1 what is your aid for trade strategy? - oecd · trade development solutions provided by the itc is...

1 WHAT IS YOUR AID FOR TRADE STRATEGY?

Q1.1 Do you have an operational Aid for Trade strategy? Does it have a “pro-poor” focus? What are its

key objectives and delivery/implementation modes? (Please break down by types of aid:

"multilateral contributions" / "trust funds" / "budget support" / "other bilateral")

Please describe and exemplify. If applicable, feel free to refer to your 2007 response.

(a) 100% of ITC’s work focuses on the development of exports in developing and transition countries. ITC contributes to three of the five items on the Aid for Trade agenda: (1) “Trade Policy and Regulations”; (2) “Trade Development”; and (3) “Building Productive Capacity”. The three key objectives of ITC’s strategy are the same as last year: (1) Strengthen the international competitiveness of enterprises; (2) Develop the capacity of trade service providers to support businesses; and, (3) Support policy makers in integrating the business sector into the global economy.

(b) In terms of Poverty alleviation (MDG 1): ITC’s Export Poverty Reduction Programme (EPRP) pilot projects have been undertaken in a wide variety of environments and sectors. As a result, many ITC projects can benefit from applying the lessons from this experience to generate a substantial multiplier effect. This will mean more focus on identifying the key components of a supportive infrastructure to enable the larger scale replication of EPRP successes. Thus, ITC’s focus will be directed to identifying champion poverty alleviation projects through which to continue supporting and expanding the number of projects with a clear goal to alleviate poverty.

(c) Concerning delivery/implementation: (a) ITC uses three main channels for delivering trade development solutions: (1) National export strategies; (2) Vertically integrated sector strategies and, (3) Global solutions; (b) In this context, the role of field-based partners in the assessment, design implementation and evaluation of trade development solutions provided by the ITC is crucial.

(d) The entirety of ITC’s Aid for Trade is in the form of grants.

Q1.2 If your Aid for Trade Strategy has evolved since 2007, please describe the changes and/or new

focuses.

Please describe and exemplify.

ITC’s Aid for Trade strategy is delineated in ITC’s Strategic Plan 2009-2011 (attached - annex 1). Through its planning process, this document responds to the priorities and proposals arising from consultation with beneficiary countries, its annual Clients’ Survey (2,017 respondents in 2008) and feedback from evaluations and monitoring. This process also helps the Centre to continuously adapt to the ever changing economic, social and financial context of its support for expanding exports. The Centre will deploy its capacity building solutions by addressing the needs of its clients at three levels of delivery: (a) Integrated country solutions - ITC will deploy a holistic use of its competencies and those of other organizations to ensure long-term impact. Increasingly, ITC expects to be designing country solutions from two starting positions, national export strategies and vertically integrated sector strategies. (b) Regionally structured solutions - ITC will support stronger links between countries. This will involve the creation of a regional dimension in the development of exports involving regional bodies, development banks, academic or vocational training organizations, Chambers of Commerce and sector associations. (c) Globally accessed solutions - To provide wider access through the creation of public goods, ITC will expand its on-line information through an e-platform. In addition, ITC will develop and deploy global vocational training initiatives to support the creation and

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management of Trade Support Institutions and enhance the efficient provision of their services to exporting enterprises.

Q1.3 Have you articulated a set of best practices in the design and/or delivery of Aid for Trade?

Yes No Not sure/Not applicable

If yes, what form does this best practice guidance take?


ITC has articulated best practices around five core competences: (a) Export Strategy: enhancing the capacity of governments and economic sectors to formulate successful national / sector export strategies that contribute to the expansion of exports through the promotion of public / private sector dialogue, in export strategy design, implementation and monitoring. (b) Business in Trade Policy: supporting the business sector to articulate and promote its needs during the formulation of national trade policies and in the negotiations of international trade agreements. (c) Strengthening Trade Support Institutions: building and strengthen national, regional and international trade support institutions to develop export-oriented services to meet the needs of their clients and setup institutional arrangements for the delivery of these services. (d) Trade Intelligence: providing trade data, access to trade information, market analysis and expertise to enterprises, trade support institutions and governments to facilitate informed decision-making and enhance the transparency of international markets. (e) Exporter Competitiveness: providing capacity building solutions for small producers and sectors, to make them export-ready and strengthen their competitiveness in international markets by deploying a suite of solutions along the whole enterprise and sector value chain.

2 HOW MUCH AID FOR TRADE DO YOU PROVIDE?

For CRS Reporting Donors

Q2.1 Does the attached CRS profile accurately reflect the volume of your Aid for Trade?

Yes No

If no, please provide further details of your Aid for Trade activities for 2006 and 2007.

Please add any data that are missing in their appropriate CRS categories, including those activities that should

be considered as Aid for Trade under the category of "Other Trade-related Needs" and describe, if applicable,

the method used to identify trade-related activities in the relevant CRS categories. Please also provide any

activities that may fall under the new category of "Trade-related Adjustment" for 2006.

(a) As part of the changes implied by the move from TCBDB to CRS reporting, ITC’s reporting for 2007 has focused on (1) Extrabudgetary resources: non-earmarked contributions from donors, Support cost related to its delivery and, ITC revolving funds (2) ITC regular budget which covers the infrastructure required to support project delivery: office and facilities costs, design of projects, oversight, evaluation, travel, publication and major events. The amounts communicated by the OECD Aid for Trade Team are different from those ITC communicated in the excel sheet: USD 40.6 instead of USD 37.5 for commitments and USD 39.2 instead of USD 36.2 for disbursements. Does the difference come from amounts being expressed in 2006 constant prices?

(b) In the new CRS reporting, donors directly report about their earmarked contributions to ITC. Therefore, ITC has no more control over reporting related to this very crucial part of its activities. We would like to attract the

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attention of the OECD Aid for Trade Team on the possible causes of ITC's concern if ITC’s visibility is reduced/diluted in the overall reporting and/or if reported amounts don’t correspond to ours.

For non-CRS Reporting Donors

Q2.1 How much Aid for Trade did you provide in each of 2006 and 2007?

Please also indicate the volume as percentage share of your total ODA.

Please use the WTO Task Force definition and include estimates of the value of in-kind Aid for Trade such as

technical cooperation programmes.

As explained earlier, the AfT percentage share of ITC's total ODA is constant at 100%.

For All Donor Agencies

Q2.2 Do you have indicative forward spending plans that include estimates on Aid for Trade?


If yes, please provide details of your indicative forward Aid for Trade spending plan.

Please delineate the plan per Aid for Trade category.

For Donors who had made Aid for Trade pledges

Q2.3 Please describe how you are meeting your pledges? And how much progress in delivering your final

pledges do you expect to have made in 2008 and 2009?

Please provide details and evidence in accordance with your accountability mechanism.

For Multilateral Donors

Q2.4 Please describe how funding for your Aid for Trade activities is evolving

[e.g. share of activities funded from your agency's core (regular budget) vs. non-core (earmarked)

resources, including multi-donor funds; likely trends in these categories].

Please describe.

USD mio

SOURCE OF FUND 2003 2004 2005 2006 2007

Regular budget 22.8 24.6 26.9 26.4 28.2

Trust funds 18.6 20.6 20.4 23.6 28.0

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IF & UNDP* 1.5 0.5 1.7 1.7 0.9

Support costs 2.9 2.8 3.1 3.1 3.8

Total 45.8 48.5 52.1 54.8 60.9 * Includes Integrated Framework

Please feel free to provide any other relevant information in relation to the volume of your Aid for Trade.

3 IMPLEMENTATION: HOW ARE YOU DELIVERING AID FOR TRADE?

Mainstreaming and Ownership

Q3.1 What measures have you undertaken to mainstream Aid for Trade in your overall assistance

strategy?


AfT is fully mainstreamed in ITC's overall assistance strategy.

Q3.2 In how many of the partner countries you support, are Aid for Trade concerns an important part of

your policy dialogue with them (based on your best estimate)?

less than

25%

25% to

50%

50% to

75%

above

75%

Not sure /

Not applicable

Q3.3 How many of your country assistance strategies contain trade or Aid for Trade elements (based on

your best estimate)?

less than

25%

25% to

50%

50% to

75%

above

75%

Not sure /

Not applicable

Q3.4 Has demand for Aid for Trade increased from partner countries since 2005?

Significantly

increased

Increased

Little / no

change

Declined

Not sure /

Not applicable

If increased, from which countries / regions, and for which Aid for Trade categories / sectors?


This issue is not about increase of demand being focused on a particular geographical region / sector. The challenge is that clients have become much more knowledgeable and sophisticated in terms of their needs. This implies (a) Aid for Trade support being more and more tailor-made and long-term and (b) built on partnership for the design, implementation and evaluation of technical assistance projects.

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If increased, what steps have you taken to strengthen your capacity to respond to increasing

demand for Aid for Trade from partner countries? Tick the box of all that apply:

Increased aid resources

Strengthened in-house trade expertise

Improved training, tool-kits and/or guidelines for Aid for Trade programming

Increased awareness among policy-makers and practitioners at the HQ and the field

Strengthened political commitment

Increased coordination among donors (e.g. joint assessment, joint delivery, etc.)

Please feel free to add other steps you have taken

Please feel free to provide any other relevant information in relation to mainstreaming and ownership.

Working with Others: Harmonisation and Alignment

Q3.5 In how many of the partner countries you support, have you contributed to the following joint

donor initiatives?

< 10% 10-30% > 30%

Joint needs assessment

Joint Aid for Trade strategy formulation

Joint Aid for Trade programme

Pool funding

Joint monitoring and evaluation

Delegated cooperation

Q3.6 Do you have a specific approach to South-South and/or trilateral cooperation in Aid for Trade?


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If yes, what are its key elements or particular focuses?


South-South trade represents 40% of goods trade today compared with 30% in the early 1990s and this trend will continue. Emphasis is put on supporting Sub-Saharan Africa and LDCs in this process. ITC’s Business Generation technical assitance works with partner institutions for generating south-south trade, encouraging business partnerships and networking among enterprises.

Q3.7 How much of your Aid for Trade is aligned with your partners' country systems (based on your best

estimate)?

less than

25%

25% to

50%

50% to

75%

above

75%

Not sure /

Not applicable

Please feel free to provide any other relevant information in relation to harmonisation and alignment.

In terms of harmonization and alignment with country systems, the difficulty is that trade development strategy is specific to the situation prevailing in each recipient country. A wide variety of factors affect the recipient country situation when setting priorities and seeking agency support. Therefore, it is difficult to agree on a series of generic indicators to assess how trade is mainstreamed into the development strategy of a recipient country and how donors contribute to it. This is why your questions talks about "best estimate".

However, from ITC’s experience in facilitating Export Strategies, six major dimensions/objectives can be used to assess and monitor progress in implementing the AfT from a global perspective: (1) Development, (2) Supply side constraints, (3) Business environment, (4) Demand side requirements, (5) Market requirements, and, (6) Institutional infrastructure. (attached - annex 2).

Within needs and priorities identified in each country, flexibility should be provided to national stakeholders to identify and specify the indicators contributing to these six major dimensions / objectives.

Therefore, it is possible to establish a comprehensive system for enhancing harmonization and transparency in AfT offering while respecting individual country priorities to ensure effective alignment.

4 MONITORING RESULTS, EVALUATION AND MUTUAL ACCOUNTABILITY

Q4.1 Does your Strategy include specific monitoring and evaluation guidelines for Aid for Trade

programmes?

Specific to Aid for Trade Generic guidelines

If you do have specific guidelines, please provide the details of your Aid for Trade M&E framework.

How often do you review progress towards your strategy objectives? Who do you report to?


We can summarize ITC M&E framework as follows:

(a) The ITC Evaluation Policy (attached - annex 3) provides the guidelines for ITC M&E system.

(b) The conduct of evaluation follows the ITC cyclical Strategic Plan at various levels, which is comprised of different stages: planning, design, implementation and follow-up.

(c) The Evaluation Annual Programme supports the Strategic Plan and makes sure that evaluations are selected and undertaken in a transparent and timely manner. The Evaluation Annual Programme includes the yearly ITC Clients’ Perceptions Survey. Two annual Clients' surveys (2007 1,537 respondents and 2008 2,017 respondents) have fed back very powerful messages on the priorities for developing countries, their

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institutions and their business enterprises.

(d) The Annual Evaluation Report summarizes the findings and assesses progress in the implementation of the recommendations. This document is endorsed by the ITC Management and presented to country representatives in the yearly ITC Joint Advisory Group (JAG) meeting.

Q4.2 Do you regularly monitor the potential trade impact of your aid projects / programmes?


If yes, please describe how.


The monitoring of the potential trade impact of projects is carried out at three complementary levels:

(a) At the community level, ITC has established a monitoring system that assesses the impact of its trade development projects in terms of poverty alleviation (attached - annex 4) ref Q4.4.

(b) Monitoring takes also place at the strategic objective and sub-objective level, where a series of indicators of performance have been established. Monitoring and reporting follows the UN Secretariat biennium cycle. On the basis of the reported results, ITC prepares a programme performance report which is consolidated by the UN Secretariat and presented to the UN General Assembly.

(c) ITC provides capacity building to its clients: the business sector; Trade Support Institutions; and policy makers. ITC conducts technical assistance aimed at providing and developing their (1) knowledge, (2) competences and (3) behaviours to meet trade promotion and export development requirements. This three-stage sequence in capacity building for exports underpins the progression of clients from initiation to expanded exports. ITC is establishing a monitoring system on the basis of this structure and sequence with the aim to drive higher performance from the organization, more tailored advice to countries and greater sustainability from the investment in trade-related technical assistance.

Q4.3 Do you have plans to improve the evaluation of your Aid for Trade programmes?


The M&E function will be strengthened in 2009 with two additional posts (from 1 to 3 persons).

Q4.4 Have you carried out or do you plan to carry out an impact assessment of your Aid for Trade

programmes?

Yes: please indicate when: 12/2007 No Not sure/Not applicable

Q4.5 Do you involve partner country stakeholders in developing measurable objectives/indicators to

assess the quality of your Aid for Trade programmes?


If yes, please describe the indicators used.


