ANNUAL REPORT 2010 INCLUSIVE SUSTAINABLE DEVELOPMENT

Transcription

1 ANNUAL REPORT 2010 INCLUSIVE SUSTAINABLE DEVELOPMENT

2 ITC mission: ITC enables small business export success in developing and transition countries by providing, with partners, sustainable and inclusive trade development solutions to the private sector, trade support institutions and policymakers. 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 Annual Report should be read in conjunction with the Statistical Tables available on the ITC website. April 2011 Original: English International Trade Centre 2011 ITC/AG(XLV)/239

3 To help poor people, the most vulnerable people, is morally and politically imperative. That is why all the world leaders have agreed on the Millennium Development Goals. Trade is one of the important areas through which developed countries can assist the developing world. Aid for Trade, this initiative, is also a very important aspect where developing countries can benefit from the developed world. UN Secretary-General, Ban Ki-moon, Seoul, Republic of Korea Secretary-General s Press Conference at Seoul Foreign Correspondents Club, G20 Summit, 10 Nov. 2010

4 2 ITC ANNUAL REPORT 2010 ABBREVIATIONS A4T Aid for Trade AAACP All Africa Caribbean Pacifi c Agricultural Commodities Programme ACCESS! ACCESS! for African businesswomen in international trade AFD Agence Française de Développement ACP African, Caribbean and Pacifi c States CBI Centre for the Promotion of Imports from Developing Countries CEMAC/ Central African economic Monetary CAEMC Community CMS content management system COMESA Common Market for Eastern and Southern Africa EC European Commission ECCAS Economic Community of Central African States ECOWAS Economic Community of West African States EIF Enhanced Integrated Framework EnACT Enhancing Arab Capacity for Trade ERP enterprise resource planning EPRP Export-led Poverty Reduction Programme EU European Union FAO Food and Agriculture Organization of the United Nations GTF Global Trust Fund IF Integrated Framework IPSAS Institute for International Public Sector Accounting Standards ISO International Organization for Standardization ITC International Trade Centre ITF International Trade Centre Trust Fund JAG Joint Advisory Group LDCs least developed countries LLDCs landlocked developing countries MDGs Millennium Development Goals MLS SCM Modular Learning System Supply Chain Management MNS Market News Service NES national export strategy NTF NTMs OECD PSC PACER PACT RB RBM SADC SCLP SIDS SMEs SPS SSA T4SD TPO TPRP TSI UEMOA / WAEMU UNCTAD UNDP UNIDO WEDF WTO XB Netherlands Trust Fund non-tariff measures Organisation for Economic Co-operation and Development programme support costs Pacifi c Agreement on Closer Economic Relations Programme for building African Capacity for Trade regular budget from United Nations and WTO results-based management Southern African Development Community Supply Chain and Logistics Programme Small island developing States small- and medium-sized enterprises sanitary and phytosanitary measures sub-saharan Africa Trade for Sustainable Development trade promotion organization Tourism-led Poverty Reduction Programme trade support institution West African Economic and Monetary Union United Nations Conference on Trade and Development United Nations Development Programme United Nations Industrial Development Organization World Export Development Forum World Trade Organization extrabudgetary resources

5 ITC ANNUAL REPORT TABLE OF CONTENTS FOREWORD 4 ITC FACTS & FIGURES 6 ITC OVERVIEW 9 TRADE AND DEVELOPMENT 10 CHALLENGES IN ITC S ROLE 11 AID FOR TRADE AND THE MDGs 11 ITC S STRATEGIC APPROACH 12 MEETING STRATEGIC FRAMEWORK TARGETS 12 RESULTS-BASED MANAGEMENT 12 PROJECT PROCESS 14 PROJECT SCOPE 14 DELIVERY RESPONSES OF THE STRATEGIC PLAN 14 DELIVERY BY BUDGET TYPE, AND BY PROGRAMME AND INTERNAL ORGANIZATIONAL RESPONSES 15 FEEDBACK 16 DELIVERY RESPONSES 17 PROGRAMME DELIVERY RESPONSES 18 INTERNAL ORGANIZATIONAL RESPONSES 18 PROGRAMME DELIVERY RESPONSES 19 FOCUSING ON NEEDS OF LDCs, LLDCs, SIDS AND SSA 19 EXPORT CAPACITY BUILDING THROUGH INTEGRATED COUNTRY SOLUTIONS 29 REGIONALLY STRUCTURED SOLUTIONS 35 GLOBAL PUBLIC GOODS FOR GLOBALLY ACCESSED SOLUTIONS 40 TARGETING THE MILLENNIUM DEVELOPMENT GOALS 49 INTERNAL ORGANIZATIONAL RESPONSES 54 FOCUSING ON OUTPUTS AND IMPACT 54 AN EFFECTIVE ORGANIZATION 55 LEVERAGING RESOURSES 55 UPGRADING FINANCIAL MANAGEMENT 55 INVESTING IN PEOPLE 56 IMPROVING COMMUNICATIONS AND INFORMATION ARCHITECTURE 57 CORPORATE RESULTS 59 CLIENT FEEDBACK AND DELIVERY PERFORMANCE 60 FINANCIAL OVERVIEW 61 DONOR CONTRIBUTIONS AND RESOURCES 65 PARTNERSHIPS 66 STAFFING 68 PARTICIPATION IN HIGH-LEVEL MEETINGS 70 ITC ONLINE TOOLS AND WEBSITES REFERENCED IN THE REPORT 71 ANNEX 72

6 4 ITC ANNUAL REPORT 2010 FOREWORD FOCUS ON LONG-TERM SUSTAINABLE GROWTH The global economic crisis in 2008 and 2009 caused import demand from OECD economies to decline by as much as 30% saw emerging markets growing in relative importance, creating what some see as a multi-polar world. These changes in trade patterns, plus the imperatives of climate change, food security and inclusive trade benefi ts, necessitate a fundamental rethink of the export strategies employed by business and trade support institutions in developing countries. ITC s fl agship publication, Market Access, Transparency and Fairness in Global Trade: Export Impact for Good 2010, shows just how necessary the need to continue to export is. It explains that, in general, the small domestic markets of many developing countries cannot boost the growth necessary to reduce poverty. The need to focus on value over volume was a strong message from stakeholders that came out of our World Export Development Forum (WEDF) held in Chongqing, China in September. WTO Director-General Mr. Pascal Lamy noted that this is a key means to transform the crisis into an opportunity. Stakeholders also noted the need for long term and inclusive thinking leading to strategies that will bear fruit in a sustainable way. Within this context ITC has continued to contribute to the Aid for Trade agenda, making signifi cant progress towards goals set by members and co-sponsors. With the introduction of results-based management (RBM), and the newly established Project Quality Assurance Group focussed on project design, the organization is better able to ensure that project budgets are aligned to achieving objectives while providing an accountability framework for our stakeholders. This shift will be seen over time as legacy projects are completed and new projects report on outcomes and impact, rather than on activities. In keeping with the long-term perspective, the organization has also continued the shift to larger, multi-year programmes. Our progress was validated by the 4 th annual client survey, in which more than 70% of respondents reported a positive trend in the quality and relevance of our services over the past three years. The Joint Advisory Group meeting in December affi rmed that we are making progress in fi ne-tuning our services, and are effectively responding to stakeholder needs PROJECTS AND PROGRAMMES Expanding global trade opportunities is the focus of ITC s work with enterprises, trade support institutions and policymakers. The details of our programmes and how they achieve this are given in this report. Some highlights of the year include: Cotton ITC is supporting the African cotton sector to make it a stronger player in international cotton trade. Through market linkages we have identifi ed an opportunity for African companies to obtain direct feedback on quality and technical requirements from Asian spinning factories. This will make it progressively possible to bring African ginners into closer contact with the market, resulting in higher prices for them and for farmers, while increasing South-South trade. Market analysis and research Demand for ITC web-based trade analysis tools has grown dramatically, with exporters eager for trade intelligence on emerging product and market opportunities. Users are from 221 countries and territories, and include sole traders, SMEs and multinational corporations. The number of users has increased by 86% since World Export Development Forum The 11 th WEDF attracted more than 300 participants from 48 countries, and saw increased private-sector attendance. Within the event, the Chongqing Platform for Action on Sourcing from Women Vendors was launched to increase women s share of corporate, government and institutional procurement. Following the Forum, Ying McGuire of Dell Corporation accepted an invitation to join the board of ITC s MLS SCM programme. Her involvement, and the engagement of other international private-sector fi rms, will contribute to the realization of our vision of linking developing country SMEs to global supply chains.

