WORLD TRADE  
ORGANIZATION  WT/AFT/W/16 
2 June 2006 
 (06-2639) 
Aid for Trade Task Force Original:   English 
  
 
COMMUNICATION FROM THE CHAIRMAN OF THE  
INTEGRATED FRAMEWORK TASK FORCE 
  
 The following draft recommendations of the Integrated Framework Task Force are being circulated at the request of Ambassador Ste phenson (Canada) in his capacity as Chairman.  
 
_______________ 
 
 
DRAFT RECOMMENDATIONS OF THE TASK FORCE ON 
AN ENHANCED INTEGRATED FRAMEWORK 
(25 MAY 2006) 
 
 
PREAMBLE 
 1. The Task Force endorses the mission of the Integrat ed Framework (IF).  The goal of the IF is 
to enhance the capacity of LDCs to integrate into  the multilateral trading system in order to reduce 
poverty and benefit from trade liberalization.  Th e Task Force reaffirms the mandate of the IF: 
• to mainstream trade into LDCs' national development plans such as Poverty Reduction 
Strategy Papers (PRSPs); 
• to assist in the coordinated delivery of trade-re lated technical assistance in response to needs 
identified by LDCs; 
• to develop the capacity of LDCs to trade, including through capacity building and addressing 
supply constraints. 
 2. In the light of the evolving situation the IF  should complement the current aid-for-trade 
discussions and other related initiatives.  
3. Commitment to mainstreaming trade into th e national development processes such as the 
PRSP process is critical to achieving Millennium Development Goals.  The IF is a tool and a means to an end.  It is a process feeding into the br oader framework for donor support and programming around 
a country's development planning and priorities. 
4. The Task Force wants to strengthen the IF process, building on the existing structure and 
modalities wherever possible, and to continue to benefit from the full participation of the six IF 
Agencies (IMF, ITC, UNCTAD, UNDP, WTO, and the World Bank).   
5. The enhanced IF should be guided by the aid effectiveness principles set out in the Paris 
Declaration, such as donor harmoniza tion, using country systems, pr omoting ownership and involving 
stakeholders such as the local private sector.  The strength and potential that the IF concept offers 
could be considered as a methodology for furthe r delivery of trade-related assistance.   WT/AFT/W/16 
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  6. Pursuant to the Hong Kong Ministerial Declara tion, the enhanced IF should be comprised of 
the following three specific elements: 
• provide increased, predictable, and additional funding on a multi-year basis;  
• strengthen the IF in-country including through mainstreaming trade into  national development 
plans and poverty reduction strategies;  more effective follow-up to diagnostic trade integration studies and implementation of action matrices;  and, achieving greater and more 
effective coordination amongst donors and IF  stakeholders, including beneficiaries; 
• improve the IF decision-making and management structure to ensure an effective and timely 
delivery of the increased financial resources and programmes. 
 
I. SCOPE 
7. It is proposed that the current Window 1 shoul d be modified to support greater in-country 
capacity and should cover a core package of activities.  It is proposed to call this "Tier 1".  The current 
Window 2 should be modified to facilitate greater implementation of activities identified as priorities 
in the Action Matrix.  It is proposed to call this "Tier 2". 
A. C
OVERAGE  
8. The coverage of the IF should be enhanced to include: 
• upstream activities – capacity building to help prepare countries for undertaking a DTIS and 
integrating the DTIS into their national development plans such as the PRSP; 
• an expanded DTIS to include broader trade-related issues such as needs assessment for 
infrastructure including related policy design,  cross-cutting and regional issues when so 
requested, and response to needs emanating fro m on-going trade liberalization processes and 
new trade rules, including the DDA; 
• periodic updates to the DTIS as and when necessary; 
• downstream activities covering integration with the national development plan, preparation 
for implementation of projects and programmes identified in Action Matrices, and implementation of projects, including projects ta rgeted at removing supply-side constraints, 
according to criteria to be developed. 
 9. The core areas eligible for intervention as defined in the modalities for Window 2 would 
remain the same and would support bridging activ ities identified in action matrices. The existing 
terms of reference for Window 2 include the following items: 
• institution-building to handle trade policy issues; 
• strengthening of export supply capabilities; 
• strengthening of trade support services; 
• strengthening of trade facilitation capacity; 
• training and human resource development; 
• assistance in the creation of a supportive trade-related regulatory and policy framework to 
encourage trade and investment. 
 B. M
ODALITIES  
10. Tier 1:  This would provide resources from the Trust Fund that are available to all IF 
countries for core functions, taking into account the availability of alternative funding and building on 
existing activities in the trade sector.  This would cover:  WT/AFT/W/16 
 Page 3 
 
 
  • upstream HR capacity building; 
• preparation and/or updating of a DTIS; 
• provision of support to the national implementa tion unit and key institutions, including human 
resource capacity and small capital equipment such as computers, etc; 
• assistance to facilitate integration in to the national development plan. 
 
