 
  WORLD TRADE  
ORGANIZATION  WT/IFSC/M/9 
17 December 2003 
 
 (03-6644) 
Integrated Framework Steering Committee 
Tenth Session  
 
 
 
REPORT ON THE 10TH MEETING OF THE  
INTEGRATED FRAMEWORK STEERING COMMITTEE (IFSC) 
 
Monday 27 October 2003, WTO, Geneva  
 
Chairperson H.E. Mr. Henrik Rée Iversen (Denmark) 
 
 
1. The Integrated Framework Steering Committee (IFSC) held its tenth meeting on Monday, 
27 October 2003.  The adopted age nda is reproduced in Annex 1. 
A. REVIEW OF THE EVALUATION REPORT  OF THE INTEGRATED FRAMEWORK  
2. The Chairman welcomed Mr. Gunther Rochow of CAPRA International who was to present 
the Evaluation Report to the Steering Committee.  The Chairman recalled that the Report of the 
evaluation had been circulated in document WT/I FSC/6.  CAPRA had re-submitted the Report with a 
number of changes and was circulated as documen t WT/IFSC/6/Rev.1, which was the basis for the 
discussion.  The Chairman said that in terms of the process of reviewing the Evaluation, he had agreed 
with Dr. K.A. Rana, Chairman of the Integrat ed Framework Working Group (IFWG) that on an 
exceptional basis, the meeting of the IFSC would precede that of the IFWG which had been planned 
for Wednesday, 29 October 2003.  He said that the mee ting offered the platform for all stakeholders to 
express views and comments on the evaluation by CAPRA.  He thanked CAPRA for their work, 
noting the limited time that was available to complete the Report. 
3. Mr. Rochow, in introducing CA PRA's consortium partner, the Trade Facilitation Office 
Canada, said that it had been created to assist develo ping countries to export to the Canadian market.  
It was now the primary Canadian provider of expor t training and information on the Canadian import 
market for developing countries.  CAPRA was a network of consultants delivering development 
support throughout the world, working with multila teral and bilateral organizations, as well as the 
private sector.  The entire evaluation team consiste d of six Field Consultants and seven members who 
had served on the Panel of Experts.  They had conclu ded that the IF was, from every perspective, new 
and precedent, setting initiative with the potential to meet the ultimate goal of expanding trade in order to increase economic activity and reduce povert y.  Mr. Rochow took the opportunity to thank 
the team members publicly for their enormous effort  to produce in three and a half months, what in 
the Terms of Reference had originally been planne d to last twice as long.  Unfortunately, under the 
time pressures, the final product, which was still e volving, showed some rough spots, which were 
being eliminated.  The Evaluators were of the view that considerable progress had been made, 
especially at the agency and planning levels, but that fine-tuning was required to move to a robust 
implementation stage, where concrete in-country resu lts could be achieved within more countries.  In 
general terms, the Evaluators had noted with satisfaction the fundamental soundness of the IF 
approach, which was expressed in the Report under th e First Evaluation Issue relating to Trade and 
Poverty, and, in particular, to its premise that, all other factors being equal, poverty should decline as 
the level and extent of socio-economic intervention increased. WT/IFSC/M/9 
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 4. Mr. Rochow congratulated the members of th e IF community, both at the governance level 
and in the LDCs, for their merited success that had been achieved to date, and wished them well for 
the work ahead.  He thanked Ambassador Iversen  for having transmitted the valuable comments, 
which he had received from the donors who had revi ewed the Report.  These comments as well as 
those received from the agencies had helped the evalua tion team to be aware in advance of some of 
the concerns, which were to be addressed in detail at  a later stage.  He had circulated a number of 
documents including a restructured grouping of the recommendations, as well as sequentially numbered recommendations that were contained in the original Report.  The evaluation had revealed 
that there had been considerable progress but that a need for fine-tuning remained.  The Evaluators 
had identified two evaluation issues, as well as eight  broad programmatic aspects which were critical 
to the success of the IF.  One of these other evaluation issues addressed the question under which 
conditions trade would benefit the poor.  In macro terms, trade w ould only benefit the poor in an 
LDC, if governance provided for political inclusiveness and greater social development.  Good governance had been identified in six World Bank criteria:  voice and accountability, political stability and absence of violence, Government effectiveness, regulatory quality, rule of law, and control of 
corruption.  In micro terms, trade benefited the poor, when, in designing a Diagnostic Trade 
Integration Study (DTIS), a conscious effort was made to include potentia l export products, produced 
by the poor, in a pro-poor environment.  To make that possible, it was necessary to work hand in glove with the Poverty Reduction Strategy Paper (PRSP) processes early on.  Some PRSPs already 
included the World Bank tool of poverty mapping.  In rich and poor countries significant pockets of poverty existed.  The third and last Evaluation Is sue, which had called for fine-tuning, related to 
mainstreaming of trade into development.  The Evaluators had noted, and the donors in their 
comments had stressed, that a criti cal area, in which some LCDs we re underachieving, was the extent 
of the LDC participatory environment.  
5. Mr. Rochow said that there were eight br oad programmatic areas where fine-tuning was 
necessary.  The first was the question of IF Scope, w ith special reference to the issue of supply-side 
constraints.  How big was IF, or how big should it be?  The Evaluators had noted, and the donors had 
also pointed out in their comments,  that there appeared to be a divergence of opinion between the 
donors and several LDCs.  To address that issue,  the Evaluators had recommended that the IFSC 
