WT/COMTD/AFT/W/96  
 
23 June 2023  
(23-4302) Page: 1/9 
Committee on Trade and Development  
Aid for Trade    
 
THE USE OF INDICATORS IN THE AID -FOR-TRADE  
MONITORING AND EVALUATION EXERCISE  
BACKGROUND NOTE  
OVERVIEW  
1.1.  The objective of this background note is to outline how indicators are used in the monitoring 
and evaluation (M&E) of Aid  for Trade. This note is being circulated in the context of preparations of 
the Aid for Trade Global Review, as mandated by the 2023 -2024 Aid -for-Trade (AfT) Work 
Programme: "Partnerships for Food Security, Digital Connectivity and Mainstreaming Trade".1   
1.2.  Section 2 of this document provides background on the way in which the M&E exercise is 
conducted including the rationale for the exercise, its objectives, and the logical framework that 
underpins it. Section 3 explains how indicators are employed in country f act sheets to track inputs, 
outputs, outcomes, and impacts at an economy -wide level. Part 4 concludes with suggestions for 
ongoing and future work on indicators.  
BACKGROUND  
2.1  Rationale  
2.1.  In 2006, the Task Force established to operationalize Aid for Trade publi shed its 
recommendations in document WT/AFT/1.2 These recommendations cover various elements, 
including: the mandate, rationale, financing, scope, operationalization, and future steps for the 
Aid-for-Trade Initiative. Section F.6 makes recommendations on monitoring and evaluation.  
2.2.  To implement the reporting envisioned by the Task Force recommendations on Monitoring and 
Evaluation, the Committee on Trade and Development (CTD) Aid for Trade has used various 
mechanisms and data sources. One of the key elemen ts of the M&E exercise has been a 
self-assessment exercise since 2007 to facilitate reporting by diverse stakeholders. This process 
begins with the approval by the Committee of a self -assessment questionnaire to survey 
Aid-for-Trade stakeholders. The monit oring information collected through responses to the 
self-assessment questionnaires is then compiled in a document circulated to the Committee. The 
results of the 2020 -22 self -assessment questionnaire were circulated in document 
WT/COMTD/AFT/W/92.3 This i nformation is then further analysed by the WTO in reporting to the 
Global Review, published under the Secretariat's own responsibility.4   
2.3.  The M&E  exercise serves the purpose of building confidence that increased Aid for Trade will 
be delivered and effectively used. To that effect, efforts have focused on measuring Aid -for-Trade 
flows, assessing the effectiveness and impact of Aid -for-Trade activiti es, as well as measuring the 
degree to which trade is being integrated into the national development strategies of developing 
countries, and particularly LDCs (i.e. mainstreaming). By monitoring and evaluating activities and 
 
1 2023-2024 Aid -for-Trade Work Programme, "Partnerships for Food Security, Digital Connectivity and 
Mainstreaming Trade", WT/COMTD/AFT/W/95  
2 https://docs.wto.org/dol2fe/Pages/FE_Searc h/FE_S_S009 -
DP.aspx?language=E&CatalogueIdList=58379&CurrentCatalogueIdIndex=0&FullTextHash=&HasEnglishRecord
=True&HasFrenchRecord=True&HasSpanishRecord=True   
3 Empowering Connected Sustainable Trade, Joint OECD -WTO Aid -for-Trade Monitoring and Evaluation 
Exercice for the Global Review 2022.  
4 Global Review Summary reports are available at www.wto.org/aidfortrade   WT/COMTD/AFT/W/96  
 
