WT/COMTD/AFT/W/63  
 
27 July 2016  
(16-3971) Page: 1/12 
Committee on Trade and Development  
Aid for Trade    
 
  SIXTH GLOBAL REVIEW  
 
AID-FOR-TRADE MONITORING EXE RCISE  
 
"PROMOTING CONNECTIV ITY" 
BACKGROUND NOTE BY T HE OECD AND WTO SECR ETARIATS1 
 
1  INTRODUCTION  
1.1.  The aim of this background note is to outline the monitoring and evaluation (M&E)  exercise 
that will underpin the 6th Global Review of Aid for Trade. The theme of the 2016 -2017 
Aid-for-Trade Work Programme and the 6th Global Review of Aid for Trad e is: "Promoting 
Connectivity". The next M&E exercise will explore this theme in detail.   
2  OVERVIEW  
2.1.  The 2016 -2017 Aid -for-Trade Work Programme (WT/COMTD/AFT/W/60) is built around, and 
will lead to, the 6th Global Review of Aid for Trade. Past Global Reviews have been informed by a 
joint OECD -WTO monitoring and evaluation (M&E) exercise that has surveyed Aid -for-Trade 
implem entation by partner countries, bilateral and multilateral donors, South -South partners and 
regional economic communities. Efforts have been made to reach out to the private sector and to 
engage a broad range of stakeholders in the M&E exercise. Information  collected by the M&E 
exercise have been analysed and reported at past Global Reviews in a joint OECD -WTO 
publication: "Aid for Trade at a Glance". The 6th Global Review of Aid for Trade, to be held in 
mid-2017, will follow the same approach, using the M&E  exercise to inform discussion at the 
Global Review meeting, and as the basis for a further edition of the "Aid for Trade at a Glance" 
publication.  
2.2.  A strong message that emerged from the 5th Global Review is that many developing 
countries, particularly lea st developed countries (LDCs), continue to face difficulties in connecting 
to the global trading system as a result of high trade costs. Prohibitively high trade costs continue 
to act as a brake on economic development with, in particular, landlocked and s mall economies 
(notably geographically remote island economies) facing inherent challenges in this regard. 
Research suggests that trade costs fall disproportionately heavily on micro, small, and medium 
enterprises (MSMEs). By focusing on "Promoting Connect ivity", the M&E exercise for the 6th Global 
Review will deepen analysis of the supply -side capacity and trade -related infrastructure constraints 
faced by developing countries from a trade costs' perspective.  
3  MONITORING AND EVALU ATION SURVEY THEMES  
3.1.  The M& E exercise will focus on four main themes: Aid -for-Trade priorities and how these 
have changed since the last monitoring exercise; Trade Facilitation Agreement implementation; 
e-commerce; and infrastructure investment and the development of related service s markets. One 
cross-cutting theme t hat will be examined is how Aid -for-Trade support is contributing to the 
achievement of the Sustainable Development Goals, notably the targets on poverty eradication 
and women's economic empowerment.  
                                                
1 This document has been prepared unde r both Secretariat s' own responsibility and is without prejudice 
to the positions of Members or to their rights and obligations under the WTO.  WT/COMTD/AFT/W/63  
 
- 2 - 
 
  3.2.  The first topic to b e surveyed is how and why Aid -for-Trade priorities have changed since 
2014. It will explore factors driving these changes (such as the 2030 Sustainable Development 
Agenda, industrialization, and regional trade integration objectives), and how changes are b eing 
mainstreamed into national and regional development planning frameworks and policies. On the 
donor side, the exercise will assess changes in donor programming such as with regard to priority 
partners and themes, and changes in approach, e.g. the incre asing focus on private sector 
development, and attention to poverty alleviation and gender empowerment objectives in 
programming. Aid -for-Trade flows will be analysed with a view to understanding current trends 
and future projections.  
3.3.  The second topic to be surveyed is implementation of the Trade Facilitation Agreement (TFA). 
By mid -June 2016, instruments of acceptance had been received from more than 80 WTO 
Members, and a higher number of Category  A notifications had been received. However, the pace 
of no tification of Category B and C measures has so far been slower than that for Category  A 
measures. Category C measures indicate where Aid -for-Trade support is required to support TFA 
implementation. A strong message from the 2015 Aid for Trade at a Glance r eport and from the 
2015 World Trade Report is that TFA implementation is a concrete step that can be taken to 
reduce trade costs.2 OECD figures show that more than US$1.3 billion was disbursed in support 
reported to the OECD's Creditor Reporting System as trade facilitation in the period 2010 -2015.   
3.4.  The M&E exercise for the 6th Global Review will review the status of TFA implementation, 
explore the demand and response to requests for TFA implementation support and survey where 
difficulties may be arising. The case story exercise seeks to build on the evidence of impacts of 
trade facilitation support projects and will explore new approaches being tested by developing 
countries and their development partners, such as those engaging the private sector.  
3.5.  E-comm erce is another theme that will be explored in the M&E questionnaires. E -commerce 
offers opportunities for trade connectivity but also creates new and specific challenges. Research 
presented at the 5th Global Review of Aid for Trade highlighted the trade d evelopment potential of 
e-commerce, in particular for MSMEs. E -commerce allows MSMEs to enter export markets without 
the need to grow large or to reach a certain productivity level. Barriers to trading across distance 
are up to 94% lower for developing cou ntries via electronic market places, as compared to 
traditional markets.3 The efficient functioning of e -commerce requires appropriate Information and 
Communications Technology (ICT) infrastructure and regulatory frameworks to protect and build 
trust for b oth buyers and sellers. Furthermore, e -commerce based parcel trade may create specific 
clearance and handling challenges for border authorities. The M&E exercise will explore issues 
relating to the development of e -commerce, notably from the perspective of  the physical and 
regulatory factors that may limit developing country participation. It will also seek to identify 
actions that development partners are engaged in, and could take, to address these obstacles. 
Actions taken to close the "digital divide" wi ll also be surveyed. For example, high -speed internet 
connection is an essential e -commerce enabler – yet broadband internet penetration lags other 
forms of internet connectivity. Against this background, the M&E exercise will examine actions that 
the dono r community is taking to address connectivity constraints in developing countries.  
3.6.  Infrastructure connectivity is the final topic that will be surveyed in the monitoring formats.  
Actions to bridge the "digital divide" highlight the need for investment in network ICT 
infrastructure and are a window onto broader constraints faced by developing countries with 
regard to trade -related infrastructure: such as road, rail, maritime, inland waterways, and air 
transport, and energy generation. The global infrastruct ure financing gap for basic infrastructure in 
developing countries to meet the Sustainable Development Goals has been estimated at 
US$2.5  trillion annually.4 The approach taken in the M&E formats will be one that examines 
measures taken to bridge the infra structure financing deficit and to promote growth in related 
service markets.  
                                                
