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Quantifying Aid for Trade

A Case Study of Tanzania

image of Quantifying Aid for Trade

Efforts to boost international trade as a means to foster economic growth, known as Aid for Trade, have become an important issue for both aid donors and recipients. However, significant ambiguity remains regarding what is and what is not Aid for Trade. Given the high profile of the Aid for Trade initiative, to which many donors have specified commitments, the issue is not only technical but also political. Hence, it is important that an effective method is developed to establish a clear border between Aid for Trade and other types of aid. This Economic Paper explains what Aid for Trade is, and how definitions have evolved over time. Using Tanzania as a case study it shows how different definitions lead to different estimates of the amount of Aid for Trade being delivered, and suggests an alternative simple and practical methodology for recipient countries to classify and quantify it.

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Aid for Trade in Tanzania

In order to analyse AfT flows and the reliability of AfT data it is useful to consider the various ways in which aid flows are reported in-country. This section provides a case study of Tanzania which, according to data in the previous section, receives a relatively large amount of AfT. The section provides a brief overview of the reporting system by which ODA is reported to the government in Tanzania and examines AfT flows according to a variety of sources. The intention is that that the case study will inform the wider AfT debate and provide information and analysis that may be of use to other countries in assessing and quantifying AfT.

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