7 ITC ANNUAL REPORT Gender Under the newly established Women and Trade Programme, ITC and WTO, supported by the Governments of Rwanda and the United Kingdom, held an expert roundtable on the Gender Dimension of Aid for Trade. Following this, the WTO Committee on Trade and Development favourably received the call to present gender issues in trade at the 3 rd Aid for Trade Global Review. World Conference of Trade Promotion Organizations (TPOs) The 8 th World Conference of TPOs was held in Mexico City in October. Participants from 75 TPOs and 17 private enterprises explored solutions for TPOs to meet the increasing pressure to demonstrate impact to their stakeholders. Participants discussed how to design services that improve competitiveness and increase exports, along with good practice methodologies and mechanisms to record and report on impact. Accession ITC continued working with WTO on its joint Programme on Trade Capacity for Acceding LDCs (least developed countries). The programme engages the private sector in an inclusive and constructive dialogue with policymakers, thereby building the confi dence of the business community in their country s bid for WTO membership. Trade Leaders The ITC Trade Leaders Programme pilot was designed to have a profound effect on young professionals who show the potential to become leaders in trade promotion in their countries. In 2010, Paulin Zambelongo from Burkina Faso, Cathering Kithinji from Kenya and Max Wengawenga from Malawi spent six months at ITC. During this time they contributed to the analysis of data on non-tariff measures for their own countries, and trained in using ITC market analysis and research tools. Ethical Fashion More than 7,000 people are now employed by enterprises linked to our Ethical Fashion Programme, connecting large fashion houses with marginalized communities. Most of these are women who can now cater for their basic needs, are gaining skills as artisans, and are contributing to sophisticated fashion supply chains. Priorities A strategic aim of ITC was to spend 50% of our programme resources in LDCs, landlocked developing countries, small island developing States and sub-saharan Africa. We exceeded the target with some 58% of programme resources being spent in these countries. THE YEAR AHEAD We expect economic growth in several emerging countries to continue in 2011, creating signifi cant opportunities for exporting enterprises in poorer countries to diversify into new markets. As delegates at WEDF agreed, there is a need to focus on the value, and not just the volume, of exports an important strategy for developing countries to survive and prosper in times of economic crisis. In 2011, among many other activities, we will: Expand access for enterprises in benefi ciary countries to global supply chains Further improve the quality of our project and programme delivery and continue to build a fi rm results-based structure Extend the reach and impact of our global public goods by launching our upgraded website Contribute to the 3 rd Aid for Trade Global Review and the 4 th United Nations Conference on Least Developed Countries Concentrate on the cross-cutting areas of gender, the environment, sustainability and global partnerships within the Aid for Trade Agenda. Although there are now good signs of recovery, the economic crisis brought many uncertainties. We have seen rising commodity prices, natural disasters and political instability in northern Africa and Côte d Ivoire. ITC will be working with our partners to adapt our operational arrangements to manage the new risks and respond to the effects of the crisis. Thus I renew my thanks to our parent organizations, UNCTAD and WTO, partner organizations in the United Nations system, our benefi ciary countries and our generous donors for their continuing support. I assure all our stakeholders that ITC remains as determined as ever to achieve our vision of Export Impact for Good. Patricia Francis Executive Director International Trade Centre

8 6 ITC ANNUAL REPORT 2010 ITC FACTS & FIGURES IN YEARS PROMOTING EXPORT IMPACT FOR GOOD 10 PROJECTS HAVE BEEN ASSESSED BY THE PROJECT QUALITY ASSURANCE GROUP 176 WORKSHOPS, SEMINARS, FORUMS, AND TRAININGS CONDUCTED WITH 6,568 OF WHICH 2,235 55% OF TOTAL PROJECT EXPENDITURE ALLOCATED TO LDCs, LLDCs, SIDS AND SSA 130,000 REGISTERED USERS PARTICIPANTS, 37.4% OF EXTRABUDGETARY RESOURCES SPENT IN AFRICA WERE WOMEN 196 PROJECTS 11 LARGE, MULTI-YEAR PROGRAMMES OF ITC S ONLINE TOOLS 80,000 READERS WORLDWIDE OF THE INTERNATIONAL TRADE FORUM MAGAZINE NEW ASSOCIATIONS FOR WOMEN IN THE COFFEE SECTOR IN 6 EAST AFRICAN COUNTRIES 30 YOUNG EXPORT ADVISERS TRAINED TO FORMULATE INTERNATIONAL BUSINESS STRATEGIES AND CONNECT TO POTENTIAL BUYERS 3-YEAR ENVIRONMENT PROGRAMME DESIGNED 100% AID FOR TRADE 76 DEDICATED STAFF MEMBERS REPRESENTING NATIONALITIES

9 ITC ANNUAL REPORT ITC WORK ITC CLIENTS ENTERPRISES Develop strategies and plans for exports TRADE SUPPORT INSTITUTIONS POLICYMAKERS Develop and implement strategies Get enterprises export-ready within sectors / value chains Strengthen exporters competitiveness Establish and improve networks Advise policymakers Establish an adequate institutional framework Achieve sustainable export success Build capacity for integration of business interests ITC BUSINESS LINES Trade Intelligence Exporter Competitiveness TSI Strengthening Export Strategy Business & Trade Policy

10 8 ITC ANNUAL REPORT 2010 The past year offers a number of excellent examples of collaboration between our two organizations. UNCTAD and ITC, as members of the UN-CEB Inter-Agency Cluster on Trade and Productive Capacity, worked together in all of the ONE UN Pilot Countries. (...) We feel it is in the best interests of our clients, the developing countries, that UNCTAD and ITC should continue to implement joint initiatives in which ITC s and UNCTAD s complimentary areas of expertise are delivered in a coherent manner. Dr. Supachai Panitchpakdi, Secretary-General, UNCTAD, Joint Advisory Group, December 2010 While the trade finance market conditions in most regions of the world have improved, in Africa the situation is still dire and more support still required. ITC s support in this regard, in particular through its network of business and in particular SME s, is highly appreciated (...) We are encouraged by the fact that ITC s investment of extra budgetary resources in Africa has exceeded all expectations. Pascal Lamy, Director-General, WTO, Joint Advisory Group, December 2010

11 ITC OVERVIEW

12 10 ITC ANNUAL REPORT 2010 ITC 2010 OVERVIEW 1 TRADE AND DEVELOPMENT International trade is an important engine of development and poverty reduction, contributing to economic growth, job creation and entrepreneurial opportunities. Reducing poverty by boosting trade, with a specifi c focus on the private sector, is a key tenet of ITC traderelated technical assistance. It is also the desired impact of the Aid for Trade agenda, which responds to the capacity-building needs of developing countries. ITC concentrates on strengthening the soft infrastructure related to international trade this encompasses training and capacity building for institutions and fi rms on standards, rules of origin and customs, and trade information and identifi cation of market opportunities. ITC engages in capacity building to support developing and transition countries in improving the use of trade as a tool for development. Enterprises: Fostering a vibrant, innovative and globally competitive private sector to grow exports and expand markets leading to job creation and inclusive growth; Trade support institutions (TSIs): Building capacities to deliver export-related services to develop market knowledge, advocacy skills and an export-ready private sector; Policymakers: Supporting the mainstreaming of trade into development frameworks and providing input to policy-making that emphasizes the need to build export strategies on a foundation of public-private partnerships, developing an environment that is conducive to business and facilitating access to global markets. 2 CHALLENGES IN 2010 The latest trade data indicate continued trade recovery, in value and volume terms, for BRICS countries (Brazil, Russian Federation, India, China and South Africa), other developing countries and least developed countries (LDCs) during the fi rst half of 2010, following a decline of 23% in global export performance during The fact that no major protectionist measures were implemented during the global fi nancial crisis shows that the rule-based international trading system was robust enough in 2010 to resist domestic political pressures for such initiatives. The rule-based system thus appears to have passed a severe stress test with a comforting degree of resilience. However, concern about the possible trade-distorting impact of stimulus packages and measures remains. Policymakers have repeatedly expressed a preference for measures that would favour the creation of jobs in the domestic economy rather than supporting companies that outsource their operations. Such preferences carry the potential to deteriorate into tradedistorting measures, even if indirectly. The most recent ITC analysis, as reported in its fl agship publication Market Access, Transparency and Fairness in Global Trade: Export Impact for Good, demonstrates a strong linkage between export development and poverty reduction. Poor countries cannot reduce poverty and grow without exports thus market access and market entry are critical. Lack of market access and barriers to market entry are important factors in inhibiting many of the poorest countries from escaping mass poverty.

13 ITC ANNUAL REPORT ITC S ROLE ITC is committed to building sustainable export success for small- and medium-sized enterprises (SMEs) and entrepreneurs in developing and transition countries, encouraging export development that assures the commercial viability of enterprises, empowers women and men economically, and works towards economic, social and environmental sustainability. With an active and engaged private sector, trade can create longterm economic growth and development. As such, ITC confronts a number of challenges: Market demand: Analyzing market trends, non-tariff measures and trade information services to improve trade intelligence leading to the understanding of market demands; Production: Improving the quality of goods and services so that enterprises can reach global market standards; putting in place policies at country level to ensure that the business environment contributes to the competitiveness of enterprises; Development: Encouraging enterprises to diversify their production and markets as demand shifts: it is important that this diversifi cation be part of a long-term vision and strategy, while also enabling rapid and fl exible responsiveness to the market, with the support of national and sectoral policies; Research: Developing effi cient networks of institutions that generate and provide innovative business services to exporters and have the ability to advocate for their interests, acting as a link between the private sector and government. The focus of ITC s work is thus on the expansion of countries capacities to trade, and on the growth of export-oriented private-sector enterprises, strong local institutions and sound, development-focused trade-related policies. 4 AID FOR TRADE AND THE MILLENNIUM DEVELOPMENT GOALS (MDGs) ITC is deeply committed to working with its institutional partners, the World Trade Organization (WTO) and the United Nations Conference on Trade and Development (UNCTAD), to promote and implement Aid for Trade, focusing especially on delivering Aid for Trade services to LDCs. In fact, all of the organization s projects are fi ltered through Aid for Trade criteria, and ITC is therefore considered to be a 100% Aid for Trade institution. At the same time, it is unique in the international system because of its primary focus on the private sector. The Millennium Development Goals (MDGs) guide ITC in delivering Aid for Trade programmes, and serve as a reference point for measuring the impact of all trade-related technical assistance. All ITC work contributes to a global partnership for development (MDG 8). Exports can generate employment and better incomes, contributing to the eradication of extreme hunger and poverty (MDG 1). They are a crucial factor in the economic empowerment of women (MDG 3) and young people, and bring environmental benefi ts (MDG 7). By targeting the MDGs in all ITC work, the Strategic Plan clearly refl ects the organization s commitment to supporting countries in achieving the MDGs through more inclusive, equitable and sustainable trade.

