Aid for Trade in Asia and the Pacific Its Role in Trade-Driven Growth

Report from the Co-Chairs of the Regional Technical Group on Aid for Trade for Asia and the Pacific Aid for Trade in Asia and the Pacific Its Role in Trade-Driven Growth Report from the Co-Chairs of the Regional Technical Group on Aid for Trade for Asia and the Pacific © 2012 Asian Development Bank

ISBN 978-92-9092-379-4 Publication Stock No. RPT113845

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Asian Development Bank. Aid for trade in Asia and the Pacific: Its role in trade-driven growth—Report from the co-chairs of the Regional Technical Group on Aid for Trade for Asia and the Pacific. Mandaluyong City, Philippines: Asian Development Bank, 2012.

1. Development assistance. 2. Trade. 3. Asia and the Pacific. I. Asian Development Bank.

The content of the report is based on discussions at several meetings of the Regional Technical Group (RTG) on Aid for Trade for Asia and the Pacific. It also took into account external consultations at the World Trade Organization, Asia-Pacific Economic Cooperation, and other forums. The report was compiled and finalized under the responsibility of the RTG co-chairs and does not necessarily reflect the views of either the RTG member countries or the organizations.

The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB), its Board of Governors, or the governments they represent.

ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use.

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Printed on recycled paper. Contents

Tables, Figures, Boxes, and Appendixes v vii Foreword by ADB President Haruhiko Kuroda and WTO Director General Pascal Lamy ix Preface by RTG Co-chairs Tomochika Uyama and Sok Sopheak x xi 1 The Importance of Trade and the Role of Aid for Trade 1 Purpose of the Report 1 Structure of the Report 2 ! 4 Emergence of “Factory Asia” 4 >? “First Face”: High-Performing Asian Economies 11 “Second Face”: Resource-Rich, Low-Income, and LDCs and Small States 12 ]'%GR' /G7>'? '77]I 7/%% Uneven FDI Flows 15 G/]I '%G7 '%R<;' R<%>] 6]/I] I

iii iv Contents

`C! Mapping Aid for Trade Flows 24 G% J%7 `7&$C]])@+C$ 7]]I] I]I] Way Forward 44 Appendixes 47 References Tables, Figures, Boxes, and Appendixes

Tables 5Q 'G%%6]6]5Q '6]5L5'G%%6]5Q I5Q 77% 5'/% 5]>I] /]7>% 7G=%IGI

Figures 1 Emergence of Factory Asia 5 ;'6]5Q 5$I I I '6]5'5Q G '6]5</'I'5Q 'I5Q 5'5Q 5$ 7G% ]/]5$ ]5$ 5G77]5Q ]]]

Boxes %%] 7I] the Perishable Food Product Markets 15 2 Singapore—An FDI Success Story 17 /TG

v vi Tables, Figures, Boxes, and Appendixes

Appendixes /%7/ ' R %;]] R %];'7 R _];'7 R ';'7 R `'/;'7 R <;'7 2-7 Asian Development Bank's Approach to Aid for Trade 51 5]I5 R R R I ]I R I^_7 R 7 R /'% R '`/7 R '`TI'%]]^'_ R G]]'7I= R ]%= R I/G7<7G'T]/ R >'%]]I R ';'`/I]I= R %;'%]]/% R ''%]]^'_Ì R >;/]7>%I R Ì%77]= R _/;7<G%%I R /IG;']]^']_ R @;'7I@ R G%7=Ì^G_ R //V]I%/] R '`^_ R _]TÌ_ R %'%]]/I R '//]7>%II GIG<%] Abbreviations

ADB Asian Development Bank AfT Aid for Trade % %7]I / I/] 'Ù 'ÌIG]%];]%G/5_]5]%G of Korea 'Ù 'ÙIIG]%%55` '` '%`^%>%%I /IG55<];I]%G5G75G7I5 ]]5']55Ì_ CEPEA Comprehensive Economic Partnership in East Asia DMC developing member countries EAFTA East Asia Free Trade Area EU European Union FDI foreign direct investment FTA Free Trade Agreement GATS General Agreement on Trade in Services I]% Ic ` ]% GMS Greater Mekong Subregion / III%7 G G7% I7 _>/ _]>@/] _/ _]/]7 < <];I]%G G` IR G`/ I%] G I%%I NAFTA North American Free Trade Agreement ` 7%<I7 ]I / I/]]I / ];]%G/

vii viii GG

R&D research and development ROO rules of origin RTG Regional Technical Group SPS sanitary and phytosanitary standards ' ]c `'/ `I'/II US United States ' '7]I ' '] < Foreword

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6]G@7IG%;] I5I%%GG% 8I6I]I]III8 Furthermore, small, landlocked, remote, or island economies remain isolated from the global 7I8%]G7GIG8%6 RR8

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Haruhiko Kuroda Pascal Lamy President Director General ]I>@ <

ix Preface

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As Co-Chairs of the RTG, we would like to express our sincere thanks to the members of the %I%G]%85]%7 %'7@%]/II8'] @%'>]]] ]8<G78=5>I%8'%/5 <<5%

Tomochika Uyama Sok Sopheak Regional Technical Group Regional Technical Group Co-Chair Co-Chair x Executive Summary

Background

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Aim of the RTG Co-Chair’s Report

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Main Findings

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8.$$$!` $CC `V CC< C $ rising prosperity. Forty years of outward-oriented development strategies underpinned this economic surge. The key lesson involves how countries created the capacity to build and run a G6]I8]RRII78 8]]]%7I]G%I 55I]]75G%G]%6]]75% %%78

8FDI is key. II%7G%8%I I]IV]7 V G I I] I] G% I8 To support c CC]^_V]CC`RC] C$ ` C]VC ]C ] ]]$ C $C8`8

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8 Despite these success stories, two-thirds of the world’s poor live in Asia with over 900 million people survive on less than $1.25 per day.%8G]7 $8]7%8; ]%I7 ]]8I5]7IV 6%'%II7 xiii

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8Aid for Trade must help close this gap. $8G%7T5I]$ 8 GT 8 =%]]%<]7 II]]8 G%G77% 8I75%@% %%875c6 ]IIRI%I%GI6I<R7 57RI%8

8$C]]@C$<`CC ` R cC8 ` ]]7@86]@ c]]]7]7IV infrastructure development, economic corridors, economic reforms focusing on trade and I G<5 5 I]5 ]7V G II ]] ]%GT] ]]5 II ]I55cI%8 As geography and levels of development vary across the region, any strategy needs to be %%Ic%G%8

8]CCCC]$V]] for commercial trade—by improving the business climate. Aid can contribute to both ^%%_ ^%55%7I5 %_8GI]]G7%7]]7 G%GG%I8]%7I]%%I % I]7 _%I8 6] ]] I5G%8

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8&]`C$C`C$]]$ ]C$ ` ]= !8 This informal group of ]%55]IG]]=% %5G%]]5]]] 8%76]T@I ]%G78IG% ;T@I5%GG IR8 Introduction

R%II [ 1R`Q` `:RV1 HQJHV 1QJ:`7: 1 :JHV 6] 7I5 I] Q .VC] RV0VCQ]1J$ HQ%J `1V H`V: V .V G I@8 < ] % HQJR1QJ JVHV :`7 Q $VJV`: V `:RVR ^</_ I 5 ]%5 % R`10VJ$`Q1 .8 =%I @ I [ .1 `V]Q` `V01V1 .V V6]V`1VJHV Q` lack the necessary infrastructure, investment, `:RVRR`10VJ $`Q1 . :JR 1R `Q` `:RV 75 % I ]% 1J 1::JR .V:H1H5:JRQcV` ]QC1H7 I]I@8 CV QJ QJQ]I:C1:7 QQ]V`:QJ:C17 households access to world markets for goods, ] R%]] I5 5 @8 Aid for Trade helps developing countries increase I ]%7 exports of goods and services, integrates countries I % % I]5 I% 7I5 G< 6]I 56]I@8 @8IGI]I7 ]7@7G%G ] ^88 I5 %% I_%G7%8 %I]_5G poverty and foster more inclusive, sustainable ]I8 ]7 I] ] Purpose of the Report %]7G7GI81 < G< ]]% ^_ IG %5G%=%I 5 G 2 in 1 >@%7>?^G _ % I % % and demonstrates that trade openness boosts economic 2 ]%] ]5 growth and that the incomes of the poor rise one-for-one ]%8 8 I]%5]]68

1 2

; 7 I Structure of the Report expansion through trade, resurgence from the global economic crisis, and large trade-related ] %% 8 /] 8 G G examines the historic links between trade, G% I] %]] ] 5 8 %5 ]%7 ]5 It demonstrates that underlying the buoyant I G 8 %5 picture of rapid economic expansion and the developing partner countries have ramped up the success of its export-led model is a dichotomous ]]I5 ]]I]I8 and donor countries have responded by increasing Overshadowed by their more successful neighbors %8 and plagued by chronic underperformance, I7 ] % While previous studies and reports prepared G I] ]78 G7I/R] 5 I ]] ]I^/_5% $8 ]75 the Global Monitoring of Aid for Trade reports, %G I I7 ] I% I 5 %8 I % integrated approach that brings together Asia ];]%G/^/_ ; 7 RT ]] ]7 5 ] G8 ] ]IR ]=5G@8]I] divide and trade performance gaps have resulted to provide an overview of the experience of > ? 8 trade-FDI- driven growth and Aid for Trade in ]%I% ]I]7 ] 6]R I% %;]I growth and demand alongside more Aid for Trade ]75?^]]6 5c]7 %7_8 ]I 7 ]< ]= %8 /] I] periods before and during the WTO Aid for Trade ]R_%7 I 8 What are the historic links between foreign needed for the region and is vital to closing the I^_5 ]I trade and development gaps between the two ^_5I 8 G I ]I- 5]]7 smaller amount of Aid for Trade per capita and 8 How much Aid for Trade has Asia and the per poor person compared to other regions in the ]8 - 8 ]I /] % G ] ]7 %]] approaches from developing country partners, ]]- 5 @ ]R 8 7I@G- < 8 How best should the region move forward concludes that a regional approach underpinned - G7 ]I I ]G8 %

Chapter 5 charts the way forward for the region 8%II<]] and development strategy principles for closing ;]I]8 I;I%I ]]5 IG<5 ]8 Trade, FDI, ODA, and Growth in Asia and the Pacific

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6] @ 6]I]5% between trade, FDI, and ODA in driving 8 T growth and development in Asia and the complementary policies, Aid for Trade becomes 8I7%6] 7 GR5% 8 G8G7 countries consistently underperform because of @6]5%]%5 Emergence of “Factory Asia” @]%]7%% needed to reduce the costs of trade and connect I I% GI786] >G 7? G detail the challenges faced by these countries and ]% @ G %I discusses ways to improve the trading capacity of decades of outward-oriented development </I5%] strategies, inward foreign direct investment 6]T I ^_5 %% I5 %] III5 %I ]5 ]%GT]

4 555 5

]] ^> _8 ] ]%@]IG export-led model of growth resulted in dense ]8 supply chains—forming a regional hub of global ]% @ I 5 IG 7^%_5 G6 ] 6 with Hong Kong, China and Singapore as regional ] I%R ] ^G`/_ G% ]%I %G ]7 I6 ]5 I]I78 II%5]% ]% @ I5 ]% @ % 8 ]_% G ] 8 % ] G ]% @ 7 @ % I @%]]7^_]RG% _] %< ]7 %7 I6 ^_ I5I75]%G6 G>=%RRI?]%I ]5/6 7 5 /6 ']6 II ]% %] ^885 ] R I ] %]5 G ]%5 % I'%` 5 ]R%]]7 %]_6 ^'`_5 % G75 5 ^_ 65 G 6 ]]5 G7 ]; ]%G ]7 7 ^% / ^/_5 5 `I8 '% ]7 ] II% 5 / 5 5 @_6^_G7%I]6

Figure 1 Emergence of Factory Asia

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^__%7 7%I8Q ] I] ]% 8Q %GRIG8 Trade as an Engine of Growth G% % G7 ! ]%@7@I ]I]5 It is no surprise that most of Asia and the 7I@Ì ] I 7 %]8 @ IG trade-dependent, whether on manufactures, R commodity and marine products, or tourism I8>7 L5]I] 8 5 ]%5 % 8Q dynamic economic growth in recent decades East Asia, with ICT products comprising more than G% % 8 Q 84 '` I5 merchandise exports alone, the developing Asia parts and components share of total trade was % 8 Q 8 Q5 8Q]]58 Q 6] 5 I] 7 8Q G75 8 Q8'%5 ^%_8 the parts and components trade is less developed %7 8Q5% 6]/^ / 8 Q8 8 Q6]_5 `^8 Q_5^8Q % % 5 R _8 5 %] I ]78 % 8Q 6] 5 I%GR%]5R I 7 8 Q 8 7 subregional trade shares5 show the stronger %G%8 QI] '% ` 5I8Q ^ '% G7% _8 8 R%G G 7 /5 ]%5 G 6] 'Ì8Q8 Q6`R from buoyant export growth since its market reforms 8Q 8Q6 '% I 8 Q ]]7 5I 8Q ^> _8 G5 % ]%78 a result, its share of world exports has grown The example shown in Figure 1 shows the actual sourcing I7I78Q 8 QG7 of parts and components of a hard disk drive assembly 8;6]GI I5I]I] 5I=II %II8 4 '%@G^_8 7 8 5 ] 5 Intra-subregional trade share is the percentage of intra- % 7 8Q subregional trade to total trade of the region, calculated 6] 5 %] 7 I 8Q %6]8%76] 8</IÎ_ 66] G % 7 8Q 56]8 share indicates a higher degree of dependency on 6]I ]^]]6R_8 8 `]7%<I An indicator of the growing importance of trade %75/6]%G6G76 I7RR8 ']6 ]5/6 8 `R 7 6 Q 75/6]%G6']6 ]5/78 `8 I % 555 7

Figure 2 !;`C]Q

R 30 2.3 23.9 People’s Republic 25 of China 20 8.9 15 10 8.8 5 NIEs 10.9 0 1980 2008 India 1.2