11. Tier 2:  This would provide funding from the Trust Fund for activities as identified in the 
Action Matrix, taking into account the availability of alternative funding and quality of projects.  The 
Trust Fund would provide bridging funding to jump start activities identified in the DTIS such as 
project preparation, feasibility studies as well as funding of smaller projects including seed projects.  Illustrative activities/projects include: 
• assistance to implement specific WTO and other trade policy commitments; 
• preparatory activities for infrastructure development;  
• activities to harmonize action matrices with national development plans such as PRSPs, and 
to prioritize and provide cost benefit analysis  leading to project design and implementation; 
• further assistance to the national implementation unit and key institutions; 
• assistance to develop a national trade plan and/or sectoral programmes; 
• assistance with project design for regular programming processes such as World Bank 
Consultative Groups and UNDP Round Table meetings; 
• independent implementation of small projects identified in DTIS Action Matrices. 
 12. For the larger implementation activities as identified in the Action Matrix, such as 
infrastructure, support should be sought from mechan isms outside of the IF Trust Fund for example 
through World Bank Consultative Groups and UNDP Round Tables.  One of the objectives of the IF 
is to help leverage these resources and to ensure coherence.  Information on other resources for the 
implementation of activities outlined in action matrices should be included in IF reporting. 
C. C
OUNTRY COVERAGE  
13. The IF is for LDCs.  
II. IN-COUNTRY MANAGEMENT AND OPERATIONS 
14. The IF needs to be better aligned, integrated and sequenced with the PRSP and similar 
national development plans as well as with Trade Policy and Private Sector Development 
programmes.  The aim should be to harmonize around one common approach for the economic 
sectors, to be determined in country as appropriate .  While it is imperative that LDCs mainstream 
trade into development planning, the donors and agenci es also need to do better at integrating trade 
into their planning and programming.   
15. While the IF recipient countries have a divers ity of in-country governance and management 
structures, some best practices have been identifie d.  The IF should build on and strengthen existing 
structures that have been identified as working b est, including those identified in the IF Simulation 
workshop held in Addis Ababa in September 2005. 
A. I NSTITUTIONAL MECHANISMS  
16. To provide senior level engagement and coordi nation, and to provide political commitment, a 
high level inter-ministerial committee should be estab lished.  This should be led at the Ministerial 
level and be coordinated by the Ministry of Trade,  Finance, Planning or any other Ministry as best WT/AFT/W/16 
Page 4  
 
