RESTRICTEDWORLD TRADE
ORGANIZATIONWT/LDC/SWG/IF/5
11 October 2000
(00-4173)
Sub-Committee on Least-Developed Countries
INTEGRATED FRAMEWORK FOR TRADE-RELATED ASSISTANCE
TO LEAST-DEVELOPED COUNTRIES
Report of the 21st Meeting of the Inter Agency Working Group,
Washington D.C., 14-15 September 2000
Chair:  Mr. Chiedu Osakwe (WTO)
1. The 21st Meeting of the Inter-Agency Working Group (IAWG) was held at the World Bank in
Washington D.C., 14-15 September 2000.  The circulat ed provisional agenda was adopted (see Annex
1).
II. AGENCY REPORTS ON REACTIONS BY GOVERNING BODIES/COUNCILS OF
THE CORE AGENCIES TO THE JOINT STATEMENT
2. Representatives of the Agencies exchanged information on the results of the presentation of
the Joint Statement to their memberships.  Agen cies had consulted with their memberships, some
formally others informally, in accordance with their institutional practices.1  The views expressed and
the feedback from core Agency memberships were largely uniform.  First, there was strong supportfor mainstreaming trade into country development strategies.  In this context, the World Bank
informed the IAWG that the Heads of the IMF and the World Bank had recently agreed to focus more
on trade.  Second, on governance, Agency membership reactions revealed strong support for the
establishment of a Steering Committee which it was felt would improve IF transparency and
strengthen accountability.  The World Bank's lead role to undertake the mainstreaming of trade was
supported, though a few members expressed concern that the IF would be taken away by the six-
agency coordinated initiative, as originally envisaged at the High Level Meeting.
3. Third, exchange of views amongst Agency representatives showed that the core memberships
generally supported the WTO's role as co-ordinator of the IAWG and the UNDP's role to administer,
with representatives of the core Agencies, the proposed IF Trust Fund.  However, the assessment of
reactions also showed that there were also expressions of concern, by a few, about the ability of the
two agencies to effectively deliver on the responsibilities allocated to them.
                                                     
1 The IMF had reported to the Executive Board on the evaluation report for the IF review and had
received some reactions; since then, there had been no comments or reactions received from the Board.  TheITC had consulted the Joint Statement with some donors and LDCs on an informal basis.  In the case of theUNCTAD, the Secretary-General had informally reported on the Joint Statement to the Trade and DevelopmentBoard, which would formally discuss the item at its October meeting.  The UNDP had informally consulted with
some donor countries and LDCs.  At the World Bank, a full report on the 20th IAWG meeting had been
submitted to the Executive Board, and since then, some communications had been made, including the Joint
Statement.  In case of the WTO, the Joint Statement was presented by the Director-General to the GeneralCouncil on 17 and 19 July 2000, and by the WTO Secretariat to the Sub-Committee on Least-DevelopedCountries on 21 July 2000.  The minutes of the meetings are contained in WTO documents WT/GC/M/57 andWT/COMTD/LDC/M/20, respectively.WT/LDC/SWG/IF/5
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4. Finally, assessment of the reactions of core Agency memberships to the proposed IF Trust
Fund were mixed.  While the World Bank reported that the reactions of some of its members were
negative, the UNDP reported encouraging and positive signals it had received from several of its
members.  However, the assessment, at the meeting, also showed that no concrete contributions had
yet been made.  The WTO in reporting the reactions of its memberships repeatedly drew attention tothe unanimous position of its members that any funds contributed to the proposed IF Trust Fund
(without prejudice to the establishment of the Fund ) should not be expended on preparatory works for
mainstreaming trade, but rather for the direct funding of projects.  WTO members considered that the
World Bank should absorb the "cost of mainstreaming".
5. In the light of the critical importance of mainstreaming for the effective implementation of the
IF, the Chairman asked World Bank representatives if they could fully absorb the cost of
"mainstreaming".  In response, Bank representative said that mainstreaming was a routine aspect ofthe Bank's work.  Currently, they undertook about 2 per year.  But in order to meet the objectives of
accelerating the integration of LDCs into the multilateral trading system, extra resources were
required to achieve a reasonable and decent degree of acceleration.
6. The Chairman also asked the IAWG representatives, given the reactions from the core
Agency memberships, in particular, the absence of concrete support for the proposed IF Trust Fund,how the Agencies should proceed with implementation of the new arrangements proposed for the IF,
as contained in the Joint Statement.  In response, representatives of all the core Agencies were
unanimous in their consideration, based on a key recommendation by the independent evaluation
team, that effective implementation of the IF was unlikely if it remained an unfunded mandate.
Funding was critical for the effective implementation of the IF.  No resources had been allocated forthe execution of the IF in any of the agencies, with the exception of the funds made available to the
ITC by the Agence Intergouvernementale de la Francophonie (AIF) to assist French-speaking LDCs
to participate in the IF process.  Coordination costs had also been high, with limited to modest
tangible results for LDCs.  The proposed new arrangements were, inter alia , intended to address the
problem of the unfunded mandate by:
(i) mainstreaming trade into country development policy framework (e.g. PRSPs) and
into the World Bank Consultative Groups meetings or UNDP Round Tables, where
resources could be generated for trade-related projects; and,
(ii) establishing an IF Trust Fund to support preparatory activities for mainstreaming of
trade.
The IAWG representatives, therefore, considered that in the absence of concrete funding support for
the proposed IF Trust Fund, it was not possible to pursue effective implementation of the newarrangements for the IF.
7. Having taken the above position, the IAWG agreed  that it would continue to deliver trade-
related technical assistance, jointly or individually, within their existing resource constraints.  For
instance, the World Bank would pursue its mainstreaming activities, although the lack of additional
resources from the IF Trust Fund could affect the speed of implementation.  In this context, ITC statedthat it could contribute to the Bank's mainstreaming works, in particular the formulation of PRSPs for
LDCs, by undertaking the formulation of trade strategies in several French-speaking countries with
resources available by the AIF and in some English-speaking LDCs by using resources available
under ITC's Global Trust Fund.
