Publication

This paper assesses the effectiveness of the Aid for Trade (AfT) initiative in Nepal. It demonstrates that AfT has played a role in enhancing the country’s export performance, improving in come cases the competitiveness of Nepali exporters and promoting small-scale industries for products such as tea, cardamom and ginger. However, challenges remain with the potential effectiveness of AfT in Nepal hampered by various factors, such as low absorptive capacity; limited progress in making AfT projects financially and institutionally sustainable; and the need for more ownership by government agencies and the private sector.