Suppose a DAC donor earmarks $1 billion of taxpayers’ money for official development assistance (ODA). The donor may use two instruments as an outright grant or in combination with a market loan to produce a concessional loan of $2 billion with a percentage grant element of 50 per cent. Many...

• Tariffs still matter. • Full tariff liberalisation to 2010 would generate dynamic welfare gains of $1 200 billion (at 1995 prices), equivalent to 3 per cent of World GDP in 2010, from greater efficiency and higher productivity. • Developing countries stand to gain relatively more from...

OECD countries face at least five major challenges for promoting policies that are consistent with their development goals: . ensuring security and political stability; . anticipating the impacts of their macroeconomic policies on developing-country growth; . increasing both market access and...

Aid and trade policies – in OECD countries and in developing countries – might reinforce each other to promote development, or they might be substitutes: the sign of the correlation between trade and aid flows depends on the context. East Asia’s rapid growth demonstrates the important...

Poor countries are and will remain for some time vulnerable to external shocks, whether to export prices or from natural disasters. The lowest-income countries have a higher incidence of shocks than other developing countries and tend to suffer larger damages when shocks occur. For the poorest...