8. Following an extensive exchange on mainstreaming and unanimous Agency recognition of
the indispensable value of mainstreaming of trade into country development strategies, the Chairman
proposed that the six agencies co-sponsor a seminar on "Mainstreaming Trade into Country
Development Strategies: Perspective of LDCs".  Agencies agreed , and also agreed
 that the resultsWT/LDC/SWG/IF/5
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from such a seminar should feed into the forthcoming Third UN Conference for LDCs to be held in
Brussels, in May 2001.
9. The IAWG also agreed  that, within the context of limited resources, IF inter-agency activities
would only focus on analysis and exchange of in formation, examination of the results of selected
integration strategies and the convening of inter-agency meetings when necessary.
10. The IAWG issued a statement on the above position of the agencies (see Annex 2).
III. FOLLOW-UP TO THE JOINT STATEMENT
A. TERMS OF REFERENCE FOR THE STEERING COMMITTEE , THE INTER -AGENCY WORKING
GROUP , AND THE INTEGRATED FRAMEWORK TRUST FUND
11. Notwithstanding the position of the IAWG on IF implementation within the context of limited
resources, Agency representatives also considered the details of follow-up action to the Joint
Statement pursuant to the Joint Statement, which would apply particularly under the scenario of animproved funding situation.  To this end, the IAWG  draw up draft terms of reference for the Steering
Committee, the Inter-Agency Working Group and the IF Trust Fund (see Annexes 3, 4 and 5).
Representatives agreed to consult their respective memberships to seek views and inputs in the
coming weeks before the finalisation of the draft terms of reference before the 31 October deadline, as
in the Joint Statement.  It was agreed  that when finalised, the terms would be presented to the Agency
governing bodies for note.
B. INFORMATION ON SECONDMENT (S) AND FOLDING OF ADMINISTRATIVE UNIT INTO THE WTO
SECRETARIAT
12. Routine Agency reports expected to be taken up on secondments and the process of folding
the Administrative Unit into the WTO were deferred because of the overall focus on long-term IFprospects linked to funding.
IV. STATUS REPORTS
A. R
EPORT BY THE UNDP ON THE INTEGRATED FRAMEWORK TRUST FUND
13. The representative of the UNDP stated that since the 6 July meeting, his Administrator, Mr.
Mark Malloch Brown, has pursued resource mobilisation for the IF Trust Fund. Together with Mr.Mike Moore, the Director-General of the WTO, Mr. Malloch-Brown had presented the Joint
Statement at Tidewater, the informal meeting of OECD Development Ministers in Bonn, 10 July
2000.  The Administrator had, thereafter, written to several Development Ministers on 10 August
2000, requesting support of the establishment of the IF Trust Fund and contributions to it.  While
there had been some indication of interest and positive signals, there had been so far no concrete
funding support.
14. The UNDP representative emphasised the need for continuing consultations with donors on
the basis of the drafted terms of reference for the proposed IF Trust Fund.  He took the position that
donors would not commit to the proposed IF Trust Fund, unless they were satisfied with the terms of
reference.
B. R
EPORT BY THE WORLD BANK ON THE IMPLEMENTATION OF THE MAINSTREAMING OF
TRADE AND THE IF INTO PRSP S
15. The representative of the World Bank gave a presentation on Bank activities on
mainstreaming trade (Annex 6).  He said that Bank's "mainstreaming" activities were pursued at twoWT/LDC/SWG/IF/5
Page 4
levels.  First, trade strategies were developed at  the country level within the framework of a Country
Assistance Strategy or Comprehensive Development Strategy.  The key instrument for developing
such country trade strategies would be the chapter on trade integration and market reform which had
been developed as part of the Poverty Reductio n Strategy Paper's (PRSP) Sourcebook.  The trade
chapter was intended to provide not only the analysis of traditional trade policy instruments such astariffs, but also for services, trade facilitation and foreign investment, as well as the methodology for
assessing the impact of using various trade instruments.  He said, however, that given the
decentralised structure of the World Bank, which relied heavily on country operation staff, country
strategies were often internally focused.  The Bank was therefore making efforts to convince its
country operation staff that trade could serve as an engine for country development.
16. Second, mainstreaming was also pursued through the Bank's trade-related technical
assistance, in particular, through training and capacity-building.
17. With regard to the speed of mainstreaming trade into PRSPs (i.e. the inclusion of a trade
section into PRSPs), the representative of the World Bank said that individual countries, such as
LDCs themselves, had to decide whether to include a trade section in its PRSP, as there was no
"template" for PRSPs.  Moreover, in the absence of additional resources envisaged from the proposed
IF Trust Fund, it would be difficult for the Bank to mainstream trade at a speed which would meet theobjective of accelerating the integration of LDCs into the multilateral trading system and the global
economy.  In this case, the institution would continue to pursue its mainstreaming efforts at current
speed, by undertaking two PRSPs per year.
18. In ensuing discussions, some representatives asked how the IF would fit in the PRSP process
and how other agencies would participate in preparatory activities.  The Bank representative repliedthat a PRSP was an open process whereby all stakeholders, including the IF agencies, could be
involved, although the process was country-driven.  A question was also raised as to what constituted
"mainstreaming trade".
19. Following discussions and a proposal that was made, it was agreed that as part of IF
operations:
(a) The World Bank and UNDP would combine their schedules for Consultative Groups
(CGs) and Round Tables; and,
(b) the IMF and the World Bank would provide and update schedules for PRSPs.
2
C. REPORT BY ITC ON PURSUIT OF ON -GOING PROGRAMMES UNDER THE IF
20. The representative of the ITC gave a presentation on on-going activities under the IF.  He
focused in particular on progress in formulating trade strategies and PRSPs on a country-by-country
basis (see Annex 7). Trade strategies were prepared by national governments with the support ofinternational and national consultants and subsequently circulated among the agencies.  Their formats
varied considerably from one country to another. The information provided was based on
consultations by ITC with LDCs' focal points, local stakeholders (including, in some cases, the UNDP
and World Bank), IF consultants, as well as information available on the Poverty Net of the World
Bank.  Underscoring work that had been done on trade strategies, the representative of ITC said thatin the past two years, work on approximately 10 to 15 trade strategies had been initiated.  However,
none of the trade strategies had yet been completed.  In the view of the ITC, these initiatives could be
usefully brought into the mainstreaming work pursued by the World Bank.
