Enhanced Integrated Framework (EIF) for trade-related assistance to LDCs (2nd additional grant)

Description What is done in the programme or project and why, what results are pursued, who benefits from the activities and who are involved in the implementation.

Enhanced Integrated Framework (EIF) is a global partnership between the Least Development Countries (LDCs), donors and international organizations whose objective is to support LDCs to benefit from international trade in order to advance sustainable economic growth, create employment and reduce poverty. EIF builds the capacity of trade ministries and strengthens their cooperation with other actors, drafts a roadmap for partner countries to enhance trade potential, helps to integrate trade into national development strategies, acts as an Aid for Trade coordinator at the country level as well as provides seed funding to projects with substantial trade potential. EIF is explicitly mentioned in SDG Target 8.A. The role of EIF in supporting the development of the trade sector of LDCs and integration of LDCs into the global economy is significant. Many developing countries, particularly the poorest ones, have not been able to benefit from the opportunities offered by international trade. Their economies are fragile and undiversified, employment opportunities are chronically in short supply and the economies are not in a position to provide adequate welfare for the people. Trade authorities lack strong capacity, trade is not treated as a key pillar of development and the donors' activities are uncoordinated at the country level. The immediate beneficiaries include trade ministries and trade authorities whose capacity increases. The other beneficiaries include trading enterprises whose trade and jobs increase as well as their employees and families. In addition, the donors benefit from more efficient coordination at the country level. EIF has helped micro, small and medium-sized enterprises in LDCs to develop. Trade has also become an integral part of national development strategies, LDCs' trade has grown and become more diversified, enterprises have created jobs and people have earned a living. Finland pledged ten million euros to EIF in 2016-2020. Nine million euros have already been disbursed. The remaining one million euros is due in 2020.