Aid for Trade, Aid Effectiveness and Regional Absorption Capacity

Abstract

The aim of this chapter is to place the Aid for Trade (AfT) discussion in the broader context of the current debate on international aid flows. At the same time, we want to highlight the growing importance of the regional level in the whole discussion on aid, as clearly illustrated by the case of AfT where aid flows are explicitly linked to region-to-region trade negotiations, requiring regional donor coordination, on the one hand, and regional absorption capacity, on the other.