Enhanced Integrated Framework
A full background to the Integrated Framework (IF) may be viewed on the EIF website: www.integratedframework.org RTFP has made some contribution to the EIF process through its support to the LDC Group as indicated below.
Briefly, the IF was inaugurated in October 1997 by the IMF, ITC, UNCTAD, UNDP, World Bank and the WTO to provide further support to those Least Developed Countries (LDCs) which had liberalized their economies yet which had not experienced the anticipated growth resulting from that liberalization.
The perception was that although liberalization had addressed the demand-side of the equation, a number of supply-side constraints remained which hindered development and a more balanced, holistic solution was needed.
The IF therefore had two objectives: to mainstream trade into national development plans as well as enabling trade-related technical assistance which had been identified by the relevant country. The onus was therefore placed upon the LDCs themselves to articulate their needs.
In 2005 the World Bank and IMF endorsed the ‘enhancement’ of the IF which would ensure increased, predictable financial resources to carry out the national Action Matrices; strengthen national capacities to deal with the IF process and, finally, improve the IF decision-making and management structure to ensure effective and timely delivery of the increased financial resources and programmes.
The Enhanced Integrated Framework was therefore centred around three ‘clusters’ : legal and administrative issues; financial issues as well as the in-country operations of the EIF. In this manner it was hoped that the redesign would be more effective in helping the LDCs to mainstream trade into their economies. Much of the work to develop the Enhancement was carried out by the ‘Transition Team’ (working with an EIF Task Force) composed of donors; LDC representatives and Agencies. The Transition Team developed implementation guidelines and proposed a series of regional meetings designed to improve the flow of information to the LDCs as well as to receive feedback for the further improvement of the EIF.
In July 2007, as part of its support to the LDC Group, RTFP financed one of these regional meeting in Livingstone, Zambia, for representatives of the 14 LDCs in eastern and southern Africa (plus Yemen) which had either started or completed their Diagnostic Trade Integrated Studies. (These are prepared after a request to participate in the IF process and follow a technical review, the establishment of a national IF Steering Committee and, if possible, the identification of a Donor Facilitator.)
The four representatives of each country were brought up to date on the status of the EIF process and the role and function of the EIF Secretariat and the Trust Fund by the Chairman of the Integrated Framework Steering Committee (IFSC) as well as technical advisers in the Secretariat. UNCTAD gave a presentation on mainstreaming the IF process; there was a presentation on the IF process in Malawi and also in Zambia (as well as on the establishment of a National Implementation Unit in Zambia). Presentations were also made on how to develop project proposals for Tier 1 and Tier 2 funding of the IF; the regional dimension of the EIF and its relation to Aid for Trade.
Following this meeting, there was a Pledging Session for the EIF which was held in Stockholm in September 2007. The LDCs statement noted that funds which were pledged would be used, through the Action Matrices, to leverage additional funds from the private sector, development banks, concessionary loans and grants. It also noted that a successful IF process is, for LDCs, a non-conditional step towards accessing finance through Aid for Trade.
In a recent development (August 2008), an IF Executive Director (who is an LDC national) has been appointed to head the IF Executive Secretariat which itself is being accommodated by the WTO.