INTER-AMERICAN DEVELOPMENTE BANK TRADE AND INTEGRATION SECTOR Recent Figures on Aid for Trade in Latin America and the Caribbean WTO Symposium on Evaluation

INTER-AMERICAN DEVELOPMENTE BANK

TRADE AND INTEGRATION SECTOR

Recent Figures on Aid for Trade

in Latin America and the Caribbean

WTO Symposium on Evaluation

Geneva, September 15, 2008

Carolyn Robert

INTER-AMERICAN DEVELOPMENT BANK – TRADE AND INTEGRATION SECTOR

IDB Recent figures on AfT in LAC

AIM

Show picture of Aid for Trade flows which are taking place

WTO Task force recommended that donors and multilateral and regional institutions report regularly on AfT activities, including flows



How the Inter-American Development Bank defines AID for Trade

No official definition of AfTTraditional lending, technical assistance and non-financial instruments are used to support the different elements of the broader Aft agenda, including trade capacity building and infrastructure development (transport, energy and communications).Trade and Integration: priority area of intervention.

AfT: connecting the dots



How the IDB allocates AID for Trade

The identification and measurement of aid for trade is conducted on a case-by-case basis depending on the objective and components/activities of the projects, and whether they are trade related or not as defined by the WTO Task Force. No necessary correlation with the OECD CRS DatabaseIDB counts both concessional and non-concessional flows


IDB Recent Figures on AfT in LAC

How Much AID for Trade

Total AFT (2005-2008 YTD)

Note: 2008 partial year – includes operations approved before Sept.1.

Excludes infrastructure

Financing for Trade (excludes Infrastrucuture)

(current US$ millions) 2005 2006 2007 2008

Grants $26.1 $23.4 $20.8 $11.0

Concessional Lending $36.2 $27.4 $12.5 $0.0

Non-concessional Lending $558.2 $640.3 $728.4 $84.5

Total $620.5 $691.0 $761.6 $95.5



How Much is Concessional

Approx.US$175 million (2005-2007)

Average US$60 million a year, which represents approx. 8% of total financing per year (average)



How AfT strictu sensu is distributed

$0.0

$10.0

$20.0

$30.0

2005 2006 2007 2008

Cur

rent

US

$ m

illion

s

Policy and Regulation Infrastructure

Building Productive Capacity Trade Adjustment



0% 20% 40% 60% 80% 100%

Total AFT

AFT Grants

Policy and Regulation Infrastructure

Building Productive Capacity Trade Adjustment

Commitments (2005-2008 YTD)


IDB Recent Figures on Aft in LAC

National and/or Regional?

Distribution of Commitments (2005-2008YTD)

Main instruments for financing regional programs:

-Regional Technical Cooperation

-Regional Public Goods

-Regional Initiatives (such as IIRSA, PPP)

Total AFT AFT-Grants

National 96.6% 62.5%

Regional 3.4% 37.5%



Commitments (2005-2008YTD)

$0.0

$3.0

$6.0

$9.0

$12.0

LAC R

egiona

l

N. & C

. Am

erica

S. Am

erica

Brazil

Ecuad

or

Argen

tina DR

Panam

a

Colom

bia

Caribb

eanChi

le

Gua

tem

ala

El Sal

vado

rPer

u

Parag

uay

Baham

as

Mex

ico Haiti

Hondu

ras

Urugu

ay

Jam

aica

Surin

ame

Venez

uela

Belize

Barba

dos

Nicara

gua

Bolivi

a

Costa

Rica

Trinid

ad

Guy

ana

Grants onlyUS$ millions



In sumIn sum

-Although the Bank has no definition and no official codification Financing for Trade-related activities, including those contemplated in the broader AfT agenda, constitutes a significant part of IDB financing to Latin American and Caribbean;-Between 2005-2007 there has been a continues increase in the total amount of trade-related financing provided by the IDB;-Significant amount of such financing, is through non-concessional lending, which reflects the fact that in the region many countries are middle income countries, and have limited access to concessional resources. -Significant part of concessional financing also is being directed to regional programs.-Infrastructure constitutes an important share of the non-concessional lending, although trade development is significant.


