ENHANCED INTEGRATED FRAMEWORK TRUST FUND MANAGER

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ENHANCED INTEGRATED FRAMEWORKTRUST FUND MANAGER

• The financial and fiduciary dimensions of the
  Enhanced Integrated Framework
• Geneva, July 9, 2009

Presentation prepared for the EIF Focal Points
Global Workshop in Geneva, 8-10 July 2009
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I EIF NORMATIVE AND STRATEGY FRAMEWORK
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EIF Normative Framework
Overarching goal to enhance the capacity of the
LDCs to integrate into multilateral trading
system in order to reduce poverty and benefit
from increased market access.

• Strategic Objectives
• To mainstream trade into LDCs
• National Development Plans such
• as Poverty Reduction Strategy
• Papers (PRSP)
• To assist in the coordinated
• delivery of Trade-Related Technical
• Assistance (TRTA) in response to
• the needs identified by the LDCs
• To develop the capacities of the
• LDCs to trade, including capacity
• building and addressing supply
• constraints

• Strategic Principles
• Country ownership of the process
• Tripartite partnership LDCs, donors
• and EIF Agencies
• Demand driven and tailor-made approach
• Participatory approach, specially by
• Involving the private sector at all stages

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EIF Strategic ContextThe EIF is both a trade
development strategy and a trade development
program insupport to the overall welfare
increase of the LDCs

• Trade development strategy
• (Facts and Assumptions)
• There is strong relationship between
• trade and economic growth
• There is not automatic link between
• trade, economic growth and poverty
• Reduction
• The combination of trade reforms and
• poverty reduction strategies tend to
• increase poor countries welfare
• Sound institutional and policy
• mechanisms both at international and
• national levels can make possible
• that poor countries expand their share of
• Income generated by trade

• Trade development program
• (operational strategies)
• Mainstreaming trade into national
• policies and poverty reduction
• strategies
• Fostering national ownership of trade
• policy reforms
• Strengthening national capacities
• for trade policy formulation and
• implementation

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Least Developed Countries

• The Least Developed Countries (LDCs) are the
  focus of the EIF. LDCs are countries,
• which exhibit the lowest indicators of
  socio-economic development. A country is
  classified as LDC
• if it meet three criteria and does not have a
  population larger than 75 million
• A low income criterion based on GNI per capita
• A human assets criterion based on the HDI
• An economic vulnerability criterion involving a
  composite index based on
• indicators of natural shocks, trade shocks,
  expose to shocks, economic smallness and
• economic remoteness

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II TFM WITHIN THE EIF PROCESS
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TFM Mandate and Functions

• Mandate
• The TFM was given a broad mandate
• comprising full Fiduciary Responsibility.
• The TFM exercises its full fiduciary
• responsibility on behalf the
• donors and the EIF Board as required
• by the Accountability Framework.
• The TFM will follow UNOPS financial
• policies, rules and procedures in
• compliance with the objectives and
• modalities of the EIF.

• Functions
• Trustee functions
• Preparation of budgets
• Program financial management
• Fiduciary appraisal of project proposals
• and assessment of the grant
• recipients capacities
• Recommendations on capacity
• building and training
• Monitoring and Supervision (addressing
• program financial management and
• fiduciary matters)

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TFM Operational Principles
Effectiveness TFM alignment with the EIF
overarching goal, objectives, principles and
strategies
Efficiency TFM efficient management and
performance as a result of obtaining maximal
outputs with minimal inputs
Accountability TFM obligation to demonstrate
that work has been conducted in accordance with
agreed rules and standards and to report fairly
and accurately on performance results vis a
vis mandated roles/or plans
Sustainability TFM ability to assist in making
NIU accountable and sustainable in the long term
Transparency TFM operations and reports are
clear honest and open to the concerned
stakeholders
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EIF - TFM Organigramme
EIF Board
Executive Secretariat Executive Director GVA
UNOPS SWOC Director GVA
Executive Office Executive Officer Portfolio
Assistant
Implementation Advisor Geneva
Portfolio Manager Admi. Assistant NAIROBI
Finance Officer Geneva
Portfolio Manager Admi. Assistant DAKAR
Legal Advisor Geneva
Portfolio Manager Admi. Assistant BANGKOK
Portfolio Manager Admi. Assistant JOHANNESBURG
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TFM countrys share by regional offices
NAIROBI (10) Djibouti, Ethiopia, Central African
Republic, Tanzania, Uganda, Burundi, Rwanda,
Sudan, Malawi and Comoros
BANGKOK (15) Afghanistan, Bangladesh, Bhutan
Cambodia, Lao, Maldives, Maymmar, Nepal,
Kiribati, Samoa, Salomon Island, East Timor,
Tuvalu, Vanuatu and Yemen
GENEVA (Haiti)
DAKAR (12) Benin, Burkina Faso, Guinea, Guinea
Bissau, Liberia, Mali, Senegal, Sierra Leone,
Togo, Chad, Niger and Mauritania
JOHANNESBURG (8) Angola, Lesotho, Democratic
Republic of Congo, Mozambique, Zambia, Equatorial
Guinea, Sao Tome Principe and Madagascar
Countries to be initially assisted by Geneva,
Dakar and Nairobi offices
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III TFM OPERATIONAL PROCESSES AND TOOLS
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OVERVIEW OF TIER 1 AND TIER 2 PROJECTS

• TIER 1 PROJECTS
• Types of Projects
• Building the human resource capacity of EIF
  NIAs
• Providing operational support to NIAs
• Preparing and/or update of the DTIS
• Facilitating and supporting trade mainstreaming
  actions
• Budget and Timing
• An estimated amount of US77 million is available
  for Tier 1 from the EIF-TFM. The funding ceiling
  per country is set at US2,000,000. Such a budget
  can be used for a period of five years for the
  following actions
• Pre-DTIS support up to US50,000
• DTIS up to US400,000
• DTIS update up to US200,000
• Support to NIAs up to US1,500,000
• LDCs Eligibility
• All LDCs participating in the EIF initiative are
  eligible
• Approval Process
• Formulation of project proposals
• Appraisal and approval of proposals
• Awarding

• TIER 2 PROJECTS
• Type of Projects
• Assistance to implement WTO or trade policy
  commitments
• Project preparatory activities
• Trade mainstream activities to integrate DTS
  into PRSPs
• Capacity building activities
• Formulation and implementation of sectoral and
  national export development strategies
• Small projects to enhance the supply-side
  response of the country
• Specific actions to enhancing SMMEs
  competitiveness
• Assistance for WTO accession
• Strengthening of trade support services
• Preparation of sector-wide approaches (SWAP)
  for priority sectors
• Budget and Timing
• An estimated amount of US320 million is
  available for Tier 2. Out of this, approximately
  half, i.e. US160 million, will be borne by the
  EIF-TFM.
• LDCs Eligibility
• All LDCs participating in the EIF initiative and
  having validated the DTIS are eligible
• Approval Process

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TIER 1 Project Appraisal and Assessment Exercises
Recommendations Memorandum (Incorporating both ES
trade assessment and TFM fiduciary assessment)
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IV TFM MAIN RESULTS
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TFM Legal Arrangements
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TFM Financial Outlook as of June 2009

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Status of the Capacity Assessment Missions/Reports

• Project proposal in the pipeline. Final
  submission is pending on application of new
  policy guidelines for Tier 1 Projects
• Output achieved

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THANK YOU!