- 2 - 
 
  policies, participants in the A id-for-Trade Initiative can identify priorities, gaps, measure progress 
against objectives, ensure accountability, and gain insights into future areas where assistance is 
likely to be required.  
2.4.  In addition to providing information on priorities and demand for Aid-for-Trade support and 
donor response, the self -assessment questionnaire allows respondents to share information on the 
effectiveness of Aid for Trade and identify examples of best practice. This information is also 
complemented by other research un dertaken by a broad range of actors on the effectiveness and 
impact of Aid -for-Trade support – such as independent evaluations of Aid -for-Trade programmes or 
econometric studies estimating the impact on export performance and other parameters.  
2.5.  To effectiv ely operationalize the Task Force Recommendations on Aid -for-Trade monitoring and 
evaluation, the WTO has established a partnership with the Organi sation for Economic Cooperation 
and Development (OECD). This collaboration leverages the OECD's expertise in measuring aid flows 
particularly through the Development Assistance Committee (DAC) and reporting to the Creditor 
Reporting System (CRS).5 Aid-for-Trade flows, projects, programme and accompanying details are 
reported by donor agencies, ministries or auth orities under the CRS. By monitoring these flows, the 
OECD provides valuable insights into the allocation and utilization of resources.  
2.6.  For the monitoring of Aid-for-Trade flows, the OECD follows the approach outlined in Section  D 
of the Task Force recomme ndations addressing the scope of Aid for Trade. In essence, this scope 
situates Aid for Trade as a form of concessional development finance that falls within the category 
of Official Development Assistance (ODA)6. To clearly delineate Aid for Trade from o ther forms of 
ODA, the 2006 Aid -for-Trade Task  force agreed a "monitoring definition" that comprises the following 
categories (see Figure 1):  
• trade policy and regulations ;  
• trade development;  
• trade-related infrastructure;  
• building productive capacity;  
• trade-related adjustment; and  
• other trade -related needs 7. 
 
2.7.  The CRS does not provide data that exactly match the categories above. It provides proxies 
under the following five headings:  
• Technical assistance for trade policy and regulations. In  the CRS, five purpose codes are 
used to cover "trade policy and regulations" activities. These five sub -categories are: 
(a) trade policy and administrative management; (b) trade facilitation; (c) regional trade 
agreements; (d) multilateral trade negotiati ons; and (e) trade education/training.  
• Economic infrastructure. Aid commitments for trade -related infrastructure are proxied 
in the CRS by data under the heading "economic infrastructure". This heading covers 
data on aid for communications, energy, transpo rt and storage.  
• Productive capacity building (including trade development). Data on commitments of aid 
for productive capacity building exist under the CRS category "building productive 
capacity".  
• Trade -related adjustment. This category identifies contrib utions to developing country 
budgets to assist the implementation of trade reforms and adjustments to trade policy 
measures by other countries, and alleviate shortfalls in balance -of-payments due to 
changes in the world trading environment.  
 
5 Measuring Aid, OECD: MeasuringAid50yearsDACStats.pdf (oecd.org)  
6 https://www.wto.org/english/tratop_e/devel_e/a4t_e/a4t_factsheet_e.htm  
7 Aid-for-Trade statistical queries - OECD  WT/COMTD/AFT/W/96  
 