                                                     
2 The combined schedules are contained in WTO document WT/SWG/LDC/IF/6.WT/LDC/SWG/IF/5
Page 5
21. The IAWG expressed their collective appreciation for the work that had been done by ITC.
Agencies unanimously stressed the necessity of quality control on the formulation of trade strategies
to ensure their compatibility with sound policies.  Ag encies collectively recognized that they were yet
to develop a mechanism for providing comments and sound advice on drafts of country trade strategy
documents in order to ensure quality control and good policies. Some representatives also wonderedwhat steps needed to be taken to incorporate these trade strategies into PRSPs.  It was understood that
these practical matters would be taken up at the seminar on mainstreaming trade into country
development strategies to which the core agencies had already agreed to jointly organize.
22. The representative of the WTO reported the outcome of consultations held with some LDCs,
on 11 September 2000, which had scheduled IF Round Tables for this year (Lesotho, Madagascar,
Zambia).  While the countries generally agreed with the concept of and necessity for mainstreaming
as well as its potential benefits, some insisted on holding sectoral trade round tables. Moreover, theLDCs consulted had stressed that that ultimately the decision on whether to mainstream or to continue
with sectoral trade round tables rested with indi vidual LDCs, in accordance with the IF principle of
country ownership.
V. EXCHANGE OF VIEWS ON 5 ROUND TABLES ALREADY HELD (BANGLADESH,
THE GAMBIA, HAITI, TANZANIA AND UGANDA)
23. The IAWG agreed  to postpone the discussion of follow-up on the 5 Round Tables already
held until the next meeting.
VI. THIRD UNITED NATIONS CONFERENCE FOR LEAST-DEVELOPED
COUNTRIES (LDCS-III)
24. The representative of the UNCTAD provided an update of the preparatory process for the
Third UN Conference on the LDCs(LDC-III) to be held in Brussels on 14-20 May 2001.  The
preparations had shifted from logistics and organizational arrangements to substantive work that
would primarily focus on the preparations of an annotated outline for the drafting of the Global
Programme of Action,  as mandated by the first PREPCOM for the Conference held in New York in
July 2000.  In this context, agencies were expected to provide their inputs to the preparatory work.The Conference Secretariat was working closely with the World Bank and other agencies to ensure
that technical and substantive contribution would be made to the preparatory process both at the
country level regarding the finalization of country programmes of action and, at the conference
regarding participation at various events envisaged, including the interactive debates and the parallel
events.  Moreover, it was noted that LDC-III offered an opportunity for the six agencies to pursue
their efforts towards revitalization and effective implementation of the IF.
25. In the course of discussions, it was noted that PRSPs were not mentioned in most of the
preliminary country reports that had been received so far, and that trade did not seem to have been
accorded priority.  Moreover, it was pointed out that it was important to know from the Conference
Secretariat what was specifically needed from the agencies.  In response, reference was made to the
inter-agency consultations already held on this ma tter and responses, so far, on specific tasks that
some agencies had committed themselves to undertake, including HIV/AIDS (WHO), food security(FAO) and business sector round table/forum (ITC).
VII. ANY OTHER BUSINESS
26. In the absence of items to be taken up under Any Other Business, the meeting was adjourned.WT/LDC/SWG/IF/5
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Annex 1
Provisional Agenda for the 21th Meeting of the IAWG
 World Bank, Washington D.C. , 14-15 September 2000
1. The items proposed for the provisional agenda are as follows:
(a) Agency reports on reactions by Governing Bodies/Councils of core Agencies to the
Joint Statement
(b) Follow-up to the Joint Statement by Heads of Agencies
(i) Terms of Reference for the Steering Committee
(ii) Terms of Reference for the Inter Agency Working Group
(iii) Terms of the Reference for the IF Trust Fund
(iv) Information on secondment(s) and folding of Administrative Unit 
into the WTO Secretariat
(c) Status reports
(i) Report by the UNDP on the Integrated Framework Trust Fund
(ii) Report by the World Bank on implementation of the mainstreaming 
of trade and the IF into PRSPs
(iii) Report by ITC and WTO on pursuit of on-going programmes under 
the IF (Zambia, Mali, Lesotho, Guinea, Madagascar, Mauritania)
(d) Exchange of views on 5 Round Tables already held (Bangladesh, Haiti, Tanzania,
The Gambia and Uganda)
(e) Third United Nations Conference for Least-Developed Countries (LDCs-III)
(i) Status report by UNCTAD on the First Inter-governmental 
Preparatory Conference for LDCs-III
(ii) Exchange of views on contributions to LDCs-III
(f) Any other businessWT/LDC/SWG/IF/5
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Annex 2
Statement by the Inter Agency Working Group,
Washington D.C., 15 September 2000
The Inter Agency Working Group (IAWG) met at the World Bank Offices in Washington
D.C., 14-15 September 2000.  It considered several items on its agenda, focusing, inter alia, on steps
required for the effective implementation of the Integrated Framework, including the new
arrangements contained in the Joint Statement adopted by the Heads of Agencies on 6 July 2000.
Agency officials assessed the reactions of the memberships and governing bodies of the six core
Agencies to the Joint Statement.
In the assessment, it was evident that the memberships and governing bodies of the core
Agencies broadly supported the new arrangements as steps in the right direction, particularly with
regard to the decisions to mainstream trade into country development strategies, and to improve
governance, the secretariat and coordination functions.  However, the results of the assessment
revealed no concrete support so far for the establishment of an Integrated Framework Trust Fund andcontributions to it.
Having regard to the foregoing and to the find ings of the IF independent review, the Working
Group considers that in the absence of concrete funding support for the new arrangements, effective
implementation of the IF will be significantly affected.  Against this background, Agencies willcontinue to deliver trade-related technical assistance to least developed countries within their existing
resource constraints, pursuant to their mandates and competence.  Inter Agency activities within the
framework of the IF will focus on analysis and exchange of information, examination of the results of
selected trade integration strategies and the convening of inter agency meetings when necessary.
