Evaluation of the International Trade Centre Funding Modalities and Organisational Aspects

1. Evaluation of the International Trade CentreFunding Modalities and Organisational Aspects Presentation to Informal Meeting of the JAG November 24, 2005 Allan Barry and Murray Smith Evaluation Core Team and Team Leader with Ticon DCA, Copenhagen DC and Ace Global

2. Funding Modalities & Organisational Aspects • Governance and Accountability • Financing Modalities & Harmonisation • Corporate Management and Capacity • Supporting Trade and Development with Ticon DCA, Copenhagen DC and Ace Global 2

3. Governance and Accountability • Methodology • Findings and Conclusions • Recommendations with Ticon DCA, Copenhagen DC and Ace Global 3

4. Methodology • Analysis of documentation establishing ITC, its mandate, governance and oversight structures. • Analysis of how structures have changed over time, their size, participation, nature of their role, input and output documentation, and effectiveness. • Analysis of previous reviews and assessments of supervisory structures, and interviews with some of those participating. with Ticon DCA, Copenhagen DC and Ace Global 4

5. Findings and Conclusions • Basic weaknesses in current governance and accountability structure: • Currently lacks either an expert advisory group or a small enough management body to provide adequate programme review or policy guidance. • Absence of effective policy and programme review at level of ITC’s overall operations. • Differing priority and accountability arrangements for different programme areas. with Ticon DCA, Copenhagen DC and Ace Global 5

6. Findings and Conclusions • Past experience provides: • Substantial evidence of benefits that can be provided by a smaller and more expert group. • Precedents and lessons that can be drawn on. • Confirmation of feasibility of such a governance mechanism within framework of formal oversight by parent bodies. with Ticon DCA, Copenhagen DC and Ace Global 6

7. Findings and Conclusions • Changing circumstances include: • Bilateral donors now provide half of ITC funding, including part of its operational base. • The donor and beneficiary community has established increasingly clear priorities post-Monterrey on: • Increased aid coherence, • Measuring, monitoring and achieving results, • Increased accountability for results. with Ticon DCA, Copenhagen DC and Ace Global 7

8. Findings and Conclusions (2) • This provides a strong case for reassessing supervisory and accountability structures for the agency. • Such a mechanism would support a new ITC management team with a more effective body for dialogue, program review and results assessment. • This need not detract from the important but different role played by the larger ‘board of governors’ type of intergovernmental body of the JAG with Ticon DCA, Copenhagen DC and Ace Global 8

9. Findings and Conclusions (3) • Burden of current oversight arrangements by parent institutions, in particular the UN, is excessive for a small organisation that is not operationally part of the UN Secretariat, and is not well-suited to ITC’s current needs. with Ticon DCA, Copenhagen DC and Ace Global 9

10. Funding Modalities and Harmonisation • Methodology • Findings and Conclusions • Recommendations with Ticon DCA, Copenhagen DC and Ace Global 10

11. Methodology • Analysis of: • Nature of funding arrangements: regular budget and extra-budgetary resources. • Changes in composition and level of resources. • Programmes financed from different sources. • Individual bilateral funding agreements and projects. • Program-specific management or coordinating arrangements. • Evaluation material on some of the programs, and interviews. with Ticon DCA, Copenhagen DC and Ace Global 11

12. Findings and Conclusions • Considerable progress in managing and simplifying a complex set of funding modalities. • Still an overall lack of coherence, insofar as differing modalities do not provide an integrated program and budget that can be effectively reviewed, monitored and assessed by governments. with Ticon DCA, Copenhagen DC and Ace Global 12

13. Findings and Conclusions (2) • Significant further scope for reducing the use of earmarked funding other than in support of an agreed program such as GTF. • ITC’s operations would be facilitated in terms of reduced transaction costs, with potential gains in efficiency and effectiveness of program operations if the share of extra-budgetary funding provided through GTF, in particular Window I, could be increased further. with Ticon DCA, Copenhagen DC and Ace Global 13

14. Findings and Conclusions (3) • Evidence of recent improvements in individual funding arrangements readiness of donors to envisage changes to strengthen program coherence and reduce transaction costs. • Commitments in Rome and Paris Declarations to achieve greater harmonisation in donor financing provide a strong case for further improvement in funding modalities. with Ticon DCA, Copenhagen DC and Ace Global 14

