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Aid for Trade: Cool Aid or Kool-Aid?


  • Sam LAIRD


Aid for Trade may alleviate some fears by developing countries about the social cost of trade reforms and hence help de-block the WTO negotiations. It may also help address critical supply-side issues and contribute to the achievement of the MDGs. However, there is wide divergence in views what is covered, what should be supported and how. There are concerns among developing countries that, despite promises, aid for trade may simply be a redistribution of existing funds, that it may not address development priorities, and that arduous, new conditions will be attached. For these reasons, developing countries that might be expected to have welcomed the possibility of aid for trade, have looked with some suspicion at the proposals, regarding aid for trade more as Kool-Aid, rather than cool aid!

Suggested Citation

  • Sam LAIRD, 2007. "Aid for Trade: Cool Aid or Kool-Aid?," G-24 Discussion Papers 48, United Nations Conference on Trade and Development.
  • Handle: RePEc:unc:g24pap:48

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    References listed on IDEAS

    1. Hans P Lankes & Katerina Alexandraki, 2004. "The Impact of Preference Erosionon Middle-Income Developing Countries," IMF Working Papers 04/169, International Monetary Fund.
    2. Matthias Helble & Catherine Mann & John Wilson, 2012. "Aid-for-trade facilitation," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(2), pages 357-376, June.
    3. Roberta Piermartini & Patrick Low & Jurgen Richtering, 2005. "Multilateral Solutions to the Erosion of Non-Reciprocal Preferences in NAMA," Working Papers id:289, eSocialSciences.
    4. Santiago Fernandez de Córdoba & Sam Laird & David Vanzetti, 2005. "Trick or Treat? Development Opportunities and Challenges in the WTO Negotiations on Industrial Tariffs," The World Economy, Wiley Blackwell, vol. 28(10), pages 1375-1400, October.
    5. Roberto Frenkel & Lance Taylor, 2006. "Real Exchange Rate, Monetary Policy and Employment," Working Papers 19, United Nations, Department of Economics and Social Affairs.
    6. Azim M Sadikov & Hans P Lankes & Dustin Smith & Katrin Elborgh-Woytek & Jean-Jacques Hallaert, 2006. "Fiscal Implications of Multilateral Tariff Cuts," IMF Working Papers 06/203, International Monetary Fund.
    7. Douglas C. Lippoldt & Przemyslaw Kowalski, 2005. "Trade Preference Erosion: Potential Economic Impacts," OECD Trade Policy Papers 17, OECD Publishing.
    8. Przemyslaw Kowalski, 2005. "Impact of Changes in Tariffs on Developing Countries' Government Revenue," OECD Trade Policy Papers 18, OECD Publishing.
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