develop a guideline and that the LDCs, in requesti ng the reduction of supply-side constraints, would 
weigh the associated costs and benefits in relation to  their other trade and development priorities.  The 
second broad programmatic area that required fine-t uning related to country selection and entry 
process. From the perspective of the LDCs, the pr edominant concern appeared to be the perception 
that country selection was not sufficiently objective and transparent.  To address this issue, the 
Evaluators had recommended that the IFSC deve lop, and widely publicize, an objective and 
transparent country selection process.  The Evaluato rs had also recommended the use of an objective 
filtering process, comprising macro, meso and micro f eatures.  With regard to the meso filter, the 
donors had expressed some reservations.  The Eval uators had offered recommendations that had 
appeared to them to have been helpful, but in th e end the members of the IF needed to decide what 
made the most sense in the unique circumstances in  which they had to function.  Fundamental to 
country selection was a clarification of the grounds for selection.   
6. The third broad programmatic area that required fine-tuning related to LDC participation and 
ownership. While country ownership was a primary criterion for ultimate IF success, participation, 
buy-in and commitment in LDCs varied greatly.  Where country ownership was weak, progress in the 
IF process was weak.  Where country ownership was strong, the IF flourished.  The criteria for LDC 
country ownership encompassed senior level govern ment commitment;  a fully equipped IF Focal 
Point in terms both of human and financial resour ces; the establishment of, and membership to the 
National Steering Committee; local leadership in th e DTIS and Action Plan Matrix processes;  local 
consultant selection; an Action Plan Matrix that was manageable and indicatively costed, as an LDC’s 
tool for solicitation of donor support; and LDC cont rol over projects to be executed within their 
countries.  Many LDCs wanted more direct initial  participation in all phases of IF planning and  WT/IFSC/M/9 
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 various recommendations had been offered to addre ss those issues.  The fourth broad programmatic 
area that required fine-tuning related to consultant selection.  There was a widespread perception that 
current practices of consultant selection resulted in "doing it for them" instead of "doing it with them". Two recommendations had been offered to encourag e more local consultants to become involved in 
undertaking studies.  If the requirements were to be clearly defined in terms of necessary abilities to 
do the work, it would be possible to rate local peopl e against those requirements and involve them to 
the extent that they were fully or partially qualifie d.  In that context, international consultants could 
provide mentoring and coaching support or any other support needed.  
7. The fifth broad programmatic area that required fine-tuning related to planning, management, 
monitoring and evaluation.  There was a perception th at the IF was a series of free-standing activities, 
assigned and controlled by outsiders, without n ecessarily relating trade-related development to 
poverty reduction.  The focus seemed to be on activiti es rather than on results.  The DTIS tended to be 
too generic and often lacked a pr o-poor dimension.  However, the Evaluators had noted that recent 
versions of the DTIS tended to be more adaptable and practical.  The Action Plan Matrices, generally 
lacked prioritization.  Other improvements coul d be made to enhance planning, management, 
monitoring and evaluation.  The fundamental re commendation which addressed the area of planning, 
management, monitoring and evaluation urged the adoption of a Results-Based Management (RBM) 
process.  Donor comments indicated that such a process might be burdensome for some.  It was, 
however, a tool that each LDC could choose to adopt.   
8. The sixth of the eight broad programmatic ar eas requiring fine-tuning related to capacity 
development.  The Evaluators had found that LD C leadership capacity varied greatly across LDCs. 
Those findings concerned both local consultants and th e IF community, in general.  In general terms, 
the Evaluators recommended addressing capacity development along the lines of competency-based 
approaches.  That meant, as discussed in Annex G of the Report, that input was provided by a group 
of individuals who were actua l practitioners; it was consensus- based; and the approach was 
application-oriented and phrased in such a way th at it would be measurable and observable.  The 
Forum for International Trade Training (FIT) in Canada provided a model that could be used to 
develop a partial model.  The model was Canada sp ecific and could not be exported as such, but the 
model was competency-based and could be used to he lp develop a useful approach.  The Evaluators 
recommended that training of this type be offered at all levels, including the Focal Point, the National 
Steering Committee and other public and private stak eholders.  Various spec ific recommendations 
addressed overall governance direction, training co ntents, training methodology, and the use of 
mentors.  
9. The seventh of the eight broad programmatic areas that required fine-tuning related to 
communication.  One of the big risks in any unde rtaking, the IF included, was that communication 
with stakeholders may have been insuffici ent to assure effective buy-in.  Various 
communication-related recommendations had been o ffered, the main ones being the creation of a 
communication unit within the IF Secretariat and the establishment of a Focal Point Network.  A 
communication strategy could be designed for the system as a whole and within each participating LDC, identifying the specific communication objectives;  the targeted audiences;  discrete themes and 
within each theme several distinct messages;  and the preferred media, such as letters, pamphlets, 
meetings, or the internet.  The last of the br oad programmatic areas that required fine-tuning was 
governance.  The Evaluators had recommended that the IFSC remained as it was, a high-level policy 
