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DEVELOPMENT: INTEGRATED FRAMEWORK

Governance structures

The Integrated Framework (IF) has governance structures at the global and national level.

Global level

At the global level, the IF has two governing bodies: the IF Steering Committee (IFSC) and the IF Board, whose meetings take place at the WTO.
The IFSC is composed of all least-developed countries (LDCs), the six IF agencies and all bilateral development partners with the IF. Members of the WTO that are not in the IFSC have automatic observer status. The following organizations are also observers: the Organisation for Economic Cooperation and Development (OECD): ( the Development Co-operation Directorate (DAC)), United Nations Industrial Development Organization (UNIDO) and the Food and Agriculture Organization (FAO). The IFSC serves as the overall governing body of the IF. Its functions are to:

• establish overall policy direction and oversee the work of the IF

• keep under review the overall effectiveness of IF operations

• promote coordination among participants

• ensure transparency of the IF process.

The IF Board is composed of one representative from each of the six IF agencies, three representatives of the LDCs and three representatives from the donor community. The Board serves as the key decision-making body for operational and financial oversight and policy direction within the broad context set by the IFSC. The role of the IF Board is to:

• supervise the management of the IF process

• provide policy direction to the Executive Secretariat (ES) of the enhanced Integrated Framework (EIF)

• take funding decisions under the EIF Trust Fund in accordance with the approval process and the terms set forth in the enhanced IF Accountability Framework and the Compendium

• monitor, review and evaluate country-specific progress and operations, including on the basis of in-country monitoring reports.

The IF Board may delegate specific operational tasks to the ES but retains ultimate responsibility.

The Executive Secretariat of the EIF was established on 1 October 2008, when Mrs Dorothy Tembo assumed her position as Executive Director. Housed within the WTO, the ES reports to the IF Board on policy and programme implementation issues and to the Director-General of the WTO on Secretariat administrative issues. The functions of the ES include:

• supporting LDCs' participation in the IF process — frequent contact through visits, e-mails, phone calls, etc. — to ensure progress is in step with the pace dictated by the beneficiary LDC

• supporting IF governing bodies (IF Board and IFSC)

• coordinating and monitoring IF processes, including diffusion of best practices, and facilitating communication among stakeholders

• outreach — national/regional/global workshops, website maintenance, newsletters, etc.

National level in the LDCs

One of the key elements of the IF is to build strong capacities in the LDCs to manage, implement and monitor the IF process. Accordingly, the IF foresees a number of National Implementing Arrangements (NIAs).

The NIAs include:

• an IF Focal Point

• a National Implementation Unit

• a National Steering Committee.

Moreover, the LDC is supported by a Donor Facilitator.

Some of these structures may already be in place in many IF beneficiary countries. It is important to note that the IF is, by no means, proposing to set up new structures in addition to implementation arrangements that already exist. The IF seeks to propose ways of strengthening the existing structures. In fact, these NIAs should normally be integrated into an existing governance structure and process rather than be created as new, independent structures, isolated from the rest of the government. What is important is that the NIAs provide for ownership, leadership and participatory IF management in the countries.

The IF Tier 1 financing arrangement foresees funding to support the NIAs. Financial support (except to the Donor Facilitator) is set at a maximum of US$ 300,000 per annum over the enhanced IF programming period of five years, i.e. a total of US$ 1.5 million.

The LDC government will appoint a Focal Point (FP) who will:

• oversee the functioning of the National Implementation Unit and advise the LDC government on the Unit's staffing and operations

• chair the appraisal committees for Tier 1 and Tier 2 and decide, in consultation with the other members, whether to invite other representatives to participate in these committees

• work closely with the relevant line ministries, the Donor Facilitator, the Executive Secretariat, and other development partners, including the IF agencies, to ensure that technical assistance projects are mainstreamed into the Poverty Reduction Strategy Paper or other national development plans and respond to priorities in the Diagnostic Trade Integration Study (DTIS)

• lead on the preparation of the DTIS and its updating

• report to the LDC government and the Executive Secretariat on IF progress.

National Implementation Unit

The beneficiary countries are expected to set up a National Implementation Unit (NIU) to strengthen the IF Focal Point. The NIU is responsible for coordinating IF activities in the LDC and for IF implementation at the national level. Supervised by the Focal Point, the NIU:

• works with the Ministries of Trade, Finance and Planning, and other ministries and trade-related institutions, such as the Chamber of Commerce, the private sector and civil society to ensure coordination at all stages of the IF process

• works closely with the Executive Secretariat, the Donor Facilitator and IF agencies for the preparation of the DTIS, the formulation and appraisal of Tier 1 and Tier 2 project proposals and other activities, as appropriate

• monitors the implementation of Tier 1 and Tier 2 projects under National Steering Committee supervision and reports on progress to the Executive Secretariat. Organizes, as appropriate, IF implementation meetings to assess progress of the IF initiative

• works with all relevant partners to assist in the inclusion of a trade integration strategy and its priorities in the Poverty Reduction Strategy Paper or national development plans

• prepares its multi-year work plan and a detailed annual operational plan.

