About DFID Research - Current Research Topics

Trade

Trade has the potential to make a major contribution to poverty reduction. The International Trade Department (ITD) seeks to promote greater participation in international trade by poor people and countries, and to increase the benefits of international trade to the poor. We work with other government departments, developing and developed countries, international organisations and civil society to bring a development perspective into trade and integrate trade into development.

The current research projects on trade & Development were undertaken or commissioned by ITD; Policy Division Teams and Regional Policy Departments, e.g. Africa Policy Department (APD).

Recent Highlights from DFID Trade Research, November 2005 - May 2006

Aid for Trade

Many of the poorest developing countries need additional support to take full advantage of trade opportunities, due to the poor investment and business environments they provide. Improved market access without the ability to supply export markets competitively is not useful. Whilst the Doha talks are suspended the UK will continue to take forward work on Aid for Trade. The UK has committed to reach £100 million a year in so called ‘Aid for Trade’ spending by 2010. This will help poorer countries with transitional assistance to help diversify their economies to capture benefits of more open markets, as well as address supply side constraints, such as improving roads, customs procedures, and help with the cost of increased food prices as subsidies reduce.

Aid for Trade development has to address priority areas as defined in national development plans and strategies. Dedicated and additional funding can help only when trade competitveness and integration are aligned with country policies and programmes.

See paper on ITD-funded World Bank research: Economic policy responses to preference erosion: from trade as aid to aid for trade , World Bank Policy Research Paper (by Bernard Hoekman and Susan Prowse). Also the see on the Yale website: “Aid for Trade”: Increasing Support for Trade Adjustment and Integration – a proposal by Susan Prowse - International Trade Department (3 June 2005).