Lessons learned from evaluation clearly indicate that a critical success factor of ITC projects is beneficiaries being instrumentally involved in defining success criteria and a sense of ownership being instilled in all local partners. Interaction with beneficiaries at the design stage is the appropriate way to enable giving first priority to areas of interventions where the biggest problems with the highest potential for positive effects.

Q4.6 Have you undertaken joint evaluations of your Aid for Trade with your partner country

stakeholders?

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If yes, please describe when and the results of the evaluation.


Designing and conducting joint evaluations is a very resource-intensive exercise. We still need to strenghen the Evaluation function before engaging in joint evaluations with partner countries

Please feel free to provide any other relevant information in relation to monitoring, evaluation and mutual

accountability.

5 REGIONAL DIMENSION

Q5.1 How important is the regional dimension in your Aid for Trade strategy?

Essential

element

Important

element

Minor

element

Not

present

Not sure /

Not applicable

If essential or important, please describe how your Aid for Trade strategy addresses regional

challenges.


The challenges ITC faces are the building of region-wide trade support institutions and business networks, the identification of promising export products and the rationalisation of regional supply chains. Anticipated impacts include counterparts at regional level taking the lead and creation of regional networking to improve cooperation in the development of regional trade; regional trade support networks, in particular networks of businesswomen, engaged in trade policy dialogue and coordinated trade support and promotion; exporting enterprises in priority sectors being more competitive, with special emphasis on women-owned enterprises. ITC also emphasizes local and regional procurement and prioritizes development co-operation in fragile and post-conflict countries, with a special emphasis on LDCs and IDA-only developing countries.

Q5.2 Which of the following factors are important for determining whether or not to support particular

regions or regional programmes? Please list in the order of importance.

Relevance to ongoing regional trade agreements / negotiations

Regional proximity / support to neighbouring regional economic integration processes

Cultural, linguistic or historical ties with the region

Existence of a viable counterpart at regional level

Request for assistance from a regional body

Availability of a clearly defined regional development strategy

Geographical concentration of donor activities

Other, please describe The identification of regional value chains with the potential for an

enhanced business sector competitiveness.

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Q5.3 By how much has the volume of your regional Aid for Trade increased since 2005?

Declined

By less

than 5%

By 5 to

15%

By 15 to

30%

More than

30%

Q5.4 In which assistance categories are you particularly active at regional level?

Frequently Occasionally Rarely Not sure /

Not applicable

Training (trade negotiations/WTO rules)

Trade facilitation

Development of cross-border infrastructure

Capacity building of regional organisations

Other, please describe and exemplify

Q5.5 What are the most important challenges in implementing regional Aid for Trade?

Please list in the order of importance.

Lack of (or weak) articulated demands for regional Aid for Trade

Lack of coherence between national and regional priorities

Lack of credible lending authorities at regional level

Lack of effective coordination at regional level

Difficulties of monitoring and evaluating results at regional level

Lack of credible mutual accountability mechanisms at regional level

Other, please describe and exemplify

Q5.6 Has the demand for regional Aid for Trade increased since 2005?

Significantly

increased

Increased

Little / no

change

Declined

Not sure /

Not applicable

If yes, in which regions and for which activities has it increased the most?


- South-East Asia with special emphasis on Indochina;

- Sub-Saharan Africa and Caribbean, organized in particular at EPA level;

Please feel free to provide any other relevant information in relation to regional Aid for Trade.

Draft document

1

Monitoring AfT at the country level: what are the next steps in determining indicators? This draft proposal suggests a broad basic mechanism that has already been applied and could be further elaborated. ITC is willing to share its findings and contribute to further development of this model. Challenge – In addition to macro-level indicators to monitor trade capacity and trade performance of countries, it is important to enable decision makers to assess developments in AfT implementation at the country, sub-regional and regional level. Within this context, the AfT monitoring system should help to assess at the global level if progress is being made in using trade as a mean to achieve development through strategies taking place at the national / sector levels. In other terms, we need to distinguish the monitoring system which aggregates data at the macro level with the indicators that measure data gathered at the national / sector level. A pre-condition for coherence is that when collecting the data in question, all stakeholders are in agreement and share a common understanding concerning the meaning of the terms used in the indicators feeding the monitoring system. The difficulty in the context of AfT is that each national development strategy is specific to the situation prevailing in the recipient country. A wide variety of factors affect the recipient country situation when setting priorities and seeking donor or agency support. Therefore, it is impossible to agree on a series of generic indicators to assess how the trade dimension is mainstreamed into the development strategy of a recipient country and how donors contribute it. Proposed solution – From the different opinions and experiences presented by different stakeholders, we believe that consensus seems to emerge concerning the different dimensions to be taken into account when mainstreaming trade into development strategies at the national level. From its experience in facilitating National Export Strategies, the ITC has delineated six major dimensions to be addressed: (1) Development, (2) Supply side constraints, (3) Business environment, (4) Demand side requirements, (5) Market requirements, and, (6) Institutional infrastructure. On this basis, a series of objectives can be assigned to each of the trade mainstreaming dimensions. In terms of the monitoring system for AfT, it is proposed to collect information about the fulfilment of these standardised objectives. We believe that consensus could also be reached at the international level on the list of these key objectives to be retained in the AfT monitoring system. Based on experience on National Export Strategies, the ITC is proposing a series of 22 objectives to be further defined, adapted and completed by stakeholders. These objectives correspond to the abovementioned dimensions. At the national / sector level, flexibility should be provided to national stakeholders to identify and specify the indicators to be used to assess the contribution of trade to their development strategies according to each country's identified needs and priorities. As mentioned above, these indicators would correspond to the series of internationally agreed objectives.

Draft document

2

Internationally agreed Determined at the national / sector level Mainstreaming

dimensions Objective categories Examples of measurement used in indicators

1.1. Employment generation

New jobs, export-oriented enterprises, university graduates obtaining professional employment…

1.2. Reduction of poverty

Poor communities participating in trade benefits, NGOs operating trade-related poverty reduction programmes, donor responses to agri-business export development objectives…

1.3. Development of disadvantaged regions

Public sector infrastructure projects, private sector export-related investment, jobs, income…

1.4. Participation of women in trade benefits

New jobs, new businesses, participation of women in A4T delivery…

Development

1.5. Environmental sustainability

Increase in "green" production / exports, adoption of trade-related environmental norms and standards / accreditation

2.1. Development of ‘supply side’ capacity

Capacity utilization (%), increase in supply capacity, increase in productivity, value retention within the sector…

2.2. Diversification of the exports

Contribution of high value addition products in sector’s export mix, new product lines introduced, level of product development R&D…

Supply side constraints

2.3. Human Capital Development

Number of graduates in sector, participants in training programmes, new curricula introduced

3.1. Physical infrastructure

Transportation (time & money), availability, reliability and cost of electricity, water and telecommunications…

3.2. Regulatory & procedural requirements

Harmonisation of procedures and documents with international conventions, time to undertake all required procedures, time to clear imported materials

Business environment

3.3. Indirect costs of exporting

Non-tradable costs, compliance with traceability requirements…

Draft document

3

4.1. Market Access Comparative access conditions into major markets, into regional markets, into new and emerging markets…

4.2. In-market support for business

Scale, availability and quality of business support services provided abroad to visiting business persons, commercial impact of the in-market support…

Demand side requirements

4.3. Branding Scale of promotional programmes, participation of enterprises in them… 5.1. Addressing clients needs

Export growth, efficiency of non-exporting firms in value chain, entry into value chain by non-exporting enterprises, clients’ satisfaction through client surveys…

5.2. Competence of export sector

Disputes and complaints against current exporters, exporters entering the international market, aspiring exporters introducing business development plans…

5.3. Trade information services

Availability of specialized information sources and types of information disseminated (general, statistical, analysis, commercial intelligence and qualitative market opportunity)…

5.4. Trade finance Type and cost of financing options actually available, utilization of the financial options, export performance of clients receiving trade finance, particularly loan financing…

5.5. Quality standards compliance

Extent to which national standards conform to international standards, internationally accredited local certification bodies are in place. Firms having received accreditation in ISO 9000/2000, meeting specific mandatory standards (e.g. HACCP), meeting voluntary standards required by international buyers, number of shipments rejected due to inability to meet quality specifications…

Market requirements

5.6. Packaging products & services

Level and quality of export packaging support, complaints and shipment rejections due to incorrect packing and packaging

6.1. Coordinated policy environment

Extent of policy coordination among members of the strategy support network (public and private), level of coordination of capacity and competency development initiatives by national and local government…

Institutional infrastructure

6.2. Performance of trade support institutions

Competence and level of improvement in service delivery by individual, category of, members, level of usage of services, clients’ satisfaction through clients survey…

ITC/AG(XLII)/221

ITC

STRATEGIC PLAN

2009 - 2012

EXPORT IMPACT FOR GOOD

The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the International Trade Centre concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. Maps are provided for ease of reference only. This document has not been formally edited by the International Trade Centre. 10 November 2008 Original: English Joint Advisory Group on the International Trade Centre Forty-second session Geneva, 10 - 11 December 2008 © International Trade Centre 2008

ITC/AG(XLII)/221 iii

Table of contents

Executive Summary 1

Introduction 5

Strategic Environment 6 The Global Trade Environment 6 Millennium Development Goals 6 Aid for Trade (A4T) 7 Importance of Partnerships 7 Focusing on Client Country Needs 8 Challenges from the Strategic Environment 8

Export Impact for Good: A Stronger ITC 9 Three Strategic Objectives 9 Five key TRTA Competencies (Business Lines) 10 Organizational Change 11

Programme Delivery Responses 12 Targeting MDGs to Contribute to Sustainable Development 12 Focusing on Needs of LDCs, LLDCs, SIDS and Sub-Saharan Africa 13 Export Capacity Building through Integrated Country Solutions 14 Regionally Structured Solutions 15 Global Public Goods for Globally Accessed Solutions 16 Focusing on Outputs and Impact 17

Internal Organizational Responses 19 Leveraging More Unearmarked Resources 19 Upgrading Financial Management 20 Investing in People 21 Improve ITC’s Communications and Information Architecture 21

Accountability and Governance 23 Performance Management and Operational Planning 23 Continuous Monitoring 23 Output Oriented Annual Reporting 24 Stronger Focus on Evaluation and Learning 24 Improved Governance 24

iv ITC/AG(XLII)/221

Abbreviations

A4T Aid for Trade ACABQ Advisory Committee on Administrative and Budgetary Questions ACCESS! ACCESS! for African Businesswomen in International Trade BPP Bureau of Policy and Programme CEMAC Central African Economic and Monetary Community CPD Consolidated Programme Document CRM Client relationship management DTIS Diagnostic Trade Integration Study EC European Commission EIF Enhanced Integrated Framework EPRP Export Poverty Reduction Programme ERP Enterprise Resource Planning GTF Global Trust Fund IDA-only International Development Assistance-only IMDIS Integrated Monitoring and Documentation Information System IOC Indian Ocean Commission IPSAS International Public Sector Accounting Standards JAG Joint Advisory Group LDCs Least developed countries LLDCs Land-locked developing countries MDG Millennium Development Goal NGO Non-governmental organization NTMs Non-tariff measures OECD Organisation for Economic Co-operation and Development OIF Organisation internationale de la francophonie OIOS Office of Internal Oversight Services PACT Programme for Building African Capacity for Trade RB Regular budget from UN and WTO SADC Southern African Development Community SCLP Supply Chain and Logistic Programme SIDS Small island developing States SMEs Small and medium-sized enterprises TEP Trade and Environment Programme TRTA Trade-related technical assistance TSIs Trade support institutions UEMOA West African Economic and Monetary Union UN CEB UN Chief Executives Board UNCTAD United Nations Conference for Trade and Development WEDF World Export Development Forum WTO World Trade Organization WTPO World Trade Promotion Organization XB budget Extrabudgetary resources budget

ITC/AG(XLII)/221 1

Executive Summary

1. The ITC Strategic Plan 2009 to 2012 has been developed at a time when the global trading system is experiencing unprecedented volatility. The global financial crisis, finite traditional energy resources, shortages of food and calls for more sustainable development are all factors impacting on markets. The Strategic Plan therefore prioritizes the objectives that ITC is realistically in a position to achieve in the medium term. It sets the framework for work to be performed by divisions and sections and constitutes the basis against which performance will be monitored and assessed. It also prioritizes competing demands from clients and donors for use of ITC’s limited resources.

2. It takes into account ITC’s mandate, the needs of client countries, the role of other partner organizations, in particular UNCTAD and WTO. It acknowledges the necessity to engage clients to identify needs and tailor solutions, to secure impact and sustainability from capacity building by providing for more integrated solutions. ITC contributes to the growth of globally competitive companies and to their sustainability.

3. The Paris Declaration and 2008 Accra Accord place an emphasis on country ownership and leadership. As a result, ITC will develop closer and more informed relationships with key counterparts such as trade support institutions (TSIs) ministries of trade and commerce, development, foreign affairs and business representative organizations.

4. The strategic environment, clients’ needs and lessons from ITC’s experience combine to produce a series of challenges to which the Strategic Plan sets out its responses in two parts:

Programme delivery responses:

Targeting MDGs to contribute to sustainable development ;

Focusing on needs of LDCs, LLDCs, SIDS and Sub-Saharan Africa;

Export capacity building through integrated country solutions;

Regionally structured solutions;

Global public goods for globally accessed solutions;

Focusing on outputs and impact.

Internal organizational responses:

Leveraging more unearmarked resources;

Upgrading financial management;

Investing in people;

Improving communications and information systems;

A more effective organization.

5. Targeting MDG’s to contribute to sustainable development – ITC has a proven track record using trade to achieve sustainable development. Successful experiences include poverty alleviation, empowering women exporters, ethical trade and green trade. ITC will promote good practice in export development through the MDGs. It will promote knowledge and action on trade and MDGs through international advocacy networks. In addition, MDG targets will be mainstreamed across all capacity building activities. Project design will systematically incorporate development goal solutions with the aim of achieving Export Impact for Good.

2 ITC/AG(XLII)/221

6. Focusing on those who need it the most – ITC is committed to continuing its priority for LDCs, LLDCs, SIDS and Sub-Saharan Africa. It is entering a phase where its successful pilot experiences can be generalized into methodologies to be applied in the priority countries, such as the Lao People’s Democratic Republic, where the DTIS followed the development of a National Export Strategy. ITC will promote this approach in selected countries. In the case of LDCs for example, ITC will actively engage within the EIF by strengthening national capacity in programme design and management. Effective solutions will combine ITC country-focused competencies together with its five business lines.