Finally, Agencies will continue to support the efforts by the Administrator of UNDP, on
behalf of the core Agencies, for IF resource mobilization.WT/LDC/SWG/IF/5
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Annex 3
DRAFT
Decision on the establishment of the Inte grated Framework Steering Committee (IFSC)
1. Pursuant to the mandate contained in the Framework Document3 establishing the Integrated
Framework for Trade-Related Technical Assistance to Least-Developed Countries (IF), the core
Agencies4 undertook a review of the IF, concluded in July 2000.
2. At the First meeting of the Heads of Agencies and Representatives of the core Agencies on 6
July 2000, a Joint Statement was adopted.5  In the Joint Statement, they, inter alia , re-affirmed their
commitment to work together, on the basis of their respective mandates and competence, to assist the
LDCs to integrate into the global economy in a manner supportive of their overall development
objectives, and in particular as expressed in their Poverty Reduction Strategy Papers (PRSP) process.
3. Agencies concluded from the review exercise that the Integrated Framework, as an instrument
for trade-related capacity-building, needed to be  strengthened as a mechanism for assisting the
integration of LDCs into the multilateral trading system and the global economy.  To this end, in theJoint Statement, it was agreed, inter alia , to invite representatives of LDCs and donor countries to
serve together with Heads of the core Agencies, in a Steering Committee, to help ensure proper
oversight and policy guidance.
4. Having regard to the foregoing, the core IF Agencies: the IMF, ITC, UNCTAD, UNDP,
World Bank and the WTO:
(a) agree  to the establishment of an Integrated Framework Steering Committee (IFSC);
(b) invite  the memberships of the core IF Agencies to note the establishment of the
Integrated Framework Steering Committee with the Terms of Reference  as follows:
(i) Objectives :
- The IFSC shall focus on strengthening the Integrated Framework for Trade-
Related Technical Assistance as an effective instrument for Trade-Related
capacity-building in LDCs, assisting th eir integration into the multilateral
trading system and global economy, in a manner that it is consistent with their
overall development priorities and their poverty reduction strategies;
- The IFSC shall provide policy guidance and oversight on the Integrated
Framework;
- The IFSC shall review and approve the commitments and expenditures of the
Integrated Framework Trust Fund, with  a view to ensuring quality of
outcome.  It shall establish targets for resource mobilization;
                                                     
3 WT/LDC/HL/1/Rev.1 (paragraph 6).
4 IMF, ITC, UNCTAD, UNDP, World Bank and the WTO.
5 WTO document: WT/LDC/SWG/IF/2.WT/LDC/SWG/IF/5
Page 9
- In strengthening and improving the functioning of the IF, the IFSC shall make
recommendations to the Governing Boards/Councils of the six core
Agencies;6
(ii) Rules of Procedure and Agenda :
- The IFSC shall work on the basis of consensus, meeting once a year, at a
venue to be determined by the Chairman.  The Chairmanship shall be rotated
annually amongst the six core Agencies, based on procedures to be agreed at
the first meeting of the IFSC, which shall be convened in 2001;
- It shall be serviced by the WTO Secretariat, in its capacity as the Secretariat
of the Inter-agency Working Group of the Integrated Framework;
(iii) Membership :
- The IFSC shall be composed of the six (6) Heads of the core IF Agencies,
contributing donors to the Integrated Framework Trust Fund, the Chairman of
the DAC/OECD Secretariat, and six representatives of LDCs, selected by
LDCs themselves.
Washington D.C.,
15 September 2000
                                                     
6 Executive Board of the IMF, Joint Advisory Group of the ITC, Trade and Development Board of
UNCTAD, Executive Board of UNDP, Executive Board of the World Bank, and the General Council of theWTO.WT/LDC/SWG/IF/5
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Annex 4
DRAFT
Decision on the Terms of Reference for the Inter-agency Working Group (IAWG) of the
Integrated Framework for Trade-Related Technical Assistance to LDCs
1. Pursuant to the decision by the Heads of Agencies in the Joint Statement of 6 July 2000, the
core Agencies decide that the Inter Agency Working Group (IAWG), which shall be chaired by the
World Trade Organization (WTO), shall have the Terms of Reference as follows:
(a) Service the meetings of the Integrated Framework Steering Committee (IFSC) by
inter alia , preparing reports, background notes and compiling records of meeting of
the IFSC as well as other duties that may be assigned by the IFSC;
(b) Serve as an enquiry point for Least-Developed Countries IF focal points by
responding to questions on the implementation of the IF and channelling such
requests and enquiries to core Agencies with appropriate competence and mandate;
(c) Maintain regular contacts with LDCs' IF focal points by encouraging LDC full
ownership of the IF, assisting their efforts to mainstream trade into national
development priorities and poverty reduction strategies by drawing on the different
complementary types of trade-related technical assistance provided by each core
agency;
(d) Ensure coordination and information flow amongst the six core Agencies with regard
to policies, programmes and projects  undertaken in the implementation of the
Integrated Framework in favour of L east-Developed Countries, including on:
- LDCs' Round Tables;7
- mainstreaming of trade priorities into LDCs' overall development plans and
poverty reduction strategies;
- the operation of the IF Trust Fund;
- indicative lists of the types of trade-related capacity-building that can be
offered to LDCs by each core Agency, based on specific requests;
- core agency joint activities; and,
- collation of periodic reports to be submitted by each core Agency on any
activities undertaken pursuant to the Integrated Framework;
(e) Establish and operate a database of trade-related technical assistance for LDCs, to be
posted on the IF website;
(f) Maintain regular contacts amongst IF focal points to be formally designated by each
core Agency;
                                                     
7 For those LDCs that prefer and opt to maintain st and-alone sectoral trade round tables and opt not to
integrate sectoral trade round tables into either World Bank Consultative Group meetings or UNDP roundtables.WT/LDC/SWG/IF/5
Page 11
(g) Undertake on a periodic basis joint activities such as seminars, programmes and all
other such tasks as the core agencies shall decide with regard to the integration of
least developed countries into the trading system and global economy and the
effective implementation of the Integrated Framework;
(h) Establish and maintain contacts with bilateral, regional and other multilateral
development partners with the objective of establishing partnerships and seeking their
assistance to support trade-related technical assistance to LDCs under the Integrated
Framework;
2. The WTO as Secretariat and chair of the IAWG shall convene meetings of the IAWG as
necessary and, propose an agenda for meetings, in consultation with core Agencies.  In addition, the
Inter Agency Working Group will prepare annual reports for the Integrated Framework Steering
Committee.
