On Monday, July 6, the World Trade Organization (WTO), its members and key international aid and development organizations came together in Geneva for the two-day Second Global Review of Aid for Trade conference, aimed at expanding the trade capacity of developing countries.
Speaking at the opening of the Second Global Review of Aid for Trade, WTO director general Pascal Lamy said, "If Aid for Trade was urgent in 2007, it is essential today. It is the investment that will allow many developing countries prepare to exit the crisis by enhancing their trade capacity."
The First Review of Aid for Trade was held in November 2007 and much has been achieved since then, said Mr. Lamy.
According to the WTO director general, trade was one of the first sectors decimated by lower consumption in high-income countries and poor nations can position themselves to use trade to emerge from the recession faster.
Echoing the words of Mr. Lamy, UN general secretary Ban Ki Moon said, "Trade can and must be part of our efforts to stimulate a recovery," adding that trade had tremendous potential as an engine of sustained economic growth and development.
The WTO and the Organization for Economic Cooperation and Development (OECD) said in a progress report on the Aid for Trade initiative that aid for trade grew by more than 10 percent in 2007 compared to 2006, with new commitments reaching US$25.4 billion.
However, "the global economic crisis will affect the medium term outlook," the report added.
Meanwhile, the African Development Bank, which approved last week a US$500 million investment to support trade finance, said, "At least 12 projects in Africa have already been hit by the financial turmoil."
Among projects delayed by the crisis was a large power project in East Africa, which ran into financing problems after an international investment bank pulled out, said the bank.
At least 15 heads of international organizations, including UN secretary general Ban Ki-moon, World Bank president Robert Zoellick and IMF head Dominique Strauss-Kahn have been attending the two-day review conference.