Aid for trade and development results a management framework

262 Pages·2013·5.06 MB·English

by  OECD

The Development Dimension T
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Aid for Trade and Development Results D
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A MANAGEMENT FRAMEWORK lo The Development Dimension
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This book on managing aid for trade and development results offers an alternative between the traditional t Aid for Trade
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evaluation approach and the current fl avour of impact assessment. Management for development results
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is based on business approaches of setting quantifi able objectives or targets and measuring performance
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based on limited set of indictors. This approach which has been promoted by the Paris Declaration on Aid n and Development Results
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Effectiveness is gaining traction in the donor community. It provides a particularly appropriate framework for io
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using aid to promote trade as an engine of growth and poverty reduction, i.e. where links between inputs,
outputs, outcomes and impacts are long and depend on many factors beyond the programme reach. A MANAGEMENT FRAMEWORK
Contents
Chapter 1. A results-based aid-for-trade management framework
Chapter 2. Managing aid for trade and development results in Solomon Islands
Chapter 3. Managing aid for trade and development results in Bangladesh
Chapter 4. Managing aid for trade and development results in Ghana
Chapter 5. Managing aid for trade and development results in Viet Nam
Chapter 6. Managing aid for trade and development results in Rwanda
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Chapter 7. Managing aid for trade and development results in Colombia id
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Chapter 8. Towards new aid-for-trade targets? r
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Annex A. Aid-for-trade management framework: Trade-related targets ra
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Annex B. Examples of graphic utilisation of the framework a
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Consult this publication on line at http://dx.doi.org/10.1787/9789264112537-en. O
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This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases.
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ISBN 978-92-64-20153-8 -:HSTCQE=WUVZX]:
43 2013 15 1 P