setting and policy review entity.  The IFWG could b ecome more balanced in terms of agency, donor 
and LDC representation.  However, from Donor comme nts it was evident that this might be difficult 
to achieve for a number of good reasons, including the need to assure full agency engagement.  The IF 
Secretariat could be strengthened, perhaps by using secondments from the other IF partners.  
10. Mr. Rochow said that the Terms of Refere nce for the evaluation had included possible 
enhancement of procedures for applying the IF to se lected countries.  The Evaluators had identified a WT/IFSC/M/9 
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 set of necessary assumptions and a three-step pla nning approach.  The assumptions were that:  
country selection would be based on objective and transparent criteria; countries may select 
themselves as candidates for IF, or IF officials may suggest that a given LDC consider participation in 
the IF;  countries which would be selected would be  encouraged to become fully involved from the 
start and that they would adopt an RBM approach;  and, fully or partially qualified local consultants 
would be used.  The first of a th ree-step planning approach would be  an Orientation and Assessment 
Mission, a process which was similar to the existing pr e-DTIS mission.  In particular, such a process 
would include:  a presentation of IF objectives;  the determination of the extent of desired LDC 
participation; the desirability of using an RBM  approach; and the preference for using local 
consultants to the extent possible.  If the initial Orientation and Assessment Mission was successful, a 
broadly based Planning Workshop would be held, co mprising representatives of the Government;  the 
private sector;  the academia;  and civil society.   The sole purpose of the Planning Workshop would 
be to discuss the potential introduction of the IF into  the country and to broadly define the expected 
long-term, medium term and short- term results which the LDCs hoped to achieve.  If the Planning 
Workshop indicated broad support and interest, the formation of a National Steering Committee 
would be encouraged, which would be charged, as a first priority, with drafting the design of a 
Logical Framework  for the IF, which as a minimum, would include expected short-term results, the 
choice of either a full DTIS or "DTIS-Lite"; the design of corresponding Terms of Reference;  the design of an interface mechanism between the em erging IF and existing PRSP or similar poverty-
reducing initiatives;  the identification of require d human resources, differentiated by essential skill 
competencies;  the assessment of local availability of competent personnel;  participation in the 
negotiation between the LDC government and the comp etent IF authority of an IF agreement;  the 
selection of local and international consultants, as required; and a Results-Based Monitoring, based on 
the Logical Framework.  If this described the new IF world that was desired, then the following IF 
system enhancements would be appropriate: clarif ication of IF objectives and scope;  objective and 
transparent country selection;  RBM;  a stream- lined process for introducing IF to new LDCs;  
competency-based capacity development at all levels;  greater participation of local consultants;  
greater pro-poor focus and integration in DTIS a nd Action Plans;  more effective integration of 
agency and donor processes;  and equitable gove rnance representation among all three partners.  
11. The representative of Canada
 noted that the Evaluators had taken into account the donors' 
comments on the evaluation and that there was a need for reflection on what was to be done next.  All 
the donors had taken the evaluation seriously.  The RBM was not easy and should be kept simple and 
owned by the LDCs.  
12. The representative of the European Commission  said that the presentation had given a 
structure from which to work on.  The European Commission was committed to the IF and convinced 
that it was the way to proceed.  As far as RBM wa s concerned, more reflection was needed to see 
whether it would be feasible to apply it.  It should not be too complicated.   
13. The representative of the United Kingdom  welcomed the evaluation's endorsement of the IF.  
She mentioned the need to keep in mind the wide r on-going work undertaken by OECD for example, 
on policy coherence and coordinated approaches to  supporting countries' development plans and the 
drive to reduce transaction costs which could ar ise in report productions, meeting missions and 
responding to donor requirements particularly in LDCs .  The Integrated Framework should strive to 
be a model process applicable to a range of sector s where agencies and donors worked together with 
developing countries to meet deve lopment priorities.  Some of th e recommendations would eventually 
lead to a longer process, capacity  building in LDCs, mentoring by donors and agencies rather than a 
more hands-on approach.  What was the estimate of  the additional time which would be required and 
was it a price worth paying, given the urgency to address the trade and growth dimension of LDCs 
development planning.    WT/IFSC/M/9 
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 14. The representative of the World Bank  said that the comments made by the representative of 
the United Kingdom were very important and it would be useful to hear fr om the Evaluator what 
would be the resource requirement that would make the vision a reality.  
15. The representative of Ethiopia  hoped that the findings and the recommendations contained in 
the Report would contribute to the strengthening of  the IF programme.  He was pleased to note that 
the evaluation team had paid a visit to Ethiopia  and had met various st akeholders and had the 
opportunity to obtain first hand information on what was going on in the country, with respect to the 
IF and other related developmen t endeavors.  The Report acknowledged the struggle the Ethiopian 
Government was waging against poverty, its str ong commitment to the success of the IF and the 
challenges ahead.  While his delegation agreed with  a number of observations, he wanted to give 
