An Evaluation of Trade-Related Technical Assistance Isbn 90-5328-349-8 *) Niet Meer Beschikbaar IOB Evaluations Policy and Operations Evaluation Department

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An Evaluation of Trade-Related Technical Assistance Isbn 90-5328-349-8 *) Niet Meer Beschikbaar IOB Evaluations Policy and Operations Evaluation Department IOB October 2005 No. 300 IOB Evaluations www.euforic.org/iob Evaluations no. 300 2005 Aid for Trade? Aid for Trade? evaluations An Evaluation of Trade-Related Ministry of Foreign Affairs Technical Assistance P.O. Box 20061 2500 eb The Hague The Netherlands www.minbuza.nl October 2005 ISBN 90 5328 349 8 Seattle 1999 Doha 2001 Cancun 2003 Policy and Operations Evaluation Department o s d r 0 5 4 1 / e Evaluatie-studies uitgebracht door de inspectie ontwikkelingssamenwerking en beleidsevaluatie (iob) 1995-2005 265 1995 Fertiliser Aid. Evaluation of Netherlands fertiliser aid 1975-1993 283 1999 Oret/Miliev review 1994-1999 Assisting developing countries to with special reference to Bangladesh, Mali and Zambia. buy investment goods and services in the Netherlands. 266 1996 Netherlands Aid Reviewed. An analysis of isbn 90-5328-248-3 Operations Review Unit Reports, 1983-1994 284 2000 Institutional Development Netherlands support to the 267 1997 Vrouwen in Burkina Faso en de Nederlandse Ontwikkelings water sector. samenwerking 1985-1995 isbn 90-5328-274-2 267 1997 Les Femmes du Burkina Faso et la Coopération 285 2000 Onderzoek naar de samenwerking tussen Mali en Néerlandaise 1985-1995 Nederland 1994-1998 268 1998 Vrouwen in Kenia en de Nederlandse Ontwikkelingssamen isbn 90-5328-278-5 werking 1985-1995 286 2001 Smallholder Dairy Support Programme (SDSP) Tanzania 268 1998 Women in Kenya and the Netherlands Development Inspection of its identification, formulation and tendering process Cooperation 1985-1995. isbn 90-5328-152-3 isbn 90-5328-298-x 269 1998 Bangladesh. Evaluation of the Netherlands Development 287 2001 De kunst van het Internationaal cultuurbeleid 1997-2000 Programme with Bangladesh, 1972-1996 isbn 90-5328-300-5 (Volume 1- Summary Report) 288 2002 Health, nutrition and population 269 1998 Bangladesh. Evaluation of the Netherlands Development Burkina Faso Mozambique Yemen Programme with Bangladesh, 1972-1996 isbn 90-5328-301-3 (Volume 2 - Main Report) 289 2002 Cultuur en Ontwikkeling 270 1998 Bangladesh. Evaluation of Netherlands-Funded NGO’s, De evaluatie van een beleidsthema (1981-2001) 1972-1996 (Volume 3 - Sub-Report) isbn 90-5328-302-1 271 1998 Vrouwen en Ontwikkeling. Beleid en uitvoering in de 289 2002 Culture and Development Nederlandse Ontwikkelingssamenwerking 1985-1996. Evaluation of a policy (1981-2001) isbn 90-5328-168-1 isbn 90-5328-305-6 272 1998 SNV - Bénin, 1985 - 1995 (franstalig) 290 2003 Agenda 2000 272 1998 SNV - Benin, 1985 - 1995 (Hoofdbevindingen en samenvatting) *) Hoe Nederland onderhandelt met Europa 273 1998 SNV - Nepal, 1985 - 1995 (engelstalig). isbn 90-5328-164-9 isbn 90-5328-307-2 273 1998 SNV - Nepal, 1985 - 1995 (Hoofdbevindingen en samenvatting) 291 2002 Nederlands schuldverlichtingsbeleid 1990-1999 274 1998 Evaluation of SNV in Benin, Nepal and Bolivia isbn 90-5328-306-4 (Summary evaluation report) 292 2003 Resultaten van internationale schuldverlichting 1990-1999 275 1998 Egypt. Evaluation of the Netherlands Development isbn 90-5328-310-2 Programme with Egypt, 1975-1996 292 2003 Results of International Debt Relief 1990-1999 (Volume 1 - Summary Report). isbn 90-5328-198-3 isbn 90-5328-314-5 275 1998 Egypt. Evaluation of the Netherlands Development Programme 293 2003 Netherlands-FAO Trust Fund Co-operation 1985-2000 with Egypt, 1975-1996 isbn 90-5328-308-0 (Volume 2 - Main Report). isbn 90-5328-199-1 294 2003 Co-ordination and Sector Support 276 1998 Egypt. Evaluation of the Netherlands Support to Water An evaluation of the Netherlands’ support to local governance Management and Drainage, 1975-1996 in Uganda, 1991-2001 (Volume 3 - Sub-Report). isbn 90-5328-185-1 isbn 90-5328-311-0 277 1998 Bolivia. Evaluation of the Netherlands Development Programme 295 2003 Behartiging van de buitenlandse belangen van de with Bolivia. Main Findings and summary Nederlandse Antillen en Aruba (Volume 1 - Summary Report). isbn 90-5328-205-X Een evaluatie van de rol van het Ministerie van Buitenlandse Zaken 277 1998 Bolivia. Evaluation of the Netherlands Development Programme isbn 90-5328-316-0 with Bolivia. (Volume 2 - Main Report). isbn 90-5328-204-1 296 2003 Poverty, policies and perceptions in Tanzania 278 1998 The Netherlands Programme Aid to Bolivia An evaluation of Dutch aid to two district rural development (Volume 3 - Sub Report). isbn 90-5328-155-X programmes 279 1999 Diamonds and Coals. Evaluation of the Matra programme of isbn 90-5328-337-4 assistance to Central and Eastern Europe, 297 2004 Over solidariteit en professionalisering 1994-1997 (Summary evaluation report). isbn 90-5328-229-7 Evaluatie van Gemeentelijke Internationale Samenwerking 279 1999 Diamonds and Coals. Evaluation of the Matra programme of (1997-2001) assistance to Central and Eastern Europe, isbn 90-5328-341-2 1994-1997 (Evaluation report). isbn 90-5328-230-0 298 2004 Onderzoek naar de kwaliteit van in 2002 afgeronde 280 1999 Cofinancing between the Netherlands and the World Bank, decentrale evaluaties 1975-1996 (Volume I - Summary Report). isbn 90-5328-232-7 Eindrapport 280 1999 Cofinancing between the Netherlands and the World Bank, isbn 90-5328-344-7 1975-1996 (Volume 2 - Main Report). isbn 90-5328-231-9 299 2005 Een uitgebreid Europabeleid 281 1999 Hulp door handel, evaluatie van het Centrum tot Bevordering Evaluatie van het Nederlands beleid inzake de toetreding van van de Import uit ontwikkelingslanden. isbn 90-5328-246-7 Midden-Europese landen tot de Europese Unie 1997-2003 282 1999 Palestinian territories, review of the Netherlands development isbn 90-5328-347-1 programme for the Palestinian territories, 1994-1999. 