INTEGRATED FRAMEWORK Leendert Solleveld International Trade Department The World Bank

IF WEB SITE:

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

DTIS IN PREPARATION STATUS IF DTIS Delivery: Spring/Summer 2005

NEW COUNTRIES STATUS IF Preparatory missions: Spring/Fall 2005

TECHNICAL REVIEWS PENDING STATUS IF NEW REQUESTS SUSPENDED

STATUS IF: Summary DTIS/National Workshop completed14 countries DTIS in Preparation7 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 ReviewsPostponed for five countries One in preparation (Liberia) SuspendedOne country (Eritrea) New RequestsOne country (Congo Dem. Rep.) CONCLUSION: 14 LDCs are left Mostly small island economies/conflict countries Focus on implementation process

IF IMPLEMENTATION WINDOW II 30 projects submitted ($10 million) in 12 countries 19 projects approved ($7 million) in 11 countries Examples: CambodiaCapacity building for Pro-poor Trade Reforms EthiopiaTrade Negotiation Capacity GuineaTrade Negotiation Capacity MadagascarTrade Policy Adviser MalawiTrade Policy Adviser SenegalTourism, Fisheries

IF IMPLEMENTATION OTHER ACTIVITIES Most progress in: BurundiConsultants prepared bankable projects to be discussed with donors CambodiaIF success story High donor involvement WTO Accession EthiopiaImplementation plan prepared: focus on private sector development and WTO Accession WB: PSD Capacity Building Project; WTO Accession EU: WTO Accession USAID Agri Business LesothoDFID Trade and Poverty Program MadagascarTrade reforms Two implementation meetings: concrete projects are being formulated MalawiMerger DTIS/Malawi Economic Growth Strategy Discussion with donors on priority projects expected shortly

WORLD BANK PROJECTS WITH TRADE COMPONENT Trade Facilitation componentTotal Trade Lending Approved FY96-03 Approved and Projected FY Approved FY96-03 Approved and Projected FY 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 DTIS COUNTRY IF WORKSHOP PRSP/PRSP PROGRESS REPORT DATE TRADE COVERAGE Burundi December 2003 July 2002 Low Djibouti May 2004 March 2004 Low Lesotho February 2003 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 orcontent 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 DTIS COUNTRY 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 orcontent 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