give an example for economic priorities adopted by the countries
Answers
Explanation:
Aid for trade is very much affected by global economic movements - from trade flows, to economic
performance, to commodity prices - as well as by the budget situation and fiscal space in developed
countries. It also involves a wide range of actors - developing countries, emerging economies and
the OECD countries, supported by multilateral institutions and regional organisations. Aid for trade
therefore provides a useful lens through which to view how the world has changed since 2008.
When the last Aid for Trade at a Glance was published in 2009, it noted that the Aid-for-Trade Initiative’s
generally positive progress risked being undermined by negative global developments. The financial
crisis and the economic recession that followed threatened to reverse the strong growth in aid-for-
trade flows. Substantial declines in trade jeopardised the work done in advocating trade as a
development tool, while the transmission of the shock risked undermining open markets. Although
the world economy has started to heal by this latest Aid for Trade at a Glance, the crisis leaves a legacy
which will continue to shape the aid-for-trade agenda in the years to come. This chapter examines
how objectives, priorities, strategies and polices have evolved - for partner countries, donors and
providers of South-South co-operation. The chapter finds that on the basis of their self-assessments,
objectives have not changed much, priorities more so, and approaches most of all – with both donor
and South-South approaches to trade-related co-operation having changed in about half of those
countries that took part in this round of the monitoring exercise.
Answer:
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any of today’s poorest countries do not collect adequate revenues to build the human capital, infrastructure, and institutions needed for stronger growth and faster poverty reduction. In sub-Saharan Africa, for example, 15 of the 45 countries have revenues lower than 15 percent of GDP. Moreover, sub-Saharan Africa’s resource-rich countries have revenues that are more volatile and lower than countries that are resource-poor. Even with substantial foreign grants and loans, government spending by developing countries is lower than by advanced economies. In 2018, government spending in sub-Saharan Africa averaged 23 percent of GDP compared with 31.4 percent in middle-income countries and almost 39 percent in the advanced ones.
Comparisons between today’s developing countries and today’s advanced economies can provide aspiration but less so in terms of recommendations about policies and institutions. Of greater value for developing countries are comparisons with advanced economies when they were less prosperous and would have been considered low-income or lower middle-income. Using government spending a century ago by 14 of today’s advanced economies (Advanced 14), we highlight four lessons for developing countries. We develop these lessons in greater detail in a forthcoming working paper.
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