7. Export capacity building through integrated country solutions – The restructuring of the organization to create the Bureau of Policy and Programme (BPP), which incorporates the geographic offices along with Export Strategy and Business and Trade Policy, is in recognition of the need to provide responsive demand driven customized services to clients. BPP will be expected to provide leadership and expert knowledge of the client countries, understand their export development and promotional needs and be able to construct appropriate solutions in conjunction with ITC technical divisions and partner organizations.

8. Developing countries present a complex mix of needs and demands that require integrated solutions. ITC will deploy a holistic use of its competencies and those of other organizations to ensure long-term impact. Increasingly, ITC expects to be designing country solutions from two starting positions, national export strategies and vertically integrated sector strategies.

9. ITC will build on its rich experience of supporting the production of national export strategies. At each step of the formulation of the strategy, ITC will provide state-of-the-art analytical support in terms of markets trends and options in trade negotiations. ITC will support public-private dialogue to ensure that the country strategy is produced and implemented with a fully engaged business sector

10. ITC will promote its successful experiences in export sector development. It will increasingly target sectors with high export potential in countries where there is a strong country commitment. A combination of direct support to enterprises and enhancing the capabilities of business service providers will deliver a more holistic approach focused on tangible and timely business improvements.

11. Regionally structured solutions – There are many opportunities to support export growth through regional programmes. Where regional solutions will respond to common trade challenges, ITC will support stronger links between countries. This will involve the creation of a regional dimension in the development of exports involving regional bodies, development banks, academic or vocational training organizations, chambers of commerce and sector associations. Following the example of Programme for Building African Capacity for Trade (PACT) II, ITC also expects to deliver a small number of larger scale regional programmes.

12. Global solutions – To spread the understanding of how markets work, it is critical that all developing countries have access to as many of ITC’s services as possible. To provide wider access and create public goods, ITC will expand its on-line information through an e-platform. Services to be expanded by on-line delivery include trade information and intelligence services and publications related to enterprise competitiveness, trade policy for business and analytical tools such as ‘Buy for Development’.

13. ITC will develop and deploy global vocational training initiatives to support the creation and management of trade support institutions (TSIs) and enhance the efficient provision of their services to exporting enterprises. To guarantee the sufficient quality in training material, authoritative third parties will validate the provision. The training will

ITC/AG(XLII)/221 3

then be delivered through a global network of recognized partners and through an e-learning platform.

14. ITC’s global events, in particular the World Export Development Forum (WEDF) and the World Trade Promotion Organization (WTPO) Awards, will be further fashioned to provide the adequate platform for key counterparts in the international export promotion and business development community to acknowledge good practice and develop informed networks. With this same objective in view, ITC is considering a bold initiative combining national and global awards to promote best practice of exporting enterprises.

15. Focusing on outputs and impact – In response to client demand and donor expectation, the timely achievement of planned outputs and impact must have a high profile in ITC planning and delivery. An improved project cycle management process will engage ITC, with counterparts, in identifying agreed outputs and impact. Stronger quality control in planning and monitoring will improve project management.

16. Leveraging more unearmarked resources – ITC is developing a capacity to manage a larger project portfolio in response to client demand and flat or lower regular budget resources, thus requiring access to higher levels of funding. As a cautious minimum, ITC hopes to extend its extrabudgetary annual expenditure to US$ 40-US$ 50 million by 2012. ITC will strengthen existing donor relationships to secure long term funding commitments.

17. The Resource and Partnership Group sits within BPP. It will work along with the Geographic offices to develop relationships with country based bilateral donors and identify partners to support the work of the organization. New strategies will be deployed to exploit opportunities available through the Enhanced Integrated Framework and One UN, and to build up strategic partnerships with Regional Banks, bilateral development programmes and new sources of funding.

18. Upgrading financial management – ITC has to operate in a complex financial environment. Therefore, it will upgrade its financial forecasting, cash flow management and project budget control, at the same time as implementing the International Public Sector Accounting Standards (IPSAS). Financial management processes will be improved to achieve internal transparency and external accountability. A key objective is the increase of ITC’s operational reserve to 15% of its XB budget in order to provide predictability and continuity in project delivery.

19. Investing in people – ITC’s people will be the heart of the successful organization. The organization will continue sourcing, attracting and recruiting world-class talent on a global basis. Special attention will be focused on promoting excellence and ITC values in the field of leadership and people management. ITC staff will be better trained and supported through improved processes for building stronger client relationships, project management and performance appraisal.

20. Improving communications – ITC will continue reinforcing its ‘one image’ policy to provide for a single message at the corporate level, Export Impact for Good. To serve its clients better ITC will develop new technical publications, reposition Trade Forum and take greater advantage of new media delivery systems to reach wider audiences.

21. To achieve greater efficiency and higher quality management information ITC must invest in modern information systems and associated management processes. With adequate investment, ITC expects to improve a wide range of information systems including its web presence and content, client relationship management business processes and its project cycle management.

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22. A more effective organization – Continuous improvement via learning from experience will be critical to achieving a planned programme delivery for developing countries. The implementation of the new Evaluation Policy, including an Annual Evaluation Report with a Clients’ Survey, and the ITC Annual Report reflect ITC’s commitment to transparent review, action plans and reporting designed to raise standards and quality systematically.

23. ITC will upgrade continuously its management skills to allow the organization to respond to the rapidly changing environment in which it operates. Based on its contemporary experience and the expressed needs of clients in developing countries, ITC will play a significant role in supporting the expansion of exports. The organization’s aspiration is to be the Development Partner for Export Success. The successful implementation of the actions set out in the present Strategic Plan will enhance the role of the ITC in serving the interests of its key counterparts in the international export promotion and business development community.

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Introduction

24. The ITC Strategic Plan 2009 to 2012 takes into account the mandate of the organization; the needs of client countries; the role of other partner organizations; and the need to be more impact oriented and set realistic goals in cooperation with our partner countries over the next four years. The Strategic Plan covers the four-year period 2009-2012, and will be rolled forward annually. It will facilitate external dialogue with programme countries and donors as well as contribute to internal discussions driving continuously improved performance.

25. Working in partnership with the World Trade Organization (WTO) and the United Nations Conference on Trade and Development (UNCTAD), ITC supports their regulatory, research and policy charter through technical assistance advice and services. ITC organizes annually the Joint Advisory Group, which brings the whole country membership together and provides general guidance on the ITC programme for endorsement by the formal governance mechanisms exercised through the UN and WTO.

26. With the completion of the Strategic Plan, ITC has put in place a four component planning and reporting structure, as set out in the diagram below: The CPD acts as the link between the Strategic Plan and ITC’s operations and presents its proposed programme of work. ITC will continue to prepare its annual Operational Plan as an internal document. The Strategic Framework is a broad two-year programming document submitted to the UN General Assembly corresponding to the UN budgetary cycle based on strategic objectives, and it forms part of the Strategic Plan.

Figure 1 – Rolling Cycle of planning and reporting

2009 2010 2011 2012 2013 2014

SP 09-12

OP 09 AR 09

SP 10-13

CPD 10 -11

OP 10 AR 10

SP 11-14

CPD 11 -12

OP 11 AR 11

SP – 4 year Strategic Plan setting overall direction for ITC

CPD – Consolidated Programme Document identifies options for further funding over two year period

OP – 1 year Operational Plan sets out detailed work programme for all ITC Sections, with outputs, expected progress and targets AR – 1 year Annual Report reports on the performance of ITC set against planned outputs, progress and targets

2009 2010 2011 2012 2013 2014

SP 09-12

CPD 09

OP 09 AR 09

SP 10-13

CPD 10 -11

OP 10 AR 10

SP 11-14

CPD 11 -12

OP 11 AR 11

SP – 4 year Strategic Plan setting overall direction for ITC

CPD – Consolidated Programme Document identifies options for further

OP – 1 year Operational Plan sets out detailed work programme for all ITC

expected progress and targets AR – 1 year Annual Report

ITC set against planned outputs, progress and targets

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Strategic Environment

The Global Trade Environment

27. Drawing on its own research, its extensive information and data systems and the experience of others, ITC has identified several global trends, which are relevant to its work over the next four years:

• Expanding trade between developing countries. South-South trade represents 40% of goods trade today compared with 30% in the early 1990s and this trend will continue.

• More differentiated export performance. Some developing countries have achieved acceleration in their export growth to impressively high levels. Many others show weak performance.

• Changing composition of goods trade. The relative importance of agriculture in international trade is declining (except in Africa) while some countries are successfully moving up the value chain.

• Growing service exports. Services are accounting for an increasing share of GDP in countries at all levels of development.

• Importance of the business environment for competitiveness. There is a strong correlation between export competitiveness and the quality of a country’s business environment.

• Links between foreign direct investment (FDI) and global value-chains. Some developing countries have seen a rapid increase in FDI inflows. LDCs have been stagnant, while FDI flows have been growing between developing countries.

• Lower tariffs but other significant market access barriers. Applied tariffs have been declining worldwide, but non-tariff measures (NTMs), as well as trade-related taxes, are emerging as the major obstacles to market access.

28. Recent worldwide volatility in financial and commodity markets will impact on credit flows and lower market demand. The precise impact can only be factored into ITC’s plans once the understanding of the situation has been fully determined. The global financial crisis, finite traditional energy resources, shortages of food and calls for more sustainable development are all factors impacting on markets.

29. Throughout the plan period, ITC will need to respond continually to the above factors, which will determine the environment of ITC’s clients. In particular, ITC will need to develop clear advice and to reconfigure its service delivery according to priorities arising from the new situation created by the crises in finance, food, energy and transport.

Millennium Development Goals

30. The MDGs have served as critical benchmarks for ITC, as the 2007 Annual Report has helped to illustrate. Four of them will remain a special focus of ITC programming:

MDG 1: halving the incidence of income poverty and hunger. Programmes aimed at bringing the poor and marginalised into the global economy through exports will stimulate job creation and income generation.

MDG 3: achieving gender equality. A significant proportion of micro and small exporting enterprises are run by women and employ women in growing numbers. Challenges remain to extend the empowerment of women within business, trade institution building and policymaking.

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MDG 7: environmental sustainability. Many small exporters depend on natural environments and primary resources. The export activities of small enterprises can be harmoniously and sustainable linked to the environment.

MDG 8: global partnership. It is expected that the trading system will become more open, rule-based, predictable and non-discriminatory. In the short term this could include tariff and quota-free access for country exports and more generous development assistance. In cooperation with the private sector, greater access could be facilitated to new technologies, especially in information and communication. This goal requires additional support for LLDCs and SIDS.

Aid for Trade (A4T)

31. ITC can legitimately claim to be ‘the 100% Aid for Trade’ organization. Through Aid for Trade, ITC will continue to respond to the trade development needs of countries and develop market led sustainable solutions for enterprises. The four pillars of A4T link to the three ITC strategic objectives (figure 2).

Figure 2 – Aid for Trade Agenda

32. The Enhanced Integrated Framework (EIF) is the successor programme to the Integrated Framework and will provide comprehensive review of the trade needs of LDCs as well as seed funding for countries in Trade Policy Development, Trade Development and Building of Productive Capacities. It is due to become fully operational in 2009 and it offers LDCs, in particular, significant opportunities. Working with other trade-related technical assistance organizations, ITC will offer sustainable solutions to the challenges of export development in the LDCs.

Importance of Partnerships

33. The scale and complexity of TRTA and the goal of expanding exports requires all the major players, including ITC, to develop effective working partnerships to leverage faster progress and a wider impact. The EIF is a good example of a partnership approach to trade-related assistance. In the initial phase of the One UN (one budget, one programme) Initiative as part of the UN Reform Process, there are more opportunities for ITC to work closely with other UN Agencies and organizations in LDC countries.

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34. ITC is also part of the ‘UN Cluster on Trade and Productive Capacities’ established by the UN Chief Executives Board (CEB) as a means to achieve more harmonization and coordination among UN agencies and organizations with trade-related technical assistance programmes. For a small organization, such as ITC, the demands of collaboration and partnership are significant, especially during the setting up phase. Priorities will have to be selected.

35. ITC has a mandate to work with the private sector through its programmes. ITC intends to expand the number of partnerships with the private sector, as well as with non-governmental organizations and foundations.

Focusing on Client Country Needs

36. Following the Paris Declaration and confirmed by the Accra Accord, country ownership and leadership is a high priority for aid programmes, including TRTA. ITC attaches the highest priority to understanding and responding to the evolving needs of its clients in beneficiary countries. This is done in a variety of ways through regular consultations both in the field and in Geneva. For the first time a comprehensive client survey was conducted in 2007 and a second is being undertaken in 2008. ITC expects to continue this activity on an annual basis. The responses from all of these sources have highlighted the need for:

• A clearer measurement of the impact of ITC programmes incorporating lessons learnt and cost analyses;

• The completion of projects within agreed timescales; • The design of more integrated and linked solutions; • The need for greater depth in capacity building activities at country level to ensure

sustainability; • A greater customization of services matching client needs and context; • A more effective communication on ITC’s range of advisory/support services, and

internet-based services.

Challenges from the Strategic Environment

37. The components of the strategic environment, as set out in paragraphs 27–36, together with ITC’s experience combine to create a number of major challenges:

• To ensure that ITC’s technical assistance makes a direct or indirect but measurable contribution to the Millennium Development Goals;

• To maintain the primary focus of ITC’s assistance on Sub-Saharan Africa and on LDCs, LLDCs and SIDS;

• To provide integrated and sustainable TRTA solutions at country level; • To strengthen regional trade integration through export facilitation and intraregional

trade; • To ensure global outreach through innovative dissemination of generic tools,

products and services; • To ensure systematic measurement of outputs and impact to achieve ‘Export

Impact for Good’.

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Export Impact for Good: A Stronger ITC

38. Since the comprehensive evaluation of 2005/2006, ITC has undertaken a change process, which is resulting in a stronger organization, as it seeks to deliver ‘Export Impact for Good’. The Strategic Plan builds on the foundation of the Strategic Framework, agreed within the UN accountability process, with a Mission and three Strategic Objectives.

