This report explores the nexus between the use of the MSD approach and the pursuit of Aid for Trade (AfT) objectives in development assistance programming.
It identifies three key areas where MSD can enhance AfT outcomes:
- Enabling enterprises to leverage export opportunities created by trade policy reforms
- Facilitating trade by improving service delivery and reducing regulatory barriers
- Supporting trade-exposed value chains to drive inclusive growth and poverty reduction
The report highlights the complexity of working in international value chains, requiring collaboration with a broad range of actors, including governments, multinational firms, and regulatory bodies. MSD programmes must navigate these complexities by engaging with public sector functions, addressing trade regulations, and fostering foreign investment.
The findings suggest further research into how MSD can improve the effectiveness of AfT in addressing trade-related inclusion and poverty challenges