3. The IAWG shall operate on the basis of consensus and shall have regard to the specific
mandates and competence of each core Agency.
Washington D.C.,
15 September 2000WT/LDC/SWG/IF/5
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Annex 5
DRAFT
Decision on the Establishment of the Integrated Framework Trust Fund (IFTF)
1. An Integrated Framework Trust Fund (IFTF) for all Least-Developed Countries (LDCs) is
established.  The IFTF shall provide a central point for the deposit of contributions to the Integrated
Framework for Trade-Related Technical Assistance to Least-Developed Countries (IF).  The funds
shall be used in a demand-driven manner to assist Least-Developed Countries to accelerate their
integration into the multilateral trading system a nd the global economy, and shall apply to the funding
of those trade-related programmes and projects of priority to LDCs.  The CGs and UNDPRoundtables shall continue to focus on assisting the generation of funding for institution-building and
infrastructure.
2. The IFTF shall operate under the guidance of the Integrated Framework Steering Committee,
composed of the core Agencies,
8 contributing donors and 6 representatives of Least-Developed
Countries (LDCs).  The Board of the IFTF shall be chaired by the Administrator of the UNDP or hisdesignated representative, and include representatives of the core Agencies.  Decisions in the Board of
the IFTF shall be taken on the basis of consensus.
3. The Integrated Framework Trust Fu nd has three Windows, as follows:
• Window I : Contributions to and funds in this window  shall be used to finance trade-related
project formulation missions, preparatory assistance activities such as under the PovertyReduction Strategy Papers (Poverty Reduction Strategy Papers) process, advisory missions,
country integration strategy studies, analytical work and trade policy advocacy;
• Window II : Contributions will be used for funding trade-capacity building projects,
example, trade facilitation, trade negotiation, trade policy, regional and multilateral
integration, etc.  Contributions could be ear marked towards projects and\or countries;
• Window III:  Contributions for regional projects that fall outside the scope of either
Consultative Groups or UNDP Round Tables.
4. Donors shall have the scope to consider contributing to any of the three Windows.
5. Activities under the IFTF shall be formulated and implemented by the six core Agencies in
co-ordination and in partnership and consultation with the beneficiary countries.
6. Activities under the IFTF shall be carried out in accordance with the applicable regulations
and rules of the core Agencies.
7. The functions of the IFTF shall be reviewed two years after the start of operations.
8. A financial report shall be prepared by UNDP as part of the Annual Report of the Interagency
Working Group to the Integrated Framework Steering Committee.
Washington D.C.,
15 September 2000.
                                                     
8 IMF, ITC, UNCTAD, UNDP, World Bank and the WTO.WT/LDC/SWG/IF/5
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Annex 6
MAINSTREAMING TRADE: UPDATE ON BANK ACTIVITIES
1. World Bank activities in the area of trade policy, trade facilitation and export development are
primarily undertaken at the country level, on the ba sis of a Country Assistance Strategy (CAS) that is
developed in consultation with the government. Efforts are being made by the Bank’s Poverty
Reduction and Economic Management (PREM) network to raise the profile of trade-related activities
at the country level. These ‘mainstreaming’ efforts are being undertaken on several levels. First, a
business plan to scale up and increase the effectiveness of Bank work on trade is being developed by
PREM. This will focus on mechanisms to enhance the likelihood that trade issues are considered inthe CAS and in country dialogue. Simultaneously , work is underway by Bank and Fund staff to
prepare a trade integration and market reform chapter for the Poverty Reduction and Strategy Paper
(PRSP) sourcebook.
2. In the period through June 2001, the Bank’s trade group will seek to undertake two PRSP
country-specific “integration strategies” on a pilot basis, both to ‘road test’ the sourcebook and as aninternal marketing device. There is interest on the part of a number of potential country departments
in supporting these pilots. It is important to bear in mind that given the decentralized structure of the
World Bank Group, efforts to ‘mainstream trade’ must  center on the development of tools that are
useful to country operations staff, and on attempts to convince these staff that investing resources in
the trade area will have significant development payoffs.
3. Mainstreaming will also be pursued through trade policy research, training and capacity-
building efforts. The World Bank Institute (WBI) and the Bank’s Development Research Group havean active joint program of training and research capacity-building in developing countries, in
collaboration with regional networks and think tanks. WBI will also provide targeted PRSP training to
staff and country teams. The Bank’s trade related research and policy analysis focuses on assessing
the impact of barriers to trade in both developing and industrialized countries. It also highlights new
issues of importance to developing countries, in particular the use of product standards as barriers totrade, and approaches to liberalizing trade and invest ment in service sectors. A major area of research
focuses on enhancing the capacity of developing countries to participate in the ongoing WTO
negotiations on agriculture. This includes work to quantify the impact of existing restrictions on
agricultural trade and the significance of tariff peaks as a barrier to market access. All of this work
will inform economic and sector work at the country level and is a resource for PRSP teams.Information on research and capacity-building activities can be found on the web site
www.worldbank.org/trade.
Interim PRSPs, PRSPs and Consultative Group meetings
4. The primary vehicles for trade-related activities at the country level are dialogue with the
government, economic and sector work (ESW) commissioned by country staff at the request of the
government, and lending instruments. It is expected that the PRSP process will assist each eligible
country–i.e., Highly Indebted Poor Countries (HIPC) and/or countries that satisfy the criteria of the
International Development Association (IDA) or  the IMF Poverty Reduction and Growth Facility
(PRGF)—to formulate a poverty reduction strategy that includes efforts to benefit from integrationinto the global economy. The priority areas for action identified in each PRSP may include trade-
policy and trade promotion-related needs. If so, in principle these will be submitted for possible
financing to Consultative Group (CG) or Roundtabl e (RT) meetings. Ideally, such meetings will be
held at an early stage of the development of th e PRSP/country strategy (either at the onset of the
government undertaking this exercise or by the time the first draft of the PRSP has been completed) to
ensure that civil society and donors’ points of vi ew are discussed with the authorities. The CG or
analogous meeting (e.g. UNDP led Round Table) will be the primary vehicle for mobilizing donorfunds for trade-related assistance.WT/LDC/SWG/IF/5
Page 14
5. Currently, efforts on the PRSP front are centering on so-called Interim-PRSPs. These range in
sophistication from letters expressing the government’s commitment to poverty reduction and an
outline of a work program to develop a PRSP, to  a detailed document laying out the government’s
development strategy. Interim-PRSPs will lead to the development of full PRSPs over time—their
primary purpose is to generate access to HIPC funds.