15. Findings and Conclusions (4) • Harmonisation of donor-provided extra-budgetary resources and improved governance and accountability are closely related. • Progress on harmonisation is likely to require steps to strengthen governance structure and provide for review of an integrated program and budget. with Ticon DCA, Copenhagen DC and Ace Global 15

16. Findings and Conclusions (5) • Greater use of multi-year commitments, and early availability of promised funding, would allow more effective programming and likely enhancement of results. • A single fiscal year for all ITC operations, and development of an integrated program and budget document, for review by contributors and beneficiaries, would provide a better basis for consideration of an overall harmonised approach to extra-budgetary funding. with Ticon DCA, Copenhagen DC and Ace Global 16

17. Implementing Harmonisation • Increased harmonisation of donor support should be undertaken as a priority with the objective of reducing transaction costs and further improving overall program coherence and effectiveness. • If possible, this should be in the form of a Program-Based Approach (PBA) with Ticon DCA, Copenhagen DC and Ace Global 17

18. Program-Based Approach (PBA): Key Elements • An integrated program and budget document, with a structured medium-term strategy, to facilitate an assessment of tradeoffs and relationships between different activities. • A results-based management framework that reflects the needs of the organisation and is responsive to requirements of sources of funding. • An overall program review body, representative of both donors and beneficiaries. with Ticon DCA, Copenhagen DC and Ace Global 18

19. Implementing Harmonisation (2) • Consideration should be given to greater use of multi-year commitment authority and reduction of late availability of funding authority for the year or years in question. • Steps should be taken to facilitate a harmonised approach, in particular movement to a single fiscal year for all ITC operations, and preparation of an integrated program and budget document covering all ITC operations. with Ticon DCA, Copenhagen DC and Ace Global 19

20. Strengthening Governance & Accountability • Governance and accountability structures should be re-examined, with a view to providing a smaller and more effective mechanism for overall program review and policy guidance. • Such a mechanism should complement and support the existing Joint Advisory Group. • It should also replace some existing mechanisms such as Consultative Committee of GTF. with Ticon DCA, Copenhagen DC and Ace Global 20

21. Strengthening Governance & Accountability (2) • Any such new arrangement should be relatively small and representative of both donor governments and different geographic groupings of beneficiary governments. • Interested governments should establish a process for initial review of the governance structure and further steps for greater harmonisation of donor support. with Ticon DCA, Copenhagen DC and Ace Global 21

22. Strengthening Governance & Accountability • Current overload of technical oversight mechanism appropriate to UN secretariat bodies should also be reviewed. with Ticon DCA, Copenhagen DC and Ace Global 22

23. Evaluation of the International Trade CentreCapacity of the Organisation Presentation to the Joint Advisory Group November 24, 2005 Murray Smith, Team Leader with Ticon DCA, Copenhagen DC and Ace Global

24. Capacity of the Organisation • Monitoring systems differ for Regular Budget and Extra-budget • ITC is at an early stage of implementing RBM • Self-Evaluation is effective but is linked to operational management at present • ITC programming is in line with its comparative advantage; newer programming draw on ITC’s experience and capacity for networking of TSI partners with Ticon DCA, Copenhagen DC and Ace Global 24

25. Strengthening Operational Performance • More systematic needs assessment and measuring unit costs including backstopping • Monitoring of utilisation of products and results achieved • Managing for Development Results (MfDR) is best addressed by more emphasis on country-specific projects in the portfolio of projects with Ticon DCA, Copenhagen DC and Ace Global 25

26. Strengthening Operational Performance • ITC should implement a change management strategy • Implementing RBM should be a high priority • Monitoring of results will require TSIs to measure results achieved in terms of capacity building for TSIs and especially • Greater emphasis on strategic HR, professional development and gender balance with Ticon DCA, Copenhagen DC and Ace Global 26

27. Supporting Trade and Development • ITC should utilise an “MDG” lens to integrate development goals including • ITC should explore innovative programmes for the informal sector and women entrepreneurs • ITC should work with TSI partners to develop performance standards, monitor results achieved and increase sustainability of TSIs with Ticon DCA, Copenhagen DC and Ace Global 27

28. Supporting Trade and Development (continued) • Sustain co-operation with UNCTAD and WTO • Explore new development partnerships • Options to strengthen field presence should be explored • Greater emphasis on country-specific projects • If key management and institutional reforms can be implemented, the scale of ITC programming should be increased with Ticon DCA, Copenhagen DC and Ace Global 28