Challenges ahead

1) Ensuring the Development Effectiveness of IDB products:

-Need to measure outcomes in trade-related assistance,

-Need to establish baseline indicators for measuring progress in trade-related assistance not related to physical infrastructure/investment.


Ensuring the Development Effectiveness of IDB products

A proposal for a new Development Effectiveness Framework (DEM)

•adoption of methodologies for

Measuring results;Redesigning the incentive structure to reward results;Enhancing borrowers capacity to evaluate results


Challenges ahead

2) Address needs from middle income countries, which have limited access to concessional financing;

3) Design and put in place new financing mechanisms and instruments which promote increase of aid –concessional and non-concessional- for regional programs;

4) Enhance coordination among lenders and donors regarding AfT in the region, including the design and implementation of complementary strategies.

INTER-AMERICAN DEVELOPMENTE BANK

TRADE AND INTEGRATION SECTOR

Recent Figures on Aid for Trade

in Latin America and the Caribbean

WTO Symposium on Evaluation

Geneva, September 15, 2008

Carolyn Robert

$5,673.00 63.2 $79,107.10 50.7

1,325.30 14.8 21,934.40 14.1

2,067.70 23.1 18,156.90 11.6

75 0.8 14,059.90 9

17 0.2 13,098.60 8.4

1,050.00 11.7 4,710.30 3

0 0 1,972.90 1.3

246 2.7 2,579.50 1.7

527.1 5.9 1,695.70 1.1

365 4.1 898.9 0.6

2,890.20 32.2 51,682.40 33.1

586.2 6.5 20,448.00 13.1

443.7 4.9 10,104.10 6.5

578.5 6.4 8,108.40 5.2

342 3.8 5,779.60 3.7

300 3.3 3,335.70 2.1

627.7 7 3,398.30 2.2

12.3 0.1 508.3 0.3

407.2 4.5 25,187.90 16.1

50.1 0.6 19,196.70 12.3

187.3 2.1 7,696.90 4.9

10.5 0.1 4,014.80 2.6

72 0.8 1,143.30 0.7

57.8 0.6 427.4 0.3

13.5 0.1 156.9 0.1

16.1 0.2 84.7 0.1

0 0 22 0

0 0 25.3 00 0 42.7 0

$8,970.40 $155,977.40 TOTAL

1 Categories reflect priority areas of activity according to the Bank’s Institutional Strategy.

Civil Society

Trade Policy Support

E-Government

Decentralization Policies

Modernization and Administration of Justice

Planning and State Reform

Parliamentary Modernization

Reform and Modernization of the State

Reform and Public Sector Support

Financial Sector Reform

Fiscal Reform

Health

Environment

Microenterprise

Social Investment

Water and Sanitation

Urban Development

Education

Trade Financing

Productive Infrastructure

Capital Markets

Social Development

Agriculture and Fisheries

Industry, Mining and Tourism

Multisector Credit and Preinvestment

Science and Technology

Competitiveness

Energy

Transportation and Communication

IDB TABLE III • DISTRIBUTION OF LOANS AND GUARANTEES BY SECTOR OF ACTIVITY1

(In millions of U.S. dollars)

SECTOR 2007 % 1961-2007 %



How Much AID for Trade

Total AFT (2005-2008 YTD)

Financing for Trade

(current US$ millions) 2005 2006 2007 2008

Grants $29.6 $26.6 $23.4 $13.1

Concessional Lending $36.2 $27.4 $33.5 $0.0

Non-concessional Lending $558.2 $645.3 $1721.4 $84.5

Total $624.0 $699.2 $1778.2 $97.6

Note: 2008 partial year – includes operations approved before Sept.1.

Documents

INTER-AMERICAN DEVELOPMENTE BANK TRADE AND INTEGRATION SECTOR Recent Figures on Aid for Trade in Latin America and the Caribbean WTO Symposium on Evaluation