`7`%75/6]%G6G76']6]5/68 '%7/I]%GG^ _8 as the PRC and India have seen rapidly rising I] I%% 6 RR8/;5 and garments, and commodity-processing, to I8 Q Q5 6] 7 ] 5I 8Q 8 QI] %5%I7 ^G_8 ^_ ]% ] I]5 automobiles, chemicals and petrochemicals, Another important indicator is the rapidly G7 ]%8 %R changing structure of exports, with a rising share added service exports include IT services, of manufactured exports in total exports for many ] 5 %86I]5G 5 % 8 the share of manufactured exports grew from ]% G7% 8Q 8Q G75 8Q 8 Q modern manufacturing and high-end services, 58Q8Q]]5 ] GI 8Q 8 Q@58 Q 8Q II 5 '<@^G_8 6]]7II@ ^>_8 Within this manufactured export structure, G 7I I GR Table 2 Share of Manufactured Exports Table 1 !&Q to Total Exports, % 1980 2008 1980 2008 ];]%G/ 8 8 ];]%G/ 8 8 India 8 8 India 8 8 NIEs 8 8 Malaysia 8 8 8 8 Thailand 8 8 Philippines 8 8 `7 I] ]% 6]8 ` % 75/6]%G6G76']6 Pakistan 8 8 ]5/68%` Sri Lanka 8 8 %%I] %%]8 LDCs and Small States 8 8 '%7G^ _>@^_ </Y]%8 G8 '%7>@^_6G8

G </ I ]%@8]% states, their share of manufactured exports to 6]]GI% total exports improved It bears only marginally I7]I8R I 8Q 8Q5 I] 5I]]%5 of manufactured exports are largely simple =G6]8 I%% II7 ]8 7 also remain largely outside the global and regional %7; G7 ]%@8 ] I 8 %R @%] FDI and ODA as Factors in Asia I5 75 7 I %8 ! G@R@% 7I I I@5 % /8 7R@ % ] % ] R of depending on ODA, FDI or a mixture of both ]%G% ]I c8 7 @8 5 % public ODA but increasingly private FDI have been c I I I %I I of a pro-business-pro-FDI policy and regulatory ^%_8G environment, ease of access to factor supplies R I ^5@5G5]_5%% I ] G]RGI8 8 Low income countries and LDCs without a rich % G <G I I@ ]%GG7]T %G ] I] IT%I I%6] %7 5]I@R ]RG%R]R ] I8 7 ]7I8%% 6 ] G%R%] 7R development but is usually accompanied by I]8 I5 7 5 II _%7 I]I87 control know-how, and import-export linkages in Republic of Korea and Taipei,China received % FDIa and ODAb in Asia <G7 !$I ]I I 8 economies were able to use ODA to ease their 350,000 6I]I 300,000 % ] ]I @7 %8 250,000 In contrast, Hong Kong, China and Singapore, 200,000 FDI and more recently the PRC depended more on 150,000 8 7 5 / G I ODA 100,000 % ] 6] 50,000 / 5 0 and developed its manufacturing and shipping 1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006

YI5Y 7 ]I8 ' I% ^_ 7 IRG Sources: a`/^ _8b/^G_8 analysis of how foreign aid supports FDI in developing %8 555

%8']]I < 5 G7I5 Ì_5 '% 7 I G`/ G %GR5/I= _]5'5%]5] ]7 6]I%%]I IIII@I5 ]%G8 had yet to fully embrace pro-trade and pro-FDI ]5 ] I @ When the PRC opened its doors to FDI in the late G% ] 8 5 I7 I 7 5 ]I7I_]5G%I%] China, Taipei,China and the overseas Chinese in North America, as well as from the Asian NIEs and '%87/I] I75I/8 on its legal and regulatory framework, and more ]%7 ] 5%@5]%G II@5G`/I G7 ]T _]5Ì%]@ IT%I 8 %78 % $T c^%]7I G7% _%I_ I8 $ G8 / I '% % ]%7 %G ]%G GG]8 ]=]I@ This has raised concerns in some developing % ]5 % R% c G7 /8 % ] 8 However, on a per capita basis as well as in terms I I 5/;I8 agencies and donor countries for greater In absolute magnitude, Hong Kong, China has the 7%G7%8 largest FDI stock, ahead of the PRC in the second ]5'] I= ] 5 G% @8 amount, are India, Viet Nam, Afghanistan, /5I%I@ >5@8]]G5 5%G biggest recipients are Micronesia, Tonga, Mongolia, I8G< and Vanuatu, while as a percentage of GDP the of FDI policy in India as well as the buoyancy of biggest recipients are Vanuatu, Afghanistan, and I778 8 G I ^6] 5Ì7_ I7]] not among the rapid-growth economies of Asia < 5 _] % 8 ]%G6]5/675/6 _]^/_85 ']6G768I@ _] G %]] _] _]>7? 8 % G I ^> _8 % ] FTAs as Drivers of Regional ] ]RG% ]R $ I8 '` % ^]%7 5 ]]5 /IG5 %5G7_]5G I%IIG %G55<G]7 I c 5 /; ] >]]5? ^_8 % ]] I %GI/ /@/;]I G<%%I% 8 trade rounds and the principle of most-favored

Figure 4 `$!

150 130 110 90 70 50 30 10 -10 1975 1980 1982 1989 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 Signed* In the pipeline** Notes: 'Y%G57c8 ]]Y%%I@IG G8 '%7>^_6_%78

^G`_8 7 7 %]] ]8 5 % ] ]I%8 I% G< ^ ]I%_ `5 ^% /; ] > _]_ R I of free trade for the developed economies by IR 5 ]%% I%%5 ]IG7 I%R@7I%I ]% 8 Fourth, the ILGI8 R IL I ` %] ' GI I]I I%I Market discriminated against Asian exporters ] c % I@ ] %G_% ] % ;]I8 Ic8 _%75I G 75 G% Most Asian FTAs are WTO-consistent with GATT ]] ^'_511 or otherwise ^%_8 % G /% ] %8 G7 > '%%7 FTAs” with deepened and widened trade and 85] I G< GRRG T I %8R]%]% ] 6IG<55 I]8 Second, Asian governments perceived a need II>5 % %% I ] ]7LL8]8L]LZL growth in market driven trade and investment 8I8 11 /7^'_ cG '/^_%% R]5%G75 ]7]%8 G<II78 555 11

]I ]6 I] ]76 8I I ]%I6 % ]]7 provide for a common regional trade policy ]6] I IIG5 ]%7 %IG7G87 c5 Rc G %7 ] c ] I58IG the less developed members and provisions for such an FTA would confer include: wider market % I ] % 55@76 %% 76 I I@ <5 % ]I I%I]6%I]]I6 ]< < I I%% I % 6 ]I ]% _%67 @ 5 II< ]I6 RG _%I % I G 8 common technical and product standards experiences with market opening under FTAs I%% I8 G would prepare businesses, farmers and labor importantly, region-wide FTA proposals based unions for the broader market opening under %R@I]7 8 G%GI% I8 ]G]% I7] ]GI>]G?> The “Two Faces” of Asia G?8III7 %G= c c5 c % ! = % G Despite the rapid economic expansion in the preferences and sanitary and phytosanitary 5 I% ] ]I ^''_5 I c I 7 6% I I ]% I8 G<8G% To accurately gauge the progress of trade % ]I 5 G% 8 I G @5 ; ]7 I@ % ] <8 I7 I %]]I%]II GI%7I6]R5 G%5]%%I]]] ]%7 ` / 5 % ^_5 ] ] helping to raise growth rates and living standards I55I%II5 across the region—a group of smaller, low- I ]] I%%G RI812 %GR / I8 Moves towards large region-wide FTAs around ASEAN and APEC are increasingly seen as a way to provide a seamless border and to reduce the “First Face”: High-Performing I Asian Economies

I] 12 ' = ^_ IR ]II]8 I I ^_]5 /5 ]%G 5 ']5 5 ]]_ G%I]8 '=^G_8 12

7R%%%I^8 _8 /8]] I I $5 Other Low-income Economies: This group includes $5 ']8 %] the Philippines and Viet Nam in ASEAN, Pakistan < G7 7I and Sri Lanka in South Asia, Mongolia and several exports of manufactures and high value-added / 8 %]I 87%] I7 G G% ] ] ] developed countries in manufacturing and 5 _% I ]7 ]G8 7 GG reforms, and underinvestment in physical and %I]8 ]8 LDCs and Small States: This group includes several “Second Face”: Resource-Rich, '% ^5 >5 Other Low-Income, and LDCs >%5G5`]_5I'` ^/IG5<5G7I_I and Small States 8%]I I7GG%G] Persistent economic underperformance among ^R@>R@?_]% %GG%I75 %I % G8 % G including unfavorable geographical circumstances can only produce a limited range of goods and ^885GR@I_5 ]]% % I % I8 /II7RG ]% 7 trade infrastructure, and a lack of economic %G I]8 %] G]%%8]] be further divided into the following three in processing of agro-marine products, as well as %GR%]8 ] %I877I7I Natural Resource-Rich Economies: This group G ] ] covers the central Asian economies of Armenia, the markets of the developed countries and on <G=55<@%@I 8 and the ASEAN economies of Brunei Darussalam 8 I =7 Geographic Sub-divisions of the high growth rates from the resource boom in 5 II8 G%% >?`! 6] 5 ]%7 6 The second face of the developing Asia and the I8 ] % % G ] 8 75 their geographic sub-regions, each with their own their technological and human resource bases trade-related development issues, and hence I@5I%]G8 ]I8 ] 7 ] ] I from the resource boom, these countries also [ G@'%G^G'_6% 7 @ ]I I 7 <I ]7 76 %I ]I 8 7 %% ]6 G I6 555

@ 'G I]6 I 77I8Q 8Q ]77]7I@8 ^% _8 [ / 7 `R G6 ] 6 I =7 G% I6 I %%6 I built on outward-looking policies that encourage capability for trade policymaking and 5 ]%7 I%%5 8 ]G% [ '% 7 <I 6 G^%_8%I %7 %I G6 @ bleak among the LDCs and small states subgroup, I G I6 I]IG %]]%I]8 G778QG [ 7 'I I ^%G_8I <]]%6]7 5 % 6] %5 ]6 @ ] 76 export growth rate and the share of manufactures I]78 6]5]]6R8

However, the biggest challenge of second face Challenges Faced by the “Second countries in terms of exports stems not so much ?`! from its share of world exports, neither its

State of Play: Gaps in Trade % Share of World Exports— Performance and Growth Second Face, Q

2.8 Underlying this stark contrast in economic growth 2.2 ]I I G7I8] 5 has improved their total share of world exports 1980 2008 '%7/I]%GG^ _8 Figure 5 The Two Faces of Trade !`!Q 25 25 India LDCs and %G Share of World Exports— PRC Small States 20 20 LDCs and Small States, Q NIEs Other Low Income Resource Rich 15 15 0.25

10 10 0.19

5 5

0 0 19802008 1980 2008

First Face Second Face 1980 2008 </Y]%5`Y7%< I5/Y];]%G/8 </Y]%8 '%7/I]%GG^ _8 '%7/I]%GG^ _8 14

RR 5 8Q8 [ 6 5%G5G] [ GT 65 G %; [ '%G]78 I%%6]6]^ I%%_5 High Trade Costs and R%I%%8 ` I]6] %I876] /%G% GI]G7]]G I I@ 78 G5%G=I%GI High-performing countries have lower customs, of trade and makes them vulnerable to external freight and handling costs because of more @ % 8 %I I5 I It should be noted then that open economies ] @ ]] I7 G c G7 @ I5 services to support their large trade volumes and G% G %5 %8 openness should be complemented by costs in the second face countries are exacerbated investments in skills, infrastructure, technology G7 ] _% %% development to enable them to scale the %I]% 5 ] I G8 _% economic management to enable them to feeder services to regional transshipment ports c7I6@8 and airports can help LDCs and small states overcome the problems of distance and low Gaps in trade performance and growth between %I % ]I 7 GG% ] 8 / / % %G %% poverty, such as: costs for its eastern seaboard but not for the [ High trade costs and infrastructure R@ ]8 75 / 6 @ ] ] @ through Myanmar and other countries in the Greater Mekong subregion for the trade of its G Share of World Exports, ]8 L!&` Manufactured Exports,Q 6I]5I6] I 7 ]I Share of 7 8 Share of Manufactures World Exports Trade to GDP in Total <@56]I% ^Q_a ^Q_b Exports ^Q_b I]RI 1980 2008 1980 2008 1980 2008 $]I^/5 First Face 8 8 8 8 8 8 `_$5 PRC 8 8 8 8 T 8 ^>@_8%] India 8 8 8 8 8 8 7 5 ]% NIEs 8 8 8 8 8 8 75I@56]R Second ]G8 _% 8 8 8 8 8 8 Face infrastructure and cumbersome regulatory Sources: a /I]%GG^ _8b World Bank I G G %G7 ^_6G8 I c G8 555 15

example of the costs incurred to second face 7G<G8 I I %% ]7/5 ^>6_8 with the coastal region having special economic <]I<%% Uneven FDI Flows 66]R8 This has led to a widening development and FDI has been more important to the development income gap between the coastal and central 8/% I I G 7 %% G 8 ]I 5 ]%7 ']5 gap, the PRC government has in the past decade Hong Kong, China and the coastal provinces of been encouraging FDI to locate in the central and /8 % % %%]I8 /5 G%@ ]; ]%G 5 of China, while the central and western regions $ ]

Box 1 `] C7 Impact on the Perishable Food Product Markets

he perishable food supply chain, including fruits and vegetables, is generally considered to be the most I]6III5G%II]%R%8 T %I7] I R]5]G]%cII%I]]%77 %%]%I]8GG6]%G I7%5G%6]_% %I]%86I]5]%G%QGG Q %]%5]7G%G6]7G%Q8%6]@ %7G% Q%7;%]%8I6]I GG%5%<II@I%I] G7I'']6]I@8G75I= ]G6]7%]]7GI6]8 7%%]%@R8]7 ]]%I%I] %@<%I8I]I5IG%75 I]%] %I%]IGRI8 T>G5Ic%I % ]]]^ _8%7_%c5%%I 55I56]]] GG%]]85I]%I7]77 ^''__%%%]%76]]%I I]%78

