RESTRICTEDWORLD TRADE
ORGANIZATIONWT/LDC/SWG/IF/2
12 July 2000
(00-2842)
Sub-Committee on Least-Developed Countries Original:  English
REVIEW OF THE INTEGRATED FRAMEWORK: COMMUNIQUE FROM HEADS OF SIX
CORE AGENCIES
The Heads and representatives of the six core international Agencies1  for the Integrated
Framework for Trade-Related Technical Assistance (IF), met in New York, 6 July 2000, to consider
the results of the IF review2.  They issued the attached joint statement. The review was undertaken by
the six agencies, pursuant to the mandate contained in WT/LDC/HL/1/Rev.1 "endorsed" by Members
in October 1997 at the High Level Meeting for Least Developed Countries.
                                                     
1 IMF, ITC, UNCTAD, UNDP, World Bank and the WTO.
2 The Review was conducted in accordance with the decision by the Inter-Agency Working Group on
24 November 1999 (WT/COMTD/LDC/6).WT/LDC/SWG/IF/2
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JOINT STATEMENT ON THE MANDATED REVIEW OF THE INTEGRATED
FRAMEWORK FOR TRADE-RELATED TECHNICAL ASSISTANCE TO
LEAST-DEVELOPED COUNTRIES (IF) BY THE SIX CORE AGENCIES
(IMF, ITC, UNCTAD, UNDP, World Bank and WTO)
Mr. J. Denis Bélisle, Executive Director  of ITC, Mr. Rubens Ricupero, Secretary-General of
UNCTAD, Mr. Mark Malloch-Brown, Administrato r of the UNDP, Mr. Mike Moore, Director-
General of WTO, , Mr. Reinhard Munzberg, Director and Special Representative to the United
Nations of the IMF, and  Mr. Kemal Dervis, Vice-President for Poverty Reduction and Economic
Management, World Bank, Heads and representatives of the six core Agencies for the Integrated
Framework, met at the UNDP Offices in New York on 6 July 2000.
We, the representatives of the six core agencies of the Integrated Framework for Trade-
Related Technical Assistance to Least-Developed Countries (IF), reaffirm our commitment to work
together, on the basis of our respective mandates and competence, to assist the Least-Developed
Countries (LDCs) to integrate in to the global economy in a manner supportive of their overall
development objectives, and in particular their strategies for poverty reduction.
Trade liberalisation and reform are key elements of economic policy contributing to higher
rates of growth and poverty reduction.  The multilateral trading system plays a vital role in
maintaining sound, stable, rules-based trade relations among nations.  We are committed to assistingLDCs to take fuller advantage of this system, including their support for accession to the WTO.  We
recognize the necessity of continuous meaningful improvements in market access for LDCs, as a vital
complement to their own efforts to liberalize their economies. Furthermore, we are convinced of the
importance of trade-related  assistance and capacity-building efforts if LDCs are to integrate
effectively into the global economy and reverse the trend in some LDCs towards increasing
marginalization.
We have examined the results of the mandated review of the Integrated Framework of trade-
related technical assistance (IF).  The issues raised in the review and its conclusions and
recommendations make clear the need for strengthening the IF and improving its functioning.
We are determined to make the IF an effec tive mechanism for assisting in the delivery of
trade-related technical assistance and capacity-building.  We are convinced that this effort will only
prove successful if it constitutes an integral part of the overall development and poverty reduction
strategies of the Least Developed Countries.  We are further convinced that in order to mainstream
trade and trade-related activities effectively into national development and poverty reduction
strategies, adequate resources must be made available at the policy and programme formulation stageof the process, as well as for the implementation.
In view of these objectives, and having regard to consultations among stakeholders, the IMF,
ITC, UNCTAD, UNDP, WORLD BANK and WTO:
Take note  of the Report of the independent IF Review Team, which they regard as a useful
input into the decisions taken hereunder:WT/LDC/SWG/IF/2
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Agree  to make every effort to support the integration of trade, trade-related technical
assistance, and capacity-building into the national development strategies and plans of LDCs.
This would be ensured principally through such instrument as Poverty Reduction Strategy
Papers (PRSPs) and would influence other de velopment frameworks such as the United
Nations Development Assistance Framework (UNDAF). In doing so, these efforts will ensuredynamic interaction and dialogue among LDCs, donors and agencies, fully respecting country
ownership.
Agree  that this mainstreaming effort will be led and coordinated by the World Bank,
according to the principles of the Comprehensive Development Framework, with
participation and inputs from the other core agencies and other stakeholders. Building on
initial Needs Assessments and subsequent work, this will involve formulating country-specific integration strategies as part of the mainstreaming process.  These activities will feed
into the World Bank Consultative Groups (CGs) and UNDP Round Table Meetings (RTs)
where countries will present their medium-term policy frameworks and financing needs,
including for trade-related assistance, for support by the donor community.
Existing programmes under the auspices of the IF will continue to be pursued and reported to
the IAWG, with every effort to mainstream these activities within the broader ambit of
national development strategies, as outlined above.
Agree to invite representatives from LDCs and donor countries to serve, along with Heads of
the core agencies, in a Steering Committee to help ensure proper oversight, policy guidance,
adequate funding, and ownership of the Integrated Framework for trade-related technical
assistance.
In consultation with LDCs and donors, the core agencies will agree upon the structure and
operating procedures of the Steering Committee by 31 October 2000 at the latest.
Agree  that the Inter-Agency Working Group (IAWG) will ensure transparency and adequate
coordination of the activities of the core agencies under the IF, primarily through the
continuing flow of information on activities under the IF, and, inter alia , will make periodic
reports to the Steering Committee.
Agree  that the WTO Secretariat will continue to chair the IAWG.  The Administrative Unit
for the IF, currently located at the ITC, will be folded into the WTO Secretariat.  On a
voluntary basis, staff from other core agencies will be seconded to the WTO Secretariat.
The core agencies will draw up precise terms of reference for the IAWG by 31 October 2000
at the latest.
Agree to seek donor support for and voluntary contributions to an Integrated Framework
Trust Fund (IFTF) for the purpose of mainstreaming trade and trade-related assistance into
development architecture. The IFTF would finance: i) the formulation by countries of tradeintegration strategies as part of their PRSPs; ii) project preparation and design of trade
capacity building projects in areas that are identified as priorities in the PRSP; iii) regional
projects that do not fall within the scope of the CG/RT process; and, iv) limited and urgent
capacity-building activities for LDCs for which no PRSP will be prepared or where
CGs/UNDP Round Tables are not taking place (including in an appropriate time-frame).  Thefunding objective for the period 2001-2003 is set at US$ 20 million.
Agree that the IFTF will be administered by UNDP on behalf of the core agencies of the
Integrated Framework on the basis of terms to be agreed among agencies and donors.WT/LDC/SWG/IF/2
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Agree  to give active support for and contribute towards achieving the objectives of the Third
United Nations Conference for the Least-Developed Countries (LDC-III) to be held in
Brussels, May 2001, using the preparatory process for the Conference.
Agree  that while there is merit in the idea of enlarging the IF to apply to other developing
countries, this should not be undertaken at the present time, but rather re-considered in two
years when improvements to the IF have been tried and seen to be working.
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