 
  WORLD TRADE  
ORGANIZATION  WT/IFSC/M/10 
23 March 2004 
 
 (04-1287) 
Integrated Framework Steering Committee 
Eleventh Session  
 
 
 
REPORT ON THE 11TH MEETING OF THE 
INTEGRATED FRAMEWORK STEERING COMMITTEE (IFSC) 
 
Friday 13 February 2004, WTO, Geneva  
 
Chairperson H.E. Mr. Henrik Rée Iversen (Denmark) 
  
 1. The Integrated Framework Steering Committee (IFSC) held its eleventh meeting on Friday, 
13 February 2004.  The adopted age nda is reproduced in Annex 1. 
A. 
FOLLOW UP TO THE  EVALUATION OF THE INTEGRATED FRAMEWORK  
2. The Chairman recalled that at its last meeting on 27 October 2003, the IFSC had had an 
extensive discussion on the Report of the evaluation of the Integrated Framework prepared by Capra 
and circulated as document WT/IFSC/6/Rev.2.  The su mmary of this report had also been circulated 
as document WT/IFSC/6/Rev.2/Add.1, dated 3 Decem ber 2003.  In December 2003, the Integrated 
Framework Working Group (IFWG) had held a one and a half day retreat to further discuss the 
recommendations contained in the Report of th e evaluation.  Based on the outcome of these 
discussions, the IFWG had drawn up a draft Work  Programme on follow-up actions to implement 
recommendations of the evaluation.  The IFWG ha d met earlier in the week and had approved the 
Work Programme and transmitted it to the IFSC for its review and subsequent approval.  The Work 
Programme contained in document WT/IFSC/W/14 pr oposed a number of actions to be achieved by 
31 December 2005. 
3. In introducing the Work Programme, the Chairman of the IFWG  recalled that since the last 
meeting of the Steering Committee, the IFWG had spent much time focusing its attention on the 
recommendations of the evaluation, in particular on how to improve the operational aspects of the IF 
in order to deliver greater benefits to the LDC comm unity.  In addition to the usual format of formal 
IFWG meetings and email exchanges, there had been  a one and a half day retreat to look in more 
detail at the recommendations of the evaluation.  The outcome of the IFWG discussion was the Work Programme, which had been  approved by the IFWG earlier that week.  He explained that the Work 
Programme focused on nine broad areas of action.   Follow-up to the Diagnostic Trade Integration 
Studies (DTIS) remained the biggest challenge in the IF implementation.  While follow-up activities 
were taking place, there was a need  to ensure that these did not stall upon completion of the studies.  
He stressed that the IF process, including the follo w-up was a process led by the country.  However, 
both bilateral and multilateral deve lopment partners had to ensure  that their ongoing and future 
assistance was programmed in  line with the DTIS findings and priorities identified by the government 
in the Action Matrix.  On the matter of the IF extension to other LDCs, he proposed that new and 
pending requests would be addressed inasmuch as ex isting capacity constraints to undertake the DTIS 
allowed.  Currently, five to six DTIS were undertak en per year.  The Work Programme also envisaged 
the incorporation into the restructured IF of th e five countries which held the IF Round Tables under 
the old IF process. WT/IFSC/M/10 
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 4. The Chairman of the IFWG
 underlined the need to ensure th at the resources of the IF Trust 
Fund, particularly those in Window II, were used e ffectively to assist LDCs to achieve the objectives 
of the IF.  The IFWG was already making progress in that regard.  Furthermore, coordination of trade-
related technical assistance and capacity building was one of the core objectives of the IF.  Moreover, 
the Work Programme put emphasis on ensuring synerg ies between the IF and JITAP and suggested  
some practical administrative arra ngements in that respect.  He re minded that country ownership was 
the guiding principle of the IF process.  The role  played by the IF National Steering Committee and 
the IF Focal Point were key to the successful impl ementation of the IF process.  Governments which 
benefited both from the IF and JITAP should be en couraged to establish arrangements to ensure 
synergies, including the use of a single national st eering committee for both the IF and JITAP, the 
appointment of the same focal point and to link th e DTIS and JITAP capacity building capacities.  
The Work Programme envisaged further strengt hening of the country-led IF process through 
additional support to the National Steering Committee and the Focal Point.  Moreover, the expansion 
of the IF to additional LDCs, accompanied by the greater need for coordination and outreach activities 
implied the need to enhance the role and functions  of the IF Secretariat as well as its strengthening. 
Finally, he thanked bilateral a nd multilateral donors for the financial support they had provided to the 
IF since the establishment of the IF Trust Fund in  2001.  Along with the envisaged expansion of the 
IF to additional LDCs, he expressed the need for increased resources in the Trust Fund so as to ensure 
the smooth implementation of the IF in the on-going and new IF countries. 
5. The representative of Bangladesh  said that the six clear evaluation objectives, outlined in the 
terms of reference of the evaluation were blurred in the evaluation document.  The approach of the 
evaluation and the way evaluation issues were handl ed had resulted in inappropriate recommendations 
in the context of the IF and several of these recommendations were not reflected in the Work 
Programme.  Moreover, the evaluation did not indicat e whether the IF was an effective mechanism to 
address supply-side constraints.  The report of the retreat pointed out that attention was increasingly 
focused on process issues rather than impact or outco me.  He stressed the fact that the IF should not 
only be regarded as a mechanism for mainstreamin g trade but rather aim at helping LDCs better 
participate in the multilateral trading system.  He underlined that LDCs attached great importance to 
follow-up rather than just a well-written DTIS.  Ef fective follow-up to the DTIS would imply that 
there would be predictable and adequate funding for priority technical assistance projects identified by 
LDCs in their action matrices.  Th e success of the IF would also be  judged from its ability to attract 
funding for large-scale projects from other sources.  He said that great importance was attached to 
Window II for the success of the IF in the post-DTIS  stage and reminded that the terms of reference 
for Window II were developed after intensive negotiations and should be  adhered to at the operational 
level.  Commenting on the IF process he stressed th at the IF should help LD Cs and not form another 
conditionality.  There was a need to  make the process simple for LDCs that wished to benefit from the 
IF and had the appropriate commitment.  Regarding Window I, he said that more money had to be 
committed to that Window in order to have new DT IS studies in the relevant countries.  As more 
countries are becoming Members of the IF, there was also a need to enhance the capacity of the IF 
Secretariat.  He hoped that development partners w ould contribute more to the IF Trust Fund and the 
Secretariat be appropriately strengthened.  He noted  that several LDC delegations would like to see 
item 2(i) of the Work Programme rephrased to:" .. . to urge development pa rtners to substantially 
increase contributions to the IF Trust Fund".  On a di fferent note, he regarded outreach activities to be 
very important for awareness creation about the IF.  There was a need to showcase some IF success 
stories.  However, prior to that there was a need  to be cautious about further outreach as it could 
constrain or compete with the core IF processes.  He said that the Integrated Framework's objective 
was not to resolve all problems faced by LDCs, but  rather to assist them in increasing their exports. 
The IF would cease to be of interest to LDCs if  it was transformed merely into a mechanism for 
incorporating trade into national development plans.   Finally, even though the Work Programme was 
indicative in nature, it could bring the desired impa ct for LDCs when the operations of the IF were 
improved.  WT/IFSC/M/10 
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 6. The representative of Canada  referred to two points raised by the representative of 
Bangladesh. She reiterated that the underlying principl e of the IF was to focus on results.  Second she 
underlined that her delegation was utterly committed to follow-up activities.  She noted that there was 
a small difference of perception.  Her perception wa s that the responsibility for leading this process 