6. To date, eleven Interim-PRSPs and two full  PRSPs have been completed (Uganda and
Burkina Faso). As of July 1, 2002, the CAS for all IDA countries—see annex table—must be based
on a full PRSP  The attachments to this note provide information on the status of IDA countries
regarding HIPC, PRGF, PRSPs and the CAS. More information can be obtained from:
www1.worldbank.org/prsp.WT/LDC/SWG/IF/5
Page 15
Active IDA Countries: PRGF, HIPC and LDC Status
Countries
With
Active IDA
ProgramsPRGF
Arrangement in
place at end-
July 2000Countries which
could or have
reached HIPC
Decision Point by
June 2001LDC?
Countries
With
Active IDA ProgramsPRGF
Arrangeme
nt in place
at end-July
2000Countries which
could or have
reached HIPC
Decision Point by
June 2001LDC?
1  Albania
2  Angola
3  Armenia
4  Azerbaijan5  Bangladesh●
*
*
**⊗y
y38 Lao, PDR
39 Lesotho
40 Macedonia, FYR
41 Madagascar42 Malawi*
*
●
●●⊗
●●y
y
y
y
6  Benin
7  Bhutan
8  Bolivia#
9  Bosnia &
Herzegovina
10 Burkina Faso●
●
*
●●
●●y
y
y43 Maldives
44 Mali
45 Mauritania46 Moldova
47 Mongolia●
●
*
●●
●y
y
y
11 Burundi
12 Cambodia
13 Cameroon14 Cape Verde
15 Central
African Rep.●
●
●⊗
●●y
y
y
y48 Mozambique
49 Nepal
50 Nicaragua51 Niger
52 Nigeria●
*
●●●
●
●y
y
y
16 Chad
17 Comoros
18 Congo, Rep.
19 Côte d’Ivoire#
20 Djibouti●
●
●●
⊗
●y
y
y
y53 Pakistan
54 Rwanda
55 Samoa
56 Sao Tomé & Principe57 Senegal*
*
●
●●
⊗
●y
y
21 Dominica
22 Eritrea#
23 Ethiopia#
24 Gambia, The25 Georgia●
●
*●
●y
y
y58 Sierra Leone
59 Solomon Islands
60 Sri Lanka
61 St. Lucia62 St.Vincent&the Gren.*
*⊗ y
y
26 Ghana#
27 Grenada
28 Guinea
29 Guinea-Bissau
30 Guyana●
●
*
●⊗
●●●y
y63 Tajikistan
64 Tanzania
65 Togo
66 Tonga67 Uganda
#*
●
*
●●
⊗
●y
yy
31 Haiti32 Honduras33 India
34 Indonesia
35 Kenya*
●
●●
⊗y6 8  V a n u a t u
69 Vietnam#
70 Yemen, Rep. Of
71 Zambia
72 Zimbabwe*
●
●⊗
⊗
●y
y
y
36 Kiribati37 Kyrgyz
Republic●y Total 33 25
Notes:
*Indicates that a new PRGF arrangement is under active consideration and could be in place by June 2001.
#IIndicates CDF pilot country.
⊗Indicates HIPC Eligible country.
Memo:Countries for which a PRGF program is not in active consider ation and those which are not HIPC eligible (LDC status in
parentheses):  Bhutan (Y), Cape Verde (Y), Comoros (Y) Do minica, Eritrea (Y), Grenada, India, Indonesia, Kiribati (Y),
Maldives (Y), Nigeria, Solomon Islands (Y), St. Lucia, St. Vincent & Grenadines, Tonga, Vanuatu (Y), Zimbabwe.WT/LDC/SWG/IF/5
Page 16
Annex 7
Notes on IF Progress and PRSP Preparation in the 48 LDCs
1. Afghanistan
No Needs Assessment and Integrated Response.
2. Angola
Some conflict in the past had constrained the IF progress.  The Government, in consultation
with UNDP, has requested assistance to define the role of trade for the country's development andformulate the trade policy.
3. Bangladesh
An IF RT was held in Dhaka on 22 January 2000 under the WB aegis.  The two donors (i.e.
Canada (CIDA) and the UK (DFID)) that had expressed their interests at the meeting are actively
following up with the Government on the projects identified.
4. Benin
JITAP is ongoing.  In preparing the PRSP, a national workshop was held in 1999.  The
Government and WB are now developing indicators  related to sectoral goals linked to poverty
objectives.  JITAP sectoral export strategy formulation is underway and should feed into the PRSP
process.
5. Bhutan
WB and ITC started some preparatory work in October 1999 to assist in arranging for
trade-related consultations to be held under the UNDP general RT scheduled for end 2000.  With GTF
funds, ITC is providing support for the formulation of a trade development strategy and an action plan
for export-led poverty reduction based on high-value horticultural items.  These activities are under
the umbrella of the recently endorsed National Policy Document for International Trade.
6. Burkina Faso
A PRSP is being finalized and the WB is assisting in formulating a sectoral response strategy.
JITAP, which is ongoing, could facilitate the work of cross-sectoral teams in analyzing casual linksbetween poverty levels and trends.  JITAP sectoral export strategy formulation work should feed into
the PRSP.
7. Burundi
Within the frame of the new PRSP being finalized with the assistance of WB and UNDP,
AIF/ITC support is provided in collaboration with UNIDO and UNDP to formulate a trade/private
sector development strategy.  This work is based on sectoral studies and will lead to the formulation
of a multi-year TA programme for trade development which will constitute one of the major
components of the new overall programme of techni cal assistance to be discussed at the next UNDP
RT meeting.