14 12 ITC ANNUAL REPORT ITC S STRATEGIC APPROACH 6 MEETING STRATEGIC FRAMEWORK TARGETS 7 RESULTS-BASED MANAGEMENT As agreed between the United Nations General Assembly and the WTO General Council, ITC s budget is approved in Swiss francs and shared equally by the United Nations and WTO. During preparation of the biennium budget, ITC was requested to carry out a review of its budget process, which it will do in ITC S REGULAR BUDGET The ITC budget forms part of the overall programme budget submitted by the United Nations Secretariat to the General Assembly. It is designed to fund the agreed programme of work, organized in line with the Programme Delivery Responses and Internal Organizational Responses as described in the ITC Strategic Plan. Since 2009, the responses have been adjusted so that there are now fi ve Programme Delivery Responses and six Internal Organizational Responses. The budget details the contribution of each ITC division to the two-year work plan, and is based on the Strategic Framework. This guides the organization in delivering its overall objectives of fostering sustainable economic development and contributing to the achievement of the MDGs in developing and transition countries through trade and exports. The budget document includes a series of indicators to facilitate assessment of the organization s performance in supporting its three main client groups. The outcome indicators contained in the Strategic Framework, approved by the United Nations General Assembly, are designed to capture those situations where signifi cant transformation has taken place and outcomes have been achieved. Often these outcomes can only be measured as a project or programme nears maturity. In the Strategic Plan , 15 output indicators were identifi ed as further support to implementation and reporting. Making these Following the introduction of results-based management (RBM), consolidation of the process was a priority for management in The fi rst area to receive attention was project design. Objectives and delivery targets are now clearly identifi ed and a project s potential impact is better understood. As a further contribution to ITC submitted an preliminary budget bid for the biennium to the United Nations and WTO at the end of STRATEGIC FRAMEWORK: UPDATED TO COVER EACH BIENNIUM In line with guidance from the United Nations, the Strategic Framework indicators defi ne project and programme achievements to be measured. ITC is focused on delivering Export Impact for Good, and the outcomes of all projects and programmes are designed to contribute to this overarching ambition. STRATEGIC PLAN: UPDATED BIENNIALLY, COVERING THE FOUR YEARS AHEAD The Strategic Plan builds on the Strategic Framework and prioritizes the objectives that ITC expects to achieve in the medium term. It also prioritizes competing demands from benefi ciaries and donors for the use of limited ITC resources. Because the plan is revisited at least once every two years in the light of changes in the strategic or operational environment and members priorities, it provides a mechanism for taking stock of what has been achieved on an ongoing basis and for identifying more precisely both shortfalls and emerging needs. indicators operational so that they can begin to capture progress within a project will be a priority for The Strategic Plan also identifi ed a series of biennium-based milestones related to each delivery response. These milestones contribute to monitoring the progress of work both on projects and in organizational development. Progress towards meeting these milestones will be detailed in the 2011 Annual Report. harmonized and robust project design, ITC established the Project Quality Assurance Group. The Group reviews all project documents to ensure that they meet the improved standards, thus ensuring projects have a sound basis for implementation.

15 ITC ANNUAL REPORT Table 1: Indicators of achievement Expected accomplishments Performance indicators actual (2 years) target (2 years) 2010 actual (1 year) Clarifi cation of results Strengthen the international competitiveness of enterprises through ITC training and support Number of enterprises enabled to formulate sound business strategies Number of enterprises enabled to become export-ready ITC has continued to support a wide range of enterprises from diverse groups of product sectors. Penetrating markets at a time of economic diffi culty is challenging but successes are being recorded, such as sales of ethical fashion products from Kenya and Uganda, spices from Ethiopia, mangoes from Mali, and leather products from Bangladesh. ITC continues to expand its services for enterprises, including model contracts, branding, marketing, trade information and access to fi nance. Number of enterprises having met buyers and transacted business As well as directly strengthening individual enterprises, ITC also contributes to the creation of stronger infrastructure to consolidate progress, ensure sustainable growth in exports and enable enterprises to adapt to changing market conditions. This outcome is tackled from the project design stage as well as during implementation. Broader programmes are being developed, but their full benefi t for businesses in developing countries will only be observed in future years. A critical aspect for ITC in 2011 will be to enable a number of projects to become independent and selfsustaining. Increase the capacity of trade support institutions to support businesses Number of TSIs improving their ranking on ITC pilot benchmarking scheme Number of trade policy proposals presented by TSIs to policymakers During the year, ITC continued to provide support to a wide range of TSIs in LDCs and other developing countries. Strengthening the infrastructure linking markets to producers is fundamental to generating good returns from the ITC investment in improving business environments. It is important to ensure that the wider range of services needed to strengthen business infrastructure is delivered as a comprehensive package of advice and support. Support policymakers in integrating the business sector into the global economy Number of trade development strategies Number of country networks generating multilateral trading system activities Number of country negotiating positions enabling decisionmakers to integrate business dimensions into trade negotiations ITC has intensifi ed its activity with policymakers in an increased number of countries. With ITC support, the business sector has improved its access and infl uence in the design of export strategies, WTO accession and the targeted development of particular product sectors. Securing signifi cant developments of this nature often takes several years. Full achievement of the targeted indicator at this level should be recorded in 2011 and Signifi cant improvements at the national level require the adoption of a comprehensive approach. ITC must mobilize a wider range of services in order that the full range of improvements it needs to focus on exports can be put in place. In addition, more focus has to be devoted to ensuring the implementation of strategies and policies so that the business sector can receive practical assistance in increasing exports and employment.

16 14 ITC ANNUAL REPORT PROJECT PROCESS Well-designed and effi ciently implemented projects are the core of ITC services as the organization supports policymakers and strengthens enterprises and TSIs, its partners in developing countries. Implementation of ITC trade-related technical assistance projects involves a cycle mainly operating on a two- to four-year timeline, which in many cases will have Figure 1: 2010 % of total delivery by project cycle phase Completion 12% Design & Planning 2% Launch 7% Implementation 79% been preceded by at least one year of planning and design. The chart below shows the percentage of projects at each of the project phases: design and planning, launch, implementation and completion, in There has been a marked shift between 2009 and 2010 in terms of ITC s project portfolio at the various phases in the project life cycle. In 2009, 34% of the portfolio was either being designed or launched while implementation accounted for 47%, and 19% of the portfolio was being concluded. In 2010, the proportion of the portfolio in the implementation phase has grown to 79% as a result of many projects having been designed or launched in In the course of the project cycle, signifi cant outcomes are likely to be achieved in the latter part of the implementation and completion stages, and after the project is complete impact can be measured. Due to the reallocation of resources in 2010 to RBM and large programme management, work on evaluations was not completed as planned. 9 PROJECT SCOPE 10 DELIVERY RESPONSES OF THE STRATEGIC PLAN The shift towards a greater proportion of the project portfolio being delivered through large multi-year programmes continued in 2010, with the start of the three-year Women and Trade Programme, a four-year programme in Côte d Ivoire, a two-year multi-country single product export programme for several West African countries, and the three-part Trade, Climate Change and Environment Programme. In 2010 the average duration of projects was 3.9 years, and those projects that were in the implementation phase had an average project The Strategic Plan describes ITC s delivery in response to challenges from the external environment, benefi ciaries needs and its own experience. There are Programme Delivery Responses and Internal Organizational Responses based on shared objectives, aligned to the ITC mandate and ensuring a close link between regular budget and extrabudgetary funding. They also build greater coherence between the organizational Strategic Plan and internal Operational Plans, which are the prime means of reporting. duration of 3.3 years. In 2009 the average duration of ITC projects was 2.9 years, and 46% of ITC delivery was made up of projects with a duration of three years or more. During the year ITC continued to consolidate its collaboration with its major partners, WTO and UNCTAD, and with the Enhanced Integrated Framework (EIF) and the One UN process. ITC sees fostering strategic partnerships as being vital to its work and to improving services to developing countries. Further detailed information on ITC Partnerships can be found on page 66. The fi ve Programme Delivery Responses are: Focusing on needs of LDCs, landlocked developing countries (LLDCs), small island developing States (SIDS) and sub-saharan Africa (SSA) Export capacity building through country solutions Regionally structured solutions Global public goods for globally accessed solutions Targeting the Millennium Development Goals.