lay with the LDCs while the partnership from th e donor community would come in once the LDCs 
had determined their priorities and had put forward re quests for priority projects to be delivered.  In 
recognition of a gap, the creation of Window II met th e immediate short-term needs.  Overall, donors 
and LDCs were on the same wavelength, yet donor s emphasized ownership as the most important 
element to ensure the success of the IF process in LDCs. 
7. The representative of Yemen  associated his delegation's position with the statement made by 
the representative of Bangladesh.  He reported on th e implementation and ownership of the IF process 
in Yemen.  He added that the UNDP played an impor tant role in the implementation of the IF process, 
and thus UNDP local offices should pay particular a ttention to the IF among all their other activities 
in LDCs.  Ownership of the process by his Gove rnment depended on whether the UNDP local office 
was available for assistance.  Regarding the IF proce ss in his country, he noted that the DTIS and its 
action matrix were submitted to the General Polici es Committee, chaired by H.E. the Prime Minister, 
for a final evaluation.  Regarding the implementation of the process in Yemen, in particular as regards 
funding through Window II of the IF Trust Fund, several meetings of the Local Project Approval Committee (LPAC) had already been held, chaired by the Minister of Industry and Trade.  At its meeting on 10 January 2004, the LPAC had approved three project proposals to be submitted for 
Window II funding. 
8. The representative of Nepal
 said that the Integrated Fram ework would be an important 
instrument to assist LDCs to enhance their trad ing capacity.  Trade was an important element of 
economic growth and also an importa nt element of alleviating poverty in his country.  As such, his 
delegation attached great importance to mainstream ing trade into the PRSP process.  He added that 
the latter had just been completed.  Nepal ha d completed its DTIS and action matrix.  An 
implementation seminar was held in Katmandu in November with a view to discussing with all 
stakeholders, including donor partners, the implem entation of the IF in Nepal.  His delegation 
reiterated that ownership was extremely important to the success of the process.  In this view, the IF 
National Steering Committee was created.  The LPAC had also been created and had held its first meeting last December.  A project proposal for Window II had already been prepared and submitted.  While ownership of the process by his Government  was important, he stressed that support from the 
international community and donors was equally import ant.  He urged the international community to 
place additional resources in the IF process.  Finally , he supported the suggestion made earlier by the 
representative of Bangladesh regarding point 2(i) of the Work Programme, re-phrasing it to reflect the real need for the enhancement of the IF Trust F und, so that the IF could achieve its objectives. 
9. The representative of Switzerland
 spoke on behalf of the donors as newly elected donor 
coordinator in the IF.  Donors had been di scussing the Work Programme and supported it as it 
covered the main findings of the IF evaluation.  Donors agreed that the end of 2005 was a reasonable 
deadline to complete the Work Programme.  He st ressed the critical issue of strengthening country 
ownership.  Experiences in LDCs showed that a strong local structure, a strong focal point and a 
committed national steering committee would enhance th e success of the IF process in the country.  
Strengthening the IF Secretariat was an equally important matter.  However, to assist donors in 
exploring possibilities of strengthening the Secretariat, some clarifications were needed as to the role 
of a strengthened Secretariat and its possible contribution to promote the IF process in the field.  A small team of donors would prepare a desk analysis to evaluate the role of the Secretariat, followed by 
a meeting with the IF Secretariat, in order to move forward with this issue.  
10. The representative of the European Communities
 shared all comments made by the 
representatives of Canada and Switzerland.  He indica ted that his delegation w ould have preferred to WT/IFSC/M/10 
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 see more in terms of clear objectives and targets by which success could be measured in the Work 
Programme.  He suggested to conduct periodical assessments at a frequency of twice a year to 
monitor the on-going work under each heading of the Work Programme.   
11. The representative of Guinea
 reported on the evolution of the IF process in her country.  A 
validation workshop was held on 30 and 31 Octo ber 2003 in Conakry in the presence of all IF 
stakeholders, including the Government, all si x IF agencies and bilateral and multilateral donors.   A 
LPAC had been set up and had approved three priority  projects for implementation through funding of 
Window II from the IF Trust Fund.  These projects  were related to strengthening trade-related 
institutional capacity, strengthening of national e xpertise as related to trade facilitation and 
multilateral negotiations, as well as promoting specific sectors of the Guinean economy.  As said by 
the representative of Bangladesh, she underlined the importance attached to replenishing resources of 
the IF Trust Fund.  As a follow up to the Worksh op, a Guinean delegation had visited Geneva last 
week to meet with sever al IF partners as well as the Agence de la Francophonie.  She thanked the 
partners for their efforts to integrate French-s peaking LDCs in the multilateral trading system.  
Finally, she hoped that the implementation of Guinea's three priority projects through Window II 
would serve as a catalyst for poverty reduction in Guinea. 
12. The representative of UNDP  assured the representative of Yemen that the IF was regarded as 
a major development priority at the highest leve ls of UNDP as well as at the country level.  
13. The representative of Tanzania  supported the statement by the representative of Bangladesh.  
Tanzania had undergone significant developments as  regards the IF.  The DTIS was being updated 
with the assistance of the Swiss Government and ITC.   Efforts to mainstream trade into the national 
development agenda were under way using both local and regional cons ultants.  The DTIS included a 
macroeconomic analysis and a description of the tr ade policy environment as well as sector analysis 
of export market constraints and opportunities.  A consultative works hop involving all IF stakeholders 
to evaluate the progress made in the DTIS would be  held on 9 March.  This process should lead to a 
formal DTIS validation workshop later that year.  She shared the views of the representative of Nepal 
on country ownership:  the IF process had to be led by  the beneficiary country in order to fully exploit 
its benefits.  Finally, she indicated that the UNDP  local offices had a great  responsibility in the IF 
process and should give priority to IF projects. 
14. The representative of the United States  associated her delegation with comments made by 
other donors on the Work Programme and the outcome of the evaluation.  She encouraged the European Communities' idea of a periodic review of  progress made.  She added that before resources 
were disbursed to the Secretariat or anywhere else, an identification of gaps or needs in the process 
was warranted.  She commended Nepal for the effort s made in the IF process and added that this 
process was fundamental to mainstreaming trade wh ile at the same time identifying finances for 
projects.  She underlined that the short-term fi nancing provided through Window II as a transition 
mechanism should never be seen as th e final objective of the IF.  In terms of funding for Window I 
she added that the process was not off-track if one took into account the number of DTIS studies 
expected that year.  She agreed that this year w as important to deliver resu lts and she reiterated her 
delegation's commitment to the IF. 
15. The representative of Lesotho
 reported on the status of the IF in her country.  A number of 
issues were identified in the DTIS including the mainstreaming of trade in the poverty reduction strategies.  Under an assistance Programme with th e lead donor for Lesotho, DFID, three issues were 
identified, including needs assessments for capacity building, development of  a website and capacity 
building for trade negotiators.  The latter was a pr oject done in co-operation with USAID.  Lesotho 