'I]7I]6I7%II5]%%I7 _%IG]%I@%I@8

'%7`'/^ _8

]VI%I]] /%%]I ^$5_ G7 %]8 ]]%II7 ]%5 65%7']; I8 7_8 I] I ; I5 7IQ ]]6R8 IQ]T ^% _8 Post Global Financial Crisis Developments ]5 face group are also consistently behind countries G I %]5 ]%7 `8 originated in the US and spread to Europe and > 56I]5 5 %@ ] I8Q 8Q I%7%8 57I8 8 Q^G_8 '7I] % I c % @5]5 % 8 5 Figure 7 Share of Total Foreign Direct %5 ]] 7< ] Investment in the Two Faces, Q G I 6]5 has pummeled countries across Asia and the 16.0 4.0 3.0 3.0 8 ] G 6G G7 ; ]< G7 84.0 96.0 97.0 97.0 and its reliance on high- and medium-technology manufacturing exports—motor vehicles, 1970U1980 1980U1990 1990U2000 2000U2008 electronic goods, and capital machinery—that First Face Second Face ]I8

`7%%/55`8 %57 ' I] ] %8 Values of shares are calculated using simple averages for 8 ]%]8 developing Asia stumbled from its impressive '%7`/^ _ ]@ 8Q 8Q ^>_8 %]5I 8 Q 8 Q 8 Table 4 Foreign Direct Investment 78Q ^ 8Q !&Q ]T_]%8 Q ^% _8 I %G%] 1970 1980 1990 2000 2008 face, LDCs and small states saw growth rates drop First face 8 8 8 8 8 8Q5%R] Second face 8 8 8 8 8 8 QRI6]] 8 Q 8 `7%%/55`7 %< I8 ' I] %8 ]5I '%7`/^ _ undertook Keynesian pump priming with huge 555 17

Box 2 Singapore—An FDI Success Story

]I7RG% _@I5]]% I] ]`$587I%%56]] S]I=%5']GI]I% %RI]]I]I%I]8 '];III`5@ I8

'%]']7G%6]I%% G%G55]58G']G I=6]RT]%5I]I5G7]%8 ]']]8 ']GI]7]7 ]]8I ]@]I%575II5I@6]5 7RG]%@%]]78I]%% ]I%I6I%I 7II%IG7]G%RGI7

[ Highly-competent and friendly government agencies such as the Economic Development Board acts as a >]?I]RGI%GR8 [ 7RI]I]II<G%@% ] ]%G8 [ 7@GG7%I]]III5G% '];GG8 [ %G]%7 ]]G G5II5III<%@78 [ Scarcity of land has been eased with careful urban planning and the establishment of industrial estates ]@7RG%%%I8 [ %% R] ^885 5 ]5 ]5 II%5 ]%G %_ II]8 [ /I]6]II<% R%]%II5 ]]@8 [ %G6G%8

'%7']^_6];]%G/^_8

I%% ]@8 I%% ]@ % GDP Growth, Second Face, Q ]II5 8 ]%7 /5 ] ] 7.3 6]I8% 6 7 c G7 G 4 3.9 but low performing economies burdened by the magnitude of poverty and strained social safety 2 VIII%G8 0 2004U2008 2009 @%7 I7 % Note: Values were calculated using the simple average for 6]]R]75 %]78 %] '%7>^_ I] G

]8]] Table 5 Poverty Headcount in Asia and the %I%56I7]5 !^]]%$8 ]7_ ] c % G%77 /86] Poverty Headcount, millions 1990 2005 growth in these countries will revert to normal Developing Asia 58 8 8 Selected countries where number of poor decreased However, economic growth and prospects in Asia have been highly uneven, with the second Poverty Headcount, millions 1990 2005 %87 ];]%G/ 8 8 more vulnerable to the external shocks than Indonesia 8 8 56]]c Pakistan 8 8 6] %I 5 I 6 8 'I%% ]@ Selected countries where number of poor increased also unsustainable in the long-term given the ]5 I7 %5 Poverty Headcount, millions 1990 2005 ]%7 5 India 8 8 rely on monetary and structural policies to ^_ %I]7I]@ G75%I] ;8 %75 %5 %G75% I5%]I8 CCC! 6I I The trade gaps across and within countries in I GRG ]I Asia have also been accompanied by mostly % ]7 8 %]I8I Sustained and high economic growth in the PRC performance and rapidly rising standards of has shrunk the percentage of the poor in Asia living, mass poverty and low human development I8Q 8 Q I%]GI8 8 /; ] I7 G G% The countries in developing Asia have over I=II5@7] I%$8 ]7^G _ ]]7 8 G ]] % $ ] I] 7V ; I@I78 ]8 %]5 close correspondence between the dimensions ]7 %5 5 of underdevelopment and the dimensions of mask the increase in the number of poor in other ]78 % < G7 %8] I]%75@ I'%5 I5 %] %5 ] G7 I>5 8I 555

@5 8 I `]8 ; ] %%5G]7 =7I $8 ]7 % /65I]%I]7 $8 ]7%8 QG 7=%G%8 ] ]] '% 8 poor are found in Indonesia with 47 million and more MPI poor people in eight Indian states than ]] I8I ]%IG8 7 % PRC and India and their prospects of reducing the number of absolute poor are also of lower Sustaining Trade-Led Growth 6GG7%]]% I7 8 % G !; %7 Second Face ]I8 I development gaps within the large economies >7 7 5 6] II / ]5 I%%I I 8 7% ]@ G]78% underdevelopment and poverty remain, in parts _% 5 I7 R] /I78]I I ^ 6] GI6I< /_5G6] _%G I7 %G export growth, with the double-digit declines 5 R 6_%^ ]I %]I G7%^ _6>G6% ^> G6 _14 For complete %_8 75 G7 % _% I I% ] 5 I % ]7 % 6 ^7/_ %GR6]8 5]]6R 8 I I% ]7 @GI< G G%I76^G_] 78]%% by the Oxford Poverty and Human Development G%] ^7_ `815 The MPI shows I78 I ]75 I7 % ^_ % ]7 ^] ] ]]_6 7 I I5 ]7^%IG]] without losing export momentum or outward- ]]II_6I] ]6 ^_ G% G ]7 c 5 G%I6^_% %]5%L%G8I I6^_ _%7 6]I]8 I_%78] I%I7 ] L Trade-Led Growth Through 6] ] Q Balanced Openness 8]I7 ] ]78 I % '%G@I T 5GI 14 '%^_8 ' %] % GG 15 '@'^_8 G%@ ; I%%

6]8 5 % 6]8 6I]5 made the risks of excessive dependence on dependency on marine resource exports among 6 I ]%7 8 % I@ I %G export-oriented growth policies in some countries I 5 have also welfare costs associated with producing %]GI]8 I%I]8 GIG%7%%] %%IcI One outcome of the global crisis is the consensus / I8 '% that Asia must reconsider its export-led growth economies are reliant on clothing exports which model, rebalancing its sources of growth away 6]] II@@'%] G8 for manufactured exports toward regional and II@^`'/ G6>_8 %%G><?R end of manufacturing with limited prospects for /5]%5I %] IG7 % _% 7 6];I%% %I%]I8I IIV ] % I]% I5 7 @ I] R8G labor-intensive manufacturing due to rising costs _% I at home and new emerging players in the global adopt a bold mix of policies to improving its trade I@8%6] I5%I ]I5 ] 5 5 I I G7 I] % I% ]7%%6]%% ]I%%G I]7GI7 and increase their value added from commodity %% I6 ]I IR 6]^> _8 I%IR<]%6 76]8 % % ]]%7 I] I@8 I ]I resource base allows them to produce only a G]5G narrow and limited range of goods and services I%G<8 ^ I '/ G_8 5 their human resource base is sparse and focused $].] %I %%RG %8 ]]%I G< ]% % RII7]%]%7 %%I]G% %G G ] %%8 'I I85c IIG] new markets and new technologies than ever market access for their exports or on foreign aid G8 5 I6_%I8 I] I I] I8 ]] While manufactured exports have been the II8G7 development path for the PRC, India and the RI % L Asian NIEs, this same development path may 5 ] G 7 G I %G7] geographically isolated states in the second G<8% %]8 I ]] have narrow export bases, with manufacturing economies could be more focused on agriculture, 555 21

mineral, marine and tourism-related exports, [ Reduce barriers to service sector I%% ^'/ G_8 ]I8 A regional approach to enhancing export [ Invest in human resources and industrial I]%%7 8 [ I] _%7 [ L%G ]I ] infrastructure I % ] [ %_%%]] development of such resources for the 6]]I8 6]I@8 [ IG%R%]8 [ Development of the oil and gas resources of [ Strengthen public-private sector dialogue Central Asia, including seeking new global ]]8 markets, fostering backward linkages and [ IRIIRI8 services pertaining to natural resource ]I ^88 G@5 ] ]_8 Using FTAs as Drivers of Regional [ ]I ; %I $ ]5 % I] 57II ] ]% @ I@%% emerging regional architecture led by FTAs will ]@8 %G@7R [ '%]] ] c 8%]5 ]% % G % G I G% I the synergies of linking with larger and dynamic regional and sub-regional environmental neighbors, as well as overcome their problems of 8 I]^>_8 GII@ <II^% 6I%G6]8 '%_5 ASEAN experience is a good example of the ]% GR I%% G @ % 8 exports, face the notable challenge of export low-income and least developed economies in %] '% ^/IG5 < 5 G7I I8 ' ]I c `I_ GI IIG ]% ] '` 8 % '` ]7 %8 %% %% IIG]5 7 G ]] reforms along with supply-side support and '` ^_ '` ] Economic Community and in the ASEAN-plus ]8 /5 _]5 ]%G 5 measures and support policies need to be %T` 8 %7]5I% sub-regional and regional agreements, they G7 have been able to survive the tough trade I I I5 =7 [ Maintain credible macroeconomic policies G I I]I5 ^%I]6_ I] ] I@ outward-oriented trade and investment II5 I%% 5 ]8 ^% I '`; I I_ ' = ^_6 =5 <<I _ ]] G ]% ^_8 @ ^% I I 22

'`_8'` technical assistance to undertake the necessary developed countries and low-income countries %%=%I8 =7 ] c ^'_ I G7 '`; I ]7 I'`;]8 < I8 % ]] '` I%RGI FTAs, these second face countries would have G%GRG% @ ]7 to economies of scale and scope and minimal I ]8 >7 cI]G%I8 >]7RG@?'`57GI It may also make it easier to achieve a deep the experience of their more developed ASEAN Doha trade deal as many of the concessions on ] ' I8 < ] agriculture and industrial goods so crucial to LDCs I % % %7 and small states may be already incorporated into ]] % RI8 Aid for Trade Flows in Asia and the Pacific

[ JJ%:C 1R `Q` `:RV Q1 Q 1: :JR [ )J ]1 V Q` 1: :JR .V :H1H; $`Q11J$ .V :H1H 1JH`V: VR Q $8 G1CC1QJ 1J JVVR `Q` HQJHV 1QJ:C 1R `Q` `:RV5 T ``QI $ 8 1J T 8 .V J:JH1:CC7R `:1JVR RQJQ` :`V C1@VC7 Q I:]]1J$Q`1R`Q` `:RVQ1 .Q1VR .: I:1J :1JQ``VR%HV: 1 :JHV1J .V7V:` 1J``: `%H %`V5 `:J ]Q` :JR Q`:$V5 :JR :.V:R8 VJV`$7:HHQ%J `Q` .VG%C@Q`Q1 Q 1: [ :`V %C VcQ` 11CCJVVR QGV`VRQ%GCVR :JR .V:H1H8 Q1I]`Q0V .VQ]V`:QJ:CVcVH0VJV Q` [ ?%H.Q1 :`VHQJHVJ `: VR:IQJ$:`V1 ]VH1H1R`Q` `:RVIV: %`V 8A .V``Q`I HQ%J `1V 1J .V `V$1QJ :JR :`V I:CCV` Q`1R`Q` `:RV51JHC%R1J$JQJRHQJHV 1QJ:C HQI]:`VR 11 . Q .V` `V$1QJ 1J .V :JR]`10: V VH Q`: 1 :JHV511CC :@VQJ RV0VCQ]1J$1Q`CR1.VJ]Q]%C:QJ:JR .V 1JH`V: VR1I]Q` :JHV8 1JH1RVJHVQ`]Q0V` 7:`V :@VJ1J Q:HHQ%J 8

s the trade and development gaps ]7@%8 highlighted in Chapter 2 demonstrate, However, given the limited concessionary funds A GR R available for Aid for Trade, non-concessionary related development assistance in the form %%G6]8 % % ]I8 As data is not currently available for non- ]]%I] concessional and private sector assistance, these I% important categories of Aid for Trade and their I]%8 I]5]%7%]%I] the second face of Asia, will be discussed in a G]8 875I]] I%I In the next chapter, a case will be made for the I] G% ]I I ] ]] 8]%5 to Aid for Trade in the region that is anchored among a few countries in the region and such R 8 '%% ]= I I] 7]7 ] ]]% Aid for Trade elements—including economic

5 5 I]5 ^T_8 trade capacity—and are based on common G7 ]]]%GT]]]5 G II G75/ 8'% ]I55 $8G]7 cI%8 TI]$ 8 G]7 %T VI% Q G]8 Mapping Aid for Trade Flows Compared to other regions in the developing Using data provided by the OECD and WTO, this 5 ]I]@7] %^%_8 5% 8 I % Growth of Aid for Trade Flows comparisons with other developing regions, ! 8 G%5 ^ /$G_ 8 G7 %7R8 20