some clarification on points raised in connection w ith land ownership, availa bility of business finance 
and the public-private partnership situation.  The Report had cited the private sector's complaint that 
land tenure was its major development constraint, a ffecting access to finance and that there was a 
need for a strong public-private partnership.  With respect to land, it was true that land was state 
property in Ethiopia.  There were three strong reas ons for that.  The first was constitutional.  The 
Constitution of the Federal Republic of Ethiopia prov ided that both urban a nd rural land belonged to 
the people of Ethiopia and was therefore state propert y.  Second, there was an economic rationale to 
it.  Ethiopia was endowed with abundant labour an d land whereas it had limited availability of capital.  
The logic of optimal allocation of resources entaile d that one had to maximize the use of abundant 
resources and minimize the rise of scarce resources.  It  followed therefore that to Ethiopia, it was the 
state ownership of land, among other measures,  that would ensure unleashing of the full 
developmental potential of the 86 per cent of its 70 million population which was engaged in 
agriculture.  Third, there was a social and moral re ason.  If Ethiopia were to treat land as an ordinary 
commodity and hence allowed its free sale and purch ase, the peasants in rural areas would sell their 
holdings during occurrences of hardship, such as drought which were becoming more frequent and 
then flock to the overstretched urban areas, thereby exacerbating urban unemployment worsening 
overcrowding, expanding slums and crime, social  unrest in the towns related and many other 
problems.  It was therefore on those grounds that land was state property in Ethiopia.  He added that state ownership was not peculiar to Ethiopia and that  in a number of East Asian countries, land was 
state property and it did not prevent them from bei ng the fastest growing economies over the last three 
to four decades.  These economies were grow ing despite the uncertain world economy.   
16. Except for the previous three decades, land in  Ethiopia was under private ownership since 
time immemorial.  However, private ownership of land was not a panacea nor was state owned land a 
development constraint.  The devel opment constraint was the structural weakness of the economy and 
the external environment which needed to be addressed.  On the domestic front, as the Evaluation 
Report had appreciated, the Government was leaving no stone unturned within its means.  As for the 
external front, Ethiopia was consistently calling up on its development partners to assist with the 
creation of increased market access, improved allocation of ODA, improved debt relief, encouraging 
FDI flows and increased capacity-building measures.  He believed that the IF would contribute its 
part.  Although land was state property, business pe ople could lease the land they required from the 
appropriate authorities, both at th e federal and regional levels on a long-term basis with possibility of 
renewals.  When there was a need to transfer the land for public use, the law provided that due 
compensation at market value would be paid.  In  his opening statement to the Parliament in 
October 2003, the Prime Minister had declared that a large area of land with adequate access to social 
and physical infrastructure had already been set aside for potential private investors at reasonable 
prices.  Regarding the availability of financing for investment, the Prime Minister had also confirmed 
that domestic banks would make available 70 per cen t of the total project investment costs on loan 
basis with the balance being covered by private investors for feasible projects in many priority 
sectors.  This was meant to address the financia l constraint that the private sector was facing.  WT/IFSC/M/9 
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 17. Regarding private-public partnership, the representative of Ethiopia said that there was 
already a mechanism in place, such  as the Prime Minister meeting with representatives of business 
community twice a year and the Minster for Trad e and Industry meeting the private sector more 
frequently.  Such public-private fo ra offered opportunities for the priv ate sector to raise concerns and 
come up with agreed solutions on the way forward.  W ith respect to the IF, the private sector had been 
represented at the first DTIS launch workshop in  October 2002 and would be represented in the 
November 2003 workshop on the DTIS Report.  The Ethiopian Government was committed to encouraging developmental entrepreneurs as opposed to rent-seekers by making land available and 
ensuring the availability of investment fina nce and setting up a permanent mechanism for 
public-private partnership.  He hoped that the clarification would he lp and that the next revision of the 
text would reflect the reality as far as Government policy was concerned.  
18. The representative of Senegal
 said that the Report had managed to raise important issues and 
made useful recommendations.  He said that the French version had only been received on 
23 October 2003 and his delegation was unable to ex amine the Report in depth.  The capital had not 
sent comments and he hoped that there would be another opportunity in future Steering Committee 
meetings to revert to the Report and its reco mmendations.  The Report had said that for such a 
complex process, it was necessary for there to be lead ership in the beneficiary country and also that 
certain needs had to be satisfied such as competency, human resource needs and others.  The recommendations for Senegal had mentioned the need to strengthen coordination.  He noted that in 
some countries, there might be a need to review working methods and revise the organizational structures in order to implement the IF.  On financi ng, there should not be too many restrictions on the 
projects eligible for financing through Window Two. 
19. The representative of Nepal
 said that having completed it accession process, Nepal was fully 
