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.
"; break; case 'IFB': msg="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.
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.
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.
Inter-ministerial Committee
A high-level inter-ministerial Committee should be created at the local level in recipient countries to ensure senior level engagement of all the ministries concerned by the IF process (i.e. finance, planning, agriculture etc). It should meet on a regular basis. The donor facilitator will be consulted in the set-up of such coordination mechanisms.
Stakeholder process
The stakeholder process, called for by the enhanced IF recommendations, should ensure that all stakeholders from the government, civil society and the private sector are involved in identifying and prioritising trade development needs across all sectors. The reinforcement of the national structure should greatly contribute to improving coordination.
Country ownership
Country ownership is a principle of the Paris Declaration on Aid Effectiveness, according to which partner countries (i.e. recipient countries) have the right and the responsibility to exercise effective leadership over their development policies and strategies and co-ordinate development actions.
The IF Steering Committee serves as the overall governing body of the IF. It is responsible for general oversight, reviewing progress and promoting coordination and information-sharing among IF participants. It is comprised of representatives from all six IF agencies (i.e. IMF, ITC, UNCTAD, UNDP, the World Bank, and the WTO), LDCs and donors to the IF.
"; break; case 'SIFB': msg="The IF Board replaced the IF Working Group on 1 May 2007 as the main decision-making body of the enhanced IF. It comprises representatives from three LDCs, three donors and the six IF agencies. Its responsibilities will include reporting to the Steering Committee on IF progress, providing policy directions to the Executive Secretariat and overseeing the Trust Fund management as well as approving programmes and funding for projects under Tier 2.
"; break; case 'SIFES': msg="Once established, the IF Executive Secretariat’s main functions will be to help countries mainstream trade into their national development plans and PRSPs and coordinate assistance activities in liaison with the in-country institutions and IF agencies. The Executive Secretariat will be available to assist LDCs with every step of the IF process, including establishing the national institutional arrangements, mainstreaming trade into the PRSPs and addressing any problems encountered. Although administratively housed by the WTO Secretariat (i.e. governed by WTO administrative rules and regulations), it will be independent from the WTO Secretariat, operating under the authority of its own Executive Director. The Director will report to the Board on policy issues but will not have any voting powers at the Board’s meetings.
"; break; case 'SIFTF': msg="The IF Trust Fund will finance programmes and activities under both Tier 1 and Tier 2 (formerly Window I and II). It will be managed according to an independent accountability framework by a Trust Fund manager, which will work closely with the Executive Secretariat and be responsible to the IF Board. The United Nations Office for Project Services (UNOPS) was selected on 15 April 2008 to serve as the Trust Fund Manager.
"; break; case 'SNSC': msg="The National Steering Committee is a political authority located in each IF recipient country and composed of senior officials, civil society and private sector representatives. It will coordinate the IF process at the national level, conduct monitoring and support mainstreaming of trade into the PRSP.
"; break; case 'SNFP': msg="The National Focal Point is a recipient country official, usually from a core Ministry (e.g. Trade, Finance or Planning), appointed by the National Steering Committee. The National Focal Point will coordinate IF activities and serve as principal point of contact for donors, the IF Executive Secretariat and local institutions.
"; break; case 'SNIU': msg="The National Implementation Unit will be supervised by and appointed in consultation with the National Focal Point. This body will coordinate the IF among national institutions and provide support in administering the day-to-day operations of the IF. It will be composed of at least four officials, including a Coordinator, and a representative from the local private sector. Staff could be partly remunerated under Tier 1 funds.
"; break; case 'SLDF': msg="The local Donor Facilitator should be the most active donor in the field of trade-related technical assistance (TRTA) in the country. It should have an established office in the country, or at least in the region. To avoid conflicts of interest, the agency appointed to act as the facilitator cannot be in charge of the implementation of projects. It will be responsible for coordinating funding activities and ensuring coherence of donors’ projects with the Action Matrix priorities. The donor facilitator will share its expertise and experience with the National Implementation Unit in order to ensure the fulfilment of the mandate. A support person (possibly a national) may be hired to ensure the facilitator’s mandate is fulfilled.
"; break; case 'SIMC': msg="A high-level inter-ministerial Committee should be created at the local level in recipient countries to ensure senior level engagement of all the ministries concerned by the IF process (i.e. finance, planning, agriculture etc). It should meet on a regular basis. The donor facilitator will be consulted in the set-up of such coordination mechanisms.
"; break; case 'SSP': msg="The stakeholder process, called for by the enhanced IF recommendations, should ensure that all stakeholders from the government, civil society and the private sector are involved in identifying and prioritising trade development needs across all sectors. The reinforcement of the national structure should greatly contribute to improving coordination.
"; break; case 'STAGE1': msg="Stage I: Request for participation and adherence to the IF
The LDC submits its official request for assistance under the IF to the IF Executive Secretariat. After review by the World Bank, the IF Steering Committee endorses the request and the LDC is admitted to participate in the IF. Under the enhanced IF, the IF Board shall decide on the admission of new beneficiary countries.
Stage II, Pre-DTIS: Capacity Building Workshop
Preparatory efforts include a workshop to build capacity and raise awareness of the IF at the national level organised with the support of IF core agencies.
Stage II, Pre-DTIS: Appointment of IF National Structure
The national IF bodies (i.e. National Focal Point, Donor Facilitator, National Implementation Unit and National Steering Committee) are designated by the national authorities. Under the enhanced IF, an inter-ministerial committee will engage and coordinate the key government ministries involved (i.e. Trade, Finance and Planning).
Stage II, Pre-DTIS: World Bank Mission
A preliminary mission is conducted to prepare the DTIS.
Stage III, DTIS: Draft of DTIS and Action Matrix
In the DTIS, the competitiveness of the country’s economy is assessed, the sectors with greatest export potential and the constraints to trade identified. Most importantly, the Action Matrix summarises the project priorities and recommendations. The DTIS stage is led by the World Bank, or the UNDP, where the World Bank has no local office. The Focal Point has a crucial role in identifying the team of consultants (i.e. international consultants and local experts) who will undertake this work.
Stage III, DTIS: IF Validation Workshop
All national IF actors and stakeholders, including from the private sector and representatives of civil society, convene to discuss the DTIS and its consistency with the national development agenda, as well as to agree on priority projects within the Action Matrix. Donors and IF agencies are also present.
Stage III, DTIS – Stage IV, Implementation: Implementation Plan
If it has not already been completed during the Validation Workshop, the National Steering Committee shall prepare an Implementation Plan outlining the next steps for continued IF implementation including execution modalities.
Stage IV, Implementation: Endorsement by government
The DTIS, as amended in the Validation Workshop, is endorsed by the government.
Stage IV, Implementation: Implementation meetings
During implementation meetings, possible funding gaps for priority areas are identified, concrete projects are outlined, and donors indicate which particular projects they are willing to fund.
Stage IV, Implementation: Project and policy implementation
Mainstreaming into PRSP - The DTIS recommendations are integrated into the national development plan in order to ensure coherence with other national priorities that affect trade development and poverty reduction.
Once this process has reached an advanced stage, the DTIS is revised as needed, and the steps are repeated. It is planned that the DTIS is revised twice during the five years cycle of the IF.
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