Enhanced Integrated Framework for Trade-Related Technical Assistance to Least Developed Countries (EIF)

1. Enhanced Integrated Framework for Trade-Related Technical Assistance to Least Developed Countries (EIF) IF Programme Implementation Unit (PIU) World Trade Organization (WTO)

2. What is this IF that is being enhanced? • Process to support LDC governments in trade capacity building, and integrating trade into their development strategies • Established 1997 by six agencies (IMF, ITC, UNCTAD, UNDP, World Bank, WTO) • Process consists of four phases: awareness building, diagnostic, integrating findings into development strategies, implementing matrix of priority actions.

3. Enhanced IF Mandate (1) The Hong Kong Ministerial Declaration: • Reaffirmed the commitment “to effectively and meaningfully integrate LDCs into the multilateral trading system,” • Noted that the Ministers attached “high priority to the effective implementation of the Integrated Framework” and • Recognised the “urgent need to make the IF more effective and timely”.

4. EIF Mandate (2) • Ministers endorsed setting up of an IF Task Force that was to recommend how to enhance the IF. • It was also agreed that the enhanced IF should comprise three specific elements: • Increased, additional, predictable financial resources to implement Action Matrices; • Strengthened in‑country capacities to manage, implement and monitor the IF process; and • Enhanced IF governance.

5. EIF – Task Force Recommendations (1)Increased, additional, predictable financial resources to implement Action Matrices (1) IF Trust Fund (IFTF) Tier 1 coverage: • upstream human resource capacity building; • preparation and/or updating of a DTIS; • provision of support to the national implementation unit and key institutions, including human resource capacity and small capital equipment such as computers, etc; • assistance to facilitate integration into the national development plan.

6. EIF – Task Force Recommendations (2) ...financial resources... (2) IF Trust Fund (IFTF) Tier 2 coverage: Activities as identified in the Action Matrix, taking into account the availability of alternative funding and quality of projects. The Trust Fund would provide bridging funding to jump start activities identified in the DTIS such as: • Project preparation, • Feasibility studies as well as • Funding of smaller projects including seed projects.

7. EIF – Task Force Recommendations (3) ...financial resources... (3) IF Trust Fund (IFTF) Tier 2 coverage (cont’d) / Illustrative activities/projects include: • assistance to implement specific WTO and other trade policy commitments; • preparatory activities for infrastructure development and infrastructure projects; • activities to harmonize action matrices with national development plans such as PRSPs, and to prioritise and provide cost benefit analysis leading to project design and implementation; • further assistance to the national implementation unit and key institutions; • assistance to develop a national trade plan and/or sectoral programmes; • assistance with project design for regular programming processes such as World Bank Consultative Groups and UNDP Round Table meetings; • Independent implementation of small projects identified in DTIS Action Matrices.

8. EIF – Task Force Recommendations (3) ...financial resources... (3) • The Task Force recommends that there should be greater predictability of funding for the recipients as well as greater levels of funding, including identification of new sources of funds. • The Task Force also notes that at its Annual Meeting in 2005 the WB/IMF Development Committee took note of an estimate from staff that an amount of US$200-400 million over five years would be required, based on anticipated requirements for 40 countries. • Tier 1 funding is expected to be fully covered by the multilateral IF Trust Fund. Tier 2 funding for implementation of the Action Matrix is expected to be only partially covered by the IFTF with additional funding to be mobilized from in-country donors.

9. EIF – Task Force Recommendations (4)Strengthened in‑country capacities to manage, implement and monitor the IF process What is needed in-country? • A high level inter-ministerial committee (not necessarily IF specific) for senior level engagement and coordination, and to provide political commitment; • National Steering Committee (NSC) to provide a broad-based stakeholder process including government, private sector and civil society representation to support the development of the DTIS and implementation of the action matrices; • The IF Focal Point (FP) should be strengthened including through the creation of a National Implementation Unit (NIU) to improve the implementation of the IF; • An effective local Donor Facilitator (DF) to assist in providing an effective response and coordination for the agencies, donors and beneficiaries to work together through local processes; • The IF agencies have a critical role to play at the country level in the mainstreaming of trade into development.

10. EIF – Task Force Recommendations (5)Enhanced IF governance What is needed at the Geneva-level? • Steering Committee to provide overall policy direction, review progress and provide a platform for the exchange of experience; • Board, based on the current IF Working Group, to provide oversight and policy direction, and to decide programme criteria and allocation criteria; • Executive Secretariat to integrate management functions at the global level to improve delivery (efficiency and effectiveness) and provide for greater accountability, and • Ex.Secretariat headed by Executive Director, accountable to the Board as the head of the Executive Secretariat.

11. EIF – Status of Play in Implementation • A Compendium of documents for the enhanced IF was endorsed by the IF Steering Committee of May 1; • outstanding issues to the interim Board for finalization: • Accountability framework for and selection of the EIFTF Trust Fund Manager (TFM), • Monitoring and Evaluation (M&E) of EIF activities; • Funding and replenishment; and • Outreach issues.

12. EIF– What’s there for the countries? (1) Excel in executing the current IF – focus on mainstreaming and implementation in line with the national development strategies and make the programme to work for your development objectives: ← (1) Organize your national implementation arrangements according to the recommendations of the EIF ← Funding to be made available under the EIF / Seek for interim funding from the Donor Facilitator or other donors if needed ← Preparations can start now!

13. EIF– What’s there for the countries? (2) ← (2) Advocate for trade mainstreaming at all levels of policy ← Capitalize on the global momentum for A4T & EIF to promote trade in the high-level policy agenda ← Liaise with the private sector and civil society for implementation as well as for advocacy

14. EIF– What’s there for the countries? (3) ← (3) Get the in-country development partners on board ← Intensify implementation of the Action Matrix ← Use the A4T & EIF global momentum to advocate for funding ← Work with the development partners to organize the delivery of trade-related assistance in a manner that makes it more effective (e.g. Trade Sector-Wide Approach, Basket Fund)

15. For more information, please, contact the IF Programme Implementation Unit christiane.kraus@wto.org Or sari.laaksonen@wto.org