had submitted a project for funding through Window II to be executed by ITC.  A donor conference 
was scheduled after the PRSP which would take place later this year.  Finally, she indicated that the 
IF was working well in Lesotho.  WT/IFSC/M/10 
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 16. The representative of Senegal  supported the statement of the representative of Bangladesh, 
namely that the IF should serve to strengthen the su pply side constraints of LDCs.  He stressed the 
need for adequate financing to address LDC issues.   Senegal had submitted four projects for funding 
through Window II, including projects on ethnic production, tourism and handicrafts. 
17. The representative of Zambia  thanked all six agencies and donors for accepting Zambia in the 
IF process and stressed the importance of main streaming trade in the PRSP.  His country had 
participated in the establishment of the IF sin ce 1997 as well as in the revamping of the IF.  He 
underlined the need to go forward quickly in the process.  In recognizing that DTIS and post-DTIS 
implementation activities required skilled human  capacity, he supported the statement in 
paragraph 2(g) of the Work Programme that called fo r a strengthened IF Secretariat.  In most LDCs, 
considerable work needed to be undertaken in order for trade to be effectively integrated into PRSPs. 
The majority of PRSPs in LDCs did not appropriate ly include trade.  The IF, through the DTIS had a 
major role to play in assisting LDCs to mainstream trade into their PRSPs.  As his country was in the 
early stage of the IF, he stressed the importance of pre-DTIS activities with a view to enhancing local 
capacity and fulfilling the objective of country owners hip.  He called for increased contributions so 
that the growing number of LDCs in the IF as we ll as the activities undertaken in each country could 
be adequately addressed.  He urged donors to transf orm the pledges into actual deposits.  Finally, he 
indicated that the Doha Development Agenda put more weight on increased market access and less on supply side constraints.  
18. The representative of Madagascar
 said that after a long period of interruption in the process, 
the Government had restarted dynamically all IF act ivities.  A DTIS validation workshop was held in 
July last year.  The workshop allowed the Gove rnment to disseminate knowledge to all national 
stakeholders.  A donor implementation meeting, chai red by the Vice Prime Minister had taken place 
in January, and had enjoyed high participation from the IF core agencies, bilateral and multilateral 
donors.  Discussions focused on implementation dates of the various activities selected from the 
action matrix.  The plan drawn up following the m eeting consisted of formalizing the institutional 
framework, completing the action matrix, drawi ng up the possibilities for available financing, 
elaborating the terms of reference of an intern ational trade expert, as recommended by the World 
Bank, establishing terms of reference for actio ns to be undertaken to upgrade the customs 
administration including the national institute of st atistics in the working group as well as activities 
with the chambers of commerce.  A meeting was pla nned to take place in the first week of March to 
deal with existing programmes and measures taken by donors to finance activities under the IF.  She 
thanked the ITC for facilitating a familiarization miss ion in Geneva that allowed an orientation as to 
the priority projects to be funded through Window II.  
19. The representative of Cambodia  spoke on the basis of his country's experience of the IF.  He 
pointed to the lack of private investment.  There was no strong ownership of the implementation of the IF and there was also a lack of national policy direction:  no clarity on priorities for technical 
assistance and for other projects intended for implemen tation.  The DTIS was important in identifying 
and prioritising projects for financing.  Regarding the need for funding these projects, he aligned his 
position with the representative of the United Stat es and stated that Window II would never be 
sufficient to cover all the needs of LDCs.  Theref ore, the implementation of these projects should be 
financed through direct investment by the private sec tor or through credit.  That was the definition of 
ownership. 
20. The representative of Benin
 supported the comments by the representative of Bangladesh.  He 
underlined his country's commitment to the IF.  Usef ul preparatory work was being undertaken in his 
country.  He indicated that his country had already undertaken activities such as the JITAP as well as 
the PRSP process. WT/IFSC/M/10 
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 21. The representative of Sudan
 indicated that his country was not yet part of the IF.  However, 
upon reception of a very encouraging letter from the Chairman of the IF Working Group, his 
Government was undertaking the necessary steps to prepare for an IF Technical Review. 
22. The representative of Guinea  focused on coordination and ownership.  These concepts were 
very important especially between institutions an d the beneficiaries.  In her country's case, 
coordination with ITC helped her Government identify and design the priority projects for funding 
through Window II. 
23. The representative of Angola  said that his country was not as yet selected for the IF.  He 
informed that the second WTO Trade Policy Clinic w as to take place in his country, the first having 
been conducted in Sierra Leone.  He hoped that the resu lts of this Clinic would very quickly lead to a 
better integration of trade into pove rty reduction programmes for his country. 
24. The Chairman  concluded that a very fruitful discussion had taken place on the IF Work 
Programme.  He had taken due note of the re quest from the representative of the European 
Communities for periodic monitoring of the Work Programme and would see to its accommodation in 
the next IFSC meetings.  He a dded that enough means had to be secured by donors for both Window I 
and Window II.  He proposed that the IF Work Programme, as contained in document 
WT/IFSC/W/14 be approved. 
25. It was so agreed1. 
B. 38TH MEETING  OF THE  IF WORKING  GROUP  ( IFWG):  REPORT  BY THE  CHAIRMAN  
OF THE  IFWG 
26. The Chairman of the IFWG  reported on the items discussed at the 38th meeting of the IFWG,   
other than the Work Programme.  First, the operationalization of Window II of the IF Trust Fund.  
Second, the status of implementation in the on-going IF countries.  Third, the extension of the IF.  Fourth, the strengthening of the IF Secretariat, and fifth, the upcoming IF events. 
27. On the operationalization of Window II he said that  in conformity with the terms of reference 
of Window II, UNDP had received several project proposals for possible funding out of Window II 
from the LDCs that had completed the DTIS.  At its meeting and based on the adopted terms of 
reference, the IFWG  had been able to clarify so me administrative and procedural issues to facilitate 
the IF process.  He reported that concrete project s would soon be fully funded out of Window II.  The 
IFWG reaffirmed that Window II funding was ava ilable for those projects identified as priority 
projects by the Government in the action matrix , for implementation during the phase between the 
completion of the DTIS and acceding funding throug h the Consultative Group and Roundtables.  The 
ultimate aim of these funds was to help LDCs comp lete the mainstreaming process.  The IFWG also 
reiterated that Window II money was bridging money.  In that sen se a ceiling of $US 1 million would 
be the maximum for any given beneficiary country.  The IFWG had re-emphasized the important role 
played by UNDP local offices in assisting LDCs to draw up Window II project proposals in the process led by the Local Project Approval Committee (LPAC).  To further assist UNDP in its role as 
manager of the Window II funds, the IFWG had agreed to transmit the following three light criteria to 
UNDP:  in its periodic reporting to the IFWG and IFSC on project proposals submitted to it at headquarters, UNDP should include that it be satisfi ed that the project proposals complied with the 
following criteria: (i) the proposal should fall w ithin the ceiling determined for each beneficiary 
country;  (ii) the proposal was part of the approve d DTIS and action matrix and was identified by the 
country as a priority with the ultimate aim of main streaming trade, and (iii) the proposal had to be 
approved by the LPAC as described in the annex to th e terms of reference for Window II.  With that 
                                                     
