An Analysis of the Current State of Implementation of the Aid-for-Trade Agenda in Zambia

Abstract

Most economies of the world today are characterized by openness and outward orientation. In such a scenario, the roles played by aid and trade severally and in conjunction in boosting economic growth continue to be a matter of debate. It is in this context that Aid for Trade is considered as a potential instrument that can help developing countries translate their comparative advantage into competitive advantage. This paper analyses this potential for countries in sub-Saharan Africa, taking Zambia as a case study. It discusses the Aid for Trade strategies pursued within the institutional framework of the Enhanced Integrated Framework, EIF, the successes scored, and the challenges that lie ahead. The paper suggests that while Aid for Trade does have the potential to raise the levels of exports and growth, it could take a while for challenges to be effectively addressed and significant tangible results to emerge.

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