Mission To enable small business export success in developing countries… By providing, with partners, sustainable and inclusive trade development solutions… To the private sector, trade support institutions and policymakers.

Three Strategic Objectives

• Strengthen the international competitiveness of enterprises through ITC training and support;

• Increase the capacity of trade support institutions to support businesses; • Strengthen the integration of the business sector into the global economy through

enhanced support to policymakers.

39. ITC now has a coherent framework combining objectives, target groups and a five business lines delivery system, as shown in the following diagram:

Figure 3 – Building capacities on the three levels

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Five key TRTA Competencies (Business Lines)

40. Through its five key TRTA competencies, ITC is in a very strong position to provide enhanced and integrated solutions to meet the export needs of developing countries. ITC’s TRTA solutions for enterprises, trade support institutions and policymakers ultimately benefit export growth. Over the Plan period ITC will endeavour to become a centre of excellence in these areas. These are:

Export Strategy: ITC interacts with governments and economic sectors to enhance their capacity to formulate successful national export strategies that contribute to the expansion of exports. The process also mainstreams trade into development policy, including poverty alleviation, women empowerment and environmental sustainability. Export Strategy supports country and regional solutions by ensuring the use of sound methodologies, particularly public-private sector dialogue, for export strategy design, implementation and monitoring. At an international level, it communicates ITC’s thought leadership on issues related to export promotion and business development, in particular through global events, publications and networks.

Business and Trade Policy: ITC supports the small and medium-sized business sector to understand its stake and to promote its interests in the formulation of national trade policies and in the negotiations of international trade agreements. It is instrumental in promoting business advocacy in the context of public-private sector dialogue and institutional consultation mechanisms. It supports the relevance of national export strategies and integrated sector strategies at each step of their formulation and implementation by ensuring that the framework of international trade agreements is properly taken into account. It provides globally accessed solutions in terms of vocational training initiatives, including e-learning and supports ITC’s global events by contextualizing business and trade policy issues.

TSI Strengthening: ITC plays a critical role in helping policymakers and trade support organizations to assist exporters generate and develop sustainable business. It builds and strengthens national, regional and international trade support institutions to develop export-oriented services that meet the needs of clients and to set up institutional arrangements for the delivery of these services. To this end, ITC offers capacity building programmes, tools and methodologies and facilitates learning from good practices through benchmarking and networking. It also provides support for improving the trade environment through trade facilitation services and access to finance. As such, TSIs become ITC's partners in the field for a wider dissemination and sustainable transfer of knowledge and expertise, through the concept of ‘One to One to Many’.

Trade Intelligence: ITC provides trade data, access to trade information, market analysis and expertise to enterprises, TSIs and governments to facilitate informed decision-making and enhance the transparency of international markets. It provides public goods in terms of web-based trade information resources and tools offering the latest market information and trends on export-related themes and products. ITC develops trade information systems customized for specific organizations and countries and offers advisory services to TSIs in trade information management and web-based trade intelligence dissemination. ITC’s trade intelligence programme is supported by a range of field-based training and capacity building initiatives, facilitating the development of trade information networks. ITC supports integrated country solutions and regionally structured solutions with its expertise in data analysis and currently focuses on future e-learning solutions in the field of market research and trade information management. In close coordination with Business and Trade Policy, Trade Intelligence contributes to Export Strategy by enriching export strategy processes at each step of their design and implementation, with state-of-the-art analytical support in terms of market trends and options in trade negotiations.

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Exporter Competitiveness: ITC provides capacity building solutions for SMEs, small producers and sectors, to make them export-ready and strengthen their competitiveness in international markets. It offers a suite of solutions along the whole enterprise and sector value chain. These are delivered through vocational training services, certified expert networks, customized business consulting and market exposure, with the overall aim of building skills, activating scale and removing obstacles to growth, thus ensuring long-term sustainability. Areas covered in these programmes include the design of export-oriented strategies and plans, business cycle optimization, marketing and e-business solutions, at the enterprise and sector level for export-related products and services. ITC has developed specific sector expertise in products and services that reinforce both exporting SMEs and engage poor communities. In close cooperation with Export Strategy and Trade Support Institution Strengthening, it designs and implements market led sector development programmes and undertakes tailor made TRTA solutions for enterprises, along the whole enterprise business cycle and sector value chain.

Organizational Change

41. The continuation of ITC’s transformation saw further progress in 2008 and it will sharpen ITC’s capacity and responsiveness in the coming years. The organization will continue to evolve and adapt to client needs and its changing environment. In particular, the Plan period will see the need to:

• Develop common strategies and tools for country needs assessment, programme design and resource mobilisation.

• Establish an effective overall resource mobilisation strategy, which will identify roles for all parts of ITC directing effort towards the key sources of funding, traditional and new.

• Create a client relationship management system to secure good working relations with clients, stakeholders and partners to facilitate collaborative working within projects and programmes.

• Build on the foundation of the five ITC values (Vision, Integrity, Excellence, Pragmatism, Responsiveness) and the agreed competencies for enhanced policies for developing ITC’s people.

• Continue to upgrade corporate and project communications to secure greater impact from ITC’s programmes and its major events.

• Make faster progress in underpinning key management processes by sound workable information systems.

• Complete new governance arrangements for the ITC Trust Fund and improve reporting to the Consultative Committee.

• Explore further delegation of responsibility in human resources from WTO and UNCTAD.

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Programme Delivery Responses

42. Paragraph 37 has set out six programme challenges for ITC over the medium term. ITC has built corresponding programme delivery responses to these challenges:

• Contributing to sustainable development - MDGs; • Focusing on needs of LDCs, LLDCs, SIDS and Sub-Saharan Africa; • Sustainability through integrated country solutions; • Regionally structured solutions; • Global goods for globally accessed solutions; • Focusing on outputs and impact.

Targeting MDGs to Contribute to Sustainable Development

43. ITC has a proven track record using trade to achieve sustainable development and impact positively on poverty alleviation, the empowerment of women and the environment. In the next four years, the challenge is to build on successful experiences to move into projects with wider scale impact. The next four years will be marked by ITC taking its experience in each of the three areas and progressing to increase its contribution through:

• Defining good practice in linking trade and the development goals; • Promote greater awareness, through international advocacy networks, of the

added value of export development projects which integrate the development goals in the aims and design of the projects;

• Identify country champions to manage larger scale projects underpinned by ITC proven expertise;

• Mainstream sustainable development and one or more of the three development goals, underpinned by partnerships, into all ITC designed projects and programmes.

44. Poverty alleviation (MDG 1): ITC’s Export Poverty Reduction Programme (EPRP) pilot projects have been undertaken in a wide variety of environments and sectors. As a result, many ITC projects can benefit from applying the lessons from this experience to generate a substantial multiplier effect. This will mean more focus on identifying the key components of a supportive infrastructure to enable the larger scale replication of EPRP successes. Thus, ITC’s focus will be directed to identifying champion poverty alleviation projects through which to continue supporting and expanding the number of projects with a clear goal to alleviate poverty. Further, it will promote the EPRP methodology in order to avoid being overcommitted to direct delivery.

45. Empowerment of women (MDG 3): ITC’s gender strategy targets policymakers, to create an environment more conducive to women’s export business, and TSIs, to better provide businesswomen with customized export and trade services. The work programme includes the follow-up to the Round Table on the Gender Dimension of the EIF, seminars on identifying and addressing gender-based constraints to trade and the rollout and integration of Gender Guidelines into National Export Strategies supported by ITC. For TSIs, the programme will be built around supporting successful women entrepreneurs and TSIs active in outreach to women, as well as strategies to better connect with women’s trade associations and organizations in order to create and strengthen such entities.

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46. Among actions planned to help women-owned enterprises become more competitive are the roll out of ‘ACCESS! II’ in Africa, as a component of PACTII. This will include training, mentoring and a dedicated trade portal www.womenexporters.com. Pilot programmes modelled on ‘ACCESS!’ will be launched in Latin America and Asia in 2009. In the Middle East and North Africa, the gender strategy will be directed to linking women-owned SMEs into the value chain.

47. Environmental sustainability (MDG 7): ITC’s approach is twofold: on the one hand, to adapt trade practices to environmental concerns; on the other, through its Trade and Environment Programme (TEP), to help developing countries overcome constraints (such as costs of marketing and compliance with quality standards, supply issues, weak national environmental policy) in order to seize export opportunities in sustainably sourced natural resource-based products and renewable energy technologies, for which global markets are now estimated respectively at US$ 50 billion and US$ 600 billion per year.

48. TEP, planned over three years (2009 to 2011) at a total cost of US$ 20 million and designed and implemented with partners including UN agencies, NGOs, government, trade support institutions and private sector participants, will work to three strategic objectives: strengthen the international competitiveness of enterprises; develop the capacity of trade services providers to support businesses; and support policymakers in integrating the business sector into the global economy.

49. Global partnership (MDG 8): ITC fully subscribes to the recommendations of the Accra Agenda for Action. Specifically, ITC will seek to expand its partnerships for development with beneficiaries, agencies and donors, with the aim of rationalizing activities and improving the complementarity of efforts across the TRTA spectrum. Efforts will be made to deepen its engagement with, and access to, global funds and programmes – governmental, civil society and corporate. ITC will raise the profile and priority of South-South cooperation. It will also emphasize local and regional procurement and will prioritize development cooperation in fragile and post-conflict countries, with a special emphasis on LDCs and IDA-only developing countries.

Focusing on Needs of LDCs, LLDCs, SIDS and Sub-Saharan Africa

50. As a UN organization, the mandate of ITC focuses its work on developing and transition economy countries. Particular priority will be given to the 49 LDCs, other LLDCs and SIDS. ITC is committed to devoting 50% of its programmed resources to these groups of countries. ITC would also give priority to Africa and its sub regions and to countries in reconstruction wherever feasible.

51. ITC is entering a phase where its successful pilot experiences, such as in the Lao People’s Democratic Republic, can be generalized into methodologies for application in the priority countries. In the case of LDCs for example, ITC will actively engage within the EIF by strengthening national capacity in programme design, aimed at export development.

52. At the same time, ITC will engage under EIF, in programmes aimed at responding to priority needs identified in the Diagnostic Trade Integration Studies (DTIS), in particular for strengthening the enterprises’ competitiveness and building the capacity of the EIF National Implementation Units. ITC will broaden its interventions under the EIF Trust Fund by linking its expertise to the priorities identified in the Action Matrix that prioritizes technical assistance projects. It is envisaged to launch over 20 new country-specific EIF projects and a few regional programmes during the plan.

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53. With a view to support Sub-Saharan countries, in particular LLDCs, ITC will launch an Export Facilitation Programme to enhance the competitiveness of exporters, with the aim to be the voice of SMEs both in negotiations and in implementation of ‘one-stop window’ and transit facilitation. The main outcomes of the strategy will be better management of export processes, improved provision of export facilitation services and reduction of export transaction cost.

Export Capacity Building through Integrated Country Solutions

54. The restructuring of the organization to create the Bureau of Policy and Programme (BPP), which incorporates the Geographic offices along with Export Strategy and Business and Trade Policy, is in recognition of the need to provide responsive demand driven customized services to clients. BPP will be expected to provide leadership and expert knowledge of the client countries, understand their export development and promotional needs and be able to construct appropriate solutions in conjunction with ITC technical divisions and partner organizations.

55. A key recommendation of ITC’s external evaluation was the need for ITC to increase the depth of its assistance at country level and ensure sustainability of its operations. ITC’s has responded by elaborating a series of ‘integrated country programmes’ which aim to provide comprehensive, customized and integrated solutions to the needs of specific countries which include the Lao People’s Democratic Republic, Liberia, Mozambique, Senegal, Tunisia and Uruguay. These programmes are being finalized in collaboration with national stakeholders and start-up activities have already commenced in some countries.

56. On the basis of this experience, ITC will move to deploying a holistic use of its competencies as well as working closely with other organizations to ensure long-term impact. Increasingly, ITC expects to be designing country solutions from two starting positions, national export strategies and vertically integrated sector strategies.

57. In the next four years, ITC will build on its rich experience of supporting the production of national export strategies. At each step of the formulation of the strategy, ITC will provide state-of-the-art analytical support about the impact of trade negotiations on business. It does it on a practical basis: by country and economic sector, taking into account commitments and prospects at bilateral, regional and multilateral level; and, for existing and potential trade negotiations, identifying threats and opportunities for the country’s sectors.

58. On the basis of targeted intelligence on business and trade policy, ITC provides support to the business sector and governments for the definition and implementation of national and sectoral export strategies. ITC does it in a practical context. Its approach addresses practical opportunities and threats related to scenarios in the trade negotiations. ITC supports countries developing and managing institutional systems to identify priorities for enhancing export performance. The objective is to strengthen the linkages between export development and socio-economic growth, including the development of a strong public-private dialogue to enable a fully engaged business sector.

59. ITC will generalize its successful experiences in export sector development. It will intensify the deployment of vertically integrated sector strategies structured around three pillars: (a) Improving the export competitiveness of enterprises in the sector in areas where export competitiveness is determined by activities at the enterprise level (sales and marketing, quality and safety and supply chain management); (b) Strengthening the Business Support Services Organizations through increasing the quality and range of their services that can assist potential and actual exporters in becoming more export competitive; and (c) Supporting the design and implementation of the sector export

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strategy and integrating it in a framework of sustained public-private consultations on trade development.

60. Crucial to these two starting positions is the process of identifying counterpart organizations within a given country, through which most programmes will be implemented and on whom the ultimate long-term impact of a programme will depend. Priority during the next four years will be given to identifying national counterpart organizations for project planning and implementation. Further, it will commit to the long-term appraisal of the impact of projects in order to measure and secure long-term sustainability.

61. The recent positive evaluation of ITC’s vertically integrated sector strategy projects in Kyrgyzstan and Tajikistan and the recommendations contained therein provide an excellent basis for sound needs assessment and programme design. ITC will continue to sharpen its approaches for needs assessments, programme development and counterpart identification over the plan period and develop specific tools, methodologies and guidelines in this regard.

62. ITC will maintain its commitment to One UN countries and work closely with other agencies to implement Joint Programmes on trade promotion under the auspices of the One Plan for example in Mozambique, Albania, Cape Verde, Uruguay and Viet Nam.