15 ]]6>6RII 11.3 ]G 10 9.5 ^T _ % ^T _8 5 0 Growth of Aid for Trade Flows 2002U2005 2006U2008 `7III5G%I8 % ]I]I]% %%6]I778 Sources: WTO Secretariat and OECD CRS database ^_6]8 G^T _ %

% `C7&$C

Commitments, $ billions (2006 Constant) 12 10.7 billion 9.5 billion 10

2 billion 2 1.2 billion 0.3 billion 0 2002U05 2006 2007 2002U05 2006 2007 2002U05 2006 2007 2002U05 2006 2007 2002U05 2006 2007 Americas Africa Europe Asia Oceania

]7% Economic infrastructure >%]%]7 Trade-related adjustment '%7/T^ _8 25

5 7 I Figure 12 Aid for Trade Flows per Poor ]8 G5 ^ /$_ % 7 50 8 I G 43.0 40 G 8 75 cross-regional comparisons based on total Aid 30 22.8 20 G I8 12.2 %I 10 G% @ % 0 Asia and ^ _5>^ G_5 =% ]]% < %IG /^_5>@^_6 ] ^ ]]% G8 $8 ] 7_ c ]%8 Figures 11 and 12 strikingly show that Asia and 7] ]]%7]]]I] for Trade Flows 817 ] 7% G@ ]7 G78 G]%8 G7%7]]]6R8 infrastructure, transport and storage, and energy %G%@ 8 %% G@ Figure 11 Aid for Trade Flows per Capita 8 I ^ /$_ ]7 ] % 5 ]7 I] 15 ]7G%^88]7 11.6 10 %_ G7 8 5 3.0 3.5

0 Flows by the Two Faces Asia and ^ G_5 / G ] G@ ^_5 >@ ^_6 G7 8 G8 %]%R 8 face, low-income economies and LDCs and small _%I%%R 17 When calculated using the number of people living on I 8 G G $]75II]8 5 7 $ ] ]V < I /GG ^$_ '%GR 5 ]]] G7 '^$_8 ]I8

% `C!]5Q

% 35 30 25 20 15 10 5 0 Energy Fishing Tourism Forestry Industry Transport Agriculture and Mining and Storage Banking and Business and Trade Policies Trade Other Services % /II% Financial Services Mineral Resources Mineral 2002U2005 2006U2008

`7%]7]%]III8 '%7'//'G^_6]8

G Aid for Trade Flows in Asia and These averages, however, mask a notable !C Countries Aid for Trade Flows % 8 G ^%5$I_ ] ] GI ] for the periods before and during the Aid for During AfT Pre-AfT 8I]%V Period Period India, Viet Nam, Afghanistan, Bangladesh, and ^T ^T % Indonesia—account for the bulk of Aid for Trade Group/Country _ _ change 8 %I5 ^_ 5 5 17 III 8Q ];]%G T of China 552 T 8 Q T ^G _ ] India 1,524 5 %8 '^_ 5 5 Resource-Rich 5 5 Indonesia 5 T Other Low Income 5 5 Measuring Aid for Trade Viet Nam 5 5 LDCs and Small States 5 5 41 Aid for Trade broadly covers all types of public Afghanistan 1,445 ]5 </Y]%8 7 I8 ]G7 `7 / III5 G%I8 that governments in donor countries around %];]%G/5];]%G the world may scale back spending to address 6 6 ]%G 5 ]%G 6 G76 ]%GG5c 8 R ] % % T 8%]%% of non-concessional and private sector Aid T8 for Trade can be expected to take on added '%7'//'G^_ 8 27

Table 7 Aid for Trade Flows in Asia and assistance only began with the advent of the WTO !])&] II@^>6_8 Country Ranking Total AfT Flows Per Capita Flows CRS does not provide data that match exactly ^GT ^%5 ^%5 @_ $I_ $I_ @R categories, but instead present proxies under the Top Five Recipients 7 ^_ 8 1,524 5 8 8 ]7 %5 ^_ I 8`I 5 5 8 8 %%5 ^_ ]% ]7 G% 8 1,445 8 8 ^% ]I_5 ^_ R 8> 8 8 =%I5 ^_ R 8 5 8 8 8 > )&] Aid for Trade lending and grants to developing 8/@ 1 T T %5]/'G8 Other forms of trade-related assistance are not 8G 5 1 8 8 ] 7I78 75 8%@I 2 2 8 8 %]7 8%% 4 5 T T %I G% 8% 8 8 % 7 ] 5 `7 / III5 G%I8 GG%G8 Face includes the PRC, India, Republic of Korea, Malaysia, 78R]%% T % ] % % T8`]]G /@%%8 '%7'//'G^_ Among the trade-related assistance that is not ]7 % ^_ R 7 ]%G 5 ^_ ] 8 '% ]%G / / ] '7I ^/'_V 5G% G % Q %I8 ]I ^_V I % @ G In the case of ADB, only the concessional lending 8 I % ]%>%^_ ] /' G8 G5 I 7]%^/_5% ^_ ] %8 G%@ > ]5 % /; ]%8/I]]%G ]I /II ^/_ >;]c ]^]%_^_%@ G7 5 ^_ ]I I near-market terms to lower- and middle-income ]I I G=5 %8 5 >; /R]] ^_%I^5 ] I% I Q_8 $8G8 5R]%85 5 G7 R with countries on the DAC list of ODA recipients that %I]86I] IG75 because they are not primarily aimed at development or % R ] ] G%7I Q8 I 8 `R

>6 OECD–WTO Monitoring of Aid for Trade Flows

5GI7 IG7II%78@II W G%G7II@]I]I G77^_5%]% %7]I6^_G5]7G% ]]55I]I_%8

II5/GII@ to promote dialogue and encourage all key actors to honor commitments, meet local needs, improve c5I%%%G78%=/TII@ 5%]75%75%^88]%>]? ]_57GI]7]%5 I]8

' 5IG Aid for Trade Monitoring Network %@%R7I8 Partner self-assessment ] RI % % %% _% Qualitative Analysis Donor self-assessment tailored to the donor community and partner Global Aid for %8%6G%@ Trade Reviews G 7 8 Quantitative Analysis I_% Performance indicators analysis of global Aid for Trade commitments and G%I /; / ] '7I ^/'_ 7 G8 categories used to track Aid for Trade are those that were established as benchmarks by the Aid for Trade @]/%_%78%I5GI@G I]I]]]I/'8 %@]II%I@5G7@%]% I]5I@7I]G8

'%7 ' / /' G8 ^]7LL88L%IL L55Z Z Z ZZZZ58I

]I7<I] 'I75 _] >@ 5%@RI /] ^_>/_ % %I5 c ]I I 7 %]] %5 development in Developing Member Countries ]I7 %8 ^G/_8>;$G c G7 5 ]I ^ ]]6 >6 _ %]] G/ 76]$8 G] 5 banks by providing resources to support trade %]] ]] I %]$8G678 ]] G@ 8 >; I ^_ _>/ I]I ] 'G G7 ] % 8 >7 II%]]] spurring cross-border trade, the program also ] % G% ] ]I]8 % % ] _%7

I 8 ]IIc] ]6 % 6I] 8 For this reason, donors and DMC ]%_%7I8G7 ]%GcI] ; I] IR I%IR ] c ] ]^'G_@G5% I%8 7 %I8 _>/ % ]I such SMEs and this program is expected to raise I] ] I] c]]% 8 c^ _ ^ _5 G I Assessing the Quality to improve the delivery and impact of aid, and seek to transform the roles of donors and of Aid for Trade ]%85_% ]] II 78 _%7 ]%5_%%7 I %7 _%7 I] ownership and leadership on development I]]%I8'%% 8 ]I G% 5 ]7 %5 ]I G% G ]%8 principles: 7 7 8 ]8 % 6 % _%7 ] % c]]I the lack of accessible, cross-country-comparable policies and strategies and coordinate _%78 /; / ]I8 I ] R 8 I8G%]] %7 ]5 I ]%;]I falls short of enabling a clear assessment on the 5%5]%8 c 8 %75 8 7I<8 ; I only a few assessments looking at trade-related ]5 7 c5 G%@8%% I<8 %7^_@6] 8 G %8 % % G% ]% ]7 managed and decision-making improved ]I% ]RG% I %%8 % ] 8 G%%%G78] II% %%5 %G]I%8 5 ] I@5 ]%GT ]]]8 The Accra Agenda deepens the principles set forth 5%7 ]; concessional Aid for Trade, donors may either 8 Strengthening country ownership over maintain or perhaps reduce such assistance in ]I8 G 7 ]%G %7 '% '%II <; ^]8 _ III>I5G75 '% % / ^_5 / ^ _5 >@^ 5_8 7^_8?^`IG_8

the country-level policy dialogue on driven, tailored, and coordinated capacity development and encouraging governments G%%]]8 to take stronger leadership roles on their 8 %]I ]I ]8 %8 ]7 %]] G7 %I %G7 _% % % % ]I%8 ]G78 8 >% I c % 8 I ]] ]I8 ] % 5 % I I] % ] 5 I7 _% the complementarity of their individual %@7I_%7 c5 % I % of Aid for Trade in the context of the Aid for partnerships by focusing on demand- 6]8 Aid for Trade on the Ground: A Regional Approach Backed by National Strategies

[ B:QJ:C :JR `V$1QJ:C :]]`Q:H.V :`V [ .V `QCCQ11J$ RV 1$J ]`1JH1]CV H:J .VC] 1J `1H: VC7 C1J@VR8 1: :JR .V :H1H GQQ .VQ0V`:CCVcVH0VJV Q`1R`Q` V6]V`1VJHV.: .Q1J .: H:`HV:IQ%J `:RVQ1 7^1_ .V% VQ`]%GC1HT]`10: V Q` 1R `Q` `:RV :`V GV Q]I1

I G7 ]%7I5 G% Aid for Trade assistance works best as a regional I7 % I ]%G ]]G@G78 % 8 5 ]5I5I]5] 5 c7 ]% 7 @ % 8 ]I%R<RR Drilling down to the micro-level, actual programs ]]5] ]= % G 6I ]]]G]] 7 ]] ] %%]I]_%7 6I]8 I R c 6]5 ^%_8

]] I] % ]C 5]%7 Approach to Aid for Trade I6I< % IG< II ]I 8 6] I% G ]I< % ]= % %7 ^885 I 5 I] 5 ]7_5 I%] 5 ]I]%GT]]]5 I%%7 %GR ] 8 6I] G 7 ]7 ;%G%]]% I8 '%7%I]8 [ '% ] 75 /IG5 < 5 `I I Why a Regional Approach I@RG 7I Is Important 6 I@8 <G< I5 II%I I]I %%5 ]% I@G% 78 ]% @5 6]I]I7IIGR G5 I%% 8 ] ]% ] %%I]I ]^/_ I]G%I5 RG%7 %5 ]%7 5 % G< c ] I 7 G '% 5%]7I]75 % %]% ]%7 I]7I5 8 % ^> _8 / [ / ]%GV%R I] ] %7; ]G % 5 7 ]I7 G76]=I @V G5 ] I855 I @5 I] I II % %75 II%78< I%% 6] ]@ %] I@ 5 5 ] 5 ]%7 6 I 7%% I=@5]% ;GI]8/ I<@8/I@ _%7 G % G7 I] R ]7 G G 75 % ] I I5I<%I5I]I c7%%6] ]7 I5 ] %] I%I8 accession. Aid for Trade on the Ground

[ In South Asia, the move toward labor- ]8 ; %% 6] %78 'I class in some places, it is below the global average I G% G 8 % R I ; I 7 G%%G]] %78 % I]I %IRIR8 II%5 ]5 macro-level, cross-border infrastructure has ] %%6 I ]7 enabled faster economic growth and contributed I6%c ]7%8%5 I@8 has helped raise incomes, especially through [ 5 % 6] I]I@8 ] _% % < %% ]= >I c c G 5 ? % ]7 G ] ; measures to facilitate trade and transport, I G7 $8 5 c] _% Q ] ; 8 ]I5 ] According to ADB, there are at least 21 high- among the islands to achieve economies of ]7 %GR ]= % G I] 78 I]IG7 $ G ^>>5 _8

` .I The concept of economic corridors is a signature The experiences of Aid for Trade in Asia and the approach to regional development based on %]=%G @ %% ]% ]%75%G5 ] I6I< I G %I875 I %% I8 I need for each economy to undertake policy, corridor can be envisioned as grids and rings in a %7 % I ^% region, whether land- or sea-based, that integrates RIIG_ 7I I@ ]% G<5I5 7I]8 G8 %% development, which is a key facet of building I6I< c5 ]= % I5II]]= focus on the following Aid for Trade elements: that involve two countries, such as building a road ^_ ] %%5 ^_ link or bridge across a boundary river, to complex I 5 ^_ ]I ones that involve several countries, such as gas II5^_]I pipelines in which many countries cooperate 5 ^_ %] I]5 @ II G8 R ^_G%]78]7 planned infrastructure development helps V%] I]7G impetus for commercial trade—by improving the ]]%8 G%I8 While economic corridors encompass a smaller ! ]757 transport artery such as a road, rail line, sea lane, _%;%%@ canal, or other such facility, and serve as strategic % ; ]I ^]]6>6R

and 4-4 for railway and airport infrastructure %&I'I 6I]<@5]7_8 /RG ]= % I] _%7 5 ] 5 coordinate “hard” infrastructure elements, such I 8 ] ]%%^885]_5 new WTO agreements, signatories to the > ? %%5 % %] 5%I ^885%I% %5 7 GI _%7I^885I< IIG85I ]%_8 countries have yet to be members of the WTO ^ ]]6 R _] /] 7 ^_/_ %_5 >; ]I /IG5 / ]5/ = G@ '%G ^G'_ I 8 _% / G < %% %G % I I case of economic corridors on land and is % ]R G ] ^885 // 8 % ''/_^]]6>6R G' %@%GI%]%] T / ]= I]_8 trade and investment regimes and adopt market- % G G% %IG G%I%G 5 % ^_ ]]] I6 G=]]8 lending and non-lending assistance to support Such reforming measures have improved the %G'%5^_ % I] I]I ]7 %% the PRC, Viet Nam and Cambodia, greatly I]I G I] 5 %G5^_]]% boosted their economic growth performance in cross-border issues and diligence in preparing %G_%78 RGI8 Countries that are seeking WTO accession would II I G _% ] %] I ^G/_G ] ] R ] ]8 7GI7G7 % < linking small island economies with wider regional these countries to undertake the various needed ]@8G/%G7 I G% %] %]]7R ]G ] 5 % ]'G8 % I G =87@G/% I% >RLRc? ^_ 5 G 7 c I] ] I I] 8 % ]=_%8 is currently being expanded in the archipelagic ] %]]7 Southeast Asian region, which comprises the 6] ] I5 ]%7 Philippines, Indonesia, Malaysia, Timor Leste, and ;5 21 ]%`%8 ]] 'G I 55@ 21 % >% %ITTG7T % %8 ]] '` ^>GT_ 5 I7 ; ] % TG7T^GT _5I<5]%`%8 cG Aid for Trade on the Ground

