WORLD BANK GROUP (WBG)

The Bank is the largest multilateral provider of Aid for Trade. It helps to make the world trading system more conducive to development and also contributes to shaping the growing agenda on regionalism and bilateral agreements, and to integrating trade into the growth strategies of developing countries. The Bank has been rapidly expanding its trade-related activities, which include operations, research and analysis, advocacy, training, and capacity building. Today, research work falls into various areas including poverty impacts of trade and adjustment policies; country competitiveness analyses; analysis of pro-active policies to enhance export supply response; analysis of national trade policies; WTO negotiations; and the design and impact of regional trade agreements.

Trade-related lending

Increasing trade is key to ending extreme poverty and boosting shared prosperity. Evidence shows that countries open to international trade tend to grow faster and provide more opportunities to their populations. The World Bank Group helps its client countries improve their access to developed country markets and enhance their participation in the world economy. On the global stage, the WBG supports an open, rules-based, predictable, international trading system.

The trade policy agenda has evolved significantly since the early 1990s when trade liberalization was the focus of the debate. Now, countries world-wide have relatively low import tariffs, and new challenges have emerged. Non-tariff measures have increased sharply, sometimes because governments hope to protect domestic industries. Restrictiveness to trade in services and limited competition in services markets remains pervasive among developing countries, reducing the scope for integration in services. But globalization and technological change have brought new opportunities for developing countries to participate in trade, for example, through regional and global value chains, through trade in services and e-commerce.

Developing countries also face challenges from indirect factors that hinder their access to global markets, such as anti-competitive business practices, regulatory environments that are unfavorable to business growth and investment, or limited infrastructure capacity. These challenges are most intense in fragile, and conflict-affected states. Experts within the WBG’s Trade and Competitiveness Global Practice are working around the world to help the institution’s clients overcome the obstacles they face.