RESTRICTEDWORLD TRADE
ORGANIZATIONWT/LDC/SWG/IF/13
16 February 2001
(01-0764)
Sub-Committee on Least-Developed Countries
INTEGRATED FRAMEWORK - PROPOSAL FOR A PILOT SCHEME
The Sub-Committee on Least-Developed Countries at its 23rd Session on 12 February 2001,
adopted the attached proposal for an Integrated Framework Pilot Scheme.  This is a concrete step in
the implementation of the decision by the Heads of the six Core Agencies,1 in the Joint Statement on 6
July 2000,2 to improve the functioning of the Framework.
                                                     
1 International Monetary Fund (IMF), International Trade Center (ITC), United Nations Conference on
Trade and Development (UNCTAD), United Nations Development Programme (UNDP), International Bank for
Reconstruction and Development (World Bank) , and the World Trade Organization (WTO).
2 WT/LDC/SWG/IF/2, 12 July 2000.WT/LDC/SWG/IF/13
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INTEGRATED FRAMEWORK - PROPOSAL FOR A PILOT SCHEME
Preamble:
Recognizing  the importance of trade as a key component in fostering development and poverty
reduction in Least-Developed Countries (LDCs);
Recognizing  also the need for trade to be addressed in a coherent manner in countries' development
strategies;
Recalling  that the Integrated Framework (IF), as stipulated in the recommendations of the High Level
Meeting in 1997, aims to ensure that trade-related technical assistance (TRTA) and trade-related
capacity building (TRCB) activities are demand-d riven, thus enhancing ownership by LDCs;
Recalling further that the IF aims to enable each ag ency involved to increase efficiency and
effectiveness in the delivery of TRTA and TRCB to LDCs, in the light of information about the
specific needs of each country and about current and projected activities being undertaken by other
agencies in the area of TRTA and TRCB;
Recalling  the decision of the Heads of Agency in the Joint Statement on 6 July 2000, following the
mandated review of the Integrated Framework;
Emphasizing  the importance of the IF, inter alia , as a concrete contribution to the Third United
Nations Conference on the LDCs to be held in Brussels in May 2001.
I. A PILOT SCHEME
1. As a first element of the IF reform, it is recommended to proceed with a pilot scheme.  The
pilot scheme will assist countries that have demonstrated a clear choice and commitment to
mainstream a "trade integration chapter" as part of their country development strategies such as
Poverty Reduction Strategy Papers (PRSPs) or Un ited Nations Development Assistance Framework
(UNDAF).
2.  Complementary to the pilot scheme, bilatera l donors are encouraged to identify LDCs in
which they have a strong field presence and an existing program of trade-related technical assistance,
and that have committed to integrate trade into their overall development strategies.  In such cases,
bilateral donors will coordinate their TRTA and TRCB activities as set out in paragraph 4.
II. MAINSTREAMING TRADE
3. For the effectiveness of the IF, it is essential that trade is mainstreamed into each LDC's
overall development strategy.  This will ensure that thereafter the delivery of TRTA and TRCB is
fully supportive of the development objectives of the partner country.  Support will be given to enable
the LDC, fully assisted and supported by the IF ag encies with field offices in the concerned LDC, to
devise a trade integration chapter in order to stre ngthen participation in the global economy.  This
trade integration chapter would encompass a number of issues, including establishing the linkbetween trade and development on the one hand and poverty reduction on the other; the impact of
trade reform on economic growth and development in the country; market access issues; and an
assessment of the trade-related capacity requirements of LDCs.  The trade integration chapter will
include the identification and prioritisation of trade-related requirements from infrastructure to human
resources within a coherent policy framework.WT/LDC/SWG/IF/13
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III. PROVISION OF TRTA AND TRCB
4. A key objective for the strengthened IF will be to ensure coordination and collaboration
amongst all partners, bilateral and multilateral, involved in TRTA and TRCB activities, on-going or
being envisaged.  Beneficiary LDCs would elaborate an appropriately prioritised and sequenced
programme of assistance, and in so doing, may request support from agencies or bilateral donors, ifneeded.  This program of assistance would be coherent with and complementary to the development
strategy of the country concerned.  The programme, including infrastructural requirements, would be
actively considered at World Bank Consultative Group and UNDP Round Table meetings.  The
programs and projects ensuing from the Consu ltative Group and Round Table meetings would be
financed and implemented by relevant multilateral and regional inter-governmental organisations,
bilateral development partners and the private sector, according to their comparative advantage.
