5. Glossary

Action Matrix

The Action Matrix is the summary of the recommendations made in the DTIS, including follow-up measures. It describes problems or objectives identified; actions to be taken; responsible bodies for the execution of recommendations; support measures and implementation time frames.

Blend Countries

Blend Countries have limited creditworthiness and can access loans of the International Bank for Reconstruction and Development (IBRD- World Bank) for some projects, but which need IDA funds for other, generally social sector programmes. 

Diagnostic Phase

The diagnostic phase is the period of preparation of the Diagnostic Trade Integration Study (DTIS), which is usually done by a team of local, international and IF agency experts.

Diagnostic Trade Integration Study (DTIS)

The DTIS is a study, conducted by the World Bank (in some cases by UNDP), of the overall trade and economic environment of a recipient IF country, focussing on competitiveness of the sectors engaged in trade. Typical elements include the country’s export performance; investment climate; the international policy environment and constraints faced in international markets; sectors with potential for trade expansion and poverty reduction; trade policy capacity; and a pro-poor trade integration strategy. Recommendations from the DTIS should feed into national development plans, i.e. PRSPs.

Donor Facilitator

According to the modus operandi of the EIF endorsed by the IF governing bodies in May 2007, the donor facilitator should be the local representative of the donor that is most active in the field of trade-related technical assistance in a given IF recipient country. The official will promote and support mainstreaming trade into donor programming and contribute to the work of the in-country implementing institutions. The executing agency for a given project cannot be simultaneously donor facilitator.

Executive Director

The Executive Director is the head of the IF Executive Secretariat in Geneva.

IDA Countries

IDA countries are 82 low-income economies, eligible for concessional (interest-free over 35-40 years with a ten year grace period) loans from the World Bank’s International Development Association (IDA), including all but two of the 50 LDCs ( Equatorial Guinea and Tuvalu). A per-capita income threshold determines eligibility for IDA loans (currently below USD 1,025). However, some countries above this average income level are also given access to IDA loans, due to their lack of creditworthiness to obtain other World Bank or private loans.

IDA-only Countries

Among the 82 IDA countries lacking creditworthiness to obtain non-IDA or commercial rate loans, 66 countries are IDA-only countries.

The AFT Task Force proposed exploring mechanisms similar to the IF for “non-LDC IDA only countries” in its recommendations on strengthening the demand for trade-related technical assistance. 18 countries listed by the World Bank as IDA-only countries would qualify for this sub-category: Armenia, Cameroon, Côte d’Ivoire, Georgia, Ghana, Guyana, Honduras, Kenya, Kyrgyz Republic, Moldova, Mongolia, Nicaragua, Nigeria, Republic of Congo, Sri Lanka, Tajikistan, Tonga, and Vietnam.

IF Board

The IF Board includes three donor, three recipient and six agency representatives. Its mandate is to provide policy guidance on the EIF implementation and to oversee the work of the Executive Secretariat, for example to approve its annual work plan and budget and establish programme and resource allocation criteria. The Board will report to sessions of the IF Steering Committee. It decides if other partners (including countries and agencies) may participate in its deliberations on an ad hoc basis. It is currently meeting on a weekly basis in Geneva. Once the EIF is launched, it shall meet at least every three months.

IF Executive Secretariat

The Executive Secretariat will be independent from the WTO Secretariat: it will operate under the authority of its own Executive Director, and in fine of the IF Board. Its main functions will be to coordinate assistance activities in liaison with the in-country institutions and IF agencies, oversee monitoring and evaluation of the Integrated Framework and prepare annual work programmes, budget and reports. The staff of this seven-staff unit will work exclusively on the IF. Administratively, it will be under the WTO Secretariat’s administrative rules and regulations and it will report to the Director General of the WTO for administrative matters.

IF Round Table

The IF round table is convened at the national level in the context of a UNDP Round Table or a World Bank Consultative Group among bilateral donors, recipient country officials, and private sector representatives. They are aimed at mobilising resources and determining modalities for implementation of a national Action Plan emanating from the DTIS.

IF Steering Committee

The IF Steering Committee includes representatives from all six IF agencies, donors, and LDCs, as well as other interested WTO members. Other agencies contributing to the IF may become members of the Committee upon recommendation of the IF Board. The IF Steering Committee is responsible for general oversight, reviewing progress on the basis of reports from the IF Board, and serving as a forum to discuss IF experiences and best practices. It is to be held at least bi-annually in Geneva.

IF Trust Fund

The IF Trust Fund is established to finance programmes and activities under both Tier 1 and Tier 2 (formerly Window I and II) of the IF. Under the “old” IF the Fund was managed by UNDP. The future Trust Fund Manager will follow its own financial policies, rules and audit procedures and will report to the IF Board. Performance indicators for evaluation of the Trust Fund Manager and a process to deal with complaints regarding its work will be prepared by the Board. In 2007, at a donor conference in Stockholm, Sweden, donors pledged USD 170 million, which is equivalent to 70 per cent of the targeted USD 250 million for the Enhanced IF operations over the next five years.

IF Working Group

The IF Working Group was the overseeing body of the “old” IF. It was composed of six IF agency representatives, two representatives from donors and two from LDCs. Its tasks were the overall management of the IF, monitoring implementation and resource flows from the Trust Fund. The IF Working Group is succeeded by the IF Board under the EIF. Its last meeting was held on 1 May 2007.

Mainstreaming trade into national development strategies

See Trade Mainstreaming.

