More on Enhanced
WHAT is the Integrated Framework and the
Enhanced Integrated Framework?
The Integrated Framework (IF) is a six agency program chaired by the
World Trade Organization which aims to integrate the Least Developed
Countries into the global economy. Through a multi-agency coordination,
the program provides trade-related technical assistance and capacity
building. The International Monetary Fund, the International Trade
Centre, the UN Conference for Trade and Development, the UN Development
Programme, the World Bank and WTO work with LDCs and their development
partners to identify and address their trade development needs to assist
them in becoming full and active players and beneficiaries of the
multilateral trading system.
The IF process consists of four phases: (1) Awareness-building on the
importance of trade for development; (2) preparation of a Diagnostic
Trade Integration Study to formulate a plan of action to integrate the
country more fully into the global trading system while identifying
those sectors of greatest export potential and those constraints that
may impede trade; (3) ensuring that this plan of action becomes part of
the broader national development plan; and (4) putting the action plan
into place in partnership with the development cooperation community.
In the Hong Kong Ministerial Declaration from December 2005, Ministers
reaffirmed their commitment to better integrate LDCs into the
multilateral trading system, and decided the vehicle for this would be
an Enhanced IF. The IF will be enhanced through increased financial
resources to implement action plans, strengthened in-county capacities
to put in place, manage and monitor IF progress.
WHAT is the purpose of the Integrated
WHO benefits from the Integrated
To date, 36 LDCs (of a total of 49) have become beneficiaries under the
IF; this figure includes recent additions such as Solomon Islands and
Guinea-Bissau where the process has only just started. Of the 36
beneficiaries, 24 have completed the diagnostic stage, and are now
implementing the plan of action. An additional 8 LDCs are in preparatory
phase to accession to the IF process.
WHAT are the results of the IF?
The IF trust fund finances diagnostic studies and a small contribution
towards implementation of priority actions (up to US$1million per
country). Total contributions to the trust fund amount to US$50 million
and total allocations from the fund to US$27 million of which about 47%
has been used towards diagnostic activities and 53% for implementing
priority actions. Among some of these priorities are streamlining
customs to avoid overly long and costly processes, building the
necessary architecture to satisfy complex food security standards or
building capacity at the Ministry of Trade to facilitate exports. An
indicative budget over the coming five years for the Enhanced IF amounts
to USD 400 million, subject to the actual funding pledged and provided
at the September 2007 funding meeting in Stockholm.