IV. ESTABLISHMENT OF A TRUST FUND
5. It is recommended to seek donor support for the establishment and voluntary funding of an IF
Trust Fund, while fully taking into account bilateral contributions to the IF and its Pilot Scheme.  For
details, see Section VII (Annex on the IF Trust Fund)
V. IF MANAGEMENT
6. It is proposed to establish an IF Steering Committee, and an Inter-Agency Working Group
(also performing Trust Fund functions).
7. The IF Steering Committee will meet as necessary, but at least once a year.  It will be
composed of 6 LDC representatives
3, the 6 core agencies, and donors.  In instances where the IF
Steering Committee discusses or provides guidance on the allocation of financial resources, be it
bilateral funds or IF Trust Fund, decision-making will be restricted to the contributing donors of thoserespective funds.  LDCs in the pilot phase, as well as other interested countries, will have observer
status.  The IF Steering Committee will be chaired by a donor, with an LDC as vice-chair, at high
level, in the initial phase.  These positions will be subsequently alternated.
8. The responsibilities of the IF Steering Committee will include:
- setting policy guidelines, coordination, and providing oversight; and
- assessing progress of the IF.
9. The IAWG/IFTF will comprise the 6 core agencies, the DAC/OECD Secretariat, and special
representatives (of donors and LDCs) in the pilot phase.  The IAWG/IFTF will decide on its own
rules of procedure.  However, the responsibilities will include:
- exchange of information;
- coordination of events;
- preparation of work program and budget;
- sequencing of activities;
                                                     
3 Pursuant to the decision by LDCs taken at the meeting on 10 January 2001, the LDC representatives
to the IF Steering Committee will rotate annually , with the exception of Bangladesh, as global LDC
Coordinator, and the rotating LDC Coordinator.WT/LDC/SWG/IF/13
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- selection of experts;
- resource management of the IF Trust Fund when the IAWG is performing
IFTF functions; and
- monitoring and evaluation of field level operations.
10. The diagrammatic representation of the Governance structure is attached as annex.  The
structure will be reviewed by contributing donors, LDCs, and agencies at the completion of the pilot
scheme.
VI. ASSESSMENT OF PROGRESS
11. As the pilot scheme advances, progress will be monitored and reviewed on a country-by-
country basis.  Periodic progress reports will be prepared by the IAWG to the IF Steering Committee.
In the light of the lessons learned from the Pilot Scheme, consideration shall be given, no later than
the WTO Fourth Ministerial Conference, to extend the initiative to other LDCs.
Annex
VII. THE IF TRUST FUND
1. Trust Fund resources would primarily be dedicated to assisting LDCs in developing the necessary
analytical and policy framework for mainstreaming tr ade into national development strategies, and for
developing costed proposals for programs and projects.
12. In limited and exceptional cases, Trust Fund resources could be deployed for selected
projects.  The TRTA and TRCB, supported with the IF Trust Fund resources, would only relate tohuman capacity building, and would be properly integrated with other relevant projects identified
within the programme of assistance elaborated by the IF.
13. There would be two windows operating simultaneously:
- Window I: un-earmarked contributions; and
- Window II: earmarked contributions.WT/LDC/SWG/IF/13
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__________IFSC
IAWG
(incl.IFTF)Policy guidelines, coordination and oversight
Assessment of IF progress
Preparation of work programme and budget
Sequencing of activitiesSelection of expertsResource management of the IF Trust Fund
Monitoring and evaluation of field level operationsIAWG
DonorsLDC Representatives (6)
ObserversCOMPRISING
Six IF Core Agencies
Pilot Scheme Special Representatives
•  LDC Representative(s)
•  Donor Representative(s)
Representative of DAC/OECD SecretariatCOMPRISING