 
1 Document WT/IFSC/W/14 was subsequen tly issued as document WT/IFSC/7.  WT/IFSC/M/10 
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 understanding, UNDP Headquarters would be able to monitor and manage the funding of the 
approved projects that had been submitted by the qualifying LDCs, as well as those that were now 
under preparation.  In conformity with the adopted  terms of references, UNDP would report to the 
IFWG and the IFSC on the status of implementati on of Window II and would seek guidance to ensure 
fairness and equitable geographical distribution. 
28. He said that the IFWG had taken note of th e reports by the World Bank, UNDP and ITC on 
the recent developments in the on-going implemen tation, including in Burundi, Cambodia, Djibouti, 
Ethiopia, Guinea, Lesotho, Madagascar, Malawi, Mali , Mauritania, Nepal, Sene gal, Yemen, as well as 
in the five round table countries - Bangladesh, th e Gambia, Haiti, Tanzania and Uganda.  Although 
these countries were at different levels of impl ementation, progress was taking place.  On the 
extension of the IF, he said that at the last meeting, the IFSC had given the green light to the Working 
Group to resume the extension of the IF to new a pplicants.  Accordingly, the World Bank had started 
preparations for the DTIS in Benin, Chad, Lao P.D. R, Sao Tome and Principe and Zambia.  The first 
mission to Benin had already taken place last month with the participation of several agencies and donors.  Missions to other countries were scheduled to take place in the second quarter of that year.  
Work on the DTIS in Mozambique had already pr ogressed as it was based on existing work and was 
carried out with the assistance of a donor.  Following decisions taken by the IFSC at its last meeting 
to authorize the World Bank to begin technical reviews in Burkina Faso, the Gambia, Maldives, 
Rwanda and Sudan he reported th at these reviews were currently being undertaken and would be 
ready for the next IFWG meeting.  The IFWG wa s also reviewing the request from Angola, on the 
basis of a revised technical review and the upcom ing WTO trade policy clinic.  Regarding the most 
recent requests, including from the Central African  Republic, the Comoros, Equatorial Guinea and 
Niger, the IFWG had agreed to defer them to a later stage, in light of progress made in the 
implementation of the IF.  The IFWG had also ex changed views on how to incorporate the requests 
from the countries that had held a roundtable under th e "old" IF process.  Out of the five roundtable 
countries, he reported that four - the Gambia, Haiti,  Tanzania and Uganda - were requesting that the 
new IF process be applied to them.  The IFWG ha d agreed on a process similar to the one now used 
for other countries, including a technical review a nd a DTIS.  However, in carrying out the process, 
the fact that these countries were already IF countries, would be taken into account and where 
possible, the DTIS would take into considerati on the work and studies already available for those 
countries.  In the case of Tanzania for instance mu ch work had already been carried out with the 
assistance of some development partners.  As i ndicated in the Work Pr ogramme, the Evaluation 
recognised the need to strengthen the IF Secretariat in order to cope with the expansion of the IF, 
accompanied by the greater need for coordination and outreach activities.  A small task force had 
already been established and was reviewing ways to implement the evaluation's recommendation on 
that point.  
29. Furthermore, the Chairman of the IFWG drew th e IFSC members' attention to a number of IF 
events that were set to take place this year.  First, UNCTAD, together with other members of the 
IFWG, would be organising a sub-regional workshop on the IF in Africa, in the third quarter of this 
year.  The objective of this workshop was to  prepare the newly acceding IF countries for the 
upcoming trade mainstreaming exercise, by inviti ng the countries to which the IF was currently 
applied to share their experiences.  This would be a valuable gathering for the LDCs' IF community.  
On behalf of the Working Group, the Chairman expressed his appreciation for the generous support 
offered by the Government of Finland to organize that event.  Another proposal was to hold an IF 
seminar in Geneva later this year.  The focus of this  seminar would be on concre te results  achieved in 
the IF implementation.  Moreover, the Working Group welcomed and took note of the special interest 
in the IF expressed by the Office of High Re presentative for the Least Developed Countries, 
Landlocked Developing Countries and the Small Island Developing States
 and by LDCs 
representatives to the UN in New York.  A joint se minar on the IF in New York was being proposed 
by UNDP and the Office of High Representative to provide a better understanding of the IF among the New York based LDC community. WT/IFSC/M/10 
Page 8  
 