17 ITC ANNUAL REPORT As there are overlaps among the Programme Delivery Responses, which are a mix of geographic responses and high-level goals and themes, several projects will respond to two or more of them. For example, a project may be based in an LDC and have a regional dimension. For the purposes of reporting, all ITC projects that were active during 2010 have been assigned to a primary delivery response, and reported on under this. The six Internal Organizational Responses are: Focusing on outputs and impacts An effective organization Leveraging resources Upgrading fi nancial management Investing in people Improving communications and information architecture. 11 DELIVERY BY BUDGET TYPE, AND BY PROGRAMME AND INTERNAL ORGANI- ZATIONAL RESPONSES Funded equally by the United Nations and WTO, the ITC regular budget is used to cover the organization s running costs. It also fi nances general research and development on trade promotion and export development, part of which results in published studies, market information and statistical services. From 2008 to 2010, ITC increased its capacity to deliver trade-related technical assistance by 23% as measured by combined regular and extrabudget expenditure. A total of US$ million (2009: US$ million) was available in The opening balance, including re-phased and unallocated resources from 2009, amounted to US$ million. Net income received totalled US$ million and overall cumulative expenditure was US$ million. There was thus a balance of US$ million to be used in The second part of the ITC budget concerns extrabudgetary funds provided by donors through voluntary donations. A delivery target of US$ 40 million gross was set for 2010 (+13% compared with 2009). ITC exceeded the 2010 delivery target by achieving US$ million in extrabudgetary expenditure. Expenditure in the priority focus areas of 101 countries categorized as LDCs, LLDCs, SIDS and SSA amounted to US$ 20.3 million. In these countries, ITC delivered projects focused on country solutions valued at US$ 11.0 million and on regional solutions totalling US$ 9.0 million and US$ 369,000 focused on global public goods. US$ 2.0 million was spent on supporting specifi c MDG indicators in priority countries. The increase in extrabudgetary resources is expected to continue in future years as demand for ITC services continues to grow. The overall breakdown of 2010 delivery expenditure is summarized in fi gure 3, in which the six internal organizational responses have been merged into one group Effective organization. The fi gure includes the expenditure on priority countries spread through the various delivery responses, which is shown in its centre as a proportion of the total delivery for Figure 2: 2009 expenditure by delivery response in % (in US$ million) Figure 3: 2010 expenditure by delivery response in % (in US$ million) excluding XB staff and associate experts Directly targeting MDGs 12% (4.17) Effective organization 7% (2.43) Country solutions 45% (16.18) Directly targeting MDGs 13% (4.3) Effective organization 8% (2.7) Country solutions 45% (15.5) Global solutions 23% (8.1) Expenditure on LDCs, LLDCs, SIDS and SSA 49% (17.02) Global solutions 18% (6.1) Expenditure on LDCs, LLDCs, SIDS and SSA 55% (18.6) Regional solutions 13% (4.63) Regional solutions 16% (5.6)

18 16 ITC ANNUAL REPORT FEEDBACK CLIENT SURVEY Tracking clients perception of the value, quality and relevance of ITC services is essential for the organization and its future development. In 2010, ITC conducted its fourth online Client Survey using an external agency to ensure an independent assessment of the results. More than 1,500 responses were received to the survey, a statistically representative sample. The survey confi rmed that ITC is continuing to improve its performance in meeting the needs of its clients. The sample refl ected the full range of stakeholders with interests in ITC. Some key fi ndings were: 75% of government respondents believe ITC is doing a good job in supporting them with the integration of business in the global economy; 70% of TSIs believe ITC is effectively supporting their service improvements; 57% of enterprises indicated that ITC was supporting them in developing their exports; 72% of all respondents (82% TSIs) agreed that the quality of ITC services had improved in the last three years. For the different delivery aspects, the majority of respondents mentioned a positive evolution over the last 3 years (see fi gure 4). For example, in the 2007 survey 36% of respondents considered that ITC was offering complete solutions and combining products, 44% said ITC understood clients needs and 44% said ITC was responsive to clients requests. Figure 4: Evolution of ITC s performance over the past 3 years 59% Positive change 55% Negative change 57% The overall conclusion from this fourth survey was that ITC continues to make progress in ensuring that clients receive the support they need to meet their goals. The survey results give a strong indicator of ITC effectiveness in applying RBM principles and achieving Export Impact for Good. As in previous years, workshops will be held with ITC technical sections to ensure that the lessons learned from the survey are incorporated into section-level operational plans and developments. JOINT ADVISORY GROUP 2010 The 44 th annual meeting of the ITC Joint Advisory Group, held in December 2010, examined the Annual Report 2009, the Consolidated Programme Document 2010 and the Draft Operational Plan The executive heads of ITC parent bodies, WTO and UNCTAD, expressed satisfaction at the progress being made by the organization, especially in terms of improved collaborative working. They noted that ITC continued to meet its clients expectations and those of its partners. UNCTAD Secretary-General Dr. Supachai Panitchpakdi expressed his satisfaction that UNCTAD and ITC, as members of the United Nations Chief Executives Board Interagency Cluster on Trade and Productive Capacity, had worked together in all the One UN pilot countries. He said: I am confi dent that donors will continue to support ITC s contribution to the private sector and export competitiveness in developing countries. WTO Director-General Pascal Lamy remarked that ITC had been able to deliver and meet its clients expectation despite the challenges of implementing a change management programme. He said WTO looked forward to continuing to work with ITC on supporting accession of LDCs to the organization, and on Aid for Trade, for which WTO considered ITC a key partner. 6% Being responsive to requests 5% Understanding clients needs 5% Offering complete solutions and combining products Delegates welcomed continued ITC progress in implementing RBM while recognizing that further progress was still needed. The effort to mainstream the MDGs was also welcomed, as was the signifi cant move towards concentrating on larger multi-year programmes. Further details of the meeting can be found on page 60.

19 2 DELIVERY RESPONSES DELIVERY RESPONSES

20 18 ITC ANNUAL REPORT 2010 DELIVERY RESPONSES PROGRAMME DELIVERY RESPONSES 1. FOCUSING ON NEEDS OF LDCs, LLDCs, SIDS AND SSA ITC is committed to continuing its priority focus on LDCs, LLDCs, SIDS and SSA. Effective solutions will combine ITC country-focused competencies with its fi ve business lines (p. 19). 2. EXPORT CAPACITY BUILDING THROUGH INTEGRATED COUNTRY SOLUTIONS The ITC Division of Country Programmes (DCP) will provide leadership and expert knowledge of client countries, understanding of their export development and promotional needs, and the ability to develop appropriate solutions with ITC technical divisions and partner organizations (p. 29). 3. REGIONALLY STRUCTURED SOLUTIONS There are opportunities to support export growth through regional programmes addressing common trade challenges and contributing to regional integration. ITC will support stronger links between countries involving regional bodies, development banks, academic or vocational training organizations, chambers of commerce and sector associations (p. 35). 4. GLOBAL PUBLIC GOODS FOR GLOBALLY ACCESSED SOLUTIONS To spread the understanding and transparency of how markets work, it is critical that all developing countries have access to global trade information. ITC will expand its online information offerings through a new website that will incorporate its online tools (p. 40). 5. TARGETING THE MILLENNIUM DEVELOPMENT GOALS ITC will promote good practice in export development through the MDGs. The goals will be mainstreamed across all capacity-building activities. Project design will systematically incorporate MDG solutions with the aim of achieving Export Impact for Good (p. 49). INTERNAL ORGANI- ZATIONAL RESPONSES 6. FOCUSING ON OUTPUTS AND IMPACT In response to client demand and donor expectations, the timely achievement of planned outputs and impact is given a high profi le in ITC planning and delivery (p. 54). 7. AN EFFECTIVE ORGANIZATION The Evaluation Policy, including an annual evaluation report, the Client Survey, the Strategic Plan, the Strategic Framework and the Annual Report, refl ect ITC s commitment to transparent review, action plans and reporting designed to raise standards and quality systematically (p. 55). 8. LEVERAGING RESOURCES ITC is developing its capacity to manage a larger project portfolio, which will require access to higher levels of funding. ITC will strengthen existing donor relationships to secure long-term funding commitments (p. 55). 9. UPGRADING FINANCIAL MANAGEMENT ITC operates in a complex fi nancial environment. It will upgrade its fi nancial forecasting, cash-fl ow management and project budget control, and implement the International Public Sector Accounting Standards (IPSAS) by 2014 (p. 55). 10. INVESTING IN PEOPLE ITC s people are essential to its success. The organization will continue to attract and recruit world-class talent globally. Special attention will be paid to promoting excellence and ITC values in the fi eld of leadership and people management (p. 56). 11. IMPROVING COMMUNICATIONS AND INFORMATION ARCHITECTURE ITC will continue to reinforce its one image policy to communicate a single message at the corporate level, Export Impact for Good. To serve its clients better, ITC will develop new technical systems and new media delivery systems to reach wider audiences (p. 57).