The Focal Point and the NIU could be an existing structure, or if an appropriate structure does not yet exist, an additional one could be created within an appropriate entity. For the NIU to work effectively, it is important that the government gives the NIU the necessary authority and provides support. In some countries where an NIU is already in place, it is called the National IF Secretariat. The name may vary; what is important, however, is that the NIU (or whatever it is named) is there to support the Focal Point in the management of the IF process.

National Steering Committee

Beneficiary countries will have in place a high-level inter-ministerial committee — a National Steering Committee — to provide senior level engagement and coordination on trade policy and to provide political commitment.

The role of this committee is to:

• monitor the overall IF process and activities, including mainstreaming trade into the country's Poverty Reduction Strategy Paper and other development plans

• ensure effective coordination and buy-in among LDC government institutions, the private sector, civil society and other IF stakeholders

• based on the NIU's proposal, approve Tier 2 projects in close consultation with the Donor Facilitator and the Executive Secretariat. A member of the National Steering Committee designated by the Chair participates in the appraisal and approval process of Tier 1 projects

• decide to submit Tier 2 proposals to the bilateral or the multilateral window of Tier 2

• ensure that trade-related issues are included and receive due attention in development partners' conferences, such as the Consultative Group Meetings and Round Table Meetings.

The National Steering Committee should work closely with the governmental committee in charge of the national development strategy, the Poverty Reduction Strategy Paper or similar. Ideally, the Steering Committee should be represented in this governmental committee. It is advisable that the Steering Committee be composed of high-level members of the LDC government, for instance from the Trade, Finance, Planning and Development Ministries, and representatives of civil society and the private sector. The IF Focal Point should also be a member of the Steering Committee, whose composition should ideally reflect the fact that the IF's scope and process are broader than the traditional trade domain and encompass several development issues and dimensions.

Donor Facilitator

To provide an effective response and avoid duplication, the IF agencies, development partners and beneficiaries need to work together through local processes. To this end, it is vital that an effective local Donor Facilitator, with clear terms of reference adapted to the local situation, be appointed by donors in consultation with the local authorities. In principle, the main role of the Donor Facilitator is to help mainstream trade into development partner programming to ensure timely implementation of the Action Matrix.

To this end, the Donor Facilitator:

• assists the LDC government to enlist and coordinate development partner responses to the Action Matrix, including liaison with development partners to ensure effectiveness, complementarity and harmonization of interventions, including exploring the possibilities for pool funding arrangements for implementation of the Action Matrix

• follows up on the Action Matrix, especially on development partners' responses, to promote maximum coordination among development partners

• supports the NIU and the Focal Point in the conduct of their responsibilities as per the established terms of reference

• assists the NIU to formulate and appraise Tier 2 projects

• assists the NIU to formulate and appraise Tier 1 projects and participates in their approval process

• facilitates the LDC government's contacts with the development partners by functioning as a link between the development partners and the LDC government (when the LDC government and development partners so desire). This entails ensuring that all relevant information regarding the IF and its implementation are adequately transmitted to IF stakeholders, including from the development partners to the government and from the government to the development partners. It also entails close coordination with, and being sensitive towards, the wishes of the NIU and the National Focal Point

• provides regular briefing updates to development partners on IF progress and arranges for consultation and coordination possibilities for the development partners present in the country

• informs stakeholders, including the development partners, on the progress and results of IF implementation

• assists the local authorities in creating knowledge and understanding of the IF process in the country, especially at the higher political level.

Trust Fund Manager for the enhanced IF

The Trust Fund Manager for the enhanced IF is the United Nations Office for Project Services (UNOPS). This is a separate, self-financing entity established by UN General Assembly decision 48/501 of 19 September 1994 to provide management and other support services for the benefit of the member countries of the United Nations. UNOPS's headquarters are in Copenhagen, Denmark. It also has an established office in Geneva. The enhanced IF Trust Fund Manager activities are handled by the Geneva office by staff dedicated to the enhanced IF, supported by regional offices in Bangkok, Dakar and Nairobi.

The Trust Fund Manager under the IF, predecessor of the enhanced IF, was the United Nations Development Programme (UNDP). Funds approved for on-going activities under the IF will continue to be managed by UNDP for their duration.