The Development Dimension
Aid for Trade
and Development Results
A MANAGEMENT FRAMEWORK
This work is published on the responsibility of the Secretary-General of the OECD. The
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views of the OECD or of the governments of its member countries or those of the European
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Please cite this publication as:
OECD (2013), Aid for Trade and Development Results: A Management Framework, The Development
Dimension, OECD Publishing.
http://dx.doi.org/10.1787/9789264112537-en
ISBN 978-92-64-20153-8 (print)(cid:3)
ISBN 978-92-64-11253-7 (PDF)(cid:3)
Series: The Development Dimension(cid:3)
ISSN 1990-1380 (print)(cid:3)
ISSN 1990-1372 (online)(cid:3)
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European Union(cid:3)
Catalogue number: MN-01-13-141-EN-C (print)(cid:3)
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3
FOREWORD –
Foreword
History has shown that openness to trade is a key ingredient for economic success and
for improving living standards. By connecting local producers to domestic, regional and
global markets, trade helps enhance the productive capacity of the entire economy and (cid:237)
depending on the pace and pattern of this growth process (cid:237) reduce poverty. It facilitates
the availability of technology, know-how and other services. It helps to make goods
cheaper and more widely available. It also weakens the grip of local or regional
monopolies.
Many developing countries have succeeded in benefitting from the expansion of
regional and global markets. Steady reductions in trade barriers have enabled these
countries to rapidly integrate into world markets through export-led industrialisation and
thereby share in the prosperity generated by globalisation. But simply opening the
economy to international trade is not enough. Developing countries – especially the least
developed – require help in building their capacity to trade. Information, policies,
procedures, institutions and infrastructure: all are important factors to integrate and
compete effectively in global markets.
Members of the OECD, international financial institutions and providers of South-
South co-operation have devoted significant amounts of development finance to alleviate
binding trade related constraints. This support has not only helped expand trade, but has
also had impressive results in improving livelihoods for men and women.
However, it is extremely difficult to be precise about the contribution of specific
programmes and projects to macroeconomic outcomes. Traditionally, evaluations of
donor programmes focused on financial accountability and due diligence i.e. were the
funds used for its intended purpose. More recently, donors are focusing on what has
worked and why, i.e. the focus is put on development outcomes. The state of the art uses
the methodology of randomised control trials, which compare the impact of projects on
the people or areas where projects took place to others were they did not.. Unfortunately,
these assessments are expensive, while the findings are difficult to generalise.
This book on managing aid for trade and development results offers an alternative
between a focus on financial accountability and the current flavour of impact assessment.
It follows business approaches of setting quantifiable objectives or targets and measuring
performance based on limited set of indicators. This approach – management for
development results –has been gaining traction in the development community ever since
it was promoted by the 2005 Paris Declaration on Aid Effectiveness. For aid for trade,
where links between inputs, outputs, outcomes and impacts depend on many factors
beyond the programme reach, it provides a framework for staying focused on aid as an
engine of growth and poverty reduction.
The aid for trade management tool has been developed on the basis of case studies of
national monitoring and evaluation frameworks in Bangladesh, Colombia, Ghana,
Rwanda, Solomon Islands and Vietnam. These studies clearly show that there is a fertile
basis for introducing this tool to manage aid for trade and development results.
AID FOR TRADE AND DEVELOPMENT RESULTS: A MANAGEMENT FRAMEWORK © OECD 2013
4
– FOREWORD
.
Erik Solheim Fernando de Mateo
Chair of the Development Assistance Committee Chair of the Trade Committee
AID FOR TRADE AND DEVELOPMENT RESULTS: A MANAGEMENT FRAMEWORK © OECD 2013
5
ACKNOWLEDGEMENTS –
Acknowledgements
The OECD would like to express its sincere appreciation to all partner country
governments that participated in this project and to acknowledge the valuable
contributions from a team of consultants comprised of Olivier Cattaneo (Trade Targets),
John Winter (Solomon Islands), Khairuzzaman Mozumder, Mohammad Mashooqur
Rahman Sikder and Mohammad Farhad (Bangladesh), Bernardin Senadza and
A.D. Amarquaye Laryea (Ghana), Vu Quoc Huy, Tran Hung and Phung Van Quan
(Vietnam), Richard Newfarmer, Michele Savini Zangrandi and Mariana Vijil (Rwanda),
Alfie A. Ulloa Urrutia and Silvia Constain (Colombia).
Masato Hayashikawa, William Hynes, Evdokia Moïsé, Megan Kennedy-Chouane
from the OECD and Michael Roberts, Aime Murigande and Deborah Barker from the
WTO Development Division provided valuable advice as did Carolyn Roberts
(Inter-American Development Bank), Bryan Fornari (European Commission),
Alhassan Iddrisu (Ghana), Simon Dawkins (Pacific Islands Forum), Amitava Chakraborty
and Nesar Ahmed (Bangladesh), Cao Manh Cuong (Vietnam), George Tuti and Shivraj
Bhatt (Solomon Islands). The OECD is grateful to the participants of the OECD Policy
Dialogue on Aid for Trade for their valuable inputs and comments on earlier drafts.
John Smith edited the report and Susan Hodgson and Se Eun Park provided excellent
assistance. The report was prepared under the auspices of the OECD Development
Assistance Committee and the Working Party of the Trade Committee and managed by
Frans Lammersen.
The financial support for this project from the European Commission is gratefully
acknowledged.
AID FOR TRADE AND DEVELOPMENT RESULTS: A MANAGEMENT FRAMEWORK © OECD 2013