  determined by each country.  The close collaboration of the Ministries of Trade, Planning and Finance 
is critical. 
17. To support the development of the DTIS and implementation of the action matrices a broad-
based stakeholder process including government, pr ivate sector and civil society representation should 
be established.   
18. To improve the implementation of the IF, the IF  Focal Point should be strengthened including 
through the creation of a national implementation unit where necessary.  The Focal Point, who is 
appointed by the national authorities, is responsib le for coordinating in country IF activities in 
consultation with the IF Secretariat.  The IF will provide resources as appropriate to strengthen this 
capacity, including the provision of secretariat reso urces (human and physical), preferably through 
engagement of local expertise.  Th is unit could be set within an a ppropriate government department or 
set outside normal government structures, as per specific country requirements.  The Focal Point should report to the inter-ministerial committee as part of the development planning process. 
19. To provide an effective response and avoid dup lication, the agencies, donors and beneficiaries 
need to work together through local processes.  To this end it is vital that an effective local donor 
facilitator, with clear terms of reference adapted to  the local situation, be appointed by donors in 
consultation with the local authorities.  The main  objective of the donor facilitator is to help 
mainstream trade into donor programming to ensu re timely implementation of the action matrices. 
20. The IF agencies have a critical role to play at  the country level in the mainstreaming of trade 
into development.  The role each agency play s in the IF programme in each country will be 
determined through a dialogue among the agencies, local development authorities, the IF Focal Point 
and the IF Secretariat.  Key elements of their ro le include participation in the diagnostic process, 
implementation, local fund management, and m onitoring and evaluation.  To facilitate the 
involvement of agencies at the country level, a pr ogramme approach should be adopted.  In order to 
fully play their role, Agencies should make the requi red trade and development expertise available to 
the local level and, to support this, to reinforce th eir core capacity in the trade and development area. 
B. T
HE DTIS  PROCESS  
21. It is important that the recipient country itself take the lead in the preparation and/or updating 
of its DTIS, including selecting in consultation with the IF Secretariat the executing entity.  The DTIS team should include local expertise and should work closely with the national PRSP team.   
22. To facilitate consistency, information shari ng and implementation, a global template for 
undertaking the DTIS should be developed to guide the process.  The relevant agency would continue 
to provide quality control for DTIS.  The DTIS should be a living document, sequenced and 
synchronized with the national development pla nning process such as the PRSP; possibly through the 
creation of a national trade plan.  The Focal Point should take the lead for updating the DTIS and for 
integrating it into the national development plan .  All six of the IF agencies have valuable 
contributions to make to the DTIS process.  Normally all six agencies would have a role from the start 
of the process. 
C. L
INKAGES BETWEEN THE LDC  CAPITALS AND GENEVA  
23. The IF in-country process should be driven from the countries rather than from Geneva.  
24. The Focal Point should actively develop strong  linkages with the IF Secretariat, and an 
ongoing process of information sharing between the Focal Point and the IF Secretariat should be maintained.  WT/AFT/W/16 
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  25. The IF should be an umbrella for other na tional and regional trade capacity initiatives. 
D. ROLE OF THE IF AGENCIES  
26. The Agencies will continue to play an active role in the implementation of the IF.  As 
described above, each country, in consultation with th e IF Secretariat, would decide which agencies or 
organizations are best suited to carry forward IF activities, building on their comparative advantages 
and mandates.  The participation of the IF agenci es in projects and programmes should be on a fully 
costed basis.   
III. GOVERNANCE, OVERALL MANAGEMENT AND ADMINISTRATION 
27. The Task Force recognizes that the effectiveness of the IF is hindered by the existing 
fragmented management structure and sub-optimal  division of responsibilities among the different 
agencies, principally among the WTO (Secretaria t), the World Bank (diagnostics) and the UNDP 
(Trust Fund), and by a lack of a clear accountability framework.  
28. The Task Force does not propose to create a new organization.  The main aim of the proposed 
approach is to transfer responsibility to the c ountry level while conso lidating management and 
administration.  In order to build on the strengths of the existing structures as much as possible, the 
Task Force recommends a modified management and governance structure by proposing to keep the 
IF Steering Committee as the overall governing body, to transform the IF Working Group (WG) into a Board with greater recipient and donor participatio n, and to turn the Secretariat into an Executive 
Secretariat with a Chief Executive Officer.  The IF would continue to rely on the agencies in 
achieving its mandate. 
A. S
TEERING COMMITTEE  
29. The Steering Committee, based on the existing IF Steering Committee, should provide overall 
policy direction, review progress and provide a platform for the exchange of experience.  It should meet at least once per year.  
B. B
OARD  
30. Reporting to the Steering Committee would be a Bo ard.  This Board, based on the current IF 
Working Group, should remain small but be rebalan ced.  It should continue to include representatives 
of the recipients, the donors and the agencies.  The Board should meet as regularly as necessary to 
conduct its business, to provide oversight and policy direction, and to decide programme criteria and 
allocative criteria.   
C. SECRETARIAT  
31. The Secretariat needs to integrate management  functions at the global level to improve 
delivery (efficiency and effectiveness) and provide fo r greater accountability.  Accordingly, it should 
become an Executive Secretariat w ith a Chief Executive Officer (CEO) accountable to the Board.  
The CEO would be selected by the Board. 
32. The Task Force recommends that the IF Secretar iat be a small, independent unit located in 
Geneva and that it be administratively housed in the WTO Secretariat, with a strong firewall around 
it.  
33. The IF Secretariat would: WT/AFT/W/16 
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  • service the governing bodies; 
• propose to the Board an annual work progr amme and budget including allocations for 
staffing; 
• propose to the Board programme and allocation criteria; 
• prepare annual substantiv e and financial reports; 
• coordinate support to countries; 
• undertake financial management, including management of the Trust Fund; 
• identify new sources of funds; 
• maintain close links with th e national implementation units; 
• maintain close links with the implementing agencies; 
• provide outreach to stakeholders; 
• share best practice including through a website; 
• oversee monitoring and evaluation; 
• undertake other responsibilities to be delegated by the Board; 
• develop strategies to include the priv ate sector in the work of the IF. 
 34. While recognizing that the Board and CEO shoul d determine the new staffing structures for 
the IF Secretariat, the Task Force recommends that  the CEO be recruited on merit by the Board and 
report directly to the Board.  Where possible and appropriate, the expertise and knowledge of existing 
IF agency staff should be drawn upon.  Staff appoi nted to the existing IF Programme Implementation 
Unit should be integrated into the Executive Secretariat.  
D. L
OCAL GOVERNANCE  
35. Consistent with Section III above, the Focal  Point should be responsible for IF 
implementation at the national level.  
IV. MONITORING AND EVALUATION 
36. Currently there is no adequate single monitoring  and evaluation framework for the IF, making 
it difficult to measure results.  
• An effective monitoring and evaluation system needs to be developed and implemented at 
both global and national levels on a priority basis; 
• To encourage sharing of experience, the Steer ing Committee should showcase at each of its 
sessions the in-country experience of some IF members; 
• Links should be maintained with the OECD to benefit from the WTO/OECD/DAC database 
on trade-related assistance; 
• An independent auditor should be appointed. 
 
