WORLD TRADE
ORGANIZATIONWT/IFSC/M/8
25 September 2003
(03-5096)
Integrated Framework Steering Committee
Ninth Session
REPORT ON THE 9TH MEETING OF THE
INTEGRATED FRAMEWORK STEERING COMMITTEE (IFSC)
Friday 16 May 2003, WTO, Geneva
1. The Integrated Framework Steering Committee (IFSC) held its 9th meeting on 16 May 2003 at
the WTO, Geneva.  Of the adopted agenda, reproduced in Annex 1, it only considered the item on the
clarification of the Terms of Reference for Window II of the Integrated Framework Trust Fund(IFTF).
A. CLARIFICATION OF THE TERMS OF REFERENCE (TOR) OF WINDOW II
2. The Chairman of the IFSC informed Members that since the IFSC's last meeting he had
carried out informal consultations between the LDCs and donors.  Based on the outcome of those
consultations he submitted to the meeting a revised proposal on clarifications of the TOR for the use
of Window II of the IFTF .
3. According to the Chairman, the clarification of  the TOR for the use of Window II of the IFTF
served as a necessary boost to the credibility and the effectiveness of the IF as a viable model for
LDCs' trade development.  Agreement on the clar ification of the TOR for Window II would open a
way for the IF to fund through its own Trust Fund  concrete technical assistance/capacity building
projects identified by the LDC as a priority in its Diagnostic Trade Integration Study (DTIS).  The
proposed clarification of the TOR of Window II attempted to respond to concerns expressed regarding
the functioning of the IF.  In particular, several delegations considered that the IntegratedFramework's Trust Fund (IFTF) itself be used to fund, through its Window II, concrete projects
addressing supply-side constraints as a possible alternative to funding such projects through the
traditional bilateral channels as was currently fores een in the IF process.  This was without prejudice
and in addition to the IFTF's function to fund the preparation of the Diagnostic Trade Integration
Study (DTIS) through its Window I.  As currently applied, the IF process would eventually lead to
(bilateral/multilateral) funding of projects including those addressing supply-side constraints through
the integration ("mainstreaming") of trade into a country's national development plan and as such
reaching the traditional bilateral/multilateral donor channels such as Consultative Groups (CGs) or
Donor Round Tables.  However, the time lag between  the completion of a country's DTIS, including
the proposed matrix of prioritised actions, and the actual funding of the projects through such fora wasconsidered often too long to be effective.
4. Delegations engaged in a lively exchange of views on the scope and nature of the projects
which would be eligible for funding out of the Window II Fund.  The discussions reflected on the one
hand the view that projects addressing supply-side constraints be funded through Window II.  On the
other hand, views were expressed to the effect that the clarification of the TOR should reconfirm theprinciple that while Window II could fund concrete  projects, it was a bridging mechanism aimed at
assisting LDCs in integrating ("mainstreaming") trad e priorities into their development plans such asWT/IFSC/M/8
Page 2
the Poverty Reduction Strategy Papers (PRSP) and accessing development assistance through the
traditional channels such as CGs and Donor Round Tables.
5. The IF Steering Committee agreed that Window II funds could be used for priority projects
during the phase between the completion of the DTIS and accessing funding through CGs, Round
Tables and programme support.  These projects should have the ultimate aim of helping the LDC tocomplete the mainstreaming process successfully but could be of diverse nature, according to the
LDC’s own priorities, and be expected to include project development and supply side (except
physical infrastructure) as well as institutional strengthening.  Procedures for accessing funding would
be as simple and rapid as possible in order that Window II fulfil successfully its role as a quick-
disbursing, bridging mechanism and to overcome the delays currently being experienced.
6. The IFSC adopted the clarification of the Terms of References for the use of the Integrated
Framework Trust Fund (IFTF) Window II as c ontained in document WT/IFSC/4.  Several Members
expressed their intention to contribute to Window II.WT/IFSC/M/8
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ANNEX 1
INTEGRATED FRAMEWORK STEERING COMMITTEE
Agenda for the 9th Session of the IF Steering Committee
Friday, 16 May 2003
1. The Integrated Framework Steering Committ ee will hold its Ninth Session on 16 May 2003,
at the WTO, Room F.  The meeting will start at 10:00 sharp.
2. The items proposed for the agenda are as follows:
(a) Adoption of the agenda
(b) Implementation process and results:
- General assessment of progress in the 14 countries1:  to which the revamped
IF is applied, report by the World Bank and UNDP
- Implementation of the follow-up activities to the IF Round Table Meetings in
Bangladesh, the Gambia, Haiti, Tanzania and Uganda:  highlights by ITC
(c) IF Trust Fund
(i) Financial report by UNDP
(ii) Clarification of the TORs of Window II:  report by the Chairman of the IFSC
(d) IF Evaluation:  report by UNDP and statement by the IF Secretariat
(e) Relationship between IF and JITAP
(f) Other business
- High level meeting on trade and development in Denmark
- Date next meeting
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1Burundi, Cambodia, Djibouti, Eritrea, Ethiopia, Guinea, Lesotho, Mali, Malawi, Madagascar,
Mauritania, Nepal, Senegal, Yemen.