INTEGRATED FRAMEWORK

Leendert Solleveld

International Trade Department

The World Bank

IF WEB SITE:www.integratedframework.org

OBJECTIVES Integration of trade issues into national development

strategies (mainstreaming) such as the Poverty Reduction Strategy Papers (PRSPs)

Coordinated delivery of TRTA by all development partners in response to LDC needs

INSTITUTIONAL ARRANGEMENTS

IF Working Group (Agencies, Donors, LDCs) IF Steering Committee IF Trust Fund: 17 donors pledged US$28 million

INTERNATIONAL LEVEL

National Steering Committee National Focal Point IF Donor Facilitator

NATIONAL LEVEL

IF PROCESS Entry through Technical Review

Preparation of Diagnostic Trade Integration Study by World Bank-led team

National Workshop (National stakeholders, donors, IF agencies)

Endorsement of DTIS and Action Matrix by government: country ownership

Incorporation into PRSP

Implementation of Action Matrix: Mobilize donors, Window II

Macroeconomic Developments (budget, taxation, inflation, exchange rate, banking, etc.)

Trade Policy (market access, regional arrangements, tariff reform, WTO accession/compliance)

Transport and Trade Facilitation Product Standards Investment Climate Institutional Issues/Capacity for Trade Policy Trade and Poverty Sector Studies Action Matrix

CONTENT OF DTIS

DTIS AND NATIONAL WORKSHOP COMPLETED

STATUS IF

COUNTRY

WORKSHOP DATE

Cambodia November 2001 Mauritania November 2001 Senegal December 2002 Lesotho February 2003 Nepal June 2003 Yemen June 2003 Madagascar July 2003 Malawi September 2003 Ethiopia November 2003 Guinea November 2003 Burundi December 2003 Djibouti May 2004 Mozambique September 2004 Mali November 2004

DTIS IN PREPARATION

STATUS IF

Benin Rwanda Chad Sao Tome and Principe Lao PDR Tanzania Zambia

DTIS Delivery: Spring/Summer 2005

NEW COUNTRIES

STATUS IF

Angola Maldives Burkina Faso Niger Gambia Sierra Leone Uganda

Preparatory missions: Spring/Fall 2005

TECHNICAL REVIEWS PENDING

STATUS IF

COUNTRY

STATUS

Central Africa Republic Revisit late CY 2005 Comoros Postponed Equatorial Guinea Revisit late CY 2005 Haiti Postponed Liberia In preparation Sudan Postponed

Congo Democratic Republic

NEW REQUESTS

Eritrea

SUSPENDED

STATUS IF: SummaryDTIS/National Workshop completed 14 countries

DTIS in Preparation 7 countries: Completion Spring/Summer 2005; Workshops Summer/Fall 2005

Newly Approved Countries

7 countries: DTIS to start Spring-Fall 2005; Workshops Spring-Fall 2006

Technical Reviews Postponed for five countriesOne in preparation (Liberia)

Suspended One country (Eritrea)

New Requests One country (Congo Dem. Rep.)

CONCLUSION: 14 LDCs are left

Mostly small island economies/conflict countries

Focus on implementation process

IF IMPLEMENTATIONWINDOW II30 projects submitted ($10 million) in 12 countries19 projects approved ($7 million) in 11 countries

Examples:

Cambodia Capacity building for Pro-poor Trade Reforms

Ethiopia Trade Negotiation Capacity

Guinea Trade Negotiation Capacity

Madagascar Trade Policy Adviser

Malawi Trade Policy Adviser

Senegal Tourism, Fisheries

IF IMPLEMENTATIONOTHER ACTIVITIESMost progress in:

Burundi Consultants prepared bankable projects to be discussed with donors

Cambodia IF success storyHigh donor involvementWTO Accession

Ethiopia Implementation plan prepared: focus on private sector development and WTO AccessionWB: PSD Capacity Building Project; WTO AccessionEU: WTO AccessionUSAID Agri Business

Lesotho DFID Trade and Poverty Program

Madagascar Trade reformsTwo implementation meetings: concrete projects are being formulated

Malawi Merger DTIS/Malawi Economic Growth StrategyDiscussion with donors on priority projects expected shortly

WORLD BANK PROJECTS WITH TRADE COMPONENT

Trade Facilitation componentTotal Trade Lending

0

200

400

600

800

1000

1200

Approved FY96-03

Approved and Projected FY04-06

0

0.5

1

1.5

2

2.5

3

3.5

4

Approved FY96-03

Approved and Projected FY04-06

2.4

3.8

305

1049

US$ Billions

US$ Millions

111 projects in 67 countries

105 projects in 76 countries

26 projects in 34 countries

55 projects in 48 countries

Conclusion Increasing number of projects with trade component in

increasing number of countries

Trade component is increasing

More emphasis on trade facilitation

TRADE AND PRSPs

I. PRSP before DTISCOUNTRY IF WORKSHOP PRSP/PRSP

PROGRESS REPORT DATE

TRADE COVERAGE

Burundi December 2003 July 2002 Low

Djibouti May 2004 March 2004 Low

Lesotho February 2 003 December 2000 Low

Malawi September 2003 August 2003 None

Mali November 2004 April 2004 Low

Mozambique September 2004 March 2004 Low

Nepal June 2003 May 2003 Low

Senegal December 2002 May 2002 Medium

Yemen June 2003 May 2002 Medium

LEGEND

NONE OR LOW: Trade not included in PRSP or content is limited. Certain issues are raised, but in-depth analysis is lacking and actionable trade measures have not been identified

MEDIUM: A limited number of specific trade issues is covered and accompanied by an analysis of these issues. Actionable measures in these areas are included in the PRSP action matrix.

HIGH: Wide range of trade issues is covered comprehensively and reflects the main DTIS findings. Actionable measures in these areas are included in the PRSP action matrix.

ACTIVE PROJECTS (Approved FY97-05)

TRADE AND PRSPs

II. PRSP after DTISCOUNTRY IF WORKSHOP PRSP/PRSP

PROGRESS REPORT DATE

TRADE COVERAGE

Cambodia November 2001 December 2002 High

Ethiopia November 2003 December 2003 Low

Guinea October 2003 April 2004 None

Madagascar July 2003 July 2004 Medium

Mauritania November 2001 June 2003 High

LEGEND

NONE OR LOW: Trade not included in PRSP or content is limited. Certain issues are raised, but in-depth analysis is lacking and actionable trade measures have not been identified

MEDIUM: A limited number of specific trade issues is covered and accompanied by an analysis of these issues. Actionable measures in these areas are included in the PRSP action matrix.

HIGH: Wide range of trade issues is covered comprehensively and reflects the main DTIS findings. Actionable measures in these areas are included in the PRSP action matrix.

ACTIVE PROJECTS (Approved FY97-05)

TRADE AND PRSPs

PRSP prior to IF in 9 countries 80% None or Low Trade Coverage 20% Medium Trade Coverage

PRSP after IF in 5 countries 40% None or Low Trade Coverage 40% Medium Trade Coverage 20% High Trade Coverage

CONCLUSIONS