63. Progressively over the planned period, ITC will develop programme synergies by targeting a limited number of countries through its range of multi-country projects such as ACCESS and through solutions accessed or provided on a global scale.

Regionally Structured Solutions

64. ITC considers regional programmes as being an important means to help integrate regional economies into the multilateral trading system, develop regional and south-south trade and rationalize regional supply-chains. Regional programmes can be more cost-effective as they allow for ‘economies of scale’.

65. A major component of the ITC delivery programme throughout the Plan period will be the Programme for Building African Capacity for Trade (PACT II). This and other regional programmes will provide solutions for integrating regions into the multilateral trading system, encouraging intraregional trade and trade with other developing regions. They will also contribute towards building region-wide trade support institutions and business networks, identifying promising export products and rationalising regional supply chains.

66. Environmental sustainability issues will be addressed through awareness building, expert advice and dissemination of good practice. PACT II integrates a particular initiative through which businesswomen receive gender-responsive support in export management training and counselling and priority consideration under support schemes for specific sectors. Anticipated impacts include Regional Economic Commissions taking a lead role and the creation of Pan-African networking to improve cooperation in the development of regional trade; regional trade support networks, especially involving businesswomen, engaged in trade policy dialogue and coordinated trade support and promotion; and exporting enterprises in priority sectors being more competitive, with special emphasis on women-owned enterprises.

67. ITC will be looking to develop regional synergies from country programmes in individual regions with strong regional traditions, for example in South East Asia (Cambodia, Lao People’s Democratic Republic and Viet Nam). ITC has initiated a Supply Chain and Logistic Programme (SCLP), focused on the SADC countries for several years. This programme will help poor communities and their agri-cooperatives to join

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established agri-food supply chain systems that are serving national and regional supermarkets. The programme is designed to transfer know-how and better perspectives of agri-industry supply chain and logistics management to the region’s agri-food sub sector.

68. ITC will actively pursue other regional programme opportunities to maximize the impact from its delivery support. This will include:

• Ongoing support for ITC’s Business Generation Programme which works with partner institutions in Africa, the Arab States, Asia and Latin America for generating south-south trade, encouraging business partnerships and networking among enterprises.

• Partnerships with the Organisation internationale de la francophonie (OIF) promoting intra- and interregional trade among countries in the West African Economic and Monetary Union (UEMOA), the Central African Economic and Monetary Community (CEMAC), the Indian Ocean Commission (IOC) and Mekong (Cambodia, Lao People’s Democratic Republic and Viet Nam).

• Interregional trade promotion efforts focusing on high potential sectors representing business opportunities related to rice, wood products, textiles and clothing.

• The creation of creating regional training centres in association with selected partners, and will seek to organize a number of regional forums with partners such as the African Union and Global Compact.

69. The regional context also provides opportunities for ITC to exploit its experience to support the application of good practices emerging from delivery projects for the benefit of much larger numbers of enterprises, support institutions and policymakers.

Global Public Goods for Globally Accessed Solutions

70. ITC’s global tools, products and activities provide a wide array of export support public goods and publications through which ITC shares its know-how with a global audience. They have enabled ITC to provide developing and transition countries with access to key trade-related information over the years. During the Plan Period ITC will continues to broaden the scope and delivery channels of these services.

71. ITC will continue to re-engineer its approach to training as it moves towards more on-line and certified learning methodologies, as an alternative to repeated short-term in-country events. The purpose is to achieve more sustainable capacity development at institutional and individual level. It will draw on information and expertise within ITC and utilize the best e-learning technologies. In pursuit of ensuring ‘sustainable learning’, ITC will develop a wide array of Internet-based learning tools and provide e-learning solutions In addition, the capacity developed within ITC will be devolved systematically to organizations of excellence at country and regional level, in keeping with the multiplier principle of one-to-one-to-many. ITC’s existing courses will be upgraded through peer group review and a standardized approach to e-learning will be developed. Accreditation procedures will be reviewed and new partnerships explored with academic institutions.

72. ITC’s market analysis tools enable trade policymakers and TSIs to conduct better market analysis and research. During the period under review, ITC will continue developing its existing market information and analysis tools, such as Trade Map, Market Access Map and Investment Map, and devise new analysis tools. A lead economist will guide analysis and improve market intelligence for wider circulation. A ‘helpdesk’ is envisaged, as well as a trade information portal as a one-stop shop for trade information. Regular alerts will be issued to SMEs on emerging international trade issues. ITC’s

ITC/AG(XLII)/221 17

innovative tradition will be continued through the development of the Buy for Development initiative, supplying information requested by consumers.

73. ITC will continue to strengthen its efforts on non tariff measures (NTMs), which have become a major market access impediment for developing and least developed countries' exports. Together with a number of international organizations, ITC will work on a project that addresses the need for a common international classification and methodology to collect, classify and disseminate data on NTMs. The long-term objective is to increase transparency about NTMs by providing access to relevant data for exporters, trade support institutions and policymakers. During 2008, ITC and UNCTAD have successfully tested this new methodology in seven pilot countries. For 2009, the partners plan to roll out the project in more countries, and to launch the web portal ‘Trade Barrier Reporter’.

74. Trade support institutions play a critical role in spreading expertise and knowledge to wider groups of exporting enterprises. ITC will develop and deploy global vocational training initiatives to support the creation and management of trade support institutions and associated networks and enhance the efficient provision of their services to exporting enterprises. To guarantee the sufficient quality in training material, authoritative third parties will validate the provision. The training will then be delivered through a global network of recognized partners. The TSI benchmarking scheme, once piloted, will be available to all TSIs, as well as provide a diagnostic tool for ITC’s TSI support projects. Over a period, the TSI focused tools will be transitioned to a complementary on-line delivery modes to widen access.

75. ITC will continue to give business a voice in trade policy by promoting dialogue between the public and private sector and organizing workshops and forums, in partnership with other UN international agencies and academic institutions.

76. Good practice in exporting by developing countries needs to be captured and disseminated to as wide an audience as possible. ITC will pursue its ‘thought leadership’ role through events such as the World Export Development Forum and the World Trade Promotion Organization Awards. These global events further provide a route through which countries’ needs and demands can be promoted. ITC has the opportunity, through its global networks with TSIs, to compile information to extend the awareness of the sector’s needs and its potential to provide solutions. ITC is considering a bold initiative combining national and global awards to promote best practice of exporting enterprises. Further, a limited number of good practice publications will be published each year, including on-line, with the aim of disseminating good practice to a wide audience. This strategy will also include work on publishing statistics and data on exports, e.g. World Tariff Profiles with WTO and UNCTAD.

Focusing on Outputs and Impact

77. In response to client demand and donor expectation, the timely achievement of planned outputs and impact must have a high profile in ITC planning and delivery. During the next four years ITC’s efforts will be focused in the building of a comprehensive and holistic approach to monitor the delivery of outputs and measurement of impact.

78. To ensure higher levels of quality for ITC activities, a series of indicators have been identified in three categories: individuals, organizations and networks. They are also classified according to the sequence of development from ‘knowledge development’, through ‘competence building’ to a ‘multiplier/impact’. Outputs are the basic deliverables of a project. Impact focuses on the actions of the counterparts to be completed during the period immediately following ITC support.

18 ITC/AG(XLII)/221

Figure 4 – Output indicators

79. An improved project cycle management process will engage ITC, with its counterparts, in identifying agreed outputs and expected impact. This process will improve quality control in planning and monitoring, which in turn will improve project management. It will also impact on timelier project delivery.

80. In the Aid for Trade context, ITC will continue contributing to the development of a set of indicators to assess the contribution of trade development to sustainable development. In terms of the monitoring system, ITC will seek coordination within the OECD and the WTO to establish partnerships with pilot countries to validate the agreed approach.

KNOWLEDGE ACQUISITION

COMPETENCIESBUILDING

MULTIPLIER / IMPACT

Number of publications

Numbers attending events/workshops

Numbers registered users of ITC information

Organisations acquiring market knowledge

Knowldege sharing networks Cceated or strengthened

Individuals acquiring knowledge / skills

Organisations able to trainand advise

Organisations with business action plans

Export Ready Enterprises

Trading / Export networkscreated or strengthened

Individuals replicating ITC training

Organisations training and advising

Organisations implementingbusiness action plans

Enterprises expanding Exports

Networks adding value beyondITC outputs

KNOWLEDGE ACQUISITION

COMPETENCIESBUILDING

MULTIPLIER / IMPACT

Number of publications

Numbers attending events/workshops

Numbers of registered users of ITC information

Organizations acquiring market knowledge

Knowldege sharing networks created or strengthened

Individuals acquiring knowledge / skills

Organizations able to trainand advise

Organizations with business action plans

Export ready enterprises

Trading / Export networkscreated or strengthened

Individuals replicating ITC training

Organizations training and advising

Organizations implementingbusiness action plans

Enterprises expanding exports

Networks adding value beyondITC outputs

ITC/AG(XLII)/221 19

Internal Organizational Responses

81. In addition to ITC’s strategic approach in meeting the challenges related to client needs, the evolving trade environment and the requirements of its partners including donors, ITC is also confronted with a number of organizational challenges. During the next four years ITC will continue to respond to these challenges by:

a. Leveraging more unearmarked resources; b. Upgrading financial management; c. Investing in people; d. Improving communications and information systems.

Addressing these organizational challenges efficiently and comprehensively over the Plan period will be a vital component contributing to ITC’s success.

Leveraging More Unearmarked Resources

82. ITC is developing a capacity to manage a larger project portfolio. This increased capacity flows from response to the 2006 Evaluation and the ongoing organizational developments. It will enable ITC to widen the impact of its expertise, experience and delivery work. As a result ITC will need to access higher levels of funding through a combination of both its traditional and new sources. This will undoubtedly involve creating innovative partnerships to match the changing situations.

83. ITC expenditure, which is funded from two sources, will total in 2008:

• Regular budget (US$ 33 million from WTO and UN); • Extrabudgetary funds (US$ 30 million from a range of sources).

ITC is not expecting any significant increase in the regular budget funding from WTO and UN in the foreseeable future and indeed it may decline. Over the four years, ITC will be seeking an increasing level of extrabudgetary funding to support annual expenditures. This extrabudgetary funding should grow to a minimum of US$ 40 million by 2012, but hopefully could reach US$ 50 million by the end of the plan period.

84. ITC has embarked on implementing an overall resource mobilization strategy which has the following guiding principles:

• Strengthening relations with traditional donors to harmonize funding of the agreed plan activities through both the GTF and bilateral arrangements and reaching out to emerging donors.

• Continued pursuit of sales of ITC products to maintain the flow into the Revolving Funds, which offer ITC sections some seed funding and flexibility.

• Continuing development of partnerships linked to emerging and new funding sources, which will increasingly be country based, including EIF, One UN, development banks and private sector.

• A stronger analysis of available funding resources by donor, purpose, expected outputs and impact.

85. Under the leadership of the Resource and Partnership Group, ITC will have to prioritize its efforts to leverage resources on a limited number of key sources, especially those that are likely to fund multiple projects and programmes, e.g. EC and EIF. Resource mobilization will require the coordinated work of all parts of ITC to secure the required funding. Strategic partnerships will have to be developed with Regional

20 ITC/AG(XLII)/221

Development Banks and bilateral development programmes will be enhanced using the ITC presence in the field.

86. A continuous dialogue will be kept with the EIF National Implementation Units from priority countries. This contact will be strongly supported through the advisory and planning support set out within the integrated country solutions strategy and supplemented by ITC’s country networks. This approach will also enable ITC to explore new funding links with non-traditional partners committed to funding large bilateral programmes in selected countries. It will tap into multi-donor arrangements and basket funds being established mainly in LDCs and running in parallel to EIF Trust Fund resources.

87. A growing number of middle and upper-middle income countries are becoming net contributors to ITC. During the period of the Strategic Plan, the number of net contributors will increase as ITC seeks to expand country partnerships based on cost-sharing arrangements. A different relationship needs to be developed by ITC with a growing number of middle-income countries; some of these countries are becoming significant net financial contributors to ITC (e.g. Brazil, South Africa) and can begin to provide expertise through ITC to third party countries (Mexico, Romania). Fund-raising from non-governmental sources is becoming more important. ITC will actively work to develop new approaches towards private entities.

88. The longer-term strategic partnerships will need to be put in place to secure longer-term unearmarked funding for ITC operations, which in turn will facilitate planning and delivery. Equally, ITC’s delivery performance will be a critical contribution to convincing funding sources to contribute to an expansion of ITC’s project portfolio.

Upgrading Financial Management

89. ITC operates in a complex financial environment, receiving funds from a variety of sources with varied timelines and different conditions. It will take a variety of steps to improve its financial forecasting, project budget control, cash flow management as well as implement the International Public Sector Accounting Standards (IPSAS).

90. Financial forecasting and cash flow management will be further developed in order to improve long-term planning. In turn, this will facilitate longer-term working relationships with counterparts and partners. Costing studies of ITC operations will also enable ITC to have a firm grasp of the costs associated with planned outputs to be delivered from its available resources. An assessment of the trends, over time, in the costs of various delivery modes will enable ITC to identify those areas where more efficient approaches may be adopted, to set target ranges for costs and to develop more reliable and transparent project costing and budgeting.

91. ITC will continue to improve its financial management processes with a balanced approach to delegation to sections and project managers, while intensifying its internal reporting and monitoring procedures. This will facilitate reporting and accountability to ITC’s senior management and to external bodies.

92. At the same time, ITC will be involved in the implementation of the IPSAS in coordination with the United Nations and expected from 2011. The early stages of converting the accounting basis to one of accrual accounting have begun in ITC, with the new standards expected to be implemented from 2011. Depending on the timing and rate of implementation by the UN Secretariat, Financial Management Services will begin spreading the awareness of the new approach across ITC in 2009/2010. This development will assist the delivery on ITC’s commitment to improving value for money and its financial forecasting capacity.

ITC/AG(XLII)/221 21

93. Cash flow management is critical to the smoother delivery of projects. To give its internal operations greater continuity ITC will move as fast as possible to an Operational Reserve at 15% of its XB Budget. Without specific contributions to the Operational Reserve its current options for enhancing the Reserve will take several years to reach the target, thus inhibiting some progress in the immediate future.