- 3 - 
 
  • Other trade -related needs. The CRS covers all ODA, but only those activities reported 
under the above four categories will be identified as Aid for Trade. Data on "other 
trade-related needs" cannot be gleaned from the CRS.  
2.8.  The monitoring definition enables consistent, c omparable year -on-year reporting thereby 
facilitating effective monitoring and evaluation of Aid -for-Trade financing flows. Aid -for-Trade flows 
can be reviewed based on various criteria, such as sector, category, recipient income level, donor, 
purpose, and  geographical region. This level of disaggregation allows for detailed analysis of the 
allocation and utilization of concessional financing flows in different trade -related areas. 
Aid-for-Trade flows are presented and analysed in -depth by the OECD for the Aid for Trade at a 
Glance publication, providing further insights and analysis of these flows.   
2.9.  Important to note is that the Task Force Recommendations on Aid for Trade in Section D on 
Scope include both a monitoring definition and what might be termed a  "national definition". This 
provides that: "Projects and programmes should be considered as Aid for Trade if these activities 
have been identified as trade -related development priorities in the recipient country's national 
development strategies. In this regard, it should be pointed out that while the PRSPs reflect national 
development priorities for some countries, other development strategies are equally important and 
will need Aid -for-Trade financing" (WT/AFT/1) .   
2.10.  Other sources of development financing  are also tracked by OECD and reported in the country 
fact sheets for contextual purposes. These include other official flows (i.e. official sector transactions 
that do not meet official development assistance criteria). Other sources of development financ e 
such as remittances, Foreign Direct Investment (FDI) and climate finance are also tracked by OECD.   
2.11.  In recent years, the OECD has also developed new tools and mechanisms to measure public 
and private resources for sustainable development. This includes the Total Official Support for 
Sustainable Development (TOSSD), an international standard for measuring the full array of 
resources to promote sustainable development in developing countries, including all official 
resources, but also private resources mob ilised through official means8. The OECD has also 
developed new methodologies using machine learning to estimate the contribution of ODA to the 
Sustainable Development Goals (SDGs ). These new tools and datasets have been leveraged to 
continuously improve the monitoring of Aid -for-Trade flows and provide a more comprehensive view 
of trade -related assistance. The OECD has also deployed efforts to capture data and evidence on 
South -South and Triangular Co -operation that relates to trade.  
2.12.  The self-assessment survey responses and information on Aid -for-Trade flows are analysed 
by WTO and OECD. Other organizations also collaborate and contribute analysis to the Aid for Trade 
at a Glance and other publications, including the Enhanced Integrated Fr amework (EIF) for LDCs 
and multilateral development banks. The analysis provides a holistic view of Aid -for-Trade financing 
flows and their impacts. The results of the monitoring process are then disseminated to foster 
knowledge sharing and transparency am ong Aid -for-Trade stakeholders.  
2.13.  For consistency and transparency, key statistical information that underpins the Aid for Trade 
at a Glance publication is made available in the form of statistical tables annexed to the report. Every 
biennial publication in cludes a series of tables providing disaggregated information on Aid -for-Trade 
disbursements and commitments over the years by donor and recipient country, category, 
geography, channel, instrument, etc.  
2.14.  The culmination of this process is the Global Review.  Promoting dialogue, the biennial Global 
Reviews of Aid for Trade provide an overall review of the progress made in implementing 
Aid-for-Trade projects and programmes, and helps identify needs and gaps. This process plays a 
key role in guiding future Aid -for-Trade activities, strategies, and policies related to development 
and trade capacity -building. It supports efforts to ensure that Aid  for Trade aligns with the evolving 
needs and priorities of developing countries.  
 
8 For more information, please see: Total Official Support for Sustainable Development (TOSSD) - 
Organisation for Econo mic Co -operation and Development  https://www.tossd.org/  WT/COMTD/AFT/W/96  
 
