Through policy dialogue, the World Bank Group (WBG) aims to support a trade agenda that supports developing countries’ integration into the world economy as a means of achieving  growth and reducing poverty.

The WBG carries out this policy dialogue at the multilateral, regional and country levels in partnership with other development agencies, bilateral donors, and developing countries. It brings in field experience, extensive research, and experts in various fields from trade policy and competitiveness to trade logistics and facilitation and standards.

The WBG’s policy dialogue focuses on three areas:

1. At the global level, the WBG supports a development-friendly, open, and non-discriminatory world trading system that is particularly attentive to the needs of the poorest countries. This includes continued support for an eventual successful conclusion of the Doha Round, despite its current hiatus due to the collapse of the mini-ministerial negotiations in July 2008, and the onset of economic and financial crisis in late 2008. In reaction to the latter, the WBG has stepped up its monitoring of protectionist tendencies as well as its efforts to mitigate the negative impact of decreased availability and increased cost of trade finance. For instance, since the beginning of the crisis, the IFC has doubled its Global Trade Finance Program (GTFP) and introduced a new Global Trade Liquidity Program (GTLP). The WBG also supports increased Aid for Trade, which remains an essential complement to a successful international trading system.  It also continues to play an important role in the Enhanced Integrated Framework for Trade-related Technical Assistance for the Least Developed Countries (EIF).

2. At the regional level, the WBG supports pro-development regional integration through analysis, analytical and administrative capacity building; technical assistance to trade officials involved in negotiations; and lending for trade-related infrastructure projects. The launch of the Trade Facilitation Facility (TFF) in May 2009 will further WBG’s support for regional trade facilitation and transit regimes. Furthermore, the Bank is developing a regional integration portal which will allow stakeholders to better understand and navigate the fragmented world of regional trade agreements.

3. At the country level, the WBG’s trade work centers around three pillars of (i) improving trade competitiveness through diagnostic of the incentive regimes and institutional shortcomings as well as through technical assistance and selected market-expanding investments in private activities; (ii) reducing trading costs through trade facilitation investment and technical assistance; and (iii) expanding the supply of trade-related infrastructure. The aim of WBG’s assistance at country level is to   to facilitate developing countries’ integration into the global economy to spur economic growth. All the while the Bank encourages increased country ownership by making trade a pillar of national development strategy.  

Last updated on Aug 12, 2009