Investing in People

94. ITC’s staff are at the heart of the ambition to be a more successful organization. In recognition of this, ITC has agreed a five-part strategy, to be implemented over the medium term, to secure the people resources to deliver its planned programmes. The strategy, including short term priorities and longer-term targets, will:

• Source, attract and recruit world-class talent to ITC on a global basis; • Promote excellence in the field of leadership and people management; • Encourage and support staff in their continuing professional development and

performance improvement; • Provide ITC staff with a diverse and supportive working environment; • Develop efficient, transparent and responsive human resources processes to

support ITC business delivery.

95. Each goal will be underpinned by the ITC core values, and policies will be driven by the ITC’s 7 organizational competencies: Integrity, Vision, Teamwork and Leadership, Excellence and Accountability, Client Commitment, Pragmatism and Communication. As ITC seeks to intensify its country and regional presence, more attention will be devoted, in the immediate future, to the recruitment and working arrangements for field-based staff.

96. A more comprehensive training and staff development programme will be developed and it will require additional funding. This programme will upgrade both generic competencies and technical knowledge and skills. The comprehensive implementation of the appraisal scheme will identify the training needs of staff as well as confirm the rates of progress being achieved.

Improve ITC’s Communications and Information Architecture

97. Improved communications will play an increasingly important role in the delivery of projects and in raising awareness of the experience of ITC and its counterparts. A new Unit will bring public information, publications, media and events functions together. Its main job will be to support divisions to bring our brand essence ‘Export Impact for Good’, to life.

98. New technical publications, the repositioning of Trade Forum and taking greater advantage of new media channels will be the strategy to reach much wider audiences. In this regard, ITC will establish smart partnerships to expand the dissemination of its material. During the planning period, work will be done in both the development of content and on the mode of delivery. With respect to content, integrity will be built around the new brand identity and will ensure clarity around messaging. ITC will continue reinforcing its ‘one image’ policy to provide for a single message at the corporate level, Export Impact for Good.

22 ITC/AG(XLII)/221

99. With respect to delivery, ITC is proposing to lay a foundation for a long-term information management system, migrating away from ‘islands of information’ and independent systems to a holistic enterprise IT architecture required to underpin ITC strategic objectives and corporate wide system integration. It is also a critical piece of the Global Delivery strategy, which envisions our stakeholders having access to greater levels of information and training on-line. The IT operations of the organization have been divided into five modules:

100. Redevelopment of ITC web presence and web content management system – The challenge is to undertake a comprehensive web redesign and develop underlying system architecture so that ITC can migrate into the correct electronic market space to communicate effectively with our customers, clients and partners. A web content management system will provide ITC with the capacity to manage and control the growing volume of web-based content and take advantage of rich multimedia tools to enhance our communication, interaction and provision of services. ITC will also need to establish an overarching corporate governance and management framework.

101. Client relationship management system – Meeting the evolving needs of ITC’s beneficiary countries, donors and partners comes through developing and maintaining long-lasting, meaningful relationships. Achieving such relationships requires client ownership, consistent and frequent client communication, implementation of agreed client relationship management (CRM) standards and practices and a CRM system that supports and enables these new practices.

102. Implementation of an e-learning platform – The 2006 evaluation of ITC questioned the level of resources being deployed for short workshops and training. However these services are necessary to build awareness and to provide a wide range of information. ITC has been examining how much of this training can be delivered to a wider audience and in a more cost effective and sustainable manner via an e-learning platform and or through teleconferencing. The management, updating and sharing of content can be centralized and will serve to reduce travel costs and the associated environmental impact of delivering basic training and services directly on the ground.

103. Implementation of a business process management system – In response to client needs, feedback and review, ITC will continue to upgrade its administrative processes to improve efficiency and effectiveness. The immediate action plan will implement the agreed recommendations of the Division of Programme Support (DPS) change project, which focused on the processes of hiring consultants, events management, memoranda of understanding and project budget control. Additional areas will be examined and upgraded, notably IT and IS, to allow new ways of managing projects and business processes and enhancing interaction with ITC clients and among staff members. The business processes will need to be integrated into the ERP system, which the UN will be deploying in 2011 and 2013.

104. Implementation of a project cycle management system – ITC will introduce a revised project cycle management process across all sections to improve consistency and to raise standards. The revised process takes into account many of the key commitments listed in the Strategic Plan, in particular: setting projects in their local context; engaging counterparts, potential partners and all relevant business lines in design; securing the development goals in all projects; and, setting achievable outputs and impacts within feasible deadlines. Part of the required communication infrastructure will be the upgrading of the global messaging platform.

ITC/AG(XLII)/221 23

Accountability and Governance

105. A critical component for creating an effective ITC organization will be the consolidation of the internal and external processes for accountability and governance. This area of ongoing development will be a continuing focus of senior management attention.

Performance Management and Operational Planning

106. The Strategic Plan sets the overall framework within which detailed operational planning can take place. Each year, ITC will produce an internal Operational Plan, which will be updated at two points during the year in response to the receipt of funds from all sources. The Operational Plan will be underpinned by section plans, which will set out the available resources, the agreed priorities, the outputs to be delivered, key new initiatives and the internal progress monitoring arrangements. Arrangements will be put in place to ensure that individual plans conform to the overall needs of ITC and that the actions are well coordinated with other ITC actions and those of key partners.

107. The Operational Plan outputs will be part of the UN Strategic Framework system, linked through IMDIS into the wider reporting mechanism. Based on the section plans and the Operational Plan, each member of staff will be able to identify their key work priorities, performance targets and deadlines for the Performance Appraisal System. The full implementation of PAS will be a critical component in the drive for improved performance and quality across ITC.

Continuous Monitoring

108. ITC is strongly committed to continue strengthening the quarterly reporting mechanisms covering finance, people resources and project delivery. As ITC continues to enhance its quarterly financial monitoring in order to exert strong control over its finances and expenditures, section chiefs will be required to report quarterly on expenditures. Improved cash flow forecasts and the deployment of the operational reserve are critical to raising efficiency and securing timely delivery.

109. Quarterly human resources reports will monitor staffing levels, staff development progress and assist with selecting priorities.

110. A quarterly review of progress for the Operational Plan will be a core management tool for directing resources and management time to critical issues and developments.

111. The precise definition of the indicators has also been used as an opportunity to raise standards and support improved performance. In this way, ITC sections will be encouraged to upgrade activities, which in turn will maximise impact for the counterparts. Through its enhanced PCM process ITC will also secure information on the impact of projects, which in turn will lead to continuous improvement of performance.

24 ITC/AG(XLII)/221

Output Oriented Annual Reporting

112. The 2007 Annual Report established a structure and approach, which will be continued and enhanced over the next few years. Its format will broadly remain the same while attention will be paid to:

• Continuing to improve the clarity of the key messages; • Greater focus on results and inputs; • More staffing statistics; • More trend analysis rather than focusing on a single year; • Extracting overall intelligence and conclusions from the wealth of detailed

performance information provided in the Addenda to the ITC Annual Report; • Deploying good stories alongside the more structured reporting to add relevance

and context to the statistics.

113. The Global Trust Fund (extrabudgetary resources) reporting will follow the terms agreed in discussions in the Consultative Committee of the Global Trust Fund.

Stronger Focus on Evaluation and Learning

114. It is expected that major progress will be made from the investment in improving the evaluation processes. Terms of reference will be more aligned to key priorities and scope of studies will recognize the scale of resources available for the work programme. ITC is committed to ensuring that all recommendations and findings are fully examined. As a result, the subsequent action plans will be monitored closely to ensure a full return from the evaluation study investment.

115. The annual evaluation programme will continue to be funded both by ITC and by donors. ITC will share its evaluation expertise to ensure all evaluations follow quality standards and result in positive learning for the organization.

116. It is likely that the annual client survey will become a key feature in the evaluation cycle. Individual sections are being trained to assess their performance through the data available from the survey. A possible spin-off from the expertise gained from the survey would the establishment of in-house survey capability and capacity, which could be deployed to investigate key matters of interest in TRTA. Major publications could then follow as part of ITC’s wider contribution to knowledge and thought leadership in TRTA.

117. The culmination of all of the evaluation work in a year, including the client survey, will be the Annual Evaluation Report. This will draw together the high level lessons to be learnt from the current year’s evaluation programme and applied in future years.

Improved Governance

118. Externally, ITC will continue to report to the relevant committees of WTO and UNCTAD, together with the UN Committee for Programme and Coordination and the ACABQ. At the same time, ITC will be subject to audit and the work of OIOS. Their reports will contribute to improving performance, achieving value for money and maintaining good operations.

119. ITC’s own accountability framework will be strengthened through the changes to the GTF Consultative Committee mechanism as well as the JAG.

Street address: ITC, 54-56, rue de Montbrillant, 1202 Geneva, Switzerland

Postal address: ITC, Palais des Nations, 1211 Geneva 10, Switzerland

Telephone: +41-22 730 0111

Fax: +41-22 733 4439

E-mail: [email protected]

Internet: http://www.intracen.org

The International Trade Centre (ITC) is the joint agency of the World Trade Organization and the United Nations.

ITC

EVALUATIONPOLICY

EXPORT IMPACT FOR GOOD

JAG/DEC-2008/01

The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the International Trade Centre concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. Maps are provided for ease of reference only.

This document has not been formally edited by the International Trade Centre.

November 2008Original: English

Joint Advisory Group on the International Trade CentreForty-second sessionGeneva, 10 - 11 December 2008

© International Trade Centre 2008

Table of contents

A. Introduction ..............................................................................................................................1 B. Evaluation Concept..................................................................................................................2

1. Definition ..............................................................................................................................2 2. Purposes ..............................................................................................................................4

a. Accountability...................................................................................................................4 b. Learning ...........................................................................................................................4 c. Communication ................................................................................................................5

C. Evaluation Key Principles and Criteria ....................................................................................5 1. Key Principles ......................................................................................................................5

a. Utilisation of Results ........................................................................................................5 b. Transparency...................................................................................................................6 c. Impartiality ........................................................................................................................6 d. Feasibility .........................................................................................................................6 e. Ethics................................................................................................................................6 f. Quality ..............................................................................................................................7 g. Creativity ..........................................................................................................................7

2. Criteria..................................................................................................................................7 a. Relevance ........................................................................................................................7 b. Performance.....................................................................................................................8 c. Effects ..............................................................................................................................8

D. Evaluation Roles and Responsibilities ....................................................................................8 1. Joint Advisory Group............................................................................................................8 2. Senior Management Committee..........................................................................................8 3. Executive Director................................................................................................................9 4. Evaluation and Monitoring Unit - EMU ................................................................................9 5. Divisional Directors ............................................................................................................10 6. Evaluation Focal Points .....................................................................................................11 7. Managers of Projects and Programmes............................................................................11

E. Evaluation Management ........................................................................................................11 1. Conducting Independent Evaluations................................................................................11

a. Programming..................................................................................................................11 b. Budgeting .......................................................................................................................12 c. Design ............................................................................................................................12 d. Implementation...............................................................................................................13 e. Evaluation Reports.........................................................................................................13

2. Follow-up of Evaluations....................................................................................................14 a. Follow-up to Self-Evaluations ........................................................................................14 b. Follow-up of Independent Evaluations ..........................................................................14 c. Organisational Learning.................................................................................................14 d. Dissemination and Disclosure Policy ............................................................................14

1

A. Introduction ITC is committed to continuous improvement, increased productivity and delivering value for money in driving towards its goal of ‘Export impact for good’. A critical element in achieving this is the establishment of the strengthening and reinforcement of the evaluation function including the establishment of an Evaluation Policy and Annual Evaluation Programme. The promulgation and implementation of the Evaluation Policy will also ensure that ITC conforms to required UN standards and will meet the commitment made to ITC’s Joint Advisory group (JAG) in 2007. The Evaluation Policy determines due process and sets general standards for evaluation in the ITC. ITC’s Senior Management Committee (SMC) adopted this Policy on 7 May 2008. It will be periodically reviewed and updated as part of an annual reporting process The development and adoption of the Evaluation Policy responds to the recommendations of the ITC External Evaluation led by Denmark, which emphasised the need for “ITC’s evaluation function to be strengthened and made independent from operational functions”1 and to the same concern expressed by Delegations during the December 2007 Joint Advisory Group (JAG) meeting “that the monitoring and evaluation function could be further strengthened.”2 From a broader perspective, it builds on the work that has been developed in the UN system for promoting system-wide coherence through the use of evaluation. In its Triennial Comprehensive Policy Review of operational activities for development of the United Nations system (TCPR), the UN General Assembly “encourages all United Nations organizations involved in operational activities for development that have not already done so to adopt, as appropriate, monitoring and evaluation policies that are in line with system-wide norms and standards and to make the necessary financial and institutional arrangements for the creation and/or strengthening of independent, credible and useful evaluation functions within each organization.”3 The Policy also corresponds to ITC commitments in fulfilling OIOS recommendations related to the development of the evaluation function, and in particular recommendation 4 of a recent report which urges “all heads of Departments/Offices that do not yet have established evaluation policies should develop an explicit policy statement on evaluation for their department. The policy should provide a clear explanation of the concept, role and use of evaluation within the department/office, including the institutional framework and definition of roles and responsibilities, scope and periodicity of evaluations; an explanation of how the evaluation function and evaluations are planned, managed and budgeted; a clear statement on disclosure and dissemination of evaluation reports.” 4

1 See “Evaluation of the International Trade Centre UNCTAD/WTO, Synthesis Report”, DMI ASSOCIATES, April 2006: http://www.EMUuation.org/filedir/Reports/Synthesis%20Report%20A/Synthesis%20Report.pdf 2 See “Report of the 41st session of the ITC Joint Advisory Group meeting” ITC/AG(XLI)/216, 4-5 December 2007, available at: http://www.intracen.org/docman/JAG_11692.pdf 3 UNGA Resolution A/RES/62/208 of 19 December 2007 4 “Report of the Office of Internal Oversight Services on the assessment of evaluation capacities and needs in the United Nations

Secretariat”, INS-07-002, May 2007

2

The Evaluation Policy has been prepared in accordance with the norms and standards that have been developed by the United Nations Evaluation Group (UNEG) and builds on the Evaluation Policies developed by UNEG member organizations 5. B. Evaluation Concept 1. Definition Evaluation is an assessment, as systematic as possible, of an activity, project, programme, strategy, policy, topic, theme, sector, operational area, institutional performance, etc. It focuses on expected and achieved accomplishments , examining the results chain, processes, contextual factors and causality, in order to understand achievements, learn lessons and then share good practice across the organisation. It aims at determining the relevance, impact, effectiveness, efficiency and sustainability of ITC’s programme of work, to help achieve greater value for ITC clients6 and fulfil ITC’s mission7. Evaluation acts as an important agent of change and feeds into management and decision-making processes through:

- Providing evidence-based information that is credible, reliable and useful, enabling the timely incorporation of findings, recommendations and lessons into the design and implementation of current and future activities, projects and programmes;

- Informing the planning, programming, budgeting, implementation and reporting cycle;

- Generating value-addition for decision-oriented processes to assist in the improvement

of strategies and policies, contributing to institutional policy-making, development effectiveness and organizational effectiveness; and,

- The production and implementation of action plans following the assessment of

recommendations form evaluation reports. All types of evaluation in the ITC are conducted in accordance with due process of evaluation as determined in the Evaluation Policy. Three main types of evaluations are foreseen:

- Self-evaluations - undertaken by those who are entrusted with the design and delivery of the project or programme in question. (Following the adoption of the overall evaluation policy, a further report will be submitted to set out guidelines for self evaluations, whose results will then feed into the overall evaluation programme)

5 The support of the UNEG Secretariat, and also at a personal level, of the Heads and colleagues in the Evaluation Departments, has been particularly appreciated and played an important role in the elaboration of this Evaluation Policy, which has also been developed on the basis of and in concordance with the Monitoring and Evaluation System for WTO Technical Assistance Activities. See UNEG website: http://www.uneval.org/ 6 Following a holistic approach to trade development, ITC’s clients were principally identified at three levels: (1) the enterprise (SME) level; (2) the TSI level; and (3) the level of the policy- or strategy-maker, “Draft framework for Consolidated Programme Document” Informal Joint Advisory Group, 4 December 2006 7 Mission of ITC: “ITC enables small business export success in developing and transition countries by providing, with partners, inclusive and sustainable trade development solutions to the private sector, trade support institutions and policy-makers.”

