WORLD TRADE
ORGANIZATIONWT/GC/W/276/Rev.1
14 October 1999
(99-4397)
General Council Original:  English
PREPARATIONS FOR THE 1999 MINISTERIAL CONFERENCE
Proposal on Technical Assistance/Capacity Building
Communication from Bangladesh, Lesotho, Nige ria, Senegal, the United States and Zambia
Revision
The following communication, dated 11 October 1999, has been received from the Permanent
Mission of the United States.
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1. After the U.S. proposal on technical assistance and capacity building (WT/GC/W/276) was
tabled, a number of delegations provided endorsement and helpful comments. This revision is
intended to reflect such input and includes the endorsement of additional countries, without prejudice
to their earlier support of the proposals found in WT/GC/W/299, WT/GC/W/259 and Add.1.
Text Proposal
2. Ministers agree to establish an action agenda to give a new direction and priority to the
technical assistance and support for capacity building provided to WTO Members, particularly theleast-developed, to ensure their integration into th e trading system.  They request that the Director-
General, in cooperation with the Chairpersons of the Committee on Trade and Development and the
General Council, launch a new action agenda to strengthen and enhance the WTO’s ability to work
with other international institutions in delivering such assistance to Members, particularly the least-
developed.  The new action agenda shall also improve the Integrated Framework for the Least-Developed Countries (IF) by promoting greater coherence among institutions and emphasize
efficiencies among donor countries in the conduct of their programmes;  ensure that such programmes
are “demand driven” and responsive to the needs and interests of recipients; and explore
establishment of a designated development partner programme to assist least-developed countries  to
coordinate follow-up activities.  Drawing upon this  experience, Members will eventually pursue the
concepts embodied in the IF in a new, separate framework for the delivery of  capacity building
technical assistance to a broader range of WTO Members who are less advanced or are economies in
transition.
Action agenda3. Not later than July 2000, Members shall complete an evaluation of current capacity building
technical assistance delivery mechanisms and develop proposals for General Council consideration
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- examining implementation of the IF for the least-developed and propose
improvements to the programme;
- assessing the viability of a development partner programme for the least-developed to
assist these countries in making full use of the IF;
 - improving cooperation among internationa l intergovernmental organizations (IGOs)
in the identification and delivery of technical assistance, with the objective of
maximizing the number of participating IGOs in the new action agenda, particularly
those participating in the IF;
- ensuring that capacity-building assistance to address “supply-side” and/or regulatory
and other infrastructure needs are appropriately examined for further action;
- incorporating bilateral donors and technical assistance providers into activities under
the new action agenda, including the IF, and explore ways to improve coherence in
the interaction among bilateral donors, IGOs, including relevant regional IGOs andthe non-governmental organization (NGO) community;
- working to establish a comprehensive framework for the funding of  technical
assistance, based on an evaluation of priority requirements, current funding
mechanisms (including expenditures) and other potential funding sources to ensureeffective use of resources and ensure their sustainability over the long term, including
the Special Adviser’s ability to coordinate the IF with adequate human and other
resources;
- establishing a mechanism for the regular review and evaluation of capacity building
and technical assistance activities which may include regular progress reports and
follow-up to the General Council by the Director-General, a Deputy Director-General
or Special Adviser; and
- taking into account progress on implementation of the IF for least-developed
countries, to consider creation of a separate and distinct integrated technical
assistance coordination and delivery mechanism for other less advanced countries andeconomies in transition, employing concepts used in the IF, where possible.
Rationale
4. During the General Council debate, many Members have commented on the need for a new
approach to technical cooperation and capacity build ing and their interest in participating in the
design and evaluation of technical assistance programmes.  It is also clear that the improvements in
the implementation of the IF for the least-developed are necessary.  The experience of the first five
years of the WTO leads us to the conclusion that broadening, enhancing and more effectively
coordinating technical assistance is desirable and that Ministers meeting in Seattle need to givespecific directions to the WTO, under the leadersh ip of the Director-General, to make important and
immediate improvements in this area, building on the experience of the IF.
5. In 1997, as part of the High-Level Meeting on Integrated Initiatives for the Least-Developed
Countries’ Trade Development, the IF was developed to  foster an integrated approach to trade-related
technical assistance activities for the least-developed Members, aimed at improving their overallcapacity to respond to the challenges and opportunities offered by the trading system.  The process
began with the identification of needs by each country, followed by a joint response to those needs byWT/GC/W/276/Rev.1
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participating IGOs.  Ultimately, each least-developed country received an integrated technical
assistance plan from the IGOs.
6. The IF was a sound approach, but, in practice, has some shortcomings in terms of
implementation, particularly with respect to lack of follow-up and poorer-than-expected coordination
among IGOs.  Nevertheless, with appropriate attention to the problems identified, we believe thatsome of the concepts of the IF could eventually be employed in developing a programme to plan and
deliver technical assistance to non-least-developed countries in the WTO system.  Such a programme
would be separate from the IF itself, which was designed to respond specifically to the substantial
needs of least-developed countries. The WTO can facilitate efforts to improve both the IF and
assistance to other WTO Members by playing a more active coordinating role.
7. There are many actors in the capacity building/technical assistance  field – from IGOs to
WTO Member donor countries to WTO Member recipient countries, although not all are yet grantedobserver status in the WTO.  Numerous IGOs are involved.  Assistance also is provided at the
bilateral level and via the extensive network of NGOs and other organizations.  At the same time,
recipient countries have called for a better means of working within the framework of assistance to
select and make the best use of programmes that will meet their particular needs.  There has been
considerable emphasis on the importance of ensuring a demand-driven component to programmes andthat they include identification of priority projects based on recipient country needs assessments and
their relationship to trade-related capacity building.  In the context of World Bank country
programmes, reflecting government priorities, the World Bank can incorporate trade-related projects
that facilitate WTO capacity building.
8. A new approach should be adopted by Ministers at Seattle with the aim of revitalizing the
success of the initial work done under the  and strengthening existing forms of cooperation.  Many
governments found that the needs assessments were an invaluable tool for considering the viability
and efficiency of new programmes.  The WTO need not compete with other international institutions
or development institutions, but it must strengthen  its ability to assist Members in maximizing the
opportunities for assistance and ensuring that they enhance prospects for fuller integration ofMembers into the trading system.  WTO Members have a special responsibility in this regard with
respect to the least-developed Members of the WTO.  In an effort to assist the least-developed,
through the administrative and coordination process, the WTO should consider establishing a
programme of development partners that might take the responsibility for ensuring that there is
appropriate follow up in organizing roundtables and other coordinating activities, including possible
involvement of members of the NGO community in the effort.
9. Some of the issues raised by all developing countries include inadequate or ineffective
technical assistance, resource problems and implementation problems.  Developing countries, in
particular least- developed, have stressed that the IF  and other technical assistance is just part of the
picture.   Assistance in building the capacity to trade is an important part of efforts to fully integrate
countries into the multilateral trading system.  Regular reporting to the General Council by the
Director-General, a Deputy Director-General or Special Adviser would re-enforce the importance of
follow through on overall development issues, as well as maintain an elevated approach to these
issues in the context of integrating countries into the multilateral trading system.  Work on a
comprehensive, sustainable and long-term approach to funding technical assistance and capacity
building is also an important factor.
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