21 ITC ANNUAL REPORT PROGRAMME DELIVERY RESPONSES 1 FOCUSING ON NEEDS OF LDCs, LLDCs, SIDS AND SSA ITC continues to give the highest priority to LDCs, LLDCs, SIDS and SSA, with a particular focus on private-sector enterprises. Following guidance from member countries, ITC has made a commitment to allocate at least 50% of its budget to supporting these countries. The agency now has a base of successful pilot experiences on which to build and is incorporating the lessons learned from these experiences into its approach. It is also adapting its support to meet countries specifi c needs and demands. For example, in the case of LDCs, ITC is actively engaging with the EIF by strengthening national capacity to design and manage programmes. It is also providing greater support to countries seeking accession to the WTO in the form of training, capacity building and the promotion of public-private partnerships and dialogue. LESSONS LEARNED Sustainable export development requires a market-led approach. ITC applies this understanding to all its work and will be focusing on this to get maximum impact from work in LDCs, LLDCs, SIDS and SSA. For instance, in Ethiopia, it responded to market demand for better-quality Ethiopian coffee by assisting local partners in establishing coffee quality laboratories. In Cambodia, ITC s active involvement in developing the silk sector is also market-led, with a focus on quality, reliability of supply, design skills and marketing. ITC is improving its methodologies in order to address the individual needs of LDCs, LLDCs, SIDS and SSA more effectively. Engaging the private sector in the process of LDC accession to WTO is one example of an integrated approach to ensure that the needs of target benefi ciaries are the main concern. As a small organization, ITC can fi nd it costly to participate in programmes with multiple partner organizations in complex structures. Decision-making can take longer, with extensive consultation procedures leading to numerous changes in plans. When roles and responsibilities are well defi ned in programmes with clear outcomes, however, the benefi ts outweigh the costs as ITC works in synergy with partners for benefi ciaries. MULTI-COUNTRY PROJECTS ALL AFRICA CARIBBEAN PACIFIC AGRICULTURAL COMMODITIES PROGRAMME (AAACP) The AAACP is funded by the European Commission and has been operational since September ITC s overall budget for the programme is 8.5 million, of which one third has been allocated to cotton-sector activities. This is a multi-sector interregional programme implemented by a partnership comprising fi ve international organizations: the World Bank, the Food and Agriculture Organization of the United Nations (FAO), UNCTAD, the Common Fund for Commodities (CFC) and ITC. ITC works to enable stakeholders to design market-led sector development strategies and implementation plans. For instance, it provides market orientation and advice on product development and supply-chain aspects for value addition, and coaches stakeholders on the best ways to organize and coordinate other agencies inputs to strategy implementation. Subsequently it implements specifi c aspects of the strategies, providing twinning support to regional programme coordination focal points in the Common Market for Eastern and Southern

22 20 ITC ANNUAL REPORT 2010 Explaining coffee strategies in the Democratic Republic of the Congo AAACP PROGRAMME Participants in agri-foods strategy development in Uganda AAACP PROGRAMME Coconut strategy ready for implementation on Solomon Islands AAACP PROGRAMME Africa (COMESA), the Economic Community of Central African States (ECCAS) and the West African Economic and Monetary Union (UEMOA). During 2010, the programme targeted agrifoods, tree crops (coffee and coconuts), spices and cotton/textile sectors in all African, Caribbean and Pacifi c (ACP) regions. This responded to the priorities set by ACP Member States in 2007 and 2009, mid-term review recommendations that the programme should focus on fewer sectors, the diversity of natural resources, and the main sources of income generation for poor rural communities across the countries in each ACP region. In addition to the six sector value-chain strategies designed and organized for implementation in 2009, another eight sector strategies were completed in 2010: Burkina Faso and Mali: gum arabic Cameroon: manioc and banana plantain Ethiopia: spices Liberia: cassava Solomon Islands: coconut products Zambia: cassava West Africa: regional cotton and textile development Other signifi cant developments included: Work progressed during the year on the design of an East and Southern Africa regional agri-foods strategy and a Central Africa regional cotton and textiles strategy; Strategy validation and the organization of implementation activities were nearly completed in the Democratic Republic of Congo for the coffee sector and in Fiji for the agri-foods sector. Several of the completed strategies have attracted the interest of donors, with various funding possibilities being discussed; Other development programmes, such as the EIF programmes in Burkina Faso, the Democratic Republic of Congo, Liberia and Zambia, have expressed interest in supporting the strategies. Important progress was made in coffee sector regionalization in Central Africa, with improvements in both product quality and producers organization along value chains. Support in this area was provided by ITC s fi eld counterpart, Café Africa, and by the World Bank s Agricultural Competitiveness Improvement Project in Cameroon. The fi rst shipment sample of fully washed specialty coffee from Cameroon fetched a premium price. Given the important role played by women in the coffee sector, a gender value-chain perspective was completed and presented to stakeholders in Cameroon as a complement to the existing coffee sector development strategy. With support from the National Cocoa and Coffee Board in Cameroon, and coaching by ITC and Café Africa, seven provinces in the Democratic Republic of Congo produced strategies and implementation plans to develop their sector and links with exporters. ITC supported counselling and training of stakeholder sector strategy coordination bodies in Burkina Faso, Cameroon, the Democratic Republic of Congo, Ethiopia, Grenada, Jamaica, Liberia, Mali, Samoa and the Solomon Islands to prepare these bodies to coordinate multi-agency strategy implementation and build linkages with other potential implementing and resourceproviding partners. The AAACP has highlighted the need for sectorfocused Aid for Trade funding to enable a holistic, market-led approach to be taken, which would include technical assistance for downstream value addition and employment generation.

23 ITC ANNUAL REPORT Cotton pickers in Senegal AAACP PROGRAMME Street-side coffee stand in Cameroon AAACP PROGRAMME Cotton production in Senegal AAACP PROGRAMME COTTON AND TEXTILES SECTOR STRATEGY AND IMPLEMENTATION During the year, stakeholders in West Africa took an active part in designing the cotton and textile sector strategy and planning for its implementation. A major regional workshop, held in November 2010, involving development banks, pan-african development programmes, ministerial and farmer representatives, privatesector enterprises, buyers and technical specialists, approved the action implementation plan for the Agenda Cotton-Textile, and a regional strategy was subsequently fi nalized. UEMOA now plans to present the regional cotton and textile strategy to its Heads of State meeting in March 2011 for endorsement. ITC has successfully facilitated stronger direct linkages with buyers and directly importing spinning factories in Asian markets. It has also fostered importer-led supplier development activities funded outside of the AAACP. These approaches are now paying off, with signifi cant new sales contracts announced. Market orientation and cotton quality improvement work, which started in 2009, continues with producers across Africa working in mixed country groups with buyers from Asia. This has resulted in new purchase contracts, action plans for upgrading of working practices, and measures to disseminate market information more effi ciently. Important new results have been achieved in East and Southern Africa by increasing sales in the countries in which ITC has been active with its other partners, the African Cotton Textile Industry Federation and COMESA. For example, the fi rst indigenously owned and managed ginning and exporting facility was set up and will start operations in ENHANCED INTEGRATED FRAMEWORK During 2010, ITC completed the implementation of eight Integrated Framework projects in the areas of tourism development, institutional strengthening, quality assurance and sectoral export strategy. In parallel, a number of new second-tier projects started to be formulated at the request of various LDCs. ITC s strategy for the EIF is based on the principle of country ownership, aligned to existing mechanisms and priorities agreed by development partners and aimed at building a sustainable national capacity to formulate and manage trade-related technical assistance. The strategy is to create new jobs and income opportunities through EIF projects while laying the foundation for fostering other dimensions of economic and social development in LDCs. ITC is committed under the EIF to putting in place new ways to link the production capacities of LDCs to fast-growing export markets. Much of ITC s work during 2010 focused on advising EIF national implementation bodies on formulating programmes to strengthen the capacity of export-oriented SMEs in priority sectors identifi ed in diagnostic trade integration studies. In particular, in close cooperation with other partners, ITC supported Benin, Chad, Comoros, the Democratic Republic of the Congo, the Gambia, Guinea, Mali, Nepal and Niger. LDC ACCESSION TO THE WORLD TRADE ORGANIZATION ITC s work programme to support LDC accession to WTO received a major boost in 2010 with funding to support work in four countries: Ethiopia, the Lao People s Democratic Republic, Samoa and Yemen. All made signifi cant steps during the year towards actual accession: To provide impetus to the WTO accession process, Ethiopia asked to review other countries experiences in the liberalization of the fi nancial and telecommunications sectors with a view to building their confi dence in the economic