3

- Independent evaluations - conducted by independent consultants external to the donor and ITC. Such evaluations are centrally managed and funded resources available to the ITC Evaluation and Monitoring Unit – EMU.

- The annual ITC Clients’ Survey - managed by EMU and is used to gather data from a

large number of ITC clients in a structured way to allow for statistical analysis and for taking a strategic view of demand and needs of ITC’s client base.

Methodology is the approach used to identify information sources and collect information during an evaluation, and to analyze those data. The quality of evaluation very much depends on the methods used. Evaluation methods may include: Document review; Interviews with all key informants and key players; Questionnaires; Observation and other participatory techniques such as focus groups etc.; Participation of partners and stakeholders; Benchmarking; etc. For each evaluation, the combination and sequence of evaluation methods that are the most appropriate to the purpose of the evaluation are determined. There are other forms of assessment that may overlap to some extent with evaluation but need to be differentiated:

- Evaluation has a research component, as it is also a sum of work that leads to the discovery of new knowledge or to developing existing knowledge. The methodologies and technical tools used for research are often similar to the ones used in evaluation. Research is a learning process but without the control and accountability components that are specific to evaluation.

- Audit may be defined as an activity of supervision verifying whether the existing policies,

norms and instruments are being applied and used adequately. It also examines the adequacy of organizational structures and systems and performs risk assessments. It focuses on the accountability and control of the efficient use of resources, with less emphasis on issues related to relevance, sustainability and impact of the activities as can be found in evaluation.

- Needs assessments and appraisals are tools enabling decision makers to choose and

decide between optional activities, and to refine the final design of a project or programme.

- Review is a periodic or ad hoc often rapid assessment of performance of an

undertaking, that do not apply the due process of evaluation. Reviews tend to emphasize operational issues.

- Monitoring is management’s continuous examination of progress achieved during the

implementation of an undertaking to track compliance with the plan and expected outputs, leading to taking necessary decisions to improve performance.

- Inspection can be defined as a general examination seeking to resolve a particular

problem, or to identify vulnerable areas and malfunctions and to propose corrective actions. An investigation is a specific inquiry or examination of a claim of wrongdoing and provision of evidence for eventual prosecution or disciplinary measures.

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All of the above will contribute significantly to ITC’s commitment to a learning culture within the organisation. This will be an increasingly critical factor in offering assurance to ITC’s stakeholders that resources are being used efficiently and effectively. 2. Purposes Evaluation purposes can be summarized as follows: (a) play a critical and credible role in supporting accountability, (b) contribute to building knowledge and to organizational learning and, (c) promote the work carried out by the ITC. Evaluation purposes can’t be fulfilled if at the end of the evaluation process, the results of the evaluation aren’t actually utilised. Therefore, it is necessary to keep in mind that evaluation should have a particular aim and should serve the needs and requirements of the parties for whom evaluation is relevant and useful – the users of evaluation. To ensure utilization of evaluation, the evaluation function must align the evaluation purposes with how the information generated by evaluation will be used. a. Accountability The reinforcement of the evaluation function within ITC stems from an increased demand for accountability. The notion of accountability is particularly important for the contributors to ITC’s budget including donors who provide financial assistance to ITC to enable it deliver trade-related technical assistance to beneficiary countries. Projects and programmes have to increasingly justify their existence, the use of funds, their relevance, their effectiveness in achieving key objectives and the sustainability of results once completed. Accountability is “an obligation to demonstrate that work has been conducted in compliance with the agreed rules and standards or to report fairly and accurately on performance results vis-à-vis mandated roles and/or plans.”8 It also includes the proper use of resources, given the finite quantum of resources available for trade development as compared to the very large and wide-ranging needs of ITC clients. b. Learning Learning is the second purpose of evaluation. A common definition of learning is the process by which individuals and organizations create, transfer and use knowledge in order to achieve positive change and realize their goals. The role of evaluation is to recommend changes in the organization’s activities after having analyzed and assessed its institutional performance. Similarly, evaluation can generate knowledge when it enables the acquisition of deeper understanding of the underlying factors of a problem. Moreover there is a learning dimension of the evaluation itself by which, people involved in the evaluation process “develop and increased capacity to interpret evidence, draw conclusions, and make judgments”.9 A prerequisite for this “evaluative thinking” is to train people in using evaluation as a learning tool. To facilitate learning, evaluation reports generated through the evaluation process are transmitted to the users of evaluation. To be usable for learning purposes, evaluation reports

8 “Glossary of Key Terms in Evaluation and Results Based Management”, OECD/DAC, 2002 9 This is described in the evaluation literature as the “Evaluative Thinking and Process Use” dimension.

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need to be interesting, practical, relevant, when possible innovative and more importantly short. They should also enable action plans to be constructed as part of the transition from learning to action and tangible improvements. c. Communication The third purpose of evaluation is related to the promotion of the work carried out by the ITC. An evaluation provides an independent and objective view of the performance and achievements of a project, programme or policy. It offers an all-embracing and comprehensive view of the object evaluated, and helps remove ambiguities that were, for instance, previously questioned by donors or partners. Communicating about the enhancement or refinement of an activity, strategy or policy through evaluation will gain in credibility and will not be perceived as a pure marketing operation. An evaluation does not necessarily need to be positive to be used as a promotional tool. An evaluation identifying weaknesses, proposing adjustments also shows the capacity of the organization to be open to criticism, transparent in its management, ready to learn from experiences and to adapt to changing needs. C. Evaluation Key Principles and Criteria 1. Key Principles In the evaluation context, there is no clear distinction and delimitation of what precisely encompasses the terms “principles”, “norms” and “standards”. We use the term “Key Principles” as basic references that will help to better manage and conduct evaluation. They are not mutually exclusive and present some overlap between them. It is their fulfilment, combination and balance, which ensure that evaluation is effective and valid. a. Utilisation of Results In terms of evaluation planning, the proper use of the evaluation function implies that there is clear intent to use evaluation findings for the purposes outlined above. In the context of limited resources, the planning and selection of evaluation work should be timely and carefully done, taking into account strategic needs and priorities defined in the ITC Strategic Plan. Utility criteria are followed in order to ensure that evaluation serves the information needs of intended users. They include inter alia the proper identification of the stakeholder, the evaluator’s credibility through an appropriate selection, a relevant selection of information to be collected, clarity in the report with clear description of the perspectives, a selection of procedures and rationale to interpret findings and their timely dissemination. In addition, evaluation should be conducted and presented in a manner that is easily understood by evaluation users. The need to ensure actual use of evaluation implies the systematic follow-up on the implementation of the evaluation recommendations that have been accepted. In fact, the final report itself represents the completion of only the first part of a process whose main benefits are derived from the follow-up process.

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b. Transparency Meaningful, timely and regular consultation with the major stakeholders is a key feature in all stages of the evaluation process since it is essential for the credibility and utility of evaluation and it can facilitate ownership of evaluation. Full information on evaluation design and methodology should be shared throughout the process to build confidence in the findings and facilitate understanding of their limitations and context. c. Impartiality The requirement for impartiality exists at all stages of the evaluation process. It implies the absence of bias in due process and the use of methodological rigour. It also implies that the views of all stakeholders are taken into account and eventual differences in perspective are reflected in a balanced evaluation analysis and reporting. The precondition for ensuring impartiality is that, in all stages of the evaluation process, the evaluation function has the ability to exercise independent judgment, is not unduly influenced by the views or pressures of any party and has the required authority to submit reports directly to appropriate levels of decision-making. Conflicts of interest should be avoided as far as possible so that the credibility of the evaluation process and product is not undermined. Conflicts of interest should be disclosed and dealt with openly and honestly. EMU staff and external evaluators engaged by the ITC shall not have had any responsibility for the design, implementation or supervision of any of the projects, programmes or policies that they evaluate. d. Feasibility The implementation of the principle of “feasibility” is to ensure that “an evaluation is realistic, prudent, diplomatic, and frugal”. Feasibility criteria include among others the need to select practical methodologies and procedures, with minimum disruption, a political viability with proper plans to obtain the cooperation of various interest groups, and cost effectiveness where the benefit of evaluation should outweigh the costs. It is important that evaluation is constructive and, diplomatic when required, so that confidence can be built and the users of the evaluation have an increased readiness to learn from the evaluation. This constructive approach cannot however be at the expenses of diluting the purpose of the evaluation exercise and distorting the findings. e. Ethics Evaluation must be conducted with personal and professional integrity and should not reflect personal or sectoral interests. Evaluation must be sensitive to the beliefs and customs of social and cultural environments and must be conducted legally with due regard to the welfare of those involved in the evaluation, as well as those affected by its findings. In line with the Universal Declaration of Human Rights, evaluation must be sensitive to and addresses issues of discrimination and gender inequality.

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Evaluation respects people’s right to provide information in confidence and makes participants aware of the scope and limits of confidentiality. When dealing with sensitive information, it protects the anonymity and confidentiality of individual informants. Evaluations do not evaluate individuals. At the same time, they can provide an assessment of management functions. When it finds evidence of wrongdoing or unethical conduct, such cases must be reported discreetly to the appropriate investigative body. f. Quality Information generated by evaluation is accurate and reliable to ensure that it reveals and conveys technically adequate information about the features that determine worth or merit of the object being evaluated. Evaluation design, data collection and analysis should reflect professional standards, with due regards for any circumstances or limitations reflecting the context of the evaluation. Evaluation findings should be presented in a manner that is readily understood by the target audiences. To ensure this, it is critical that ITC evaluators possess the necessary evaluation competences and professionalism and that they exert intellectual integrity in applying standard evaluation methods. g. Creativity Evaluation is an assessment focusing not only on accountability but also on learning. Evaluation generates knowledge. Building on methodological rigour and the respect of ethical standards, evaluations should be stimulating and creative leading to interesting new perspectives. When creative, evaluation opens new fields of interest, new parameters of action and new strategies. 2. Criteria Evaluation uses a certain number of specific criteria to assess the relevance, performance and achievements of a project or programme. Evaluation criteria10 are used to conduct the analysis and the assessment of a project, programme or policy and to determine findings (factual statements based on evidence), conclusions (‘synthesis’ of a series of findings responding to a ‘specific circumstance’) and recommendations (‘prescription’ on what should be done in a ‘specific circumstance’) a. Relevance ‘Relevance’ can be understood as “are we doing the right thing?” It is the extent to which the objectives and/or project purposes of a project/programme are / remain valid and pertinent either as originally planned or as subsequently modified. Relevance has to be assessed in relation to the design and the implementation of a project, programme or policy. It can be analyzed at different levels, for instance the relevance to the country’s trade development strategy, to the target groups or beneficiaries’ needs, to the ITC’s global mandate and strategic objectives or to partners and donors policies.

10 These criteria have been harmonized in “Glossary of Key Terms in Evaluation and Results Based Management”, OECD/DAC, 2002

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b. Performance ‘Performance’ can be understood as “are we doing it right?” The analysis of the performance looks at the progress being made by the project, programme according to criteria, standards or performance indicators, and in relation to its overall objectives and/or project purposes. Two criteria are commonly used to assess the performance of a project/programme:

- ‘Effectiveness’ assesses if the programme/project is achieving satisfactory progress toward its stated objectives / desired results, taking into account their relative importance. In this context, it is equally important to examine if changes would have occurred, regardless of the implementation of the project or programme.

- ‘Efficiency’ examines the extent to which the approved goals, targets and outputs have

been achieved within agreed or cost levels. c. Effects The criteria related to the measurement of impact and sustainability focus on the effects of a project, programme or a policy rather than on the intervention itself:

- ‘Impact’ is considered as the follow on stage after the ITC intervention or support. Often ITC is creating capacity or capability. It is therefore critical that once capacity is created in an enterprise, an institution or an individual, that this is converted into action and improvements. The achievement of ‘impact’ is the critical test for ITC’s work. This approach will require ITC to develop a process that is able to monitor impact, i.e. the progress made, within a defined period, by an enterprise, an institution or an individual after receiving ITC’s support.

- ‘Sustainability’ is the extent to which the organisational changes generated by ITC’s

intervention are maintained over a longer period. This requires the recommended actions to be established within the resource capacity of the organisations being supported. There are different aspects of sustainability, including financial sustainability, institutional sustainability, and technological sustainability. These different aspects have to be assessed when looking at the sustainability of an intervention.