aware of the positive impact of trade on poverty allevia tion.  In the last ten years, Nepal's trade figure 
had almost doubled.  There was a direct correla tion between the enhancement of trade and poverty 
alleviation.  There was no automaticity involved and it was not possible to know how sustainable the 
effect of trade on poverty alleviation would be.  For example and in the case of Nepal, it was not 
possible to know what effect the termination of the Agreement on Textiles and Clothing would have.  
The IF should assist countries like Nepal to adjust to  the changing nature of the international trading 
regime.  The IF could be more comprehensive, not  only a policy change, but should also look at how 
to diversify products; how to have better access to markets and how to reduce infrastructural costs.  
The evaluation mentioned strengthening capacity.  Di d that include capacity in the broad framework 
or capacity in managing the IF within the country?  It was important for the IF to proceed from the 
conceptual to the implementation stage.   
20. The representative of Switzerland  said that one of the main results of the evaluation was that 
it identified governance as an important issue.  As  indicated by Senegal, the IF process could be 
highly complex, heavy and cumbersome.  As noted in the evaluation, it was important to clarify roles 
between the IFSC and the IFWG.  One of the solu tions identified was the strengthening of the IF 
Secretariat.  A stronger Secretariat could ensure continuity and follow-up, and exercise a monitoring function and prepare conceptual papers.  The evalua tion also spelled out a whole new approach for the 
IF and that adequate thought shoul d be given to the suggestion.  Switzerland welcomed the suggestion 
concerning the DTIS process and the participation of  local consultants and the need to encourage the 
mentoring role of agencies.  Switzerland supported a  similar initiative in Tanzania where the country 
itself was undertaking a study similar to the DTIS w ith external support from the ITC.  Tanzania did 
not want to go through the whole process, but had wa nted to adopt the principles of IF.  A workshop 
would be held in Tanzania.  Concerning perception,  it was important to convey the main features of 
the IF to the country at the preliminary stages. 
21. The representative of Haiti
 said that his delegation was impressed with the RBM approach 
and would endorse that approach.  He asked th e Evaluators for further insights concerning  WT/IFSC/M/9 
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 participation of the various partners in particular the donors at the bilateral level.  The Report had a 
number of recommendations concerning Haiti, such as the need for the Government to take part in the 
dialogue.  In 1999, he had been the Minister for Tr ade and Industry and as such had been responsible 
for the IF.  At that time, the IF was a hopeful con cept for the LDCs.  As a member of the Government, 
he had to explain to the populatio n that it was essential to liberalize.  The IF had been developed to 
strengthen the institutional capacity as well as the pr oductive capacity of the country so that a country 
like Haiti could benefit from enhanced international tr ade.  Haiti believed that the IF could help in 
alleviating poverty.  All the IF agencies and bilate ral partners had been present in Haiti in 1999 during 
the Round Table meeting.  There was no financial co mmitment made to any of the identified projects.  
Haiti was committed to the IF, but wanted greater co mmitment from the agencies and bilateral donors.  
It was difficult to sensitize government institutio ns if there was no stronger commitment from the 
donors.  The Government of Italy had been supportive. 
22. The representative of Rwanda  said that her country was not currently a beneficiary of the IF, 
but a candidate.  She said that the most essential criterion for selection was governance.  Leadership, inclusion and decentralization were important to ensu re that the IF would have an impact on poverty 
reduction.  Political stability, security and properly functioning institutions and infrastructure were 
also important criteria for the IF to function.  Tho se criteria have been the priority for Rwanda since 
its emergence from years of civil war.  The tran sition had resulted in political and macro economic 
stability.  Out of 79 developing countries, Rwanda  was ranked first in te rms of good governance, 
according to a survey by the World Bank.  Rwanda  was setting up democratically elected institutions 
for the first time since 1962 and had a large number of women in the Government.  Rwanda's PRSP 
was in its second year of review and she hoped th at trade would be integrated into the PRSP.  
Strengthening of the capacity of the focal point and the national steering committee was important.  It was also important to have a good communication stra tegy in order to have a common perception of 
the IF.  Rwanda had began preparatory activities with the partnership of ITC.  There had to be a link 
between growth and trade and poverty reduction.  Di fferent structural constraints among the different 
countries should be taken into account.   
23. The representative of Benin
 said that although Benin was not currently an IF beneficiary, he 
hoped that his country would benefit from the re commendations.  He said that the procedure 
governing the IF should be streamlined in order to en sure concrete results.  The objectives of poverty 
reduction and greater participation in the trad ing system were important.  Window Two funding 
should be increased to enable LDCs attain their objectives. 
24. The representative of Bangladesh , on behalf of the LDCs, said that submitting the Evaluation 
Report on time had not been an easy task, given the almost impossible time constraint.  The LDCs were happy that, within the short period of time, th e Evaluators had been able to visit 17 LDCs.  The 
Report was not an easy document to read, as numerous terminologies and abbreviations had made it difficult to follow, even for those more familiar w ith the IF.  The Report did not follow the Terms of 
Reference for the evaluation and as a consequence it see med to have lacked a clear focus.  The LDCs 
