How Can Aid for Trade Support the Resilience of the Least Developed Countries in the Face of Polycrisis?

Aid for Trade (AfT)–as an institutionalized concept to help developing economies and the least developed countries (LDCs) address their trade-related constraints–has in part helped mobilize a cumulative total of USD 648 billion in targeted funding between 2006 and 2022. It has been argued that AfT can help countries become more resilient in the context of “polycrisis” (OECD and WTO 2024). The objective of this article is to examine the above argument by identifying four possible pathways to resilience: (a) enhancing institutional capacity; (b) strengthening productive capacity; (c) fostering digital transformation; and (d) mobilizing resources. Based on the evidence presented from various initiatives implemented on the ground through AfT support, the article shows the potential of AfT in promoting resilience at both macro and micro levels. However, these scattered initiatives need to be replicated and scaled up to achieve a much wider and more sustainable impact.