National Focal Point (NFP)

The NFP is a recipient country official, usually from the Trade Ministry or another core Ministry (e.g. Finance or Planning), appointed by the National Steering Committee. The NFP coordinates IF activities and serves as principal point of contact for donors, the IF Executive Secretariat and the local institutions involved in IF implementation and coordination.

National Implementation Unit (NIU)

The NIU is a body established by the LDC government in consultation with the NFP to provide support in administering the day-to-day operations of the IF. It comprises three or four staff members, including one from the private sector.

National Steering Committee (NSC)

The NSC is a group constituted by high-level government representatives, civil society and private sector which coordinates the IF process at the national level, conducts monitoring and supports integration of trade into the PRSP.

Official Development Assistance (ODA)

ODA is composed of technical cooperation and financial flows from state entities to multilateral institutions and eligible countries as per the DAC list. ODA comprises grants and loans at concessional rates with the objective of promoting economic development and welfare in the recipient countries.

Link to DAC list of ODA recipients for 2005, 2006 and 2007: http://www.oecd.org/dataoecd/23/34/37954893.pdf .

Paris Declaration on Aid Effectiveness

The Paris Declaration on Aid Effectiveness was adopted on 2 March 2005 by donor and recipient country ministers, heads of agencies at the Second High-Level Forum on Aid Effectiveness. It lays down the following key principles guiding aid delivery: country ownership, mutual accountability, alignment of aid to national development strategies, effective donor coordination, harmonisation of donor procedures, adoption of programme-based aid modalities, managing for results, transparency, and predictable and multi-year commitments. It also includes twelve indicators for assessing aid effectiveness based on the Declaration’s principles.

Poverty Reduction Strategy Papers (PRSP)

PRSPs are country strategies (including economic and social policies and programmes) to promote growth and reduce poverty. It was agreed at the World Bank/IMF 1999 annual meetings that the PRSP should provide the basis for concessional lending and debt relief for low-income economies. The document is prepared by the government through a participatory process involving the IMF and the World Bank. It is updated every three years. Most LDCs have already completed a first PRSP.

Task Force on an Enhanced Integrated Framework

The Task Force was established following the September 2005 IMF-World Bank Development Committee recommendation to enhance the IF. The Task Force, chaired by Ambassador Don Stephenson (Canada) and composed of IF donor and recipient countries (though participation was open-ended), was mandated to work out proposals for securing additional and more predictable funding; strengthening recipient’s implementation and monitoring capacities; and improving IF governance. The Task Force completed its work in June 2006 by submitting recommendations, which were subsequently endorsed on 5 July 2006 by the IF Steering Committee. A transition team was created to work on implementing the recommendations.

Tier 1 Appraisal Committee

This committee is chaired in every IF country by the national FP, it also includes the Donor Facilitator and members of the NSC. The Committee examines projects under Tier 1 and forwards them to the national authorities for approval.

Tier 2 Appraisal Committee

This is a body responsible at the national level for assessing and transmitting Tier 2 projects to the IF Board for approval. As the Tier 1 Appraisal Committee, it is chaired by the NFP and includes the Donor Facilitator and members of the NSC.

Tier 1 financing

Formerly referred to as Window I, Tier 1 funding provides resources to eligible countries for core function support costs, including support for DTIS production and updates. It may also partially cover staff costs for the NFP. The Enhanced IF recommendations suggest making available $77 million under Tier 1.

Tier 2 financing

Formerly Window II, Tier 2 includes funding for project preparation, feasibility studies, or to jump-start high priority projects identified in a recipient’s DTIS. Larger projects will need financing outside of the IF. A list of “Window II” financing under the current IF can be accessed here. The Enhanced IF recommendations suggest making available USD 320 million under Tier 1. In addition to this, the costs of the Executive Secretariat were estimated to USD 14 million.

Trade Mainstreaming

Trade mainstreaming refers to the process of making trade a priority in the national development strategy. Trade is a key vehicle of a country’s growth. For this reason, the trade component of the national development strategy should be formulated jointly by all ministries concerned, and then integrated in to the overall development strategy. This process would ensure that synergies and potential incoherencies between trade and other areas (e.g. economic and social) are identified and remedied.

Transition Team

The transition team is a working group set up by the IFSC after it endorsed the IF Task Force recommendations on 5 July 2006. Under the chairmanship of Canada, the Transition Team’s task was to work on the follow-up to the Task Force recommendations. To deal with the various issues, it split into three sub-groups: the In-Country Cluster; the Legal/Administrative Cluster; and the Financial Cluster. Its work came to an end when the Modus Operandi of the EIF was approved in April 2007 by the IFSC and the IF Working Group. Outstanding tasks were transferred to the new IF Board.

UNDP Round Table

This high-level meeting usually takes place at the national level every 2-3 years, for officials from donors, recipients, bilateral and multilateral development agencies, international financial institutions as well as representatives of the private sector and non-governmental organisations (NGOs). It is held to review national development plans, mobilise resources, and decide on modalities for cooperation in implementing such plans.

Validation Workshop

All national IF actors and stakeholders from the private sector and representatives of civil society convene together with IF agencies and the donor community to discuss the DTIS and its consistency with the national development agenda, as well as to agree on priority projects within the Action Matrix.

World Bank Consultative Group

This is a meeting, held every 2-3 years at the national level, aimed at establishing partnerships among the recipient government, bilateral and multilateral development agencies, NGOs and the private sector for the implementation of national development plans. This meeting is not reserved to LDCs but it has a specific importance for them in the context of the IF.

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