%]G7% %^_I]7R ]8 ]6 ^_ I %7 %IGI]%_%I5 ] G I] ]7 _%@_%7 ^>'/ _6^__%7II traps by establishing cross-currency payment ] %]6 ^_ 5 7 I R@ I755I7^`_8 GR5R75 ]RG% G I%]5 %]8 such as helping exporters meet regulatory and I@ _%I I] %6 >; I ^_ I5 I<5 %I R]I] ]%I]I G@ G/ ] ]% I%I@G% I]6]8>;] ] I 6 I] %]G@G/8 I@]G7%%7 I ]% c G7 6 c ] ^885 ] I / %5 @ ] <I%R6]G_8 I/7^]]6 5 %]]7R >6R_8< 5%6]5%R I%@ %]5]I^885 G I % %I_5R%%8 5 > 6] $ G8 Through leveraging with partner banks, this move 6I]R]I] 6]%]$ GI%R ]= ' 7 %]]G78 ]I ^'_T'` /I] I =5 I ]I ]]% G7 ] %I 6 ]] I ; % G%]]78 with three types of constraints related to ]=;I%7 I]7^_@I]%]]7 _%7 ]I %I ]G @ resource development, and is helping form virtual countries into producing low-value goods in the G7 % 6 I %]]76^_]GI garment factories to add value for global apparel I@5 % %I% G%78]=]I technical standards as well as health, safety, and 8%I5 I _%I6 ^_ 6 ]=]]I@7 regulatory and procedural barriers that make %I]^]]6>6R _8 G78 % G= strengthen the capacity of the second face to raise @ ]]% ]% ]%77I] 6] I]7 _% @5 GI@8'7]6 @5III_%75 to address the broader business environment as 8 I]I G7 %]]7RI5 %]

%I % R% On the public side, in order to create an the public and private sectors, and the lack of I %]] ]7I]7] volumes necessary for economic development, < ]]% 6]8 c I<c7% to build trade capacity involve enhancing the % ]8 G7]7I@5I57 Government ministries and agencies should developing countries to do the following:22 7]] and invest in public goods that facilitate trade 8 G I% G <8 75 I7 I]I ]I government actors are severely constrained 7 IG G G7 _% %5 ] %I ]5 ]I76 %5%]5 8 increasing the volume and value-added I%I] of exports, diversifying export products ]Ic78%G]7G% and markets, and increasing foreign @ I c I=G6]G7 providing trade-related services and assistance ]7 % %I]I5R G7 ] < 75]] ]]%7I6 I8 8 ] G I %5 5 ] IGI ]]7% ]7G%@%% ]II8 ] ] ]%G < I] c8 G7 G I ]7 G% ]%G ]7I%8'; 6] 6] ^885 Economic Growth Strategy, technical assistance I _% 6] I] ]I]8 %G7 _5 % ] %75 Q cI@]7]% increase in technical assistance per capita leads G% ] I I]8 G%_%]] '%%%55]I 778 %G75 _%G 75 c<8 Private sector capacity building can be aimed R] R] <5 5 7 and generally focuses on providing consultant ]I ] 5 c L ]G78 as well as the need to enhance awareness and ]7 G% capacity to respond to emerging regional trade 7 G G I] 85>%]] ]= % % %R trade capacity building program that includes development, market linkages and market 5 %5 ^ I7II5@5 ]]6>6R_8 capacity building for advocacy, and technology 8 >% ]7 G I]]%c]] 22 '/^_8 in PACER-Plus discussions—a regional trade and Aid for Trade on the Ground

G .])C$

Public Sector Capacity Building Private Sector Capacity Building [ GI]I [ 7]% plans I]]%G [ _% % ] [ Assessing trends in industrial performance at [ ']<%I 55G %55G [ /%IG ^>_57]77 ^>_I]77 I%^''_ ]77I%^''_ [ IT-based trade system development [ Upgrades to manufacturing processes and ^RII_] %]]GI partner agencies such as the WTO and ITC enhancement of a standards, metrology, %%6%]]7 II6I@ '%7%;I]8

I ] I G G %II< %5 ` I G% ]] Forum Countries / % G%]78 includes elements of trade capacity building 7 ]7 G% and trade development assistance designed to implement, the breadth and depth of impact are %I /%; G7 @7I]8I]7 ^ ]]6 >6 R % III%G 7]I;`%a I%cI I 86I]5'7I %]] I8 ]= %I /R%_8 %]]]% % % %G5 7< ]7 The UN Economic and Social Commission for Asia % I% ^'/_ /]7 >% I 7I I] ^ ]]6 >6 R _5 II ] % G ' ]7 G% c provide knowledge and capacity building tools I]I 'T ; % I8 `I > I `>a II 7 G % I_8 ] 5 G%'/;/]7 ]=%II%IR Building Programme are presented in Appendix %7%8 >6R8 %% 6I] % building trade capacity includes the ASEAN /75]]I %I^_%% `%/@5' R 7 G5 ]%G =5 G5 `%%5 `%5 trade, investment, tourism, and development Palau, Papua New Guinea, Republic of Marshall Islands, ^]]6>6R_8'` 'I5'I55%%5%%8 Secretariat have also implemented a plan for

'` % @5 G7 IG< %]]<'`I ] %]]8 ] ; /II%7 T'` ]] I@ % 6] ^]]6>6R'`T II5 II5 ]5 I '%]] % G% 78 `'a_8 private partner may also contribute investment ]]I8

I GVI `]C ]I]I Principles in the form of bilateral, trilateral, and regional assistance—are crucial to strengthening the Aid A set of common principles has emerged from 8 '%% R I]I 6] 7 G c G% 6] 7^_%]%GT]]]5 and global trade are the crux of good Aid for ^_ II ]I ]=8 5 ^_ 5 ^_ c I % G 8 `I % 7] ]=5 ]%GT ] G % G7 %] T.^_ ]I % 5 7 %G /I]7 < PPPs engage the private sector and acknowledge 5 T ]I %G the role for government in ensuring that social /I]7 <8 ]= GI%%I development outcomes for households in the ]%GI8 ^]]6>6R_8_];7 ]=I < G%% ]I ]%GT tasks, funding, and risks among public and private ] G G% ]]I75< % % 7 and management in India, the Indian Ministry ]I ] @8 %G ] of Human Resource Development, and the I % I5 /%7^/_ ]I5 I%]5 R ]III_% ]8] G I _] I%% ^ ]]6 5 I7 % G% >6R_8 6] ]=8 75 I7 ,I%' % I < -I ^`_ ] @ 7 c G7 ]=8 I; G6I< G G%I7@I] instrument to closing trade and development gaps I^G%6%_5 is best achieved when trade is embedded in overall transfer of assets, or other commitments or in- ]I @G%%]]]]8 @7]I8/] The government also provides elements of demonstrated, there are strong links between social responsibility, environmental awareness, 5 5 ]7 %8 % Aid for Trade on the Ground

trade, countries have access to a wider range of 8 Which sectors are the poor engaged in and goods and services as well as to technologies that 6]]- ]%7I] 8 What is the market access for goods and I8 'I% ] 5 services of which the poor are the principal =G 5 % ]%- ]]%]% 8 7 c % ]% 6]8GI]I tradable goods produced by the poor impact %7] R]I I- %G% I@7<% Maintaining a pro-development stance will ensure ]7%7R8 ]7 % @5 ]] GI]I %7I8 strategies typically takes places at three levels, including the Drawing from the links between trade, growth, ]7 5 ]7I@ % 8 policy level, where trade is integrated ] ]7 G= ]I instruments that enhance trading capacity 624 I% 8 ]%5 I 8 %5%7R] ]I %7 ] %% ]% ] coordinated with industrial and private sector to facilitate policy dialogue and trade development policies, as well as aligned with 625 and complementary policies, such as social safety 8 T] 5 nets, tax reform, and skills development in the a dialogue is facilitated between partner G8G %II<6I] governments and donors on trade-related ]7 G= %I %8 to the second face that are building blocks for cII8 In mainstreaming trade into development 5 @7 _% % G /IG;']]^ % ] ']_ I %%7 ]I7 II]I 8 '] resources of the Cambodian government and 24</I5]I % @ ]I /IG; IG ] 7 % '7 ] ^'_5 ] 8 '] ]] I@ 8 ' priority products and services to strengthen and previously focused on social sectors with the aim of 7/IG;6]G5I ensuring that debt relief funds were allocated to priority G@ ]7 6] 8 ]75I7 In broad terms, it more clearly links trade GI ]II ]] G ]7%8'] ]I ]7R% %%]]7%8 %G %I ]I ] ^ 25 %5II ]]6>6R_8 I5 %]] %5 ] G ]] Pakistan is also pursuing a mainstreaming ]I 8 >RG % ]] 6 strategy with its Trade Policy Framework, which @@78 I] 40

Table 9 !C=`q$

!C.])C$ !.])C$ [ ]%cG [ Trade-related infrastructure development [ 6] [ /%I@7 I] @7I5]5 [ Development of high-value agriculture civil society [ Development of export-oriented manufacturing [ [ 6]]II [ ']]I^88%I5 [ Export insurance schemes energy) [ I6] [ ']%%I] [ Export processing zones linkages [ Regulatory policies [ Small- and medium-sized enterprise (SME)- focused development [ 5I5 7RI [ @75% ]%_%755 ]]5 II] '%7%I]8

strategy with reforms to improve the business ]%7I]< climate and investments in upgrading Pakistan’s '%5]%7</% ]7 ]I @ `]5 >%5 >8 I] development among its workforce (see Appendix aims to produce the ADB’s Aid for Trade business Box 4-14). plan for South Asia and enhance in-country % ]78 G% ] I ]]5 %% I- ]<GIG I G% I I]5 @ % ] 7=^G_5 I]II]% I ] `I G G%]%] G 7I5 % ]- ]% @5 R viding assistance in WTO accession and trade related infrastructure. This approach is designed ]7 ]7 G% ^ to maximize the economic impact in terms of Appendix 4-15). 5 I]7I5 %% I] I '% I%7]c </8 I]I %GR 8 '%5 </5 I@ 5I] ^_]G]GI 7I]5G% supply for Aid for Trade and to mainstream trade regional development. The South Asia Strategic ]I ]8 Framework for Aid for Trade Road Map involves I II % </ Aid for Trade on the Ground 41

%% including ADB, aiming to promote and facilitate %%5IG78 ]8 5 ]I IG<$8 G%]]]= T priority sectors of transport, trade, and energy .I% ^]]6>6R_8 .T. The Aid for Trade Work Plan also aims to place greater emphasis on complementary ] ] ]= ]]5 % '%T'% % I]I@I I ]8 5 5 ]%7 I % ]; ]%G ]7 G% ]=8 @ of China and India have expanded their Aid for 5 I5 G%8 '%T'% ] 7 I] ]I G I]I % I]I]=8' L%GR I@8 G %]] I % ]I ]= and ensures sustainability and the success of contribute not only to the advancement ]=5 I % G7 % ] %] % ]5G%]IG %86I]56 ] 7 I IIG ]]7G%]=^885 %8 ]5 %5 6]5 I _85 I '` ^_ increases, less resources are used for their demonstrates a good example of both triangular 8 '%T'% ] ^ ]]6 Box 4-17 on regional and bilateral support to %%I%R _8 I G is the trade capacity building program for Lao ]I]IIIG]%7 PDR, which included assistance from the EU, to assist the newer members Cambodia, Lao PDR, >@5 %5 '<8 G7I5`I^/

I@ monitoring mechanisms between government promote dialogue and encourage key actors agencies—including commerce, trade, and to honor commitments, meet local needs, other agencies involved in overall development I] c5 I%% V]^]]6 %G78 5 %5 >6R_8 for partners through enhanced transparency, %75%8%77< ; 6] c ]I;I]5%% ]II%8 ]]5G<G7 ]= 5 ]8 I ]I G=%=7%% G % ] ]= 7VI ] ] ]= %] I%I%8 I c8 6I]% for Trade Task Force recommends accountability Interim Programme of assistance to Tonga, II I % ]%]%< G 8 II I]I @ comprise three levels of analysis: ]I ] G%8 _ 8 G 7 5 % /; %%7%G CRS, to assess where resources are being ']@ = G /II 7]] Secretariat and the Ministry of Labor, Commerce, G%I6 %6I 8 % 5 5 / I ^/_ I%; I7 _ % %RI65 G7 %I ' 8 %7RG I % I8 through self-assessments to determine whether trade is being mainstreamed into Monitoring at the regional and subregional levels ]I ] IIG% trade needs are met and aligned with the I%G 8 L%G]IG8 ]5 I5 I]5 5 ]I G ]7I@ % G c % I] ]]5%I5I<5 G G ]< ] c %8 6] %G@8 ]G7%G% to successfully conduct cross-border monitoring 6I]cI% % % G ]7 ]=_]TÌ_ ]I8 5 I I] G% environment with a view to strengthening According to Aid for Trade At a Glance: Ì; I]8 ]%5 GGI%I^/ _5 6] _]T Ì _ developing country partners noted that progress I] G I G7 c %6 I@ ]6 6% 5 Aid for Trade on the Ground