7
TABLE OF CONTENTS –
Table of contents
Foreword...................................................................................................................................................... 3
Acknowledgements ..................................................................................................................................... 5
Acronyms ................................................................................................................................................... 11
Executive Summary .................................................................................................................................. 21
Introduction ............................................................................................................................................... 23
Chapter 1 A results-based aid-for-trade management framework ..................................................... 27
Introduction ............................................................................................................................................. 29
Building a new set of trade-related targets .............................................................................................. 33
What this new framework could, and could not, help achieve ................................................................ 42
Conclusions ............................................................................................................................................. 47
Chapter 2 Managing aid for trade and development results in Solomon Islands .............................. 51
Introduction ............................................................................................................................................. 52
Trade and development objectives and measurement ............................................................................. 54
Development partner programmes .......................................................................................................... 56
The Enhanced Integrated Framework ..................................................................................................... 57
Building blocks for managing for development results in trade ............................................................. 57
Towards a national results framework for trade ...................................................................................... 59
Next steps ................................................................................................................................................ 59
Conclusions ............................................................................................................................................. 60
Chapter 3 Managing aid for trade and development results in Bangladesh ...................................... 65
Introduction ............................................................................................................................................. 66
An overview of aid for trade ................................................................................................................... 67
Trade and development strategies ........................................................................................................... 68
Aid-for-trade flows .................................................................................................................................. 70
Aid-for-trade facilitation ......................................................................................................................... 71
Results-based framework for trade facilitation ....................................................................................... 77
Conclusions ............................................................................................................................................. 82
Chapter 4 Managing aid for trade and development results in Ghana .............................................. 89
Introduction ............................................................................................................................................. 90
The development framework................................................................................................................... 91
Agricultural trade and development co-operation ................................................................................... 92
Aid-for-trade flows .................................................................................................................................. 97
Donor activities in the agriculture sector .............................................................................................. 100
Monitoring and evaluation of development programmes ..................................................................... 103
Managing aid for trade for results ......................................................................................................... 112
Conclusion ............................................................................................................................................. 113
AID FOR TRADE AND DEVELOPMENT RESULTS: A MANAGEMENT FRAMEWORK © OECD 2013
8
– TABLE OF CONTENTS
Chapter 5 Managing aid for trade and development results in Vietnam ......................................... 117
Introduction ........................................................................................................................................... 119
Economic development, trade performance .......................................................................................... 120
ODA and aid for trade: an overview ..................................................................................................... 126
The results-based management framework ........................................................................................... 131
Results from selected case projects ....................................................................................................... 138
Conclusion ............................................................................................................................................. 140
Chapter 6 Managing aid for trade and development results in Rwanda.......................................... 147
Introduction ........................................................................................................................................... 149
Aid for trade: the big picture ................................................................................................................. 156
Trade strategy and trade policymaking ................................................................................................. 160
The results framework for ODA: strategy, planning and budgeting ..................................................... 165
Monitoring and evaluation .................................................................................................................... 167
Mutual accountability: Monitoring and evaluating donor performance ................................................ 182
Conclusions and options for improving outcomes ................................................................................ 185
Rwanda’s lessons for the international aid for trade community .......................................................... 190
Chapter 7 Managing aid for trade and development results in Colombia ....................................... 199
Introduction ........................................................................................................................................... 200
Colombia’s economy ............................................................................................................................. 200
Trade-related binding constraints .......................................................................................................... 203
Development priorities and goals .......................................................................................................... 207
International co-operation ..................................................................................................................... 209
The aid-for-trade strategy ...................................................................................................................... 213
Government monitoring system and results indicators in aid for trade ................................................. 216
Conclusions ........................................................................................................................................... 220
Chapter 8 Towards new aid-for-trade targets? .................................................................................. 229
Global Value Chains ............................................................................................................................. 230
Next steps: Towards UN development goals ........................................................................................ 233
Annex A Aid-for-trade management framework: Trade-related targets ......................................... 238
Level 1: Direct objectives/outcomes ..................................................................................................... 241
Level 2: Intermediate objectives/outcomes ........................................................................................... 252
Level 3: Final objectives/outcomes or impacts ..................................................................................... 255
Annex B Examples of graphic utilisation of the framework .............................................................. 257
Tables
Table 1.1 Dimensions of aid for trade demand: Indicators and sources .................................................. 31
Table 1.2 Indicators for assessing the impact of aid for trade aimed at supply-side
constraints ................................................................................................................................ 32
Table 3.1 Average annual flow of AfT between 2006-09 (USD million) ............................................... 71
Table 5.1 Viet Nam’s GDP growth rate and composition, 1990-2011 ................................................. 120
Table 5.2 Viet Nam’s trade with key trading partners, 2005 -2011 (USD million) .............................. 121
Table 5.3 Export diversification index, measured by the Herfindahl-Hirschman
concentration ratio, 2000 - 2010 ............................................................................................ 122
AID FOR TRADE AND DEVELOPMENT RESULTS: A MANAGEMENT FRAMEWORK © OECD 2013