Develop further an open, rule-based, predictable, nondiscriminatory trading and financial system
Address the special needs of the least developed countries
Address the special needs of landlocked developing countries and small island developing states
Deal comprehensively with the debt problems of developing countries through national and international measures in order to make debt sustainable in the long term
In cooperation with pharmaceutical companies, provide access to affordable essential drugs in developing countries
In cooperation with the private sector, make available the benefits of new technologies, especially information and communications
Trade and the Global Economic Recovery
World trade, recovering at about double the 2002–08 rate of growth, remains well below the precrisis peak and even lower than it would have been if trade had continued to follow the rising 1995–2008 trend. The new protectionist measures during the crisis, which hit the exports of least-developed countries (LDCs), appear to be receding.
Solidifying an open, rules-based international trade regime can best be accomplished by (finally) concluding the Doha Round. Efforts to increase trade integration of the poorest developing countries should focus on extending duty-free, quota-free access to their exports, providing financial resources and technical assistance to improve trade facilitation, and simplifying rules of origin in preference agreements.
International efforts to avoid a collapse in trade finance during the crisis were timely and successful. But further steps are required to ensure that low-income countries can obtain trade finance at reasonable cost, along with improvements in data and a review of whether banking regulations impose excessive capital requirements on trade finance transactions.
An unprecedented decade for aid
Over the last decade, donors reaffirmed their commitments to increasing aid flows and improving aid quality, as in the Monterrey Declaration at the 2002 Financing for Development conference in Mexico and the Gleneagles G-8 and Millennium +5 summits in 2005. At the September 2010 United Nations Summit on MDGs, governments, international organizations, and private and public sectors reaffirmed their commitment to work together to achieve the MDGs.
Aid in 2010 rose in real terms over 2009, despite fears that the sharp rise in fiscal deficits during the crisis would severely constrain donor budgets. Some major donor governments remained dedicated to maintaining aid in 2010, while others announced cuts. New donors that are not members of the Organisation for Economic Co-operation and Development (OECD) Development Assistance Committee (DAC) may provide some $12 billion to $15 billion in aid disbursements a year.
Developing countries are also receiving more assistance from private sources. Philanthropic flows to developing countries from the private sector in advanced countries may have exceeded $60 billion in 2008, more than 10 times the amount received early in the decade. Nonetheless, new donor flows will not compensate for any significant fall in aid from traditional donors, particularly if they pursue different development priorities and practices. The changing aid landscape could also have implications for the transparency of official flows and for the policies and programs that aid supports.
New Donors Appear on the Scene
During most of the last half of a century, DAC donors, with international organizations, accounted for most aid flows. Since 1960, the United States, Japan, Germany, France, and the United Kingdom have been the largest donors in absolute terms; and the Nordic countries have given the most, relative to gross national income.
But the global balance of aid has started to shift rapidly in the past five years because some developing countries’ recent strong growth gives them more resources to share in development. There is a clear lack of reliable data. Until recently, the DAC Creditor Reporting System, which captures only a partial picture of total aid flows, was the only available database. DAC donors are required to report their financial flows to the OECD, whereas non DAC donors can voluntarily provide the information to the organization.