 30. The IF Working Group had taken note of the ro tation of donor representatives to the Group.  
The current serving donors, Canada and the Europ ean Commission, would be replaced by Switzerland 
and the United States respectively.  On behalf of the Group, the Chairman expressed his sincere 
appreciation to Canada, Ms. Adair Heuchan, and the European Commission, Mr. Peter van den Heuvel, for their huge contributio ns to the IF process.  The representative from 
Bangladesh had informed that consultations for the rotation of LDC representatives were still 
underway and that for the time being the repre sentative of Bangladesh would remain as the LDC 
representative. 
31. The Chairman of the IF Steering Committee
 thanked the donor and LDC representatives for 
their efforts throughout their mandate. 
32. The representative of the World Bank  emphasized the need for commitment from the donors 
and ownership from the beneficiaries.  In terms of trade projects, overall, there was a significant 
increase in interest in trade-related projects particular ly in the area of trade facilitation.  To make the 
IF process a success there was a n eed to communicate with the wider donor community as well as 
obtain the commitment from the beneficiaries in the implementation.  
33. The representative of Ethiopia  reported on the evolution of the IF process in his country.  The 
DTIS validation workshop had taken place on 10 to 11 November 2003 in Addis Ababa.  The workshop had been well attended a nd included representatives from the public and private sectors, 
academia, civic society and the donor community as well as representatives from the six core IF 
agencies.  His country was preparing a draft action pl an with the inputs provided so as to submit them 
soon to the National Steering Committee for its review  and approval.  His country had submitted also 
a request for funding of priority projects thr ough Window II of the IF Trust Fund.  He expressed 
Ethiopia's continued commitment in the process a nd looked forward to a favourable and immediate 
response to that request.  He said that his c ountry was advancing in the preparation of the 
memorandum on the foreign trade regime in its acc ession to the WTO.  He added that a  successful 
national workshop on the draft memorandum and on the sensitisation of stakeholders on WTO 
Agreements and the WTO accession process had taken place in Addis Ababa on 26 to 29 
January 2004.  He noted that his country's lim ited human and institutional capacity was being 
overstretched.  He recalled that in the LDCs acc ession guidelines, the international community had 
made a commitment to support the acceding LDCs, among others, within the context of the IF.  In that view, he asked for the donor community's conti nued support and hoped that the timely and full 
authorisation of the request made for Window II funding would be accepted. 
34. In recalling the report of the IFWG Chairman  with regard to the operationalization of 
Window II, the Chairman
 requested whether the Members could ag ree to the three criteria proposed to 
be transmitted to UNDP to provide further guidance. 
35. The representative of Canada, on behalf of the donors  requested that it be made clear to 
UNDP that the LPAC, in its review of the project proposals for funding out of Window II, should 
verify that no other available donor money existed at the immediate time.  This, in order to avoid 
duplication and to ensure that regular funding ch annels would be looked at before coming to 
Window II. 
36. The representative of Bangladesh  said that this proposal was not acceptable and amounted to 
a de facto fourth criterion and a complex one at th at.  He said that when countries undertook a DTIS it 
was in order to obtain funding through Window II.  If the LPAC had the responsibility to verify that 
no financial resources were available other than Window II, this would automatically delay the 
process.  He added that some of the projects r esulting from the action matrix would be funded by 
means other than Window II, yet Window II fundi ng was a bridging mechanism and as such he 
proposed that only the three criteria sh ould apply and be transmitted to UNDP.  WT/IFSC/M/10 
 Page 9 
 