300 2005 Aid for Trade? isbn 90-5328-245-9 An Evaluation of Trade-Related Technical Assistance isbn 90-5328-349-8 *) Niet meer beschikbaar IOB October 2005 No. 300 Evaluations Aid for Trade? An Evaluation of Trade-Related Technical Assistance Policy and Operations Evaluation Department Printer OBT bv, Den Haag Design Corps, Den Haag Cover design Jean Cloos Art Direction bv BNO Layout Jean Cloos Art Direction bv BNO ISBN 90 5328 349 8 Ordercode OSDR 0541/E www.euforic.org/iob www.minbuza.nl October 2005 2 Preface ‘Aid is just a recipe for permanent poverty’, wrote President Museveni of Uganda in the Wall Street Journal (November 6, 2003), arguing that ‘The only way we can break out of this vicious cycle of poverty is through trade and export-led growth.’ Is he right? Can trade be a tool to alleviate poverty and make developing countries less dependent on what Museveni describes as ‘handouts’ from the rich countries? What are the views and objectives of the Netherlands government on this? The Netherlands government does not subscribe to the extreme view of ‘trade, not aid’ nor to the opposite view of ‘aid, not trade’. It considers aid and trade to be two major intervention strategies, each of which can contribute to poverty alleviation. It also believes that aid can be essential to help developing countries to profit from trade and trade liberalisation. For that reason the Netherlands actively supports policies and instruments that enable poor countries and poor people to profit from international trade. A major objective of Netherlands foreign policy is the further integration of developing countries into the world trading system. Trade-Related Technical Assistance (TRTA) is considered to be one of the key instruments to contribute to this integration, together with the removal of trade barriers to developing countries. TRTA is a collective term for different types of technical assistance aimed at strengthening developing countries’ trade-related negotiating capacity, national trade policy and/or capacity to trade. The Netherlands has twinned the objective of integration with the objective of trade liberalisation. It considers two criteria to be important for trade liberalisation: the liberalisation has to be rule-based and pro-poor. Furthermore, it considers that the most important way of contributing to rule-based trade liberalisation is to strengthen the multilateral trade system and the participation of poor countries in the World Trade Organisation (WTO) as the rule-making body and global 3 parliament of international trade in which every member state has equal voting powers. Consequently, the Netherlands has supported TRTA (as provided by the WTO, other multilateral agencies and international NGOs) to help developing countries to understand, negotiate and implement multilateral trade agreements. To contribute to pro-poor trade liberalisation, the Netherlands not only wishes to strengthen the negotiation capacity of poor countries at multilateral trade talks but also to strengthen these countries’ capacity to develop pro-poor trade policy and to trade. To this end, the Netherlands has supported TRTA (through multi- lateral and bilateral channels) to address institutional problems and supply-side constraints of developing countries. The Netherlands considers TRTA to be a form of aid to prepare developing countries to integrate or further integrate into the world trading system and to profit from international trade, trade negotiations and trade liberalisation. TRTA is the fishing rod meant to help developing countries to catch bigger fish through international trade. The Dutch views on TRTA are not unique but are in fact shared by nearly all the WTO members. Ever since the very first Ministerial Conference of the WTO in Singapore in 1996, the international donor community has made firm commitments to provide and coordinate TRTA. A proposal to launch an Aid for Trade? Facility is currently being discussed in depth by donors in the run-up to the sixth Ministerial Conference to be held in December 2005 in Hong Kong. Whereas the Netherlands and other donors have developed a strong interest in value for money, little is known about results of TRTA in terms of output, outcome and impact. This evaluation therefore seeks to explore and assess the results of TRTA funded or co-funded by the Netherlands. It has focused on programmes and organisations that the Netherlands has considered to be of strategic importance.
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