8. CambodiaWT/LDC/SWG/IF/5
Page 17
In March 1998 a joint mission of the IF agencies commenced efforts to mainstream trade under
the CG process and preparatory work was conducted under the WB-sponsored project for accession of
Cambodia to the ASEAN.  In the CG meeting held  in Tokyo in February 1999 IF was only briefly
mentioned since the Government underlined the difficulty to mobilize officials and sensitize donors
on trade issues, in particular on the role that the private sector could play in the country to addresssome aspects of poverty.  UNDP and ITC revitalized contacts in spring 2000.  ITC has proposed to
assist in the formulation of an Export Developmen t Strategy as part of the preparatory work of the
new National Programme for Trade Development to be presented at the next CG meeting.
9. Cape Verde
The very small size of the country (400,000 people), its geographic location and lack of human
and natural resources as well as the low ranking of trade among the national development priorities
have not allowed for an active participation of the Government in the IF programme.
10. Central African Republic
AIF/ITC support is being provided at the request of the Ministry of Commerce to assist in
trade-related needs assessment and programme development, along the lines of the present
Government/UNDP strategy "Fight against poverty" for which UNDP has earmarked US$4 million
focussing on rural development and agro-business.  Th e fact that the country has stabilized politically
only recently, the modest support by only a few donor s (France, Italy and Japan), the absolute lack of
infrastructure and its sparse population suggest a flexible and self-contained programme for the trade
sector.
11. Chad
AIF/ITC assistance is being provided to assess the country's needs to strengthen the institutional
set up and define the role of trade in the overall national development strategy.  The Government is
planning to start work on a PRSP for the next UNCTAD Conference on LDCs based on the first
round of consultations held in July 2000 with AIF/ITC, WB and UNDP.
12. Comoros
The unstable political situation with the secession of the major island and a coup d'état in the
last two years have not permitted to launch the IF process in the country.  National reconciliation
discussions are presently being held under the aegis of international and regional organizations.
13. Democratic Republic of Congo
The prevailing conflict does not allow for planning any sectoral development strategies.
14. Djibouti
AIF/ITC assistance is being provided in close consultation with other IF core agencies and
major donors (USA, France, Italy, Japan and EU) to formulate a Customized Integration Strategy
aimed at strengthening the role of Djibouti as a regional trade point.  The envisaged national
consultation on trade, investments and services promotion, is mainstreamed under the CG scheduled
for early 2001.  This consultation will provide the inputs for the formulation of the new Law on Socialand Economic Development of Djibouti for 2001-2010 (aimed at Poverty Eradication and covering all
sectoral policies).
15. Equatorial GuineaWT/LDC/SWG/IF/5
Page 18
AIF/ITC limited support is provided to assist the Government to hold consultations with IF core
agencies and determine priority areas for a future self-contained TA programme for trade
development.  Given the small size of the country (400,000 inhabitants) and the limited donors'
support due to the present political situation, the recent exploitation of an oil field is seen as the major
sector to accelerate the country's economic development.
16. Eritrea
No Needs Assessment and Integrated Response.
17. Ethiopia
Due to the current political situation, the CG has been continuously postponed.  The WB
assisted in preparing the first document for trade-related consultations in 1998.  The updated version
(October 1999) was presented at a preparatory meeting in December 1999 to all development
partners.  Some programme formulation work for trade promotion is being carried out by ITC (GTF)
taking into account the renewed interest to support an Export Promotion Project.  Work formainstreaming the trade consultations within the fu ture CG for Ethiopia is being undertaken.  The
strong Government ownership of the existing Pr ogramme of Action based on Poverty Goals, which
identifies rural economy development as one of the four priority areas of intervention, is supported by
all partners.
18. Gambia
The IF Round Table meeting held in Geneva on 23 November 1999 did not lead to financial
support for the proposed TA programme.  Although the meeting in itself was well prepared and
appeared useful in giving the partners a better understanding of the trade situation, no interest in theprojects was shown since Gambia did not seem to be a geographical priority for the participating
donors.
19. Guinea
AIF/ITC assistance is provided in association with UNDP to assist in the preparation for a RT
on Private Sector Development with a major component on trade to be held in November 2000, as aresult of the preparatory work carried out by WB, UNIDO and UNDP (including a National Strategic
Vision on Poverty Reduction developed through a st akeholders' consultation exercise held in late
1999).  This RT is mainstreamed under the Fram ework Programme to support SMEs' development
(PCSDSP) which is part of the overall National Strategy for Economic Development for the period
2001-2005.  The planned RT is also a part of the major national fund raising initiative for TA named"Solidarité autour de la Guinée".
20. Guinea-Bissau
The UNDP RT held in summer 1999 focussed only on emergency assistance.  No support by
donors has been confirmed.  No other donor meeting is planned for the time being.
21. Haiti
The IF Round Table that was held on 11-12 October 1999 did not pave the way for major
pledges.  The political transition Haiti is presently facing (rounds of elections) has temporarily
suspended any action to be taken regarding the dialogue with the donor partners.
22. Laos PDRWT/LDC/SWG/IF/5
Page 19
A UNDP Trade Development Project is ongoing and provides some link with poverty
reduction/employment generation.  The Government considers the IF process complicated to deal
with and to mainstream under the ongoing programme.
23. Lesotho
ITC is currently assisting the Government to elaborate a trade development strategy, including
SMEs' development, for consultations on the trade s ector with the donors (DFID, USAID) to be held
by mid-2001.  This preparatory work is conducted within the frame of the new UNDP Poverty
Eradication Programme, which comprises a set of projects aimed at job creation.
24. Liberia
No Needs Assessment and Integrated Response.
25. Madagascar
AIF/ITC is assisting the Government in prepar ing a trade development strategy, including work
on needs assessment and TA formulation for a national consultation on the trade sector that would be
a part of the next donor meeting of year 2001.  To ensure mainstreaming the Steering Committee on
Trade has been merged with the one for Private Sector Development where UNIDO/UNDP work is
also ongoing.  Since WB will prepare by spring  2001 a new PRSP, where trade and investment have
been identified as priority sectors for intervention,  a joint effort to formulate the PRSP is being carried
out at present by all the stakeholders.
26. Malawi
A WB mission of May 1999 discussed the possibility of mainstreaming the trade consultations
in the future Donor Review Meeting in support of  the Balance of Payments (BOP).  Assistance to
prepare the trade document was scheduled to be provided under the ongoing FRDP-WB project.