 
 37. The representative of Canada  clarified that this fourth criterion was not meant to delay the 
process in any way.  She proposed to ask UNDP whether this was a realistic perspective. 
38. The representative of the United States  regarded this fourth criterion as an important 
management tool and a check in order to en sure the effective use of scarce resources.  
39. The representative of Guinea  supported the representative of Bangladesh.  She said that an 
additional criterion would delay the implementation of projects.  Three criteria were sufficient. 
40. The representative of UNDP  welcomed the clarification of the process to use Window II 
funds.  The UNDP had been looking forward to this to  allow it to proceed with the disbursement of 
funds for Window II projects.  The criteria would be  communicated at the country level.  Regarding 
the fourth criterion he said it was technically possi ble to verify that no existing resources, including 
regular financing channels, were available ot her than the money requested from Window II. 
41. The Chairman of the IF Steering Committee  clarified that the fourth criterion consisted in 
asking the LPAC,  and not UNDP Headquarters, to verify and ensure that when projects were 
submitted for funding through Window II, a prior discu ssion had been held in the beneficiary country 
on the availability of other f unds and possible duplications. 
42. The representative of Zambia  said that the process of moving forward outweighed the 
constraint that the proposal by the donors would po se.  He suggested that this proposal be taken on 
board. 
43. The representative of Bangladesh repeated that the proposal was not acceptable.  The terms of 
reference for Window II did not indicate that Wi ndow II funding would only be disbursed in case 
funding from other sources would not be available.   The fourth criterion would create a deviation 
from what was adopted in the term s of reference of Window II.  He proposed that only the three 
criteria suggested by the Chairman of the IFWG were taken on board. 
44. The representative of Madagascar  requested some clarification as to the amount available per 
country for Window II in order to proceed to the sel ection of projects to be financed from Window II. 
45. The representative of the European Communities  supported the fourth criterion as suggested 
by the representative of Canada on behalf of the donors and added that it was consistent with the 
terms of reference of Window II.  
46. The representative of Ethiopia  indicated that the first criterion was too restrictive.  He did not 
support the setting up of a financial upper limit.  He  said hat the application of the fourth criterion as 
suggested by the donors represented an additional rest riction.  He requested that the proposal be 
withdrawn. 
47. The representative of Switzerland  said that the terms of reference of Window II indicated that 
Window II funding was a bridging mechanism.  Th e proposal of donors would simply ensure that 
Window II was  effective at that and would not delay the process. 
48. The representative of Tanzania  considered the donor proposal an additional constraint.  She 
requested time to discuss it among the LDCs. 
49. The Chairman of the IFWG , in replying to the question posed by the representative of 
Ethiopia said that the ceiling amount for Window II funding at $US 1 million had been set after intensive discussions with donor representatives a nd among the six agencies.  In case countries had 
made requests exceeding that ceiling, the process to  follow would be first to focus on project WT/IFSC/M/10 
Page 10  
 