were deeply disappointed that the Report did not refer to the written submission of LDC Missions in 
Geneva on the IF.  From their perspective, the to tal absence of the perspectives that the LDC Mission 
in Geneva had provided was a major weakness of the Report.  If CAPRA were to be asked to prepare 
an update, he hoped that the views of the LDC Missi ons in Geneva would be appropriately reflected.  
The failure to consider differing perspectives led th e Report to draw conclusions that demonstrated a 
particular mind-set.  That was illustrated in th e case of the findings on Bangladesh, examined as a 
country under the scheme of the old IF.  As had been rightly pointed out in the evaluation, the differing levels of understanding a nd expectations about the scope and objectives of the IF posed a 
major challenge.  The Evaluators had drawn upon the perspectives of some groups and adopted those 
as their own.  That had clearly resulted in the Re port being less relevant to  those who had a broader 
vision of the IF and where it should be headed.  He welcomed the recommendation by the Evaluators 
to improve the perception of the IF.  The recomme ndations about adopting an RBM approach had its WT/IFSC/M/9 
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 merits however, quantifying goals and objectives we re easier said than done.  The Report had not 
elaborated on that recommendation.  Certain assumptions in the Logical Framework Analysis may not have been valid for an effici ent RBM approach to the IF. 
25. The representative of Bangladesh
, continued by saying that ensuring and enhancing local 
ownership of the DTIS was a recurrent message of the Report which they fully endorsed.  His 
authorities strongly supported the view that local stak eholders had to be in the driver's seat for the 
DTIS preparation with the agencies providing a dvice and assistance in the DTIS process.  They 
further welcomed the suggestion of the Evaluators to  set standard guidelines for the preparation of the 
DTIS.  The Report had shown that many DTIS concentrated on macro-economic policy overviews of countries with less focus on micro-economic conditi ons.  The Report had clearly recommended that 
the DTIS should focus attention on measures to promote export and exporter development of 
particular countries.  The Action Plan Matrix was now an integral part of the DTIS, with identification 
of specific trade-related projects.  One of the agencies had pointed out that linking the DTIS to 
bankable projects was a dilemma.  The LDCs hoped that the DTIS would include costed project proposals to facilitate funding at the post-DTIS stage.   The evaluation had clearly been myopic in its 
focus on one aspect.  It had assumed the DTIS and mainstreaming of its outcome to national 
development plans as the central issue of the IF.  Had the Evaluators followe d the Terms of Reference 
carefully, they would have noted that it had clearly  identified the implementation and follow-up to the 
DTIS as the core issue of the IF.  The LDCs fe lt that the mandate of the IF evaluation was not 
adequately addressed.  The Terms of Reference had six clear objectives.  The evaluation was silent on its recommendations for three objectives that were vital from the LDC perspective.  The first was the 
impact of the IF to general sufficient funding  to a government-owned trade capacity building 
programme.  There was little reference to that aspect  of the Terms of Reference.  The second was the 
challenge of a systematic and predictable implementation and follow-up process in the post-DTIS stage.  The Diagnostic studies were the basis for the delivery of technical assistance and capacity 
building on trade.  Reports by the agencies had s hown that many successful DTISs had not been able 
to attract funding from donors for the priority projec ts identified in the Action Matrices.  The Heads 
of Agency also expressed their co mmitment to accelerate the implementation of DTIS Action Plans.  
No recommendations appeared to have been made on the identification of stable and predictable 
mechanisms for follow-up to the recommendations in  the DTIS.  The Terms of Reference of Window 
Two of the IF Trust Fund was adopted in May 2003 to support projects identified in the DTIS.  The LDCs did not want Window Two resources to be sp ent for mainstreaming purposes, but wanted them 
used to realize projects identified in the DTIS.  There was no guidance in the Report to improve the 
Terms of Reference of Wi ndow Two of the IF Trust Fund.  The third objective was exploring the IF's 
potential as an instrument for addressing the supply-si de constraints of the LDCs.  The core agencies 
had been urged by Trade Ministers at Doha to e xplore the enhancement of the IF with a view to 
addressing supply-side constraints of LDCs.  The Heads of Agency in their joint communiqué of 
July 2003 had recognized that efforts are required to  assist LDCs to build their capacity to formulate 
policy, to negotiate, and to tackle supply-side  challenges in responding to new market access 
opportunities.  In spite of Trade Ministers' mandate and call by the Heads of Agency, there was no recommendation in the Evaluation Report on how the IF could address supply-side constraints of LDCs and instead, the Evaluators saw that aspect as an additional burden on the IF process.  For 
example, the evaluation had said that the request to  consider supply-side constraints under the IF by 
the Ministers without guidelines had exacerbated th e problem of perceptions.  The LDC community 
had been clarifying that perception in every IF meeting.  The submission of LDC Missions on the IF was clear on that.  The Terms of Reference for Wi ndow Two also addressed the scope of supply-side 
projects.  No amount of policy fixes would addr ess LDCs needs unless the IF could generate a 
supply-side response from their entrepreneurs.  That vital issue seemed to have escaped the 
Evaluators' attention.   
26. The representative of Bangladesh
 continued by expressing surprise at the recommendation on 
governance, in particular as regards mainstream ing the operation of the IFWG, without clearly  WT/IFSC/M/9 
 Page 9 
 