- 4 - 
 
  AID-FOR-TRADE INDICATORS  
3.1  Country fact  sheets  
3.1.  Information on the impact of AfT support comes from a variety of sources: case stories of best 
practice collected through the self -assessment questionnaires, independent evaluations of 
Aid-for-Trade programmes, econometric studies, etc. One avenue  explored by the WTO Secretariat 
is the compiling of country fact sheets. These fact sheets take an economy -wide look at the role and 
impact of Aid for Trade. The fact sheets are underpinned by a logical framework or "theory of change" 
(i.e. an outcome bas ed on a logical sequence of steps). The theory of change underpinning the 
country fact sheets follows the logic that Aid-for-Trade financing (inputs) brings down the cost to 
trade (outputs) so improving trade performance (outcomes) with economic development benefits 
(impacts). The country fact sheets comprise indicators for every essential stage of the theory of 
change. These sheets are appended to the Aid  for Trade at a Glance publication, along with other 
statistical data.  
3.2  Input Indicators  
3.2.  Aid-for-Trade inputs  refer to the resources dedicated to supporting trade -related development 
initiatives. These inputs play a crucial role in driving positive outcomes and impacts. The monitoring 
and evaluation exercise focuses on tracking these inputs at the country level, providing a snapshot 
of Aid for Trade within each country.  
3.3.  The following text consists in a review of input indicators used in consecutive M&E exercises 
and documented in the Aid  for Trade at a Glance publications:  
• One significant input tha t is monitored is development finance, which places Aid-for-Trade 
flows in context. It provides information on different sources of external financing flows  
such as ODA, FDI inflows, remittances, and other official flows related to trade. Indicators 
publis hed by organizations including UNCTADstat published by the United Nations 
Conference on Trade and Development (UNCTAD), the World Bank's World Development 
Indicators (WDI), and the OECD's Aid Activities Database are used to track development 
finance inputs . 
• Specific attention is given to identifying the top five providers  of Aid -for-Trade 
disbursements (i.e. donors) for each country, based on the latest available data. 
Additionally, the percentage of funds provided by each donor is highlighted as a proporti on 
of the total Aid for Trade received by the country under study. This information provides a 
perspective into the contribution and significance of each donor that provides Aid -for-Trade 
financing in the country.  
• In addition to tracking development financ e, the indicators also give an overview of the 
sectoral allocation of Aid -for-Trade disbursements . For example, in the 2022 edition of Aid 
for Trade at a Glance, indicators were used to compare Aid -for-Trade disbursements from 
2006 to 2020 across key secto rs such as energy generation and supply, transport and 
storage, agriculture, forestry and fishing, communications, and trade policy and regulations. 
These indicators offer insights into the allocation of resources and the prioritization of 
sectors within t he Aid -for-Trade framework.  
• Furthermore, the OECD has developed a new indicator that examines the percentage of 
resources allocated to specific Sustainable Development Goals (SDGs) . This indicator allows 
a rapid visual assessment of how Aid -for-Trade suppo rt contributes to the achievement of 
specific SDGs, highlighting the alignment between trade -related development efforts and 
the broader global development agenda.  
3.4.  By monitoring these indicators at the country level, stakeholders can view the development 
financing received, the contribution of different donors, and the proportion of funds allocated to Aid 
for Trade. This allows the reader to view inputs directed towards supporting trade capacity building 
and addressing trade -related constraints in line with  sustainable development goals. Figure 1 below 
presents the input indicators used in the past as part of the M&E exercise.  WT/COMTD/AFT/W/96  
 
- 5 - 
 
  Figure 1: Input Indicators  
 
Source: OECD/WTO Aid for Trade at a Glance 2022  
3.3  Output Indicators  
3.5.  The next set of indicators examines t rade costs. Following the logical framework, the next step 
in the results chain is that Aid-for-Trade financing flows should reduce the cost to trade in the 
beneficiary country. As such the indicators used in this section are compiled from different metric s 
that capture trade costs.  
• Trade Costs and Shipping Connectivity:  To measure trade costs, the United Nations 
Economic and Social Commission for Asia and the Pacific (ESCAP)'s ad -valorem trade cost 
indicator is utilized, which assesses the percentage of t rade costs associated with 
international trade. Additionally, UNCTAD's liner shipping connectivity index is employed to 
evaluate the level of connectivity in shipping services. These indicators enable the monitoring 
of trade costs and shipping connectivity , allowing for an assessment of the efficiency, 
competitiveness, and accessibility of trade -related infrastructure and services.  
• Tariffs and Connectivity:  Information and Communication Technology (ICT) connectivity as 
a percentage of inhabitants, and affor dability of connectivity as a percentage of Gross 
National Income (GNI) per capita are included to capture the costs of participation in 
e-commerce. These indicators provide insights into the trade policy environment, digital 
connectivity, and the accessib ility and affordability of the ICT infrastructure and of digital 
services.  
• Trade Facilitation:  The OECD trade facilitation indicators are used to measure various aspects 
of trade facilitation, including information availability, advance rulings, appeal pro cedures, 
automation, procedures, governance, and impartiality. These indicators shed light on trade 
facilitation measures and the enabling environment for trade.  
• Implementation of the Trade Facilitation Agreement (TFA )9: The OECD indicators are 
complemented by information from the T rade Facilitation  Committee on implementation of 
 