7 ^_ 7G% %]7G%5^_7 ] I I5 % 6^_G %% 5 ]G7%6^_I6 I]I7 ] % G% %]] ^ R channels of export-oriented growth and outward ]]_8 G 5 G 8 ]] % I ] % ]]%% ^_ @ %%6 ^_ I]6 8] ^_ 6] 6 ^_ ]7 @< 755I]I8 I] ] a rising demand for regional Aid for Trade and 5 I I ] %]] _%7 ]8 Way Forward

G>_%G [ .V FV$1QJ:C VH.J1H:C G`Q%] QJ 1R ']IG G `Q` `:RV`Q` 1::JR .V:H1H VV@ G Q `Q`I%C: V :J 1J V$`: VR :]]`Q:H. `IG 827 The RTG represents the Q Q]V`:QJ:C1@^>_5 11 . C1I1 VR `%JR1J$ Q : IQ`V VC`R partner with the WTO to implement the Aid for % :1J1J$VJ 711 .:`QH% VRI1 1QJ ]8 Q` RV0VCQ]1J$ :JR 1I]CVIVJJ$ :J ' G G Q]V`:QJ:C :]]`Q:H. Q 1R `Q` `:RV _%7 5 > Q1 1J 1::JR .V:H1H8 %]] ] @7 > deliverable for carrying forward the WTO Aid 5 R The Regional Technical Group IG]8 on Aid for Trade for Asia !7] ,I.%I'

'%]]% ]] %7 ] I of Aid for Trade, the RTG operates under the regional forum—the Regional Technical Group ]R5] ^_ 8 %] /IG_]8I]IIG out the origins of the RTG, outlines membership I 6 ] % I5%; I% I]I 78 ]6]I

&.'%/ 27 @7 II = >R ]GI8'>^ _ I GG< 7 % ] II5 `IG5 G @7II G]7LL88G8L to emerge from the Aid for Trade Regional R8

44 Way Forward 45

8>IIG .1 '8 IG ] ]= ] > G8 I % an informal regional forum for discussing Aid the increasing relevance of the Aid for Trade for Trade issues and proposals, sharing good c ]5 @ @ G 7 global economic downturn and emerging signs work on Aid for Trade in the region, and building ]I8 IIG ]]I@8 ] %5 ]%7 </ RTG seeks to formulate an integrated approach I 5 _% ]< I%IR the unfolding crisis and prepare their economies I for long-term development and structural c8 =%I8 % % ]] ] ']75 G @ 8 following: [ I ` '/ %@ >@@ T `IG ]%7</I8 members discussed the strategy and work plan [ Discuss ways of mainstreaming trade I ]I 5 % ]< 8 approach to Aid for Trade based on country-level [ @ @ G 7 @ 8 I I]< Aid for Trade in the region, including the %]%5 ; </ ]I I I@ G %G7%8 G78] [ Consult with development agencies in a coherent strategy could help narrow the intra- recipient countries and the private sector on regional gap in trading-related infrastructure how to improve Aid for Trade performance ]78 at the country, subregional, and regional 8 IIGI [ Provide a forum for Aid for Trade proposals G7 c ^G_5 _] 6 ] @7 T G7 8 IIG 7G=5 G ]5 @555G8 recommended an integrated regional approach [ Conduct a review of the RTG work plan G@G7]I I7^G_8 ]II]<8 [ 7 ] ; @ The members also discussed the RTG work plan GG T8 6] ]] %I]]]8 could allow for both increased funding and a [ /%% II<]] @]8 8 %I >G]8I ADB maintains a website with RTG Aid for Trade related %5]=^]7LL88G8L IG5G7 RL_8 ;%%@]I%^_

dialogue and experience sharing between Asia ;/G ] 5 ^_ IIG8] engagement of private sector in Aid for Trade RTG Co-Chairs report was made at the Regional '%R'% ]8 G _@ I5 IIG ]% _%8G]_%7 %] G ^_ I5 ^_ 5 % 6] ^_]%GR]]]%%5 G % T ^_6]8 ^%]R] R%_8 ] ; I ; /II Furthermore, depending upon the level of ]I^/_8G] commitment exhibited by members, the RTG I /] ]I] ^/_ 7 8 ] ]= I % I has been expanding links with the WTO process R% 7 % I leading up to the Third Global Aid for Trade ] I]I ] T _%75% ]] ] R ] 8 Appendix 1 Two Faces Country Classification

&.^CY _ .CC^_ Afghanistan /5];]%G Bangladesh India Bhutan Newly Industrialized Economies Cambodia Hong Kong, China Cook Islands 5]8 =5]8 Malaysia G Singapore <];I8]8 Taipei,China Maldives Thailand G5]8 G58' .+.^CY _ Myanmar Nauru &&^ _ Nepal Armenia %5]8 <G= Papua New Guinea Brunei Darussalam Samoa Georgia Solomon Islands Indonesia IR<5I8]8 <@ Tonga Turkmenistan Tuvalu ^ _ Vanuatu 77<]%G Mongolia Pakistan Philippines Sri Lanka =@

47 Appendix 2 Aid for Trade Strategies

Appendix Box 2-1 Australia’s Approach to Aid for Trade

ustralia considers Aid for Trade as development assistance provided to enable developing countries to: A 8 GI%7I6 8 G6 8 76 8 I]IGG8

%]%%%I%5GI8%%]] ]G% Q]I^%$I T_8 55%@%7I%_%I] I<]/%8

I %; ]I 'I `IG 8 'I6]G<]7%]78>%< ]%_%@%GG<8% ]%;:;c7^_I]I@^_G%I] economies: [ I] I@ 7 7I I% G _%G % ]%]%%II8 [ >%I]I7%G]]%GI@8 >% % I% G I] % ]% % @ ]]%8G7]%<G8

'%7%c^_8

Aid for Trade Strategies

Appendix Box 2-2 European Union’s Aid for Trade Strategy

IG IIII%]R ^I]G%_"G77G7 I^"GIU"GIGIG'_8 G /II I ] 7 ] ]%G%RG7IIc7% %]787III% II]7%8%II%G ]I^]I_7II8 77^_%I6^_ _%7 ]R] %6^_ /]76 ^_/]6^_]8

EU Aid for Trade monitoring reports: As part of the Strategy, the EU produces an annual monitoring report ] c8 = I ] G7 ]7LL8%]8%L]ILL]7L'/ZZ Z/GZZ Z`8

]7I]I'7 85%]]IGIG' "8 G7"8GIGIG'"8 GI8I%G G]V%]75]%R =%I8IGIG'RI"8G 5"8G^Q_ 8%" 8GIGIG'"8 GI5%]I"8G"8G5]78

I]%7I7"8G5%Q GIG'8I5"8 G5'%G'8 G7^"8G_5%]^"8G_5I^"8 G_^"8G_8

'%7/c^_8 Appendix 2

]]6>6R Japan’s Aid for Trade Strategy

];/I]<I]%;I 85_];I]G%II _]%5I%%8 7G/IG 5_]%>]I ?IG'78

_%7 5'7>]I ?8_]]$G G R ]= I 5 % ] %]R8_] G5I%8@7I%%]%GT ]%%]7]78

'%7G7cc^_

Appendix Box 2-4 USAID’s Aid for Trade Strategy

' 7 ]I I@8 'I@5I]5%]] T V L ]7 G% ^/>_V I ]7 G=8 ' I@5 ' ] 7VI '75 '% %%7 '7 I ^] _V % 7; @ ] ]%]5%GRGI8

'7]R]%56]I]] %8/>%%7RGG]I5G7% ]I6G]I77]]%88'8I% G%%I@8

G%I//]^G//_%]%G]% ]]>%]7%8? I75]I]7G%]I5%R %%]=858'8^/>_]$8G5 Q 88'8]$8G 8

'%7']/_%^ _8 Aid for Trade Strategies 51

Appendix Box 2-5 UN ESCAP’s Aid for Trade Strategy U`'/;7>]R]?%]7 [ I c7 5 % I]I I%5 G I^%_GI%IG7I] ]7I%5III]I8 [ %<I@%]I]7 %I]G%II5'G8

< ]] I] ]7 ]%% % %G]I%]]7R]78'%%]II%7`'/L II6`6``@6]] ^``6_6I66I '6>%%I8

'%7`'/c^_8

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G%75G@5I>]<?8 @]7%]RG III@87 [ %IG5I%%]] _%R]7G%IG7%6 [ '%]]I]7I%6 [ %II]IG7]% [ @IIT% ` 5@]R% 5>]c?5%I]%%IG<5 II5]<I]I8

'%7G^_8

Appendix Box 2-7 Asian Development Bank’s Approach to Aid for Trade

>IIG7%]6/@%] GI8>]]GR A I8>%]]77 [ %R%%5%G8 [ >7]I7]] %]5RG7_]/IG8 [ >7RG6]6]%]7 %%8

'%7>^ _>;']'G5_%7 ^_8 Appendix 3 Trade, Development, and Aid Indicators

]]6R `!

Share of Manufactured Annual Average Share of World Exports to Total Growth Rate Exports Export Value Export Value ^$I_ ^Q_ ^Q_ ^Q_ 1980 2008 2009 1980–2008 1980 2008 2009 2008 First Face ^L8_ 8 8 8 12.6 6.7 21.1 8 8 ];]%G of China 5 8 5 58 558 8 8 8 8 8 Hong Kong, China 5 8 5 8 T 8 8 8 T 8 India 58 58 5 8 8 8 8 8 8 Republic of Korea 5 8 5 8 58 8 8 8 8 T Malaysia 5 8 5 8 5 8 8 8 8 8 8 Singapore 58 58 T 8 8 8 T 8 Taipei,China 5 8 58 T 8 8 8 T T Thailand 5 8 5 8 58 8 8 8 8 8 ^L8_ 8 8 8 9.1 2.2 2.8 2.6 8 FV Q%`HVF1H. ^ Q :CL:0V8_ 5 8 5 8 58 8 8 8 8 8 Armenia T 5 8 5 8 T T T T 8 <G= T 5 8 5 8 T T 8 8 8 Brunei Darussalam 5 8 5 8 T 8 8 8 T T Georgia T 5 8 5 8 T T T T 8 Indonesia 5 8 58 58 T 8 8 8 8 <@ T 58 58 T T 8 8 8 Turkmenistan T 5 8 5 8 T T 8 8 T A .V`/Q1 )JHQIV ^ Q :CL:0V8_ 5 8 5 8 58 8 8 8 8 8 77<]%G T 5 8 58 T T T T T Mongolia T 5 8 58 T T T T T Pakistan 58 5 8 5 8 8 8 8 8 8 Philippines 5 8 58 5 8 8 8 8 8 8 Sri Lanka 5 8 5 8 5 8 8 8 8 8 8 =@ T 58 8 T T T T T

52 Trade, Development, and Aid Indicators

]]R HQJJ%VR

Share of Manufactured Annual Average Share of World Exports to Total Growth Rate Exports Export Value Export Value ^$I_ ^Q_ ^Q_ ^Q_ 1980 2008 2009 1980–2008 1980 2008 2009 2008 /(0 :JR ?I:CC? : V ^ Q :CL:0V8_ 5 8 5 8 58 8 8 8 8 8 Afghanistan, I]88 8 8 T ^8_ T T T 8 Bangladesh 8 5 8 58 8 T 8 8 T Bhutan 8 8 8 8 T T T 8 Cambodia T 5 8 5 8 T T T T T Cook Islands T T T T T T T ]%G= 8 5 8 58 8 T T T T G T T T T T T T T Lao People's I8]8 T 58 T T T T T T Maldives T 8 8 T T T T 8 Marshall Islands, ]8 T T T T T T T T G58 States of T T T T T T T T Myanmar 8 5 8 T 8 T T T T Nauru T T T T T T T T Nepal T 8 5 8 T T T T T %5]8 T T T T T T T T Papua New Guinea 58 5 8 5 8 8 8 8 T T Samoa 8 8 8 8 T T T 8 Solomon Islands 8 8 8 8 T T T T Timor-Leste, I8]8 T T T T T T T T Tonga 8 8 8 8 T T T T Tuvalu T T T T T T T T Vanuatu 8 8 T 8 T T T T . ^L8_ 8 8 8 12.0 8.8 8 17.5 52.7 LDCs = least developed countries '%7>^_5G^ _5>@^_ 54 ]]6

]]6R `!

GDP Per Capita^/%$_ GDP Per Capita Growth ^%Q_ 1980 2008 2009 1980 2008 2009 ^8_ 2,217.9 15,291.7 First Face ];]%G ];]%G of China 5 5 of China 8 8 8 Hong Kong, China 5 5 T Hong Kong, China 8 8 T India 254 5 5 India 8 8 8 Republic of Korea 5 5 5 Republic of Korea ^8_ 8 ^8_ Malaysia 5 5 5 Malaysia 8 8 ^8_ Singapore 5 5 5 Singapore 8 ^8 _ ^8_ Taipei,China 5 5 T Taipei,China T T T Thailand 5 5 Thailand 8 8 ^8_ ^8_ 567.0 8 FV Q%`HVF1H.^:0V8_ 8 58 FV Q%`HVF1H. Armenia T 5 5 Armenia T 8 ^8_ <G= T 5 5 <G= T 8 8 Brunei Darussalam T 5 5 Brunei Darussalam ^8_ T T Georgia T 5 5 Georgia T 8 ^8_ Indonesia 5 5 Indonesia 8 8 8 <@ T 5 7,257 <@ T 8 ^8_ Turkmenistan T 5 5 Turkmenistan T 8 8 Other Low Other Low I^8_ 5 Income 77<]%G T 77<]%G T 8 8 Mongolia T 5 5 Mongolia T 8 ^8 _ Pakistan 5 Pakistan 8 ^8_ 8 Philippines 5 5 Philippines 8 8 ^8 _ Sri Lanka 5 5 Sri Lanka 8 8 8 =@ T =@ T 8 8

]]R HQJJ%VR

GDP Per Capita^/%$_ GDP Per Capita Growth ^%Q_ 1980 2008 2009 1980 2008 2009 <];I8 <];I8 ]8 ]8 T 8 8 Maldives 5 5 Maldives T 8 ^8_ Marshall Islands, Marshall Islands, ]8 T 5 5 ]8 T ^8_ ^8_ G58 G58 States of T 5 5 States of T ^8_ ^8_ Myanmar T Myanmar 8 T T Nauru T T T Nauru T T T Nepal 444 427 Nepal ^8_ 8 8 %5]8 T 5 5 %5]8 T ^ 8_ ^8 _ Papua New Guinea 5 1,172 Papua New Guinea ^8 _ 8 8 Samoa 5 5 Samoa T 8 ^ 8 _ Solomon Islands 5 5 Solomon Islands T 8 ^8 _ IR<5I8 IT<5I8 ]8 T ]8 T 8 ^8_ Tonga 5 5 Tonga T 8 ^8_ Tuvalu T T T Tuvalu T T T Vanuatu 2,442 5 Vanuatu ^8_ 8 8 . ^8_ 8 8 8 </Y]%8 '%7>^_>@^_8 ]]6

]]6R $ CC] !