D. Evaluation Roles and Responsibilities 1. Joint Advisory Group The membership off the JAG is open to Member States of UNCTAD and Members of WTO. While the JAG has neither legislative nor budgetary authority, it has come to be the main intergovernmental policy forum of the ITC. On an annual basis, the JAG will receive the Annual Evaluation Report that will set out the current year’s programme, the results of the evaluations and the actions implemented. 2. Senior Management Committee The Senior Management Committee (SMC) identifies priority areas for evaluation during the preparation of the Annual Evaluation Programme and approves it. SMC ensures adequate

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resources for evaluation and safeguards the independence of the evaluation process and product. It also receives the Annual Evaluation Report and determines actions to be taken following consideration of its recommendations. SMC ensures that the relevant part of ITC management prepares responses to all evaluations and ensures the appropriate and timely implementation of agreed evaluation recommendations. It draws on evaluation findings to improve the quality of projects and programmes and guide strategic decision-making on future programming and positioning. To execute these responsibilities SMC will depend upon reports from the ITC Evaluation and Monitoring Unit within OED. The SMC examines and approves the revisions to the Evaluation Policy and evaluation Guidelines. 3. Executive Director The Executive Director (ED) is accountable for ITC results and uses the evaluation function to fulfil the purposes of evaluation (see Section B.2.). ED is responsible for fostering an enabling environment for evaluation and ensures compliance with the evaluation policy as integral to effective accountability across ITC. ED maintains overall supervisory responsibility of the Evaluation and Monitoring Unit and appoints its staff, and verifies that it continuously strives to enforce the key principles of evaluation (see Section C.1.). ED safeguards the integrity of the Evaluation and Monitoring Unit, ensuring its independence from operational management, endorsing its authority in matters related to evaluation content and process, and providing it with sufficient resources and capacity. ED ensures that the ITC prepares a management response to evaluations produced by the Evaluation and Monitoring Unit. ED also ensures that Divisional Directors respond to and utilise evaluation in their operational and strategic functions and that the relevant units appropriately follow up on the findings and recommendations of evaluations. 4. Evaluation and Monitoring Unit - EMU ITC Evaluation and Monitoring Unit – EMU – is the custodian of the evaluation function. It has the lead role in ensuring that evaluation work is conducted according to the required professional standards. In terms of governance and accountability, EMU prepares and periodically reviews and updates the Evaluation Policy and evaluation guidelines. It submits the Evaluation Programme to SMC for approval. It alerts SMC to emerging evaluation-related issues of corporate significance. EMU maintains a system to record management responses to all evaluations and to follow-up on the implementation of the evaluation recommendations that have been accepted by management. It produces the Annual Evaluation Report on the function, findings and recommendations of evaluation, on compliance, quality assurance, and the follow-up to evaluations conducted by the ITC. EMU is responsible for managing the evaluation process. It develops an Evaluation Programme including an agenda for independent evaluations and a provisional budget forecast,

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based on consultations with the Divisional Directors and other stakeholders, ensuring that the evaluations provide strategic and representative coverage of ITC activities, and also in response to emerging issues that EMU may identify. It manages the Clients’ Survey, strategic and thematic evaluations, projects and programme evaluations at the country / regional / global levels, and other evaluations as required. It supports project and programme managers in carrying out self-evaluations. EMU ensures quality assurance for evaluation through developing, implementing and updating a common set of Evaluation Guidelines that operationalize the Evaluation Policy. These are separate documents containing a more detailed explanation of the process and methodologies to be used for conducting evaluations. Evaluation Guidelines 11 set evaluation standards for planning, conducting and using evaluations, developing and disseminating methodology and establishing the institutional mechanism for their implementation. With regards to capacity building, EMU builds knowledge of good practices standards and approaches for evaluation management in ITC with a view to increase staff capacity to think in “evaluative” terms for the promotion of an evaluation culture in ITC. EMU also plays a capacity-building role in the field of the evaluation of trade-related technical assistance. It strengthens countries’ evaluation capacity and their involvement in evaluations through country-led evaluations using in-country professional resources. In terms of knowledge building and organizational improvement, EMU maintains a publicly accessible repository of evaluations. It distils evaluation findings and lessons for dissemination to improve organizational learning and facilitate systemic improvements . EMU manages a follow-up system to monitor the implementation of accepted recommendations. 5. Divisional Directors Divisional Directors have important roles to play within the evaluation process and programme, namely:

• Providing inputs to the options for inclusion within the Annual Evaluation Programme;

• Ensuring managers and staff are briefed and supported during evaluations covering their areas of responsibility;

• Ensuring full cooperation with the evaluators in terms of access to information and meetings;

• Organising the management responses to the draft evaluation reports; • Securing the implementation of the agreed action plans as they affect their

divisions; and, • In general, providing strong support for the evaluation process to increase its

impact and profile.

The above requires a good communication process with EMU to ensure findings and issues highlighted are well shared.

11 They inter alia include: Guidelines for Evaluators, Selecting Priorities for the Annual Evaluation Programme; Self-Evaluation Evaluation Terms of Reference; Evaluation Reports.

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6. Evaluation Focal Points Evaluation Focal Points are nominated for each ITC Division. They facilitate the dissemination of an ‘evaluative thinking’ throughout ITC and also contribute to the evaluation follow up process. They cooperate with Divisional Directors in preparing management responses and tracking implementation of agreed evaluation recommendations and update the follow-up system accordingly. They are also responsible for disseminating in their respective Divisions knowledge related to evaluation findings and lessons. In further developments, these Evaluation Focal Points could become more general and be ‘learning focal points’ for dissemination and promoting not only evaluation good practice but also wider generic good practice emerging from other aspects of the assessment processes used by ITC. 7. Managers of Projects and Programmes Managers of Projects and Programmes in the relevant units contribute to the evaluation process. They are responsible for the actual implementation of the accepted recommendations. Managers are encouraged to undertake self-evaluations of the projects and programmes under their responsibility. In conducting self-evaluations, being internal or external, Managers are bound to respect due process for evaluation as determined in the Evaluation Policy and Evaluation Guidelines, when applicable. When planning for a self-evaluation, and in particular in the case of an external self-evaluation, managers are requested to inform EMU in due time so as to permit the mobilization of EMU resources required for ensuring support and quality control of the evaluation process and product, if available. E. Evaluation Management 1. Conducting Independent Evaluations a. Programming The conduct of evaluation follows the ITC cyclical Strategic Plan at various levels, which is comprised of different stages: planning, design, implementation and follow-up. Proper and efficient evaluations implies that evaluation is designed to ensure timely, valid and reliable information that will be relevant for the subject being assessed and that there is clear intent to use the evaluation findings, recommendations and lessons learned. Accordingly, the Evaluation Annual Programme supports the Strategic Plan and makes sure that evaluations are selected and undertaken in a transparent and timely manner. An Annual Evaluation Cycle will be established. The Cycle will probably be as follows (to assist with dates the 2009 cycle is described here):

Initial compilation of options for the 2009 Evaluation Programme Oct 2008 Annual Evaluation Report for 2008 submitted to SMC Oct 2008 Annual Evaluation Report for 2008 considered by JAG Dec 2008 Annual Evaluation Programme for 2009 submitted for SMC approval Jan 2009 Implement Annual Evaluation Programme for 2009 Feb – Sep 2009 Initial compilation of options for the 2010 Evaluation Programme Oct 2009

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Annual Evaluation Report for 2009 submitted to SMC Oct 2009 Annual Evaluation Report for 2009 considered by JAG Dec 2009

Within this framework, the general principles for selecting the undertakings being subject to an evaluation are based on their strategic importance in terms of: (a) Enabling an evidence-based and independent learning from experience with a view to identify and address factors inherent to weaknesses and enhance those related to success. (b) Assessing the value for money for ITC clients and the positioning of ITC undertakings, compared with similar undertakings being performed or provided in the TRTA context / market. (c) Promoting the role of ITC in its fulfilment of its mission and corporate objectives. More specifically, selected evaluations will contribute to assess progress in the change management process, in particular related to “ITC’s key challenges”: Focus, integration, scale and contribution to the MDGs. 12 In preparing the Annual Evaluation Programme for consideration by SMC, EMU takes into account a wide range of options submitted by Divisional Directors, key issues arising from the Operational and Strategic Plans, any advice or guidelines from UN or UNEG and comments or recommendations emerging from JAG. Subject areas for evaluation can range widely in subject matter and could include:

• ITC programmes • ITC work in specific countries or regions • ITC tools and methodologies • ITC policies and strategies • ITC critical internal processes

b. Budgeting The ITC evaluation budget is managed by EMU and is mainly derived from three sources:

- Resources allocated through RB Budget for EMU; - Resources allocated through XB Budget to fund specific evaluations; and, - Resources from donors with ITC working collaboratively on specific evaluations.

The evaluations budget covering all of the above forms part of the Annual Evaluation Report. c. Design EMU prepares the Terms of Reference (ToR) for evaluations in keeping with the Evaluation Action Plan, in line with the ‘ITC Guidelines for Evaluation Terms of Reference’ and in cooperation with the project/programme manager(s), Divisional Directors and other stakeholders. The ToR determine the purposes of the evaluation. These need to be focused and realistic, they clearly describe what the evaluation seeks to accomplish so that the purposes of the evaluation are achieved in the most cost-effective manner. The evaluation scope clearly states what should be evaluated spelling out the evaluation criteria against which the subject to be evaluated will be assessed. The ToR also suggest evaluation methods, describe the Evaluation Team (ET) composition and define planning and implementation arrangements, including expected deliverables. 12 Detailed description of “ITC’s key challenges” is provided in “Change Management Progress Report”, page 5, ITC, November 2007 http://www.intracen.org/docman/JAG_11206.pdf

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d. Implementation EMU prepares and manages the evaluation budget, drafts job description for external evaluator(s), and selects, recruits and briefs the ET. The selection of external evaluator(s) takes place on the basis of competence, and by means of transparent criteria and through competitive process. The composition of the ET should be geographically diverse, include as a priority, professionals from developing and transition economies and gender balanced. In implementing the evaluation the relationship between EMU and the external consultants of the ET is, from the outset, characterised by mutual respect and trust. ET conducts the evaluation process in accordance with the Evaluation Key Principles and Criteria as defined in the ITC Evaluation Policy. The external evaluators of the ET are personally subject to the “Obligations of Evaluators” as described in Section 3.2 of the UNEG Ethical Guidelines for Evaluation13. ET decides about the evaluation methods that are the most appropriate to the purpose of the evaluation. It is responsible for the provision of the expected deliverables of the evaluation. These normally include a Final Evaluation Report and a presentation to main stakeholders of the main evaluation findings and recommendations. e. Evaluation Reports The format for Evaluation Reports is determined in the “ITC Guidelines for Evaluation Reports”. The Evaluation Report is logically structured; it contains evidence-based findings, conclusions, lessons and recommendations. It doesn’t exceed 30 pages (including executive summary) and is free of information that is not relevant to the overall analysis. It includes a detailed statement of the evaluation methods that have been used for conducting the evaluation and is presented in a way that makes the information accessible and comprehensible. Usually before starting the production of the Draft Evaluation Report, ET presents its preliminary findings, conclusions and recommendations through in a series of debriefings with all those concerned. The purpose of these preliminary and informal submissions is to collect feedback and validate the initial findings, conclusions and recommendations. When ready, ET formally presents the Draft Evaluation Report to EMU, which transfers it to project/programme management for identification of the eventual factual errors and omissions to be considered for the finalization of the Evaluation Report. ET prepares the Final Evaluation Report. In the event of differing views being expressed, these are reflected in the analysis and in the report. ET is responsible for the views being expressed in the Final Evaluation Report. EMU is responsible for the approval of the Final Evaluation Report. It does it on the basis of the conformity with due process for evaluation as determined in the Evaluation Policy, the corresponding ToR and quality standards established in the Evaluation Guidelines, when applicable.

13 The UNEG Ethical Guidelines for Evaluation can be consulted at: http://www.uneval.org/indexAction.cfm?module=Library&action=GetFile&DocumentAttachmentID=2058

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2. Follow-up of Evaluations a. Follow-up to Self-Evaluations The follow-up to self-evaluations comes under the responsibility of project and programme managers and their line managers. b. Follow-up of Independent Evaluations EMU transmits to the Managers in the relevant units and the corresponding Evaluation Focal Point, the Final Evaluation Report together with a Management Response Sheet. This sheet allows tracking, for each recommendation, the comments of acceptance or non-acceptance of evaluation findings and recommendations, an action plan including deadlines and the officers who are responsible for implementation. Senior Management ensures that those responsible for follow-up keep information in the Management Response Sheet up-to-date. EMU monitors the information in the Management Response Sheet. It is assisted in this undertaking by the Evaluation Focal Points. EMU compiles periodical reports on the status of the implementation of the follow-up activities for the attention of the ED. EMU also uses, on an annual basis, this information for the production of the Annual Evaluation Report. c. Organisational Learning EMU contributes to knowledge building and organizational improvement by disseminating relevant information to the network of Evaluation Focal Points from each of the ITC Divisions, who facilitate access to, and interact with, their respective Divisional colleagues for follow-up purposes. As a prerequisite for the utilisation of evaluation results, the recommendations and lessons learned are analysed with the network of Evaluation Focal Points so that they are conveyed in a concise manner that corresponds to the needs of the different target audiences in the ITC. Evaluation Focal Points make the lessons learned from evaluations known within their Division. In a proactive manner, they facilitate the adoption of lessons learned, in particular in the context of project and programme formulation and approval within their respective Divisions. d. Dissemination and Disclosure Policy The Annual Evaluation Programme, the ToR of independent evaluations, the corresponding evaluation reports and the Annual Evaluation Report are posted on the relevant pages of the ITC public website.

7 May 2008

Street address: ITC, 54-56, rue de Montbrillant, 1202 Geneva, Switzerland

Postal address: ITC, Palais des Nations, 1211 Geneva 10, Switzerland

Telephone: +41-22 730 0111

Fax: +41-22 733 4439

E-mail: [email protected]

Internet: http://www.intracen.org

The International Trade Centre (ITC) is the joint agency of the World Trade Organization and the United Nations.

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