 proposals within the ceiling, deferring the remaini ng projects over and above the ceiling to a later 
stage.  
50. The representative of UNDP
 clarified that a distinction should be made between the 
$US 300,000 under Window I, meant to finance th e preparation of the DTIS and the ceiling of 
$1 million for projects to be financed out of Window  II of the Trust Fund.  He repeated that in 
examining project proposals for Window II funding, it was technically possible to verify that no 
resources, including from regular financing channels , other than Window II funds were available to 
fund projects.  Moreover, UNDP Headquarters could require the LPAC, in which it was represented through its field offices, to ensure this. 
51. The representative of Canada
 welcomed the assurances provided by UNDP in respect of the 
donor concerns.  This allowed her to withdraw th e proposal for insertion of a fourth criterion as she 
understood that examination would take place in the LPAC to avoid duplication of financing.  
52. The Chairman of the IFSC  proposed that the IFSC take note of the report provided by the 
Chairman of the IFWG and approve the three light criteria for UNDP's guidance in managing Window II funds, as earlier adopted by the IFWG and that he sent a letter to UNDP formally 
transmitting them.  In doing so, it was understood that the LPAC, in its review of the project proposals 
would include a fully fledged and in-depth examin ation, taking full account of alternative financial 
possibilities.  An indication of what other donor funding had been sought and found available would 
be appreciated.  He welcomed the assurance given by the UNDP representative to the effect that such 
an examination was already part of the UNDP monito ring exercise.  He felt confident that within the 
framework of the above-mentioned understanding UNDP would be fully able to continue its positive 
contribution to the financial management of the IF funding mechanism in a way that would at the 
same time facilitate the continuation of the programme  and satisfy the expectations of all members of 
the IFSC.  It was equally understood that for a smoot h continuation of the IF, additional financing in 
both Window I and II needed to be forthcoming.   
53. The IFSC so agreed
. 
54. The representative of Rwanda  said that his country would be subject to a technical review.  
He welcomed the World Bank's expeditious action.  A focal point for the IF had been set up.  A seminar would soon take place involving all IF stak eholders.  The lead donor for trade already existed 
for the PRSP.  There was close coordination between  the Ministry of Trade and the Ministry of 
Finance.  The PRSP would be revised in June a nd maybe that date could move forward depending on 
whether the technical review and the preparation of  the DTIS could be accelerated.  He referred to 
Cambodia as a success story, and he called for donor s to support his country to be another success 
story under the IF, as the climate was ripe in his country.  He said that his Government would be pleased to host the sub-regional workshop as propo sed by UNCTAD in the third semester of 2004. 
55. The representative of Mozambique
 said that the selection of her country in the IF was a great 
encouragement.  As a beneficiary of both IF a nd JITAP, her country's Government would ensure 
synergies between these two instrume nts so as to maximize the benefits of both.  The lead facilitator 
for the IF would be USAID.  She reitera ted Mozambique's commitment for the IF. 
56. The representative of the United States  said that it would take on the role of donor coordinator 
in the IFWG in May.  Until then, the European  Communities would continue its role along with 
Switzerland.  
57. The representative of the World Bank , in responding to the delegation from Rwanda, said that 
a technical review had to be conduc ted, which would take a few week s.  As far as starting the DTIS  WT/IFSC/M/10 
 Page 11 
 