24 22 ITC ANNUAL REPORT 2010 Stakeholder-led strategy design for fruits & vegetables in Samoa LDC ACCESSION TO THE WTO Artisans dancing during a workshop in Maputo MOZAMBIQUE CREATIVE INDUSTRIES Farmers discussing quality requirements of buyers with project advisers in Malawi SADC SUPPLY CHAIN AND LOGISTICS PROGRAMME reform process. ITC supported the Ethiopian Chamber of Commerce and sector associations in establishing a network of reference centres enabling Ethiopian business associations to access WTO-related information. In the Lao People s Democratic Republic, training was provided on the business implications of WTO-covered agreements, and a WTO desk was set up in the National Chamber of Commerce and Industry. These elements in turn led to structured public-private dialogue on specifi c business-oriented issues. Both publicand private-sector stakeholders now have a deeper appreciation of the implications of the changes that will come in the wake of WTO entry. In Samoa, after training on the business implications of WTO-covered agreements, a public-private dialogue on specifi c businessoriented issues and the sharing of recent experience from Tonga, and further support including a study tour to WTO for a delegation of national business representatives facilitated stakeholder participation in WTO accession negotiations. There is now a fuller understanding of the need to conform to WTO rules in order to exploit new and expanding opportunities for product and market diversifi cation beyond traditional trading partners. As a result, an agreed approach was developed on a feasible end-game for accession in In Yemen, ITC participated in awarenessraising workshops and seminars jointly with WTO, undertook needs-assessment missions, arranged study tours for stakeholders, and supported a number of publications. Stakeholders in Yemen s public sector (including parliamentarians) and its private sector developed a common position to accelerate WTO accession and are working together to complete the process in SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) SUPPLY CHAIN AND LOGISTICS PROGRAMME The SADC programme is funded by the government of Flanders and operates in Malawi, Mozambique and South Africa. In Malawi, in order to increase the incomes of rural households in the region around Lilongwe, the programme is linking smallholder producers of fresh vegetables to supermarket buyers. In 2010, some 550 farmers were trained on farming as a business, good agricultural practices and meeting quality standards. Project advisers also linked the farmers, through cooperatives, to Malawi s largest supermarket chain, the People s Trading Centre (PTC). In September, the fi rst harvest of tomatoes, onions, green beans and okra began, and by December smallholder farmers had already made sales to PTC. ITC s partners are the Malawi Enterprise Zone Association and the Ministry of Industry, Trade and Private Sector Development. In Mozambique, the programme worked on the design of a project to build the capacity of vegetable producer groups to supply and effect sales to the South African export market as well as to the high-value domestic markets currently supplied by South Africa. ITC s partner for this project is the Ministry of Agriculture s Centre for the Promotion of Agriculture. In South Africa, to strengthen government capacity to assist emerging farmers in integrating into international supply chains, the programme is working with government advisers to improve their analytical tools, build demand-driven assistance packages and reinforce networks of buyers. In 2010, ITC and its South African partner, the National Agricultural Market Council, devised tools to select high-potential emerging fruit and vegetable farmers, diagnose their needs and link them with assistance from a network of public and private providers as well as buyers.

25 ITC ANNUAL REPORT Pineapple producer UGANDA Young entrepreneurs testing sample products at the Bangladesh Leather Service Centre BANGLADESH Steering committee meeting on silk CAMBODIA STRENGTHENING THE PINEAPPLE EXPORT VALUE CHAIN IN SELECTED WEST AFRICAN COUNTRIES A project launched in 2010 is building the capacity of pineapple producers and exporters in Benin, Côte d Ivoire, Ghana and Togo to reach regional markets. Women s business enterprises, cooperatives and local partners are engaged in the project s ICT component. The two main local telecommunication operators (MTN and Moov) have expressed a keen interest in participating in the project, as the social dimension of the planned service fi ts well with their strategies. Terms of reference for the ICT solutions have been developed, building on the experience of mobile solutions in Liberia, and based on thorough consultations with local stakeholders and IT developers. The planning is complete for ICT development, which will take place in the fi rst quarter of At least one relevant TSI per country has been engaged in the project, and a sector demand survey has been completed by TSIs in each of the selected target markets. COUNTRY PROJECTS BANGLADESH ITC set up the Bangladesh Leather Service Centre in 2009 with funding from the Italian Government. The project led to increased leather exports from Bangladesh, thereby contributing to export diversifi cation and reducing the country s dependence on exports of readymade garments. The Centre has received international accreditation for product testing and certifi cation. In 2010, the Centre trained 108 people involved in the leather value chain on quality control systems and production. As a follow-up to the project s capacity-building activities, a group of fi ve self-funded small entrepreneurs attended training in India on ISO 9001, the International Organization for Standardization (ISO) standard for the quality management of businesses. Thanks to the Centre s capacity-building programme the overall fi nancial climate has improved for the sector. Three commercial banks established dedicated credit lines worth a total of US$ 1.4 million. Some US$ 323,000 was disbursed to small businesses and microenterprises with a 100% return. One bank has made available to the community shared equipment such as water fi lters, fi re extinguishers, masks and gloves. A building loan of US$ 200,000 was extended to 24 young entrepre-neurs for the construction of a shared workshop complex. All loans are without collateral and at a preferential rate. Part of the interest from the loans is redeployed by the banks for corporate social responsibility initiatives and facilitating savings schemes for workers, demonstrating the multiplier effect that a credible and commercial infrastructure can have. BENIN A number of community-based tourism initiatives were established in 2010 in partnership with the Benin Ministry of Culture, Artisan Trade and Tourism. These involved, in Abomey, the processing and marketing of organic soap; in Ganvié, the transformation of water hyacinth into marketable products (such as woven placemats and bags); and in Ouidah, a refreshment stand selling local juices and food. Beninese delegates were also exposed to Cambodia s experience in community-based tourism through a study tour of that South-East Asian nation.

26 24 ITC ANNUAL REPORT 2010 Silk thread CAMBODIA Silk production CAMBODIA ITC on mission in Chad EIF PROGRAMME In addition, projects to build the capacity of Beninese TSIs in trade information and management and improve the export performance of selected SMEs involved in the cashew nut industry were completed by the end of CAPE VERDE The One UN programme in Cape Verde has taken steps to maximize the effi cient use of the joint contributions and expertise of participating agencies in order to provide better support to the country s national policies for accelerating economic growth, promoting competiveness, creating productive employment and fi ghting poverty. FAO, ITC, UNCTAD and the United Nations Industrial Development Organization (UNIDO) are jointly involved in the cluster related to trade and productive capacity. CAMBODIA ITC continued to be actively involved in 2010 in the development of the Cambodian silk sector. Its main objective was to create a competitive and well-organized sector generating income and employment to reduce poverty for all stakeholders along the supply chain. ITC implemented with the support of a local project coordination unit the Sector-wide Silk Project, which integrates assistance from multiple donors under one umbrella. The project upgraded the technical skills of 29 existing weaver communities and set up and trained 10 new communities in basic silk weaving and dyeing techniques. In addition, it ensured the reliable supply of raw materials, tools and equipment by strengthening the operation of previously established village-based purchasing units and by creating new units. CHAD As an LDC, Chad has been benefi ting from the Integrated Framework programme since The programme has allowed the country to address the needs highlighted in its diagnostic trade integration study as essential for developing the competitiveness of the leather sector. A US$ 250,000 project was implemented to improve the quality of Chadian leather and leather products. With ITC support, a number of Chadian artisans and associations such as the Chad Leather Association, which is involved in the production and commercialization of leather and leather products benefi ted from capacitybuilding activities. DEMOCRATIC REPUBLIC OF THE CONGO A joint project between ITC and the United Nations Development Programme (UNDP) was set up to contribute to an improved business environment in the country by supporting the Government in the negotiation and management of mining contracts. The project organized national and regional meetings and business mediation training. On the access to fi nance component, training materials and software were adapted to the country-specifi c context while the fi rst train the trainer workshops were completed. CÔTE D IVOIRE In 2010, ITC launched the Programme for Building Côte d Ivoire s Capacity and Regional Integration, which is co-fi nanced by the European Union, UNIDO and the International Monetary Fund. ITC is acting as the programme coordinator and implementing organization for the trade transformation programme. The programme will reinforce regional integration through trade facilitation, and has developed a clear plan to this effect, supported by the private sector, local authorities and donors. The programme also has the support of the Government, and the two main regional organizations, the Economic Community of West African States (ECOWAS) and UEMOA. However, the presidential elections and their aftermath brought progress to an almost complete halt in December At the time of

27 ITC ANNUAL REPORT Training at a coffee laboratory in Assawa ETHIOPIA Confi rmation message sent to a mango trader MALDIVES Groundnut production MALI writing, it was not clear when a full work plan and budget could be fi nalized for the programme. ETHIOPIA The Ethiopia Coffee Quality Improvement Project was completed in With ITC support, seven large, modern coffee quality laboratories were set up in remote coffee-producing areas in western and southern Ethiopia. The laboratories employ around 100 people, of whom 49 were trained as cuppers, or expert coffee tasters, most of them having obtained internationally recognized certifi cation as Q Graders. During implementation, the laboratories were transferred from the Ministry of Agriculture to the Ethiopian Commodity Exchange (ECX), which opened two years ago. The laboratories were originally designed and set up primarily to improve quality training in producing regions, but have now also become an integrated part of the ECX. They provide daily information from the interior on volumes and grades of coffee available for auction. ITC support to this project was funded by the Swiss State Secretariat for Economic Affairs (US$ 900,000). The Ethiopian Government and the International Fund for Agricultural Development sponsored the project s buildings. GUINEA A joint ITC-UNCTAD programme, funded by the Agence Française de Développement (AFD) and launched in October 2008, has reinforced the competitiveness of benefi ciary enterprises through direct training at enterprise level. It has also supported enterprises in elaborating sound business plans to modernize their processing equipment. Discussions are under way between the Guinean Government, ITC and UNCTAD and the AFD for an extension of the programme, as the political situation prevailing in Guinea between 2008 and 2010 did not enable smooth implementation of all agreed activities. MALDIVES A project was concluded in 2010 that embedded a Web/SMS information system to link producers to resort markets in the Maldives. The system has been tested, and potential users have been given initial training. The objective is to promote stronger linkages with the most successful economic sectors in the Maldives, namely tourism and fi sheries, and ensure positive spillover effects on the other economic sectors. ITC conducted an export potential assessment for the local fi shing industry that was disseminated to stakeholders. It also supported the development of a trade information system, including electronic registration of local companies, for the Ministry of Economic Development. Thanks to the system, the Ministry is able to meet the needs of local companies much more effi ciently. MALI ITC provided technical assistance to strengthen the national trade support framework in Mali through the establishment of the National Export Promotion Agency. In 2010, ITC commissioned a study on the country s export potential to support the new agency s strategy formulation process. For the past six years, a second ITCfunded project has provided assistance to Malian fruit and vegetable exporters to exhibit at Fruit Logistica, an international fresh produce trade fair. In 2010, Mali fully covered the cost of its participation in the fair from its own resources and has already begun to make arrangements for participation in the 2011 event. With ITC assistance, Mali has greatly expanded its exports of mangoes from 3,000 tons in 2005 to 15,000 tons in 2009 and has diversifi ed the markets it reaches. Trade statistics for 2010 are as yet unavailable.