2 OECD/WTO, 2015, "Aid for Trade at a Glance: Reducing Trade Costs for Inclusive, Sustainable 
Growth", and WTO, 2 015, "Speeding up trade: benefits and challenges of implementing the WTO Trade 
Facilitation Agreement".  
3 WTO Secretariat, 2015, "Fifth Global Review of Aid for Trade: Reducing Trade Costs for Inclusive 
Sustainable Growth – Summary Report", pp. 62 –64. 
4 UNCTAD, 2014, "World Investment Report - Investing  in the SDGs: An Action Plan", p. 140.  WT/COMTD/AFT/W/63  
 
- 3 - 
 
  3.7.  Infrastructure investment can unlock growth in related service markets, such as, inter alia , 
logistics, insurance services, financial services and other business services – operations that are 
also essential for e -commerce. Research undertaken on global value chains has highlighted the 
role that services play in supporting productive capacity and moving up the value chain. The M&E 
exercise would review support for the development  of capacity in services supply. Another element 
to questions here would be to look at approaches based on blende d finance (concessional and 
non-concessional funding; public and private financing) and efforts to support improved 
investment climates. Questi ons in this section would build on the issues covered during the 2015 
Aid-for-Trade Workshop on "Aid for Trade and Infrastructure".5 The questionnaires would seek to 
identify the main constraints to the growth of services markets as identified in national and 
regional development planning frameworks and support provided by development partners to 
improve capacity in services supply.   
3.8.  A cross -cutting theme that will be examined through the M&E exercise is how the outcomes 
and impacts of Aid -for-Trade suppor t are contributing to the achievement of the Sustainable 
Development Goals, notably the targets on poverty eradication and women's economic 
empowerment.  
4  APPROACH  
4.1.  This M&E exercise is a self -assessment exercise. Respondents are invited to complete 
questionn aires and to submit case stories. The case story exercise is an opportunity to examine in 
more detail where impacts have been achieved, notably from the perspective of trade 
performance, but also poverty reduction, gender empowerment, and other associated results. The 
M&E exercise will also include an update to the country profiles.6  
5  WHO WILL BE SURVEYED ? 
5.1.  Questionnaires and the call for case stories will be disseminated using an electronic survey 
tool and completed on -line. Case stories will be invited in both text and (for the first time) video 
form.   
5.2.  The self -assessment questionnaires will be distributed to the following recipients:   
 Partner countries;  
 Donors (Bilateral, Regional and Multilateral);  
 South -South partners; and  
 Regional economic communities  and transport corridors . 
5.3.  The case story exercise will be circulated to the recipients listed above. It will also be 
disseminated to the private sector, civil society, and academia. Submissions of case stories may be 
made in text or video submissions, with  vlogs particularly encouraged.   
5.4.  Outreach efforts will be undertaken with all stakeholders to publicize the exercise and to 
assist Members in responding.  
5.5.  The deadline for the submission of completed monitoring formats is 31 October 2016 . 
                                                
5 WTO Secretariat Background Note, 2015, "Aid for Trade and Infrastructure: Financing the Gap" 
WT/COMTD/AFT/W/56.  
6 OECD/WTO, 2015, "Aid for Trade at a Glance: Reducing  Trade Costs for Inclusive, Sustainable Growth" 
pp. 283 –413. WT/COMTD/AFT/W/63  
 
- 4 - 
 
  6  HOW WILL THE INF ORMATION COLLECTED B E USED?  
6.1.  All information collected through the monitoring and evaluation exercise will be made publicly 
available through the website http://www.aid4trade.org . Information collected will be exami ned 
and an analysis of it published in a joint OECD -WTO publication "Aid for Trade at a Glance 2017". 
Efforts will also be made to synthesize the information to produce regional analyses and other 
views.   
__________