9 WTO | Trade facilitation  
WT/COMTD/AFT/W/96  
 
- 6 - 
 
  Category A, B, and C commitments. This indicator allows for an assessment of the progress 
made in implementing trade facilitation measures.  
3.6.  Overall, output indicators pr ovide an assessment of the outcomes of Aid for Trade. They offer 
valuable insights into trade costs, shipping connectivity, trade facilitation, trade policy environment, 
digital connectivity, and implementation of the Trade Facilitation Agreement.  
Figure 2: Output Indicators  
 
Source: OECD -WTO, Aid for Trade at a Glance 2022  
3.4  Outcome Indicators  
3.7.  Outcome indicators examine trade performance. Following the logic of the theory of change, 
by reducing trade costs , AfT financing should improve tr ade performance. Outcome indicators thus 
speak to the key rationale behind the Aid -for-Trade Initiative: i.e. assisting developing countries to 
increase exports of goods and services, to integrate into the multilateral trading system, and to 
benefit from l iberalized trade and increased market access. The indicators used in this section align 
with and track this rationale found in Section B of the Aid -for-Trade Task Force recommendations:  
• Trade performance assessment  is to be measured through the evolution o f trade flows, 
encompassing both exports and imports of goods and commercial services. By tracking these 
indicators, changes in the volume and direction of trade can be measured, offering valuable 
information on a country's engagement in the multilateral t rading system.  
• Another important aspect is product and market diversification . Indicators in this area 
measure the number of exported or imported products and the number of export or import 
markets. These indicators shed light on a country's ability to exp and its range of products 
and markets, providing insights into its level of economic diversification and market access.  
WT/COMTD/AFT/W/96  
 
- 7 - 
 
  • Additionally, outcome indicators focus on the structure of trade . In services trade, indicators 
show the evolution and percentages of tr avel, transport, goods -related services, and other 
commercial services. For merchandise trade, indicators track the structure and evolution of 
imports and exports in key sectors such as agriculture, fuels and mining, and manufacturing.  
• To enhance understan ding, the trade performance section of country profiles published in 
Aid for Trade at a Glance 2022, for instance, includes tables that highlight the top five 
markets and top five products for merchandise exports and imports. Sources used for data 
include publications from the WTO Secretariat and the United Nations Commodity Trade 
Statistics Database (UN Comtrade).  
3.8.  Measuring trade performance through these indicators provides insights into trade outcomes. 
It helps assess the impact of AfT policies and progr ams in enhancing trade performance, and 
promoting economic diversification. Figure 3 below outlines the outcome indicators used in the 
Aid-for-Trade M&E exercise.  
Figure 3: Outcome Indicators  
 
Source: OECD/WTO Aid for Trade at a Glance 2022  
3.5  Impact Indicat ors 
3.9.  The last set of indicators follows the impact of Aid -for-Trade financing on development. The 
rationale for Aid -for-Trade notes that "effective Aid for Trade will enhance growth prospects and 
reduce poverty in developing countries as well as complement multilateral trade reforms and 
WT/COMTD/AFT/W/96  
 
- 8 - 
 
  distribute the global benefits more equitably across and within developing countries" (WT/AFT/1).  
The impact indicators used in the country fact sheets align to United Nations Sustainable 
Development Goals10. They assess key areas such as poverty reduction, job creation, and 
sustainable economic growth, which are central to the SDGs , together with the gender dimension to 
these questions. The impact indicators include:  
• At the macro level, indicators such as the human developme nt index, poverty line and 
unemployment rate . These indicators gauge the effectiveness of Aid for Trade in addressing 
poverty and promoting inclusive growth.  
• Economic structure indicators , such as value added per sector as a percentage of GDP, allow 
for th e analysis of the composition and evolution of the economy over time. This provides 
information on the contributions of agriculture, industry, and services sectors to economic 
development.  
• Gender -related indicators , including GDP per capita for both males  and females and labour 
force participation rates for both genders, shed light on gender equality and the inclusivity 
of economic growth.  
• Additionally, renewable energy capacity indicators  reflect the status of the climate transition. 
CO2 emissions per cap ita are also included.  
3.10.  In sum, impact indicators are instrumental in measuring progress towards the SDGs and 
assessing the overall effectiveness of Aid for Trade.  
Figure 4: Impact Indicators  
 