V. FUNDING 
37. The Task Force recommends that there should be  greater predictability of funding for the 
recipients as well as greater levels of funding, including identification of new sources of funds. 
A. L EVEL OF FUNDING  
38. At its Annual Meeting in 2005 the WB/IMF  Development Committee took note of an 
estimate from staff that an amount of US$200-400 million over five years would be required, based on anticipated requirements for 40 countries.  An  exercise based on the above recommendations has 
been undertaken to provide an indicative costing for the enhanced IF (see Annex).  WT/AFT/W/16 
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  39. The CEO, once appointed, should thereafter prepare a three-year rolling workplan and budget 
which would be subject to approval by the Board. 
B. DONOR COMMITMENTS AND SUPPLY OF FUNDING  
40. Predictability of funding is important.  Donor s should make multi-year indicative pledges 
over a three to five year period where possible, even though actual commitments/obligations may be 
on an annual basis.  There should be multilateral and bilateral funding.  Earmarking of funds is 
generally not desirable, although there could be  some flexibility in the way donors fund certain 
aspects of the IF.   
C. SOURCES OF FUNDING  
41. New donors should be identified a nd invited to participate, including from the private sector, 
at both national and international levels. 
D. ALLOCATION OF RESOURCES  
42. Tier 1 funding for core activities should be pred ictable.  Disbursement should be decided by 
the Focal Point in consultation with the IF Secretariat.   
43. Tier 2 funding will be based on requests submitted by the Focal Point to the IF Secretariat. 
VI. TRANSITIONAL ARRANGEMENTS 
44. The Task Force makes these re commendations understanding that some areas require further 
elaboration.  The Task Force further recognizes that it will be important to ensure the continuity of 
ongoing and planned IF activities dur ing the transition period.   WT/AFT/W/16 
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  ANNEX 
 
INDICATIVE COSTING FOR THE ENHANCED IF 
(25 MAY 2006) 
  
1. This draft costing is based on the participation of forty LDCs and covers  an initial five year 
period.  The indicative costing in total comes to about US$400 million and is comprised of three elements: 
• Tier 1:  Core function support costs ($77 million) 
• Tier 2:  Action Matrix implementation support costs ($320 million) 
• Executive Secretariat costs ($14 million) 
 
2. It is recognized that all countries are at diffe rent starting points and will have different 
requirements.  Thus the costings per country as well as the total costing should be treated as 
indicative.  Work programmes will need to be ta ilored accordingly.  For example, it will not be 
necessary to undertake pre-DTIS activities in count ries which have already completed a DTIS.   
3. Activities will be funded through a multilateral trust fund and by bilateral cooperation. 
Tier 1: Core function support costs
 