CC] Foreign Direct Investment

Total received .C C .C ^/%$5 ^/%$5 ^/%$5 ^/%$5 I_ I_ I_ I_ ^Q_ ^Q_ 2008 1980–2008 2008 1980–2008 2008 1980–2008 ^_ 8 116,129.5 266,772.1 8 1.2 5.6 ];]%G/ 58 5 8 58 5 8 8 8 Hong Kong, China T 8 58 5 8 T T India 5 8 58 5 8 58 8 8 Republic of Korea T 8 58 58 T T Malaysia 8 5 8 5 8 5 8 8 8 Singapore T 8 5 8 5 8 T T Taipei,China T 8 58 5 8 T T Thailand ^8 _ 5 8 5 8 5 8 ^8_ 8 ^_ 19,802.5 8 8 272,789.6 8 8 FV Q%`HVF1H.^ Q :C_ 58 5 8 5 8 5 8 8 8 Armenia 8 5 8 58 5 8 8 8 <G= 8 58 8 5 8 5 8 8 Brunei Darussalam T 8 8 58 T T Georgia 8 5 8 5 8 58 8 8 Indonesia 5 8 5 8 5 8 5 8 8 8 <@ 8 5 8 5 8 5 8 8 8 Turkmenistan 8 8 8 5 8 8 8 A .V`/Q1)JHQIV^ Q :C_ 5 8 5 8 5 8 5 8 8 8 77<]%G 8 5 8 8 58 8 8 Mongolia 8 58 8 5 8 8 8 Pakistan 5 8 58 58 5 8 8 8 Philippines 8 58 5 8 58 8 8 Sri Lanka 8 58 8 5 8 8 8 =@ 8 5 8 8 58 8 8

]]R HQJJ%VR

CC] Foreign Direct Investment Total received .C C .C ^/%$5 ^/%$5 ^/%$5 ^/%$5 I_ I_ I_ I_ ^Q_ ^Q_ 2008 1980–2008 2008 1980–2008 2008 1980–2008 ]%G= 8 5 8 8 5 8 8 8 G 8 8 8 8 5 8 8 <];I8]8 8 5 8 8 5 8 8 8 Maldives 8 8 8 8 8 8 G5]8 8 8 8 8 8 8 G58 States of 8 58 8 ^ 8_ 58 ^5 8_ Myanmar 8 5 8 8 5 8 8 8 Nauru 8 8 8 8 58 58 Nepal 8 5 8 8 8 58 5 8 %5]8 8 8 8 8 5 8 8 Papua New Guinea 8 5 8 ^8_ 58 ^58_ 8 Samoa 8 58 8 8 8 5 8 Solomon Islands 8 58 8 8 8 8 IR<5I8 ]8 8 5 8 8 8 5 8 5 8 Tonga 8 8 8 8 8 8 Tuvalu 8 8 8 8 8 8 Vanuatu 8 5 8 8 8 8 8 . ^_ 8 8 8 8 8 16.9 LDCs = least developed countries '%7`/^ _5/^5G_ ]]6

]]6R WTO Accession Datea$^_ !

WTO Signedb In the pipelinec Total Accession Date ^8_ ^8_ ^8_ First Face ];]%G/ RR 12 5 17 Hong Kong, China R_R 2 1 India R_R 12 12 24 Republic of Korea R_R 7 Malaysia R_R 11 Singapore R_R 21 Taipei,China R_R 5 2 7 Thailand R_R 11 7 FV Q%`HVF1H. Armenia RGR <G= pending Brunei Darussalam R_R 2 Georgia R_%R Indonesia R_R 11 <@ pending 1 Turkmenistan 88 A .V`/Q1)JHQIV 77<]%G RR Mongolia R_R Pakistan R_R Philippines R_R 7 1 Sri Lanka R_R 5 1 =@ pending

]]R HQJJ%VR

WTO Signedb In the pipelinec Total Accession Date ^8_ ^8_ ^8_ G5]8 88 2 2 4 G58 88 2 2 4 States of Myanmar R_R 2 Nauru 88 2 2 4 Nepal R]R 2 1 %5]8 88 2 2 4 Papua New Guinea R_%R 4 2 Samoa pending 2 2 4 Solomon Islands R_%R 2 5 IR<5I8 88 - - - ]8 Tonga R_%R 2 2 4 Tuvalu 88 2 2 4 Vanuatu pending 2 5 88Y]]G5</Y]%5Y< `7<^_I IIG%I7GIIIG8 a IIG]8%II>GI? 7IIG8^_ b 'Y%G57c c ]]Y%%I@IG been signed '%7^_6G8>^_6_%78 ]]6

]]6R !!^]]%$8 $8]7_

Magnitude of Poor, Q`]]C Magnitude of Q`]]C $1.25/day living under Poor, $2/day living under ^G_ $1.25/day ^G_ $2/day 1990 2005 1990 2005 2005 2005 First Face 8 8 1,250.6 ];]%G/ 8 8 8 8 8 8 Hong Kong, China T T T T T T India 8 8 8 8 8 8 Republic of Korea T T T T T T Malaysia 8 8 8 8 8 8 Singapore T T T T T T Taipei,China T T T T T T Thailand 8 8 8 8 8 8 291.9 8 8 FV Q%`HVF1H. 8 8 8 8 8 Armenia 8 8 8 8 8 8 <G= 8 T 8 T 8 8 Brunei Darussalam T T T T T T Georgia 8 8 8 8 8 8 Indonesia 8 8 8 8 8 8 <@ 8 8 8 8 8 8 Turkmenistan 8 8 8 8 8 8 A .V`/Q1)JHQIV 8 8 8 77<]%G 8 8 8 8 8 8 Mongolia 8 8 8 8 8 8 Pakistan 8 8 8 8 8 8 Philippines 8 8 8 8 8 8 Sri Lanka 8 2 15 8 8 8 =@ 8 8 8 8 8 8

]]R HQJJ%VR

Magnitude of Poor, Q`]]C Magnitude of Q`]]C $1.25/day living under Poor, $2/day living under ^G_ $1.25/day ^G_ $2/day 1990 2005 1990 2005 2005 2005 Maldives T T T T T T G5]8 T T T T T T G58' T T T T T T Myanmar T T T T T T Nauru T T T T T T Nepal 8 8 77 8 8 8 %5]8 T T T T T T Papua New Guinea 8 8 8 8 8 Samoa T T T T T T Solomon Islands T T T T T T IR<5I8]8 8 8 8 8 8 8 Tonga T T T T T T Tuvalu T T T T T T Vanuatu T T T T T T .^_a 8 8 1,802.6 C^C_ 8 2,600.0 !;` C]^Q_ 8 8 LDCs = least developed countries a7 %8 '%7>@^ _ ]]6

]]6R `C`!

Total Per Capita ^/ $5G_ ^/ $5I_ AfT AfT Pre AfT Period % Pre AfT Period % ^T _ ^ T _ change ^T _ ^ T _ change ^_ 5 8 5 8 8 ^8_ 8 8 ^8_ ];]%G ];]%G China 8 8 ^8_ China 8 8 ^8_ Hong Kong, China T T T Hong Kong, China T T T India 5 8 58 8 India 8 8 8 Republic of Korea 8 8 ^ 8_ Republic of Korea 8 8 ^ 8_ Malaysia 8 8 8 Malaysia 8 8 8 Singapore T T T Singapore T T T Taipei,China T T T Taipei,China T T T Thailand 8 8 ^8_ Thailand 8 8 ^8_ ^_ 5 8 58 8 ^8_ 8 8 8 %^_ 58 58 8 %^8_ 8 8 8 Armenia 8 8 8 Armenia 8 8 8 <G= 8 8 ^8_ <G= 8 8 ^8 _ Brunei Darussalam T T T Brunei Darussalam T T T Georgia 8 8 8 Georgia 8 8 8 Indonesia 58 8 ^8 _ Indonesia 8 8 ^8_ <@ 8 8 8 <@ 8 8 8 Turkmenistan 8 8 ^8_ Turkmenistan 8 8 ^ 8_ Other Low Income Other Low Income ^_ 5 8 5 8 8 ^8_ 8 8 8 77<]%G 8 8 8 77<]%G 8 8 8 Mongolia 8 8 8 Mongolia 8 8 8 Pakistan 8 8 8 Pakistan 8 8 8 Philippines 8 8 ^ 8_ Philippines 8 8 ^8_ Sri Lanka 8 8 ^8_ Sri Lanka 8 8 ^8_ =@ 8 8 8 =@ 8 8 8

]]R HQJJ%VR

Total Per Capita ^/ $5G_ ^/ $5I_ AfT AfT Pre AfT Period % Pre AfT Period % ^T _ ^ T _ change ^T _ ^ T _ change Cook Islands 8 8 ^ 8_ Cook Islands 8 8 8 ]%G= 8 8 8 ]%G= 8 8 8 G 8 8 8 G 8 8 ^ 8_ <]I8 <]I8 ]8 8 8 ^8_ ]8 8 8 ^8_ Maldives 8 8 8 Maldives 8 8 8 Marshall Islands, G5]8 ]8 8 8 ^ 8_ of 8 8 ^ 8_ G58 G58 States of 8 8 8 States of 8 8 8 Myanmar 8 8 8 Myanmar 8 8 8 Nauru 8 8 8 Nauru 8 8 8 Nepal 8 8 8 Nepal 8 8 8 %5]8 8 8 ^8_ %5]8 8 8 ^ 8_ Papua New Guinea 8 8 8 Papua New Guinea 8 8 ^8_ Samoa 8 8 8 Samoa 8 8 8 Solomon Islands 8 8 8 Solomon Islands 8 8 8 IR<5I8 IR<5I8 ]8 8 8 8 ]8 8 8 ^8_ Tonga 8 8 8 Tonga 8 8 8 Tuvalu 8 8 8 Tuvalu 8 8 8 Vanuatu 8 8 8 Vanuatu 8 8 8 . ^_ 5 8 5 8 8 ^8_ 8 8 8 LDCs = least developed countries '%7'/^_ Appendix 4 Aid for Trade Case Studies

Appendix Box 4-1 +.!C

]75'%`^'`_] ]77]5III%7^/_ D%I%G8I%%]I]@% ]%]I]%]]I]'`8 ]7%'`;]%G 5%%G%<]G 7I]8

'`/7'`'%II]<@ c]G'`/7G7G7G8

6]%IL%]%7 [ /I]I5]@G@%G'`5 G%I6I@8 [ 7%G]5/57GIII ]]58 [ ]I%%I%RI]]=%'`77`@ ']T%I<@G6]5 % 6@]'`8 [ <@%7'`II%7G%cI]I c<'`/II%7G7 8 [ Establishment of an infrastructure development fund for ASEAN [ ]I'`G7%5I5 %% II '` 6 % ]5 8

=]]7%]

'%7'`'^_8

Aid for Trade Case Studies

Appendix Box 4-2 +T!$`&$C$]]^!&_

]7'R7"8I]IRG7 '` ' %] /II /R] 5 %] 8 ]I I D%]'`5]%%]]< 'Ì/II%7^/_5T'`5%% R T'` ^_ T'` % %I ^_8 '%IÌGÌG ^G%G6%IG_ %%I]IR7]I']IG

%]%%I7]%'G@I]7 [ Standards and conformance [ /%I [ Investment [ /]7G%^%I/I]'`'_ [ '%]]RT'`^_T'`% %I^_8

<7GRI%%%GI^ _I']G77 5c ]]I]%G78

I '` G ^ '` GIG ' ]_ ]%I]GIG';]%8 present program will further build on and strengthen such engagement with Member State bodies in design I]I]I8

I]I'GG7c]7'`'G' @%]8]%'`' 5]7 '`'_%%]]IG%8

'`GIG' %]I]IIII 8%]]VIGV% cI]I%8

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=]]7%]

'%7%]/II5^_8 Appendix 4

]]6>6R Cq&]]!=

]7]]%I]58I 5G 8IG78%%%IGG%] D787557G%R ]]85R7@%G%G 5R77@5G%]8 ]%]GI8%5I %]% GR]I]7I^G_ % ]%8

%]%%I7_]I]]]6I78 G 6IG ^ @I @I_ ]=8]5]I6]=] I]%G]GI]@8_] %]] G7]@I @I% %8>7I]5G6]6 @ @I86]GI]I/7 G%I]I8 [ ]`IG5%75]78 [ Delhi Metro is providing a boost to the regional economy as many metro passengers tend to take cycle @I]G8 [ _]III%57R]]] G%8 [ G@I%G7I%G6IG75 G6L75_%I%GGG7%< 5 5 8

I]5I7I]]]% 8 > ] 6] G5 _] %7 %]] ]= in Bangalore, Kolkata and Chennai, which are also expected to promote regional economic development % % ]%8