28 26 ITC ANNUAL REPORT 2010 Advising on ITC s mobile business matching solution MALDIVES Packaging centre for milk products SENEGAL Certifi ed leather producer in Chad EIF PROGRAMME MOZAMBIQUE A new ITC-funded project in Mozambique is providing assistance to the Ministry of Industry and Trade and the Mozambique Export Promotion Agency in carrying out trade policy analysis, improving the collection and quality of trade statistics, and strengthening trade negotiations and the capacity to formulate contracts. The project, which falls under the One UN Programme, will also build the country s capacity to meet international product standards. In 2010, it supported workshops on trade policy training and arranged for the translation into Portuguese of technical material related to contracts. ITC is one of the UN agencies implementing the Joint Programme for Strengthening Cultural and Creative Industries and Inclusive Policies, a three-year programme funded by the UNDP/ Spain MDG Achievement Fund. It will strengthen the role of culture in the development process of Mozambique through economic development and through the cross-cutting role of culture in other areas of development. In 2010 ITC contributed a value-chain analysis of the craft sector and an assessment of the potential propoor impact of cultural tourism. It has also developed contract guides for the music and craft sectors and trained 50 musicians and artisans in their use. NEPAL Nepal took a major step in its trade development efforts in 2010 by launching its National Trade Integration Strategy. This important instrument constitutes the cornerstone of EIF efforts to mobilize action for a more systematic approach to the country s trade-related needs. As part of its long-term commitment to Nepal, and with UNDP support, ITC assisted the Ministry of Commerce and Supplies in formulating the strategy, which identifi es priority products for export promotion and suggests modifi cations to the country s institutional infrastructure to enhance trade support. NIGERIA A new two-year ITC-WTO project will provide supervision and oversight services for the Standards and Trade Development Facility Project, which is designed to boost Nigeria s exports of sesame seeds and sheanut butter through improved sanitary and phytosanitary capacity in the private and public sector. The Nigerian Export Promotion Council is the implementing agency. SAO TOME AND PRINCIPE ITC has supported the country though the Integrated Framework programme in designing the institutional framework of a trade and investment promotion agency. In addition, it has provided training to staff from the Ministries of Justice and Trade, the Chamber of Commerce and the newly established Guichet Unique (a consolidated offi ce), enabling them to simplify business registration procedures for SMEs. SENEGAL With ITC support, the implementation of priority components of the integrated Senegal trade programme was completed by the end of During the year, the project worked on the revision of the Senegal Export Strategy, a plan for the reorganization of a TSI network for Senegal, and a feasibility study for a packaging centre. SIERRA LEONE During the year, ITC assisted in the restructuring of the Sierra Leone Investment and Export Promotion Agency in order to improve services to the private sector, including in the area of trade intelligence. The launch of the organization s new information service is planned for early 2011.

29 ITC ANNUAL REPORT STATUS OF PROJECTS Table 2 lists individual country projects that are focused on building export capacity in LDCs, LLDCs, SIDS and sub-saharan Africa by their status within the project cycle. Table 2: Focus on LDCs, LLDCs, SIDS and SSA by their status within the project cycle PROJECT / PROGRAMME Planned expenditure (gross) Delivery end Dec 2010 (gross) % spend DESIGN AND PLANNING Cambodia Feasibility study for assisting rice millers' access to fi nance % Central African Republic Diagnostic on trade potential % Standards and trade development facility, Nigeria SPS capacity building for sesame % seeds and sheanut butter, Southern African Development Community exports Strengthening the pineapple export value chain in selected West African countries Programme development % LAUNCH Côte d Ivoire Programme for building Côte d Ivoire s capacity and regional % integration (PACIR) Haiti Enhancement of multilateral trade treaties % Netherlands Trust Fund (NTF II) Bangladesh, Kenya, Senegal, South Africa, % Uganda, Yemen Strengthening the pineapple export value chain in selected West African countries % Trade at hand Strengthening the pineapple export value chain in selected West African countries % Trade Finance Zambia Access to fi nance for agribusiness SMEs % IMPLEMENTATION All ACP agricultural commodities development programme % Bangladesh leather service centre for export development % Bangladesh leather service centre for export development II % Cambodia Partnership for gender equity % Cambodia Sector-wide silk project II % Cape Verde One UN trade and productive capacities development % Guinea Strengthening the capacity in international trade of agricultural products % Mali Participation in the Fruit Logistica trade fair % Mozambique Business Environment Support and Trade Facilitation Programme % Strengthening IPEX Mozambique Capacity building for effective trade policy formulation and % management Mozambique One UN Strengthening cultural and creative industries and inclusive % policies SADC Supply Chain and Logistics Programme (Malawi, Mozambique, South Africa) % United Republic of Tanzania Standards and trade development facility Supporting % the Horticulture Development Council WTO accession Ethiopia % WTO accession Lao People s Democratic Republic % WTO accession LDCs in early phase of accession % WTO accession Pacifi c LDCs %

30 28 ITC ANNUAL REPORT 2010 PROJECT / PROGRAMME Planned expenditure (gross) Delivery end Dec 2010 (gross) % spend COMPLETION Democratic Republic of the Congo Enhancement of the business environment and % Access to Finance for SMEs Benin Strengthening the capacity of TSIs and enterprises for export development % Cambodia Sector-wide silk project % Cambodia Sector-wide silk project, product and market development % Cambodia Support to the trade promotion department of the Ministry of Commerce % Chad Strengthening national capacity in the implementation of the EIF project % Ethiopian coffee quality project % Madagascar Improvement of the multilateral trade framework % Maldives Trade information system % Mali Feasibility study on the creation of a trade development agency in Mali % Mali Promotion and diversifi cation of horticultural exports % Nepal Trade-related capacity building % Project development support for LDCs under EIF % Sao Tome and Principe Supporting an enabling environment for business % development Senegal Programme development % Senegal, Gambia and Guinea Bissau Groundnut sector revitalization % Sierra Leone Capacity building for trade policy formulation and trade information % access in Sierra Leone Sierra Leone Support to the Export Development and Investment Corporation (SLEDIC) %

31 ITC ANNUAL REPORT EXPORT CAPACITY BUILDING THROUGH INTEGRATED COUNTRY SOLUTIONS Developing and transition countries present a complex mix of needs and demands that require integrated solutions. ITC and partner organizations deploy the full range of their competencies to ensure long-term and sustainable impact. Increasingly, ITC is designing integrated solutions through national export strategies and vertically integrated sector strategies that involve the private sector. It is also delivering a greater proportion of its services through larger programmes that can support broader and longer term solutions, and becoming more involved in multi-stakeholder programmes such as the One UN initiatives. LESSONS LEARNED Effective partnerships with in-country organizations take time to develop, but countries recognize that they can see signifi cant benefi ts as benefi ciaries. The introduction of the project quality assurance process at ITC in 2010 has contributed to ensuring that partners are involved in projects from the design phase. This has enabled more effective cooperation, with sustainability in mind from the outset. Greater country ownership is necessary in order to achieve sustainable outcomes. In 2010, ITC tested a new business model in developing export strategies on a cost-sharing basis. This experience has shown that developing countries are very willing to share the costs of traderelated technical assistance, which ensures local ownership of implementation and outcomes and vastly increases the likelihood of project sustainability. Recent political turmoil in certain partner countries has slowed project progress. By maintaining dialogue with counterparts and decision-makers and keeping abreast of local priorities, ITC is working to ensure tangible results for benefi ciaries. MULTI-COUNTRY PROJECTS ENHANCING ARAB CAPACITY FOR TRADE (ENACT) The four-year EnACT programme, launched in 2009, targets entrepreneurs in Algeria, Egypt, Jordan, Morocco and Tunisia. Programme plans and workplans were fi nalized for each country in early The fi rst EnACT youth exporter entrepreneurship prize was awarded to an outsourcing company based in Morocco that has created 500 export-related jobs for young people. The annual award will continue to recognize young exporters from EnACT countries for the programme s duration. In Algeria, ITC, in collaboration with the Algerian Foreign Affairs Ministry and the National Agency for Foreign Trade Promotion, held workshops to familiarize foreign trade representatives with foreign trade rights. This training will enable the representatives to provide better export assistance to Algerian companies. As a result of two advisory missions by handicrafts sector experts, the National Bureau of Arts and Crafts has gained a better understanding of quality requirements in the export market. ITC has also contributed to building the capacities of trade promotion organizations (TPOs) to support the private sector, encouraged policymakers to give priority to non-oil exports, and trained export advisers to perform company export audits. In Egypt, an ITC programme supported the Ministry of Commerce in broadening the marketing outlook of SMEs by using e-commerce facilities.