 
4. A total costing of $77 million  is proposed for Tier 1 – providing core function support to the 
participating LDCs.  Tier 1 will include a number of support measures.  The work programme in each 
country would vary according to its situation. 
• Pre-DTIS support will be provided to 20 LDCs not yet participating in the IF; 
• Provision is made for undertaking the DTIS  in 20 LDCs, based on the current budgeted 
amount for undertaking a DTIS; 
• Support to the national Focal Point could include pa rtial coverage of staff costs, costs of local 
experts, a portion of local running costs and equipment such as computers and related accessories.  Provision is also made for short term inputs such as sectoral studies and cost-
benefit analyses.  The government will be expected to provide office accommodation and 
other related costs; 
• The DTIS will need to be updated from time to time.  It is assumed that this will be done 
twice over the five year period. 
 
 Per LDC No. of 
LDCs Total cost 
 $N o . $  $
Pre-DTIS support 50,000 1 50,000 20 1,000,000
DTIS 400,000 1 400,000 20 8,000,000
Support to Focal Point  300,000 5 1,500,000 40 60,000,000
DTIS updates 100,000 2 200,000 40 8,000,000
Total       77,000,000
 5. The IF multilateral trust fund will meet as necessary the costs asso ciated with Tier 1 
activities.  WT/AFT/W/16 
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  Tier 2:  Support to implementation of Action Matrices  
 
6. Based on estimates made by one of the implementing agencies, an indicative amount of 
$12 million per country over a five year period is iden tified to support implementation in four or five 
priority areas of the action matrix.  These costs include bridging funding to jump start activities in the 
DTIS such as project preparation, feasibility stud ies as well as funding of smaller projects including 
seed projects.  Larger implementation activities identif ied in the DTIS would be funded outside of the 
IF.  It is assumed that there will be divergences in  the sequencing of implementation.  The assumption 
used is that one third of the countries will be able to start implementation right away, one third will be 
able to implement two thirds of the priory ar eas over five years, with the remaining countries 
implementing one third over five years.  This gives an average of $8 million per country, making a 
total of $320 million for Tier 2. 
Per LDC No. of 
LDCs Total cost 
 $$  
Priority areas from Action Matrix 8,000,000 40 320,000,000 
 7. It is anticipated that at least one half of th e costs associated with Tier 2 activities will be met 
through the IF multilateral trust fund.  The rema inder will be met through  bilateral cooperation 
reported to the IF on an annual basis.   
Executive Secretariat
 
 
8. The costing for the Executive Secretariat is proposed at $14 million, based on the following 
assumptions: 
• Seven professional staff employed in Geneva. 
• The professional staff will be supported by th ree locally engaged administrative staff. 
• Office running costs include rent, utilities, stationary and other consumables. 
• Thirty foreign trips are made by the professional staff in total each year, primarily but not 
only to IF participating countries.  Each trip would ordinarily cover more than one country and would last for an average of 10 days. 
• While the task force did not make specific recommendations on evaluation an indicative 
figure is included. 
• A figure is included to cover costs related to  workshops and other networking and outreach 
activities. 
 
 $ Qty Years Total $ 
Professional staff 250,000 7 5 8,750,000 
Office support staff 100,000 3 5 1,500,000 
Office running costs 200,000 1 5 1,000,000 
Travel 5,000 30 5 750,000 
Evaluation 200,000 1 5 1,000,000 
Networking and outreach  200,000 1 5 1,000,000 
Total    14,000,000 
 
9. The costs of the Executive Secretariat will be met by the IF multilateral trust fund.1   
                                                      
1 This does not preclude the secondment of staff or other in-kind contributions. WT/AFT/W/16 
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  Funding Approach
 
 
10. The enhanced IF will be funded through a combination of contri butions to a Multilateral Fund 
and through bilateral contributions  consistent with the goals of the enhanced IF.  A number of 
countries have already announced their intention to  contribute resources on a multiyear basis either to 
the Multilateral Fund or bilaterally.  In order for the enhanced IF to enter into force it will be 
necessary for a critical mass of res ources to be pledged to it, this will necessitate a formal pledging 
process.  The Task Force encourag es all current donors to the IF to make contributions to the 
multilateral trust fund and urg es other donors to do so.   
 
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