Source: OECD/WTO Aid for Trade At a Glance 2022  
3.6  Other Indicators  
3.11.  The use of indicators extends beyond individual country profiles included in the Aid  for Trade 
at a Glance publication. Indicators play a prominent role within the various chapters of the 
publication, with their selection depending on the author ing institution or the theme of focus.  
 
10 https://sdgs.un.org/goals   
WT/COMTD/AFT/W/96  
 
- 9 - 
 
  3.12.  For example, in the 2019 edition, when examining the topic of economic diversification, the 
WTO explored export diversification by country and product category, as well as export 
diversification by markets reached by country. The United Nations Industrial Development 
Organization (UNIDO) conducted analysis of CO2 emissions from 1995 to 2013 as part of its 
examination of economic diversification through the lens of structural transformation through 
industrialization, wh ile the EIF and the United Nations Development Programme (UNDP) examined 
commodity price indices in the context of trade -led growth in challenging contexts.  
3.13.  In the 2017 edition, which centred on promoting connectivity, indicators were tailored towards 
digital aspects. The International Telecommunication Union (ITU) analysed the share of total 
international internet bandwidth by region, the United Nations Conference on Trade and 
Development (UNCTAD) explored the estimated number of online buyers worldwide by  region, and 
the WTO focused on time and cost to export in relation to GDP per capita.  
3.14.  In addition to the indicators chosen by individual authors for their respective chapters, the 
self-assessment segment of the monitoring and evaluation exercise contribut es valuable 
self-generated data. For instance, responses collected in the 2021 -2022 exercise revealed that trade 
was a development priority for 94% of developing countries and 86% of donors.  
3.15.  The extensive use of indicators throughout the Aid for  Trade at a  Glance publication, along 
with the incorporation of self -assessment data from the monitoring and evaluation exercise, 
enhances the overall understanding of the effectiveness and impact of Aid for Trade. These indicators 
provide insights into diverse aspec ts of trade and development, enabling readers to track effects 
over time on the basis of evidence -based analysis. The use of indicators across various dimensions 
further emphasizes the commitment of several international organizations participating in the 
monitoring, evaluation, and implementation of the Aid -for-Trade Initiative.  
CONCLUSION  
4.1.  The Aid-for-Trade M&E exercise, conducted in collaboration with the OECD, promotes 
transparency and accountability. It seeks to foster continuous improvement in supporti ng developing 
countries to enhance their trade capacity and overcome the supply -side constraints they face, and 
which prevent them from engaging in the multilateral trading system more fully.  
4.2.  This background note explains how the alignment, supply, effecti veness and impact of 
Aid-for-Trade priorities are tracked. Indicators are used extensively in all aspects of the 
Aid-for-Trade M&E exercise, including the country fact sheets. These fact sheets use a logical 
framework approach that tracks inputs, outputs, outcomes and impacts and that is based on the 
Theory of Change.  
4.3.  One major constraint in selecting suitable indicators for the M&E exercise is the availability of 
data, both in terms of time series and country coverage. The indicators presently used meet t hese 
criteria.   
4.4.  In conclusion, the M&E exercise is a useful tool to track Aid for Trade. By leveraging a broad 
range of monitoring and evaluation indicators encompassing economic, social, and environmental 
dimensions, the aim is to ensure that the Initiative continues to make a significant contribution to 
addressing the supply -side and trade -related infrastructure constraints that hold back the 
participation of developing countries and LDCs in the multilateral trading system.  
 
__________