 
 identifying its weaknesses.  The IFWG was deliver ing its mandate with professionalism and vigor.  
The selection of the Evaluator by the IFWG should ha ve been an example of its efficiency.  One of 
the agencies had acknowledged that IFWG partic ipation had brought significant changes to the 
management of the IF, which was initially percei ved as a World Bank methodology.  The evaluation 
could, for instance, have looked at the roles of di fferent agencies in the IF process and suggested ways 
for them to contribute more.  A mere change  in composition of the IFWG, without specific 
suggestions on its functioning, could hardly be expect ed to contribute much.  One aspect of particular 
concern to the LDCs was the linkage of the IF to  national development plans or PRSPs.  DTIS and 
PRSP were two different processes and the Evaluators appeared to have missed the fine distinction.  
The LDC community had always looked upon the IF as  a stand-alone exercise, to help build their 
capacity to increase exports and improve their par ticipation in world trade.  Trying to establish a 
direct relationship between trade policy and poverty reduction was hardly the function of the IF.  The 
experience of the last few decades showed that th e expansion of trade guara nteed neither immediate 
economic growth nor long-term poverty reduction.  Internal and external institutions, and social 
conditions, played a significant role in determining wh ether, and to what extent, a country reaped the 
benefits of trade.  Therefore, the assumption in th e logical framework analysis that trade generated 
growth should not be treated as axiomatic.  The Evaluators must have noticed that the IF was still evolving.  If the LDC beneficiaries were to have fa ith in the IF, it would have to produce concrete 
results.  There must be visible demonstration of the outcome of the IF, in the form of increased exports, if the IF was to be a viable model for LDCs' trade development.  The LDC respondents had 
collectively made it clear to the Eval uator that the IF had failed to r ealize concrete results.  The core 
agencies, and the donors, whom LDCs considered pa rtners for development, and whose policies had a 
profound impact on LDC economies, all had a critical role to play to ensure concrete outcome from 
the IF.  The evaluation had to clearly outline whethe r the IF was proving effective and if not, what 
could have been done to achieve the shared goa ls.  Any evaluation should show a programme's 
strength and weaknesses in clear terms, with spec ific recommendations to overcome such weaknesses.  
He concluded by urging that the Report be restru ctured in line with the six clear objectives of the 
Terms of Reference so that th e Steering Committee could consider  appropriate recommendations for 
improving the functioning of the IF. 
27. The representative of Tanzania
 said that despite some of the weaknesses highlighted by 
Bangladesh on behalf of the LDCs, Tanzania was a ppreciative of the elaborate work undertaken and 
the fashioning of a vision of the IF which complex as it might have appeared, embodied some 
constructive ideas which could prove useful if adap ted to correspond to the specific realities of each 
participating country.  Regarding Tanzania, the Evaluators had witnessed the fairly successful 
experience of Tanzania in the first generation of  the IF programme.  He said that he had been 
fortunate to have been the Chairman of the National Steering Committee in Tanzania and could 
therefore testify to the views and findings of the Evaluators.  The IF stood to move into a stronger 
phase once mainstreamed into the PRSP process which had not previously provided visible space for 
trade as an important factor in the poverty reduction efforts.  Tanzania believed in the important role 
that the IF could play in the trade development of  LDCs.  The evaluation provided a key milestone in 
the IF process and should provide the platform upon which further introspection could be carried out in order to enhance the trade performance of LD Cs.  He called on the donors, agencies and all 
participating countries to rise to the new opportunities and make the IF deliver more than it had been 
able to do. 
28. The representative of the United States
 said that her delegation appreciated confirmation that 
in the view of the Evaluators, the IF approach was sound and was evolving.  There was a need to 
continue with the process and refine the IF in orde r to produce more effectively and efficiently.  The 
discussions had been helpful in trying to get a sense of the different perspectives.  The evaluation was 
a milestone and the Report should be used effect ively to move forward.  The United States was 
interested in some areas that were not covered in  the Report.  The first, was the extent to which 
regional development banks and other specialized ag encies were aware of and engaged in the IF and WT/IFSC/M/9 
Page 10  
 
