Aid for trade solution to global economic crisis
International agencies, fearful that money to assist less-developed countries will be eroded by the global economic crisis, have urged the developed world to increase assistance through the ‘aid for trade’ process.
‘Aid for trade’ includes foreign investment into infrastructure so that developing countries can participate in global trade liberalisation. However, many projects have stalled due to lack of finance following the global financial fallout.
A report jointly issued by the World Trade Organisation (WTO) and the Organisation for Economic Cooperation and Development (OECD) pinpointed ‘aid for trade’ as instrumental in global economic recovery.
The report called for “special crisis-related efforts” to ensure medium-term aid.
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