Preparatory activities for the trade consultation are now expected to be sponsored by DFID involving
a local consulting firm.
27. Maldives
In spite of various consultations with the Government, the latter was not keen to introduce trade
at the UNDP RT held in May 1999 so as not to distract donors' interest on the five established sectors
of intervention.  Considering the sparse population of the country (250,000 people), the extremely
small donors' support received at the latest RT and the fact that, as of January 2000, the country hasgraduated from the LDCs group (three years transitional period), agencies should decide on the
approach to retain in developing the trade sector.
28. Mali
An integrated package of assistance under the IF (WB/ITC/WTO/UNDP) has allowed the
Government to prepare in June 2000 a first draft document containing proposals for a Trade
Development Strategy and identifying priority sectors of intervention for the new trade-related
multi-year programme of TA.  This work has been carried out taking into consideration the WB/IMF
Framework document for Economic Policy (1999-2002) and the related National Strategy for PovertyAlleviation (SLNP) adopted at the UNDP RT he ld in September 1998.  The Government is now
consulting his partners on the possibility of holding a national consultation on the trade sector on
27-28 November 2000 as part of the ongoing dialogue with donors.
29. MauritaniaWT/LDC/SWG/IF/5
Page 20
AIF/ITC assistance is provided in cooperation with WTO, UNDP and UNCTAD for the
formulation of a trade-related programme of technical cooperation including needs assessment
validation, sectoral studies and strategy formulation for export development.  The Government will
use the results of this preparatory phase to elaborate the new Framework Document on EconomicPolicy (2000-2002) aimed at job creation/poverty alleviation within the existing Framework
Agreement for Poverty Reduction (ACRP).
30. Mozambique
The WB mission of February 1999 has commenced work to prepare for a trade consultation
based on the results of WB studies on Growth Prospects and Enterprise Development, which also takeinto consideration the recent programme development work carried out by ITC and UNIDO.  Export
development ranks very high in the overall development strategy of the country and certain donors
(USAID, Norway) have manifested their interest for a trade-related TA programme since they attach
priority to the country's private sector export-led  development.  An interim PRSP incorporating the
Action Plan for the Reduction of Absolute Poverty (PARPA) was prepared in February 2000.  ThePlan aims especially to target the rural poor covering income generation and agricultural
development.
31. Myanmar
Although the country has participated in the NA/IR process, no donor support is foreseen at this
stage due to the prevailing political situation.
32. Nepal
The country has recently defined a poverty-foc ussed Country Assistance Strategy (CAS) with
the assistance of the WB and built around a national strategy developed through broad-based
consultations and participation.  ITC is assisting the Government in needs validation/programme
design, as well as in the formulation of a trade development strategy based on the principles of
export-led poverty reduction.
33. Niger
AIF/ITC support is planned to develop the trade component of the Consultations on Private
Sector Development planned for 7-9 November 2000 in Niamey as part of the UNDP RT cycle.  The
WB local office has confirmed support for this initiative during the informal preparatory consultations
held in February 2000.
34. Rwanda
Although the Needs Assessment and Integrated Response were prepared, the current conflict
does not allow for any strategic development planning.
35. Sao Tome and Principe
An interim PRSP was prepared in April 2000 for this mini-state with a population of
approximately 140,000 inhabitants whose economy is based on single produce (cocoa).  The finalPRSP is scheduled for discussion with all partners in November 2001.  Areas already identified
include agricultural development and diversification as well as economic management.
36. Sierra LeoneWT/LDC/SWG/IF/5
Page 21
No Needs Assessment and Integrated Response.
37 Somalia
No Needs Assessment and Integrated Response.
38. Sudan
Some IF preparatory work was conducted in 1999, but the idea of arranging for consultations on
the trade sector was temporarily dropped due to lack of support from the donor community in this
sector.
39. Tanzania
Over the past 12 months, an intensive consultative process has taken place.  The trade
consultations that took place on 14 October 1999 as well as the Workshop held on 14 April 2000 gave
Tanzania the opportunity to initiate consultations on trade-related assistance and to discuss a proposalsupporting export development in the country.  At the CG held in Dar es Salaam in May 2000
consultations on the trade sector/IF continued and are currently being followed-up by the
Government.  Discussions are based on the new Ta nzania Assistance Strategy (TAS) which had been
formulated around the interim PRSP to be finalized by fall 2000.  The PRSP will not be a substitute
for the existing sectoral programmes but will strengthen the prioritization of actions within the sectorstargeting poverty.  JITAP-supported sectoral export strategy formulation should feed into this process.
40. Togo
AIF/ITC assistance is being provided to the Government in needs validation and strategy
formulation for trade development.  These components will be harmonized in the document prepared
by the Government for a future RT on Private Sector Development, to be held under the lead of
UNDP and UNIDO.  These elements are to be mainstreamed into the overall strategy for economic
development and poverty alleviation being finalized by the Government, UNDP and WB.
41. Uganda
As part of the World Bank's Consultative Group meeting, consultations on Trade for Uganda
were held in December 1998.  Different donors presented their interests in the multi-year programme,
including USAID.  At the following CG meeting held in March 2000, the country's PRSP just
finalized was presented as Uganda's Poverty Er adication Action Plan.  JITAP-supported sectoral
export strategy formulation should feed into the PRSP process.
42. Yemen
No Needs Assessment and Integrated Response.
43. Zambia
A first document has been prepared recently with the support of WTO for a national
consultation on the trade sector scheduled for November 2000.  A CG was held 16-18 July 2000 but
due to various reasons the trade sector has not been included in this CG.  UK and USAID have showncertain availability to finance trade-related TA in Zambia in the preparatory phases.
44. Kiribati, Samoa, Solomon Islands, Tuvalu and VanuatuWT/LDC/SWG/IF/5
Page 22
Five Pacific Islands LDCs for which the proposal of holding a regional RT has been recently
agreed in principle and some preparatory work has started in combination with the preparation for the
next UNCTAD Conference on LDCs.  Regional partners (FORUM & ESCAP) are also involved in
this initiative.  These LDCs are of a very modest size, ranging between 13,000 and 350,000 people.
__________