiting from trade; and (3) that aid can offset these costs and constraints, hence, enable these countries to benefit significantly from trade. Despite this ostensibly laudable objective, the Aid-for-trade agenda merits a closer and more critical examination from the perspective of people-centered development.