 
 exercise in Rwanda, he said that, according to inform al consultations, this coul d be done in the second 
part of the year. 
58. The IFSC took note  of the comments made. 
C. OTHER BUSINESS  
59. The representative of the Maldives  asked whether the Integrated Framework process could 
continue to apply in the Maldives in case it graduate d from LDC status.  He indicated that graduation 
could happen as early as July.  He had already made a statement to the General Council on his 
country's concerns.  He thanked the Chairman of th e IFWG for his report where he indicated that the 
Maldives were selected for a DTIS to be undertaken by the World Bank. 
60. The Chairman of the IFSC  proposed that Maldives' possible graduation from LDC status 
would not change the country's eligibility for the IF process. 
61. It was so agreed . 
62. The Chairman of the IFSC  said that the next meeting of the IFSC may take place after the 
meeting of the IFWG. 
63. The meeting was adjourned . 
 WT/IFSC/M/10 
Page 12  
 
 ANNEX 1 
 
INTEGRATED FRAMEWORK STEERING COMMITTEE 
 
Agenda for the 11
th Session of the IF Steering Committee  
Friday, 13 February 2004 at 10.00 a.m.  
   
1. The Integrated Framework Steering Committe e will hold its Eleventh Session on Friday, 
13 February 2004, starting at 10.00 a.m. in the WTO building. 
 2. The items proposed for the agenda are:   
(a) Follow-up to the Evaluation of the Integrated Framework 
(b) 38
th meeting of the IF Working Group (IFWG):  report by the Chairman of the IFWG 
(c) Any other business 
 
 
__________ 
  