1. Introduction and State of Play
A. Introduction
The Integrated Framework (IF) was launched in October 1997 at the WTO High Level Meeting on Integrated Initiatives for LDCs’ Trade Development [note 1], as a follow-up of the Plan of Action in favour of the least-developed countries (LDCs), adopted at the First WTO Ministerial Conference in Singapore in 1996 [note 2]. Its objective was to coordinate the existing trade-related capacity-building programmes of the following six international organisations: the IMF, ITC, UNCTAD, UNDP, the World Bank and the WTO to assist LDC governments in integrating their trade-related policies into their national development strategies and thus to be more active in the multilateral trading system.
After a revamp in 2000 and several more recent evaluations on how to strengthen the IF’s capacity to fulfil these objectives, the Development Committee of the World Bank and the International Monetary Fund (IMF) proposed to enhance the IF in September 2005. WTO members endorsed this recommendation at the Hong Kong Ministerial Conference in December 2005.
In June 2006, the Task Force on the Enhanced Integrated Framework (EIF) of donor and recipient country representatives submitted proposals on i) securing additional and predictable funding for the EIF; ii) strengthening in-country capacities to manage, implement and monitor the EIF process; and iii) improve the programme’s governance.
A Transition Team, appointed for the implementation of the Task Force recommendations, initiated work on financial, administrative, legal and institutional details. This period ran until 1 May 2007, the date foreseen for the launch of the EIF, when the new IF decision-making body, the members of the IF Board, were to be appointed. The launch of the EIF was delayed in order to complete the accountability framework and the monitoring and evaluation processes (M&E). In its design, the IF lacked objectively verifiable indicators of performance against which performance could be monitored or evaluated. In this context, it was agreed that M&E was essential in building confidence among all partners, and thus that it should become an important aspect of this process. The EIF M&E mechanism would be strictly dependent on having clearly defined roles and responsibilities of the different partners. A study (February 2009) funded by Norway [note 3], concluded that “the proposed Framework for monitoring and evaluation makes full use of the combined capacities of the extended EIF partnership, and the respective comparative advantages of each EIF partner”.
B. State of Play
In 2008, the last steps to make the EIF operational included selecting the Trust Fund Manager and the Executive Director who will head the IF Executive Secretariat. The United Nations Office for Project Services (UNOPS) was selected on 15 April 2008 to be the Trust Fund Manager.
The nomination of Ms Dorothy Tembo, Zambia, as the EIF Executive Director of the future EIF Executive Secretariat was announced officially on 21 August 2008. Ms Tembo has served as Zambia’ s Chief Trade Negotiator and Director of Foreign Trade and Industry over the past four years. She was until now Zambia’s IF Focal Point.
The Guidelines of the EIF, which update the structure and the process of the EIF, were issued on 12 June 2008. These Guidelines cover the transition period prior to the implementation of the EIF.
Highlights of the Guidelines for the Implementation of the enhanced Integrated Framework (EIF) for LDCs
As of 31 May 2008 new project proposals under Tier 1 or Tier 2 of the EIF must be submitted to UNOPS, the new Trust Fund Manager. Financial resources of the EIF Trust Fund should be available as of August 2008. Projects already under way will still be administered by UNDP, the former Trust Fund Manager.
Certain LDCs participating in the former IF already receive direct budget support from their development partners, which could finance certain EIF activities.
For the National Implementation Unit existing structures (when available) will be used. T his Unit could assist in the preparation of the five-year national work plan. The plan could be the basis for monitoring EIF implementation and pave the way for securing AFT funding.
Countries are advised to define a strategy for mainstreaming trade into national development plans.
Evaluations of EIF implementation will be done externally. The results of such evaluations will be transmitted to the IF Board and the IF Steering Committee. The Guidelines do not mention independent auditing of the Trust Fund’s activities. |
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The EIF’s full operationalisation was achieved when the Interim Board approved funding—for a total of USD 1, 939,859—of the first two Tier 1 projects in Sierra Leone and Yemen on 2 July 2009.
This first EIF Global Workshop for EIF Focal Points, Donor Facilitators (DF) and EIF partners, held on 8-10 July 2009 in Geneva, concluded that the EIF is an important tool to advance LDC’s trade and poverty reduction agendas (AITIC Report of the Workshop). It was noted that the EIF success relied to a great extent on finalising Tier 2 guidelines as soon as possible, the degree of regional integration achieved, as well as the political involvement reached. The meeting paved the way for implementation of the EIF on the ground, helped participants gain a clear understanding of how the EIF works in practice, and enabled beneficiary countries and development partners to share feedback on the process and its implementation.
Note 1: An Integrated Framework for Trade-Related Technical Assistance, Including for Human and Institutional Capacity-Building to Support LDCs in Their Trade and Trade-Related Activities, WTO, WT/LDC/HL/1/Rev.1, 23 October 1997. (return to text)
Note 2: See paragraph 14 of the Singapore Ministerial Declaration. (return to text)
Note 3: http://www.integratedframework.org/files/non-country/M&E%20Policy%20and%20Guidelines.pdf. (return to text)
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