< 7 _/ I]I /] 7 ] G I II ] G7 6] 78 _/ ] ]G%%]]G7< %%]]8

=]]7II

'%7_/c^_8 Aid for Trade Case Studies

Appendix Box 4-4 ]&!=

]7]%=6%<@%7 I]6]]]]I8 D]=I]I ]]@7 ]I %G I I ^ T _ % G7 <@ I `IG ` ]I ^ T_ % G 8%c_]G%<I]I ]G7]<@;%78

G7 _] ]] IG I% 5I5 ] %=<@6]%7^I5 I5 I_5 the expansion of taxiways and aprons, the upgrade of paving, improvement in perimeter roads and car parks, %]I 8 Expected outputs and outcomes: [ %IG ] % ] G7 G% I G 8 [ I%%]G7G% IG 8

<7<@%7II@%%] 875]%<@G]@ G7G ]6I7]I8]I ]7I7]II8

= ]]7 I I5 II ]I strategies

'%7_/c^_8

Appendix Box 4-5 Economic Corridors by Land: GMS East–West Transport Corridor

]7I]]]I]G7G'%% G'GGG ]%]]%GI ]8I]I]7 ]7I ]]I%%G%678%5% I]I]@]I%I ]I5%G%%]7875GIGI ]77I55]@`'/5/'/8

Output and outcomes: [ Links Da Nang in Viet Nam with Tak in Myanmar, thereby expanding the market for transit and bilateral I%V5Ì5<8 [ ]=;G=%7_%@I7@G <G57^`77 _6^_G 8@I7 G^<_<>^Ì_G^%` _6 ^_I]7GII]]G8 [ IG7I]]IT% %%8IG7<>%I%%%8 [ %%<>RG%]@$8 I 8 [ 6] %I 5 % I= ] G<57I% 5]]T I 5 8 [ I]RII%I<7 I5]78]]% G% 5 8 [ _% 5 / > ] I ^/>_ I G' IIG % I]I T 8 I Ì5 < % %@ ] G ] % ]I8

<7]II7%G %IG7I]_%7%%^88]5 75II%_@%7GII8

=]]7II6]%GT]]]

'%7>^ __/c^_8 Aid for Trade Case Studies

]]6>6R )]]C!$

]7I^_%] %=%]IIG%7G@%]] D]8]%I5RG G77 [ ]%IG@%G@G/6 [ G@;GcI]6]6 [ @]]]]]75_%7G7 7I8

5>]%]]G@^/I>@_ ]7I%G7]]%>@8>]% >@R]6]I]5I7'G5R 8]%@]I^_%% 8]%I/%]%@] %]]8cI/%%5]6] I@%]]G@8] ] ]IIR]I@8

Outcomes and outputs: [ >; I ] % % G 5 78 5 ]I %]] 7 5 %8 5]I%]]$8 G G7 I]VI%I$8 I%]]8%] %5%@@G7]5]I I]G 8 [ ]I6]]%%%II5I I_%]I5558 [ >6]$G6]%%8%]G@5 I6]%]$ GI%R%]]G78

<7%@GI% 87]G%@G@I] G%@8%G]]G% G%]%]]RI8

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'%7>c^_8

Appendix Box 4-7 ;+.]!=

]7 '` /I] I ^/_ ]= I I]'`7'5]%%I D6]]8 Outcomes and outputs: [ 'G'`6%^_5]R %]]75_%75%I%]I]I>'% '`?G8 [ '%'`%'^''_]I%6II I%%G]]G%78%%I _%7]%76]5'']_%7 G]78 [ '`;I@GI'`/II/I]I5] G7]I5%7I@_%8 [ 5/]=I%]I>'%?G%I8 ]%I%7I]GI@'`5 /=]I@7]]'`%I '%7IG5^8'%8_G5GRGI@ I]I7%'`%IG;I>%%I _%78I@7G]G'`%I' ^'_T 5'%]]/]II_% '``%I<8

< 7 I] ] ] G75 % 'G5 I]5]%@]]%G7I 7I%]]78

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'%7'c^_8 Aid for Trade Case Studies 71

]]6>6R ;]]!C.

]7 '%]] c ]] G 7I%;]]]8%7 D5]75%5%]]'%T'%8

Australian ]] I%I 1 Leadership Awards %78 Trade Fellowships

Trade Research %%]$ 5%7%] 2 %7R]7]]8

+$ %I/%%6I8

C ]]]5@]% Needs Assessment %IIG%^]%`%5'I5=5 Workshops _%^'I%%_8

]II]7]]%]] Trade Policy 5 %/%%8]]] Papers G@%@7I%8

The Pros and Cons ]I]]G 6 of PACER Plus /%/%8

%I%]%7%/%G%7]]/%5 it has provided a number of technical assistance in the form of:

<7'%]]c]]G 7II]]7RG%8

=]]7II

'%7'c]^ _8 72

]]6>6R ]]C^&_+

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%I%]%7']IV$8I% 7 IV I]G%7 8]7 [ I6 7 II 5 %]] ]7 I @]5 ]I ]5 I I5 ]IG57%7I8 [ 'Ì;I@II@7V_%I ]IIG%]8 [ GI Ì; ]I 7 G7 %]] 7 I I Ì5 G% %I I]I ; % of law, capacity and independence of the courts, economic governance, and legal framework for ]]I87IIIGRG ]IÌ8

<7/]7RG%]=%GIR%I] ]8

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'%7'c^_8 Aid for Trade Case Studies

]]6>6R ADB’s Regional Trade Capacity Building Program

]7 >5 ]I >@ % ^>_ ] % ] %]7G%I]7% DI%]778 Outcome and outputs: [ Regional, subregional and in-country courses and seminars on trade policy, FTAs, rules of origin, sanitary ]77 I%5 8 % IR R ]]G8 [ I%%5%]>;6]]7 ]7G%86I]%7^_75`5 I]I6^_I]I^=7 `'/_6^_@GI%^=7/%I<^/__6 G'/R>I]G%8 [ I%%55 %%5%GR8@ ]]IIGI7%7 > I @ ] ^8G8LILR@R]]8]_6 > @ ] ' I ^88G8_6 > @ ] ' ^8G8_8 [ I/^/_^88G8_5c% ]%%]RRI5 <%]/V%% 5I5 I75]%G8/G%77 [ G^]7LL88G8LZ_5 I]]8] for Asia, covering the 47 regional member countries of ADB and 11 trade indicators, 4 FDI indicators, I78 [ G5]7]I^_G% ^]7LL88G8L 8]]_6^_G%^88%I5 %II5%55]5 IIG]6@`'/ G_ ^]7LL88G8LG7/%78]]_6 ^_ I] @ G I] ]L] % ^]7LL88G8L I] 8]]_8 [ I`@^]7LL@8_]R5RG @I]76]II5I5%5 ]8

<7%]7G%]7 ]]I^_8

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'%7>c^_8 74

Appendix Box 4-11 +]!=

]7$8 RG]=GI]IG7`I%/I]7<5 G7 %I I] %] ]I % D^ Q_6I<^ Q_67%G/I]7< ^ Q_6T]I%G/I]7<5^ Q_8>;%]]% $RI]%G5]%]$ I5]@%%]$ I85 I]I%]7%cI ]%78

Outcomes and outputs: [ `@%5 5c%I]II 7GIG5@55%@%]5% G5]%]]I5]7I@8 [ <]I]IGI]I5%I%% 78`I%%GII I;IIG7]=8 [ >%c8 [ /%7<III%8 GI%7I]II`@`I% 8

<7%GT]]]RG% 6]G8

=]]7]%GT]]]

'%7>^ _8 Aid for Trade Case Studies 75

Appendix Box 4-12 JICA’s Visionary Leaders for Manufacturing Program

]7<%I%%]7I]7I5 >7 < G%% ^<G_? II G ] G7 ` DG%%/I]/%^`G//__/GG77%I %]I^G7_5%7^_5%GI ^G_/%7^/_8]III6% G%II]_]I%%_]5%I] %%]G]II8I5I]] G%_]]%]I]I R8 The VLFM consists of four courses: ]]%7:;7II'GII%% ]]%7:>;7IIGGI<II%% ]]%7:/;7II/II%7IIGI] ]]%7:;7II'GVGI]

Outputs and outcomes: [ ' _% 5 7 I] ]I8 % % %75 I I % G@% I%%8 [ <G]]I=GL] ]I8 [ ]]%7>%G]8GI] G7I%G8 [ Q]]]]%7II ]G<I]]I8 [ %%%</5%'%G8 %G%I]7]8 ]=G%@G7%]]%7>%GI]%8

<7I]II%%8 I@ ]I I c5 I5 %7 I % G 6 I8

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]]6>6R .;]]^]_

]7/IG;']]^']_II%_%I II]I8']I]% D/IGI5%G7/II;]%@ ]I/IG;8%%G7]I] I%7;]8I]I/IG '7 ^/' _5']@G% IIII@%%>]?7^_IR% %]I^I55G5I]7 ]7R7%]_6^_%6]]I^R] I]%/' _6^_/]7G%]I II]I^G%I]5%%75I %G77I_8

]I/]%G7/II]I I@7I7R7R7@]%]]I I%GRG=8R7@]G']R7]8

%I %]%7 ] 5 '%GR /II ]I I5 I] % ]]5 I % ]] ^_%5]]6I7$ I6]G 5=%7 ]I'%]]II^'_%8 ]=%I7]7G7/II] I<c7I%5%I%5'%@ GI /]5 ]% I ]I5 7 ]77 5 % e-commerce or support to dialogue on a study on the Impact of the Garment Sector on the /IGI78

<7' and socioeconomic development will depend II ]I 8 GI helps developing partner countries take greater ]R8

= ]]7 GI development strategies

'%7/IGG7/IIc^_']G^8I88@L]_8 Aid for Trade Case Studies 77

Appendix Box 4-14 Pakistan’s Strategic Trade Policy Framework

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'%7`'/c^_8 Appendix 5 Member List for the Regional Technical Group

Co-Chairs

Sopheak, Sok 5G7/II5 Kingdom of Cambodia Uyama, Tomochika GIc5IG7_]]%G of Korea

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Archibald, Edward 5I'5%7 ]I^%_ >5_ /%]I5'7 ]I^'_5'IG7@7 Bryan, Elena Deputy Assistant, Trade and Development, United States Trade ]^'_ >%5I Program Economist, Regional Development Mission for Asia, '7]I^'_ Farbman, Michael Senior Regional Coordinator, Regional Development Mission for 5'7]I^'_ Gafoor, Asaf Director General @%]I^_ 75G I5I%G'5 %7]I^%_ Homma, Toru Senior Advisor, Private Sector Development Division, Industrial ]I%G7]I5_] /]7^_/_ Iida, Manabu Advisor, Private Sector Development Division, Industrial ]I%G7]I5_] /]7^_/_ =I5 55Ic>%%5 G7c5_]

Member List for the Regional Technical Group

Koke, Andra Head, Head of Trade and Development Unit, Directorate General for Trade, European Commission Mikic, Mia Ic 5I5` I'/II^` '/_ G7T@5/ 5%]/II5G Ì5=G%II '75G7/II5@ Nakamura, Masatsugu 55Ic>%%5 G7c5_] Ngo, Chung Khanh 55G%7]I5 Ministry of Industry and Trade, Viet Nam Nguyen, Tat Thanh ]%7R5]8G%I /]5G7c5Ì `5>= 7 5]I5 for Trade, European Commission Priyadarshi, Shishir 5]I5<^_ Ratnayake, Ravi Director, Trade and Investment Division, UN Economic and Social /II^`'/_ Ryu, Mina '75/] G7c5]%G Sastry, Shubha 5]I5 ' ]^'_ Shimada, Go Director, Private Sector Development Division, Industrial ]I%G7]I5_] /]7^_/_ Sirimanne, Shamika /5'5I5 Ì'/II^` '/_ Suon, Prasith ]%75]I/]5 SWAp, EIF and TDSP Secretariat, Ministry of Commerce, Kingdom of Cambodia Tavo, Aloisio Alipate ] 5G7<G5/II Industries, Tonga Ueda, Takafumi Senior Advisor, Private Sector Development Division, Industrial ]I%G7]I5_] /]7^_/_ =5 ]I5 I5 ]I>@^>_ 5G Ic 55]I 5<^_ Appendix 5

Secretariat =5 ]I5 I5 ]I>@^>_ /5'% /%5 I5 ]I>@^>_ %<5G /%5 I5 ]I>@^>_ /%<5G8<< ]5 I5 ]I>@^>_ <%IG5G8/ ]5 I5 ]I>@^>_ References

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58_8%^_5:75_%7%;575_%7 and Inclusive Growth in Asia: Measurement, Policy Issues, and Country Studies, Manila: ]I >@ ^G 7 ]7LL8G8L%ILG@L_%7 R%RL%8]_

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ZZZZZZ^_5>%V75]7LL8G%8L8 About the Regional Technical Group

The formation of a Regional Technical Group (RTG) on Aid for Trade for Asia and the Pacific was a key recommendation that emerged from the Aid for Trade Regional Review Meeting at the ADB headquarters in Manila in 2007 and the Global Aid for Trade Review Meetings at the World Trade Organization in Geneva in 2007 and 2009. Reflecting the principles of country ownership of Aid for Trade, the RTG operates under the stewardship of RTG co-chairs, representatives of Cambodia and Japan. The RTG comprises members from recipient and donor countries involved in formulating and implementing Aid for Trade policies and development agencies in the region. ADB is a member and serves as the Secretariat to the RTG. The RTG started as a pilot project to provide an informal regional forum for discussing Aid for Trade issues and proposals, sharing good practices, taking stock of available analytical work on Aid for Trade in the region, and building partnerships among actors and stakeholders. It seeks to formulate an integrated approach to operationalize Aid for Trade in the medium term.

About the Asian Development Bank

ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains home to two-thirds of the world’s poor: 1.8 billion people who live on less than $2 a day, with 903 million struggling on less than $1.25 a day. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration. Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance.

Asian Development Bank 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines www.adb.org ISBN 978-92-9092-379-4 Publication Stock No. RPT113845

RTG Secretariat http://aric.adb.org/aid-for-trade-asia/feedback.php

Printed on recycled paper. Printed in the Philippines