Trade SWAp : The “Integrating” Framework

(When can a SWAp do to increase mainstreaming and coordination)

EIF Regional Asian Workshop Kathmandu, June 20 2010

Sven CallebautCapacity Development Adviser

contents

• what is a SWAp?

• why may you need a Trade SWAp?

• Trade SWAp and IF/ EIF

• Lessons learnt in Cambodia

• What are the challenges?

what EIF progress challenges why

what is a Trade SWAp?

Sector Wide ApproachDefinitions

'All significant funding for the sector supports a singlesector policy and expenditure programme, undergovernment leadership, adopting commonapproaches across the sector, and progressingtowards Government procedures to disburse andaccount for all funds.‘ (Foster, 2009)

what EIF progress challenges why

what is a SWAp?

Sector Wide Approacha new way of delivering trade-related assistance

still projects… …so what is new?

+ more attention for overall policy coherence+ improved planning, coordination, monitoring+ stronger role for government+ more attention for capacity building

what EIF progress challenges why

SWAp represents a Programmatic Approach

A set of interventions

aimed towards a shared program

goal

Program Approach

A set of unrelated projects

Project Approach

Parts of a Program Approach

Analysis / Social researchDirect deliveryCapacity developmentAdvocacyFacilitationMediationAwareness raising on rights and responsibilities

6

Coordination with DPs

Planning and Programming

Monitoring and

Evaluation

Framework

Pillar WG, IC and SSC work

SWAp

why a Trade SWAp?

what EIF progress challenges why

why a Trade SWAp?

‘excessive aid fragmentation’

Cambodia: 759 projects in 2007 - 80% disburse 20% of aid

TRTA in Cambodia rose to $30mln in 2009

in 2005 this was $10mln

Cambodia pilot country for number of initiatives

results could be better – concrete follow-up what EIF progress challenges why

Trade SWAp - IFIF participation/ DTIS 2002 preceded the Trade SWAp

good report, insufficient implementation, weak monitoring, weak capacities to implement reform measures

Need for:• a long-term, strategic approach for developing and

operationalising an integrated, pro-poor trade agenda• a comprehensive medium-term plan (DTIS update)• sufficient funding from donors • commitment from RGC • discipline from donors and RGC in combining plan,

funding and commitment towards (monitored) implementation

what EIF progress challenges why

Trade SWAp - EIF‘The IF should build on and strengthen existing structures that

have been identified as working best’

‘To facilitate the involvement of agencies at the country level, a programme approach should be adopted.’

‘IF country governments and their respective development partner communities may wish to consider setting up locally managed trust/ basket funds to pool local development partner funding and enhance coordination of the enhanced IF implementation’

‘The enhanced IF is an instrument to leverage additional AfT resources’

what EIF progress challenges why

Trade SWAp - EIF

The Trade SWAp builds on and further develops and concretizes the basic principles and mechanisms set forth by the IF.

– it acknowledges that, to have an impact on poverty reduction, TRA needs to be an integral part of a country’s development strategy.

– It recognizes that, to be effective, relevant stakeholders, both within and outside of government, need to build consensus on a national trade strategy.

what EIF progress challenges why

progress so far

• RGC adopts Trade SWAp & DTIS 2007• Sub-steering committee for trade development

and trade-related investment (three “Pillars”)• Interministerial Implementation Committee• Pillar WG established, developed Road Maps• Re-organisation Ministry of Commerce (DICO)• Government – Private Sector Forum for

consultation• Trade Development Trust Fund with 3 donors

established,launched, operationalized what EIF progress challenges why

Trade SWAp Strategic Framework

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Figure 1: OVERVIEW OF ORGANISATIONS AND OUTCOME AREAS SUPPORTED THROUGH TRADE SWAp PILLAR III

OrganizationsOutcome

AreasSSC MOC D/ICO (MOC)

Line Ministries

Provincial Departments

of Commerce

Partner Agencies

Leading Change n/a n/a n/a n/a

Managing and Coordinating

Changen/a n/a n/a

Monitoring and Evaluating

n/a n/a n/a

Communicating Trade SWAp

n/a n/a n/a

Informing Trade Policies through

Applied Research**

n/a n/a n/a

Implementing Policies

n/a n/a n/a

Managing Finances

n/a n/a n/a n/a

Managing and Developing

Human Resources

n/a

Negotiating in Trade Fora

n/a n/a n/a n/a14

Lessons Learnt

1. Focus on Finance vs. Strategy is recipe for disaster

2. Donor coordination is quicker said than done

3. Institutional capacities need to be built with a long term vision (quick wins + long term inv.)

4. Role of MoC/MoT as a champion -> on behalf of government (outreach/advocacy)

5. Private Sector Participation, Engagement key.

6. Regular reminder of the Paris Principles on Aid Effectiveness for Donors and DPs what EIF progress challenges why

challenges

government to have bigger role– in implementation of projects– in overall management of sector

donors stand to gain– better overall control over design, implementation– better visibility and credit for results for smaller donor contributions– some agencies may lose access to funding

but all stand to gain in efficiency and achieving sustainable development outcomes

negative attitudes become self-fulfilling when it comes to increased coordination

what EIF progress challenges why

challenges

- more and better donor coordination (also with EIF)- more and more effective government leadership- more and better inter-governmental coordination

private sector involvement in setting agenda and monitoring outcomes (through Business Forum or G-PSF)

civil society involvement in setting agenda and monitoring outcomes – NGO Forum

A FOCUS ON RESULTS IS NEEDED

what EIF progress challenges why

Questions ?

what EIF progress challenges why