00-2792 MOREPRESS RELEASE
PRESS/185
6 July 2000
HEADS OF INTERNATIONAL AGENCIES AGREE TO NEW APPROACH ON TRADE-
RELATED TECHNICAL ASSISTANCE FOR LEAST-DEVELOPED COUNTRIES
Heads and representatives of the six core international agencies (ITC, IMF, UNCTAD,
UNDP, World Bank and WTO)1 of the Integrated Framework for trade-related technical assistance to
Least-Developed Countries (IF) met in New York on 6 July to discuss better ways of delivering trade-
related technical assistance to the world's poorest countries - the 48 UN-designated least-developed
countries (LDCs).  Their deliberations were based on a recent independent review of the IF,
commissioned to examine ways of improving this th ree-year old cooperative inter-agency effort to
help the poorest countries integrate more effectively into the global economy.
WTO Director-General Mike Moore, who chaired the meeting, said: "We all know the IF has
not been working as well as it should and we are putting in place new arrangements to rectify the
situation.  We have a responsibility, shared with governments and other agencies and institutions, to
do better in assisting the LDCs to integrate into  the world economy.  Of course, it is the LDC
governments themselves that must determine their policies and priorities, but we must be ready to
give them effective help.  It is time these countries saw more of the positive side of globalization."
                                                     
1 Mr. J. Denis Bélisle, Executive Director of International Trade Centre, Mr. Reinhard Munzberg,
Director and Special Representative to the United Nations of the International Monetary Fund, Mr. RubensRicupero, Secretary-General of United Nations Conf erence on Trade and Development, Mr. Mark Malloch-
Brown, Administrator of the United Nations Development Programme, Mr. Kemal Dervis, Vice-President forPoverty Reduction and Economic Management, World Bank, and Mr. Mike Moore, Director-General of the
World Trade Organization.PRESS/185
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ENDThe new arrangements lay considerable stress on ensuring that trade policy, trade-related
technical assistance, and capacity-building needs are articulated in a broad development context.  The
heads of agency firmly shared the view held by  most governments and the development community at
large, that these aspects of policy simply cannot be addressed in isolation.  This emphasis on
"mainstreaming" trade means that the case for trade-related technical assistance and associated
programs and projects must be made through a country-led process of defining national povertyreduction strategies.
The need for trade-related assistance will be assessed alongside a country's other priorities,
and supported accordingly by the government concerned and the donor community.  These
arrangements will not only ensure that trade takes its rightful place in policy terms, but it will also
increase the chances that the necessary resources will be made available to foster the necessary skills,
institutions and infrastructure for the effective integration of LDCs into the world economy.
A second feature of the new arrangements is the proposed establishment of a steering
committee to oversee the functioning of the IF on a continuing basis.  The earlier arrangement where
the heads of the six core agencies played an over sight role will be broadened out so as to include
LDCs and donors.  This will ensure greater transparency, more accountability and ownership, and willallow any problems in the functioning of the IF to be dealt with promptly as they arise.
A third element is the decision to agree to seek donor support for and voluntary contributions
to an Integrated Framework Trust Fund (IFTF).  The trust fund, which would involve some $20
million over three years, would be primarily dedicated to helping LDCs to develop the necessaryanalytical and policy framework for mainstreaming tr ade into national development strategies, and for
developing programs and projects.  It would also be used for various other activities relating to
training and capacity-building.  The heads of agency consider that without dedicated resources, it will
be hard to see how the IF will function as it should.
The core agencies also agreed on the importance of ensuring that each agency should focus on
what it does best, within the context of its respective mandate.  The heads of agency have agreed that
the World Bank will lead and coordinate the mainstreaming process, with the participation of other
agencies.  UNDP will manage the proposed trust fund.  The WTO will act in a coordinating and
secretariat role with respect to the working leve l Inter-Agency Working Group for the IF, and each of
the agencies will focus on their respective areas of e xpertise in the delivery of trade-related technical
assistance.  The ITC, for example, will focus on support for trade services in LDCs, including
enterprise development.  UNCTAD's work will involve capacity building and training of various
kinds, including for participation in trade negotiations.
The origins of the Integrated Framework are rooted in the Plan of Action for Least-Developed
Countries, adopted as part of the WTO Ministerial Declaration in Singapore.  The Framework itselfwas "endorsed" in October 1997, at a WTO High Level Meeting (HLM) for LDCs, where it was
decided that six agencies – ITC, IMF, UNCTAD, UNDP, World Bank and WTO – would take joint
responsibility for the implementation of the framework for delivering trade-related technical
assistance to the Least-Developed Countries.