 in addressing trade capacity follow-up priorities iden tified in the DTIS.  The second, was the need to 
have a better sense of donors involvement.  The th ird, was the need for more information on the 
relationship between the IF and JITAP.  The Unite d States was interested in building on existing 
programmes and resources.  The capacity of the six IF institutions to accommodate non-LDCs who 
may be interested was also a point of interest.  Regarding the selection criteria, her authorities had 
noted that the IF was more successful in those countries whose governments were committed to the 
IF.  There was a need for guidelines.  It was l ogical that donors would focus on areas where they 
could assist most.  It was important to focus on the core competence area of the IF, while noting that 
the world was changing and that there was a need  to be mindful of developments.  The Report 
provided a number of good ideas that could be employed.   
29. The representative of CAPRA
, Mr. Rochow said that the Report structure contained on the 
one hand, free standing elements that could have easily  been taken out if a section was of interest to 
one group.  On the other hand, there had been little time to pull it all together.  The Evaluators had 
tried to deal with all the aspects of the Terms of  Reference which had been diffused throughout the 
Report.  For example, regarding the IF and JITAP,  their relationship had been addressed in some of 
the countries.  As to the extent to which regional ba nks were aware of the process, he said that it was 
included in two of the countries' reports, for example the involvement of the Inter-American 
Development Bank in Haiti and the involvement of  the Asian Development Bank in Cambodia.  The 
Evaluators had not had an opportunity to discuss with the African Development Bank which was in 
the process of restructuring and decentralization in order to be more responsive.  The evaluation had 
tried to look at the overall picture and not at indivi dual issues.  There had been no deliberate intention 
to omit any of the issues in the Terms of Reference for the evaluation.  To specify directly what would 
be the best thing to do in a specific area depende d on a prior decision for example, would the results-
based approach be considered?  If so, many of the implementation issues would flow from that 
decision.  It should be recognized that the pr ocesses of country selection depended on the political 
dimension.  While it would have been desirable to  go through the filtering process, countries such as 
Rwanda and Benin should be helped to move forward.  He hoped that the IF, as it evolved would take 
into account all the different aspects of each country.  He concluded by urging a ll partners to make the 
ultimate goal of poverty reduction move ahead and become a reality. 
30. The Chairman  concluded by inviting CAPRA to pr epare an Executive Summary of the 
Report, building on the presentation they had made at  the meeting, plus the comments made.  This 
Summary would then be discussed at a subsequent meeting of the IFWG, followed by one of the 
IFSC. 
B. E XTENSION OF THE INTEGRATED FRAMEWORK  
31. The Chairman  said that several LDCs had expressed an interest in joining the restructured IF 
and at their meeting on 10 July 2003, the Head s of Agency had expressed their support of the 
extension of the IF to further LDCs, following the completion of the evaluation of the IF.  Agencies 
had committed to provide assistance to help LDCs pr epare the ground for their participation in the IF 
through pre-DTIS activities.  The World Bank had undertaken technical reviews for Benin, Chad, 
Sao Tome and Principe, Togo, Laos, Angola and Zambia.  Mozambique ha d undertaken a process 
parallel to the IF process in cooperation with the United  States.  He wanted to take the opportunity of 
the meeting to move this process forward as far as  possible, and to allow the IFWG to start the 
process of extending the IF to new countries.  Some  of the applicants had been waiting for a long 
time.  He suggested that the World Bank also begin pre-DTIS activities for the next group of 
countries, namely Sudan, Rwanda, Burkina Faso, the Gambia and the Maldives.  Those countries 
were aware that the IF was undergoing an evaluatio n and that the outcome of the evaluation would be 
taken into account.  WT/IFSC/M/9 
 Page 11 
 
 
 32. The representative of the United States  said that there was a need to proceed with caution and 
to ensure that the new countries were committed and ready. 
33. The representative of the European Union  said that the extension of the IF to new countries 
had been made dependant on the conclusion of th e evaluation.  Recommendations of the evaluation 
on country selection should be taken into account. 
34. The Chairman  concluded that the process of extension to new countries would be resumed by 
the IFWG.   
35. It was so agreed.  
36. The meeting was adjourned . WT/IFSC/M/9 
Page 12  
 
  
ANNEX 1 
 
INTEGRATED FRAMEWORK STEERING COMMITTEE 
 
Agenda for the 10th Session of the IF Steering Committee
 
Monday, 27 October 2003 at 10.00 a.m.  
 
  
1. The Integrated Framework Steering Co mmittee will hold its Tenth Session on Monday, 
27 October 2003, starting at 10.00 a.m. in the WTO building.   
2. The items proposed for the agenda are:  
(a) Review of the Evaluation Report of  the Integrated Framework (document 
WT/IFSC/6/Rev.1;  the French version will be issued shortly) 
  CAPRA will be present to introdu ce and discuss the evaluation report 
  (b) Extension of the Integrated Framework  
(c) Any other business 
 
 
__________ 
 
 