EIF Regional Asian Workshop Kathmandu, June 20 2010 Sven Callebaut Capacity Development Adviser

1. Trade SWAp : The “Integrating” Framework(When can a SWAp do to increase mainstreaming and coordination) EIF Regional Asian Workshop Kathmandu, June 20 2010 Sven Callebaut Capacity Development Adviser

2. contents • what is a SWAp? • why may you need a Trade SWAp? • Trade SWAp and IF/ EIF • Lessons learnt in Cambodia • What are the challenges? what why EIF progress challenges

3. what is a Trade SWAp? Sector Wide Approach Definitions 'All significant funding for the sector supports a single sector policy and expenditure programme, under government leadership, adopting common approaches across the sector, and progressing towards Government procedures to disburse and account for all funds.‘ (Foster, 2009) what why EIF progress challenges

4. what is a SWAp? Sector Wide Approach a new way of delivering trade-related assistance still projects… …so what is new? + more attention for overall policy coherence + improved planning, coordination, monitoring + stronger role for government + more attention for capacity building what why EIF progress challenges

5. SWAp represents a Programmatic Approach Program Approach Project Approach A set of interventions aimed towards a shared program goal A set of unrelated projects

6. Analysis / Social research Direct delivery Capacity development Advocacy Facilitation Mediation Awareness raising on rights and responsibilities Parts of a Program Approach

7. why a Trade SWAp? Coordination with DPs Planning and Programming Monitoring and Evaluation Framework Pillar WG, IC and SSC work SWAp what why EIF progress challenges

8. why a Trade SWAp? ‘excessive aid fragmentation’ Cambodia: 759 projects in 2007 - 80% disburse 20% of aid TRTA in Cambodia rose to $30mln in 2009 in 2005 this was $10mln Cambodia pilot country for number of initiatives results could be better – concrete follow-up what why EIF progress challenges

9. Trade SWAp - IF IF participation/ DTIS 2002 preceded the Trade SWAp good report, insufficient implementation, weak monitoring, weak capacities to implement reform measures Need for: • a long-term, strategic approach for developing and operationalising an integrated, pro-poor trade agenda • a comprehensive medium-term plan (DTIS update) • sufficient funding from donors • commitment from RGC • discipline from donors and RGC in combining plan, funding and commitment towards (monitored) implementation what why EIF progress challenges

10. Trade SWAp - EIF ‘The IF should build on and strengthen existing structures that have been identified as working best’ ‘To facilitate the involvement of agencies at the country level, a programme approach should be adopted.’ ‘IF country governments and their respective development partner communities may wish to consider setting up locally managed trust/ basket funds to pool local development partner funding and enhance coordination of the enhanced IF implementation’ ‘The enhanced IF is an instrument toleverage additional AfT resources’ what why EIF progress challenges

11. Trade SWAp - EIF The Trade SWAp builds on and further develops and concretizes the basic principles and mechanisms set forth by the IF. • it acknowledges that, to have an impact on poverty reduction, TRA needs to be an integral part of a country’s development strategy. • It recognizes that, to be effective, relevant stakeholders, both within and outside of government, need to build consensus on a national trade strategy. what why EIF progress challenges

12. progress so far • RGC adopts Trade SWAp & DTIS 2007 • Sub-steering committee for trade development and trade-related investment (three “Pillars”) • Interministerial Implementation Committee • Pillar WG established, developed Road Maps • Re-organisation Ministry of Commerce (DICO) • Government – Private Sector Forum for consultation • Trade Development Trust Fund with 3 donors established,launched, operationalized what why EIF progress challenges

13. Trade SWAp Strategic Framework

14. Figure 1: OVERVIEW OF ORGANISATIONS AND OUTCOME AREAS SUPPORTED THROUGH TRADE SWAp PILLAR III

15. Lessons Learnt Focus on Finance vs. Strategy is recipe for disaster Donor coordination is quicker said than done Institutional capacities need to be built with a long term vision (quick wins + long term inv.) Role of MoC/MoT as a champion -> on behalf of government (outreach/advocacy) Private Sector Participation, Engagement key. Regular reminder of the Paris Principles on Aid Effectiveness for Donors and DPs what why EIF progress challenges

16. challenges government to have bigger role • in implementation of projects • in overall management of sector donors stand to gain • better overall control over design, implementation • better visibility and credit for results for smaller donor contributions • some agencies may lose access to funding but all stand to gain in efficiency and achieving sustainable development outcomes negative attitudes become self-fulfilling when it comes to increased coordination what why EIF progress challenges

17. challenges • more and better donor coordination (also with EIF) • more and more effective government leadership • more and better inter-governmental coordination private sector involvement in setting agenda and monitoring outcomes (through Business Forum or G-PSF) civil society involvement in setting agenda and monitoring outcomes – NGO Forum A FOCUS ON RESULTS IS NEEDED what why EIF progress challenges

18. Questions ? what why EIF progress challenges