| From "Trade Versus Aid" to "Aid for Trade" (2005) | |||||||||||
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| FROM TRADE VERSUS AID AID FOR TRADE Simon Evenett simon evenett unisg University Gallen September Over the last twelve months there have been important developments thinking about the relationship between aid and trade reforms Trade and aid have often been viewed substitutes for one another and there has been long debate about their respective merits For example after last Christmas tsunami Sri Lanka pointedly called for greater trade preferences from western countries and not for more aid However another view which emphasises the complementarities between aid and trade has gained prominence The latter view which proponents have branded aid for trade could have significant implications for the Doha round multilateral trade negotiations This short article sketches out what those implications might Proponents aid for trade argue that the capacity developing countries take advantage any market access gains the Doha round currently hampered plethora supply side bottlenecks and costs administrative constraints and poor institutions All these hamper export competitiveness Moreover adjusting tariffs cuts could result developing countries losing tariff revenues and labour dislocation increasing the demands for state help while reducing the means fund them Proponents worry that unless these constraints are recognised and properly addressed developing countries are likely oppose the conclusion ambitious Doha round Less dramatically there risk that the level ambition the round may scale | |||||||||||
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