32 30 ITC ANNUAL REPORT 2010 Moroccan Minister of Foreign Trade signs the EnACT project document at ITC French and Japanese buyers at Moroccan leather factory ENACT PROGRAMME In Jordan, ITC supported the launch of a process to map out a national export strategy, and raised awareness of the need for developing a national brand for the nation. It also organized workshops for TPO clients on international product packaging requirements. In Morocco, EnACT focused on the leather industry, where 70% of the workers are women and young people. Workshops held throughout the year prepared industry players to attract international buyers in terms of product design, added value to the product, quality management and marketing skills. Manufacturers of leather products continued to meet potential buyers, with several orders generated as a result of EnACT involvement. Following training, 30 trade advisers are now ready to conduct export auditing. In Tunisia, the handicrafts sector was exposed to international markets in In particular, SMEs met potential buyers in Italy, and sales of Tunisian handicrafts were completed with a Japanese buyer as a result of EnACT intervention. A concept note was prepared for the establishment of a national trade observatory and 30 trade advisers were selected for training under the Certifi ed Trade Advisers Programme. At the time of writing, political events were unfolding in the Middle East and North Africa that could have an impact on the delivery of EnACT activities. ITC is working with each country s authorities to review, validate and realign activity plans according to the authorities priorities and will do its utmost to maintain the programme s overall objectives. EXPORT STRATEGY In its export strategy work programme, ITC provided ongoing support and capacity building during the year in national export strategy (NES) implementation management to countries having a NES, including Dominica and Jamaica. It continued to receive many requests for technical assistance and advisory services. A framework was developed for cooperation on NES design to be undertaken in 2011, notably with Côte d Ivoire, Jordan, Mozambique, the Palestinian Territories, Uganda and Yemen. In the area of sector strategy, ITC proactively facilitated participatory, needs-based and market-led strategy development, particularly in ACP states. Public-private sector steering groups were set up and capacity-building workshops on strategy implementation management and monitoring were established in Cameroon, Grenada, Jamaica, Liberia, the Solomon Islands and Zambia. FOREIGN TRADE REPRESENTATIVES TRAINING This programme addresses the need for developing countries to get more value from their overseas representations by building stronger networks of trade specialists posted abroad. In 2010, the programme organized advisory missions in Algeria, Indonesia and Paraguay. These consultancies were combined with training workshops for trade representatives and other stakeholders of the foreign trade representative (FTR) networks in these countries. A regional meeting of supervisors of FTR networks was held for representatives of Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Mexico, Nicaragua, Panama and the Bolivarian Republic of Venezuela. The programme is progressively being integrated into large ITC programmes. NETHERLANDS TRUST FUND II (NTF) The second phase of the NTF programme is working to create sustainable exporter competitiveness in targeted export sectors in partner countries. Projects under the programme are building the capacity of TSIs to adopt an effective export value-chain approach to sector

33 ITC ANNUAL REPORT Bangladeshi IT enterprise working together with TSIs NTF II PROGRAMME ITC training on sourcing CHINA development and the strengthening of the TSI institutional architecture and networking capacities. NTF II continued its three-phase approach (identifi cation, feasibility and formulation) to programme development in 2010 in partnership with local TSIs. In Bangladesh, by the end of 2010, the project had progressed through the three stages of the design process. It selected IT and ITenabled services and identifi ed partner TSIs in the country. It also selected three target markets, along with business linkage advisers and partner TSIs in each. In addition, the project pre-selected Bangladeshi enterprises that could potentially benefi t from the project. The NTF II selected the tree fruit sector as the target sector in Kenya, and fi nalized the project design process and selection of partner TSIs towards the end of The project design process has been completed in Senegal, with the mango sector selected for development. An extensive needs assessment has been conducted, TSI partners have been selected, and the intervention logic has been determined. In South Africa, identifi cation and feasibility missions confi rmed the potential for the rooibos and automotive components sectors to increase exports of value-added products and enhance the country s position in international markets. Design of the NTF II intervention for Uganda was completed by the end of 2010 with three national partners in the coffee sector. Other components include enhancement of monitoring and evaluation capacity, service portfolio development, coffee certifi cation and marketing, and improvement of fi nancial management and funding of farmer associations. In Yemen, the fi sheries sector has been selected as the prime focus for interventions under the programme and a governance structure for the development of a NES has been put in place and is functioning. A process has been developed to promote dialogue between public and private sectors regarding implementation and oversight of the NES. COUNTRY PROJECTS BRAZIL This multi-part programme, launched in 2008, has provided training and IT support to the Brazilian Export Promotion Agency (APEX), strengthening its capacity to offer cutting-edge services to its clients. In 2010, the programme supported APEX in upgrading its trade intelligence unit and contributed to building a new trade intelligence platform that responded more closely to clients needs. The programme also provided training to APEX market researchers in enterprise competitiveness; identifi ed potential candidates to train as trainers; and held two workshops on market profi les for APEX staff involved in business intelligence. It trained some 70 APEX technical staff in foreign trade, client relationship management, benchmarking, TSI strategy and portfolio design. As a result of these activities, a number of staff and consultants are expected to be certifi ed as enterprise management development advisers. CHINA ITC concluded the one-year Certifi ed Trade Advisers Programme in 2010, which aimed to improve the export competitiveness of Chinese

34 32 ITC ANNUAL REPORT 2010 Garments & textiles brochure TAJIKISTAN Buyer and seller at Peru Moda trade fair PERU Workshop at a small Kyrgyz enterprise specialized in women apparel production KYRGYZSTAN SMEs. It contributed to upgrading the capacities of the staff and associates of the China Council for the Promotion of International Trade (CCPIT) to provide advisory services. It also worked directly with Chinese SMEs to improve their business strategies. A group of 21 enterprise management development advisers were certifi ed to deliver ITC training programmes in enterprise assessment and business strategy design. Based on the successful implementation of the programme, ITC has been approached to replicate the system in China through a franchising arrangement. GEORGIA ITC is supporting a project to strengthen the capacity of Georgian service providers and policymakers to analyse and develop trade development programmes. In 2010, the project conducted market profi le workshops in three regions of Georgia, trained service providers and policymakers in ITC market analysis and trade information tools, and prepared a concept document for trade development in Georgia. PERU ITC successfully updated the Peruvian National Export Plan in collaboration with the Ministry of Foreign Trade and Tourism. A second ITC project, funded by the Spanish Government, is strengthening the production activities of women in the textile and clothing sector of Arequipa. In 2010, this project, in coordination with the Commission for the Promotion of Peruvian Exports and Tourism, held workshops on design, product development and marketing in order to prepare participants for the presentation of their products at Peru Moda, an international fashion trade fair. Additional workshops, focusing on European and American markets, prepared enterprises for participation at future trade fairs in Paris and Las Vegas. ITC has developed a professional marketing and promotional package about the project and distributed it globally. Participating enterprises have experienced substantial growth in a relatively short time. Most enterprises have reported orders of more than US$ 200,000 following participation in Peru Moda. One company that had only one woman worker in 2009 has now hired 90. Of the 19 enterprises participating in the project, 15 expressed increased confi dence in applying design and marketing plans. This project was originally expected to be completed by end 2010 but has been extended to March ROMANIA In 2010, with ITC support, the Second National Export Strategy ( ) was fi nalized, along with an accompanying action plan to guide implementation. The new NES covers four regions, two more than previously. ITC provided assistance in two priority sectors: organics and garments. It contributed to launching the Romanian Organic Forum, a highly successful initiative that will continue without ITC assistance in the future. It also supported the launch of the Romanian Fashion Film Award, which will increase the visibility of Romanian fashion designers both at home and abroad. Enterprises in Romania now have access to trade information and export opportunities through the launch of a dedicated trade information portal ( An analysis of the portal s performance up to November 2010 showed positive and promising results. Awareness-raising activities targeting the business community have been undertaken, and the portal management team received training to maintain and improve the portal both technically and in terms of content and to ensure its sustainability. TAJIKISTAN AND KYRGYZSTAN With ITC guidance, stakeholders developed sector strategies to increase the competitiveness

35 ITC ANNUAL REPORT Pre-audit and fi nal audit of central laboratories TAJIKISTAN Craftswoman VIET NAM of the textile and clothing industry and improve the quality management infrastructure for textile and clothing in Tajikistan and Kyrgyzstan. Enterprises in the sector established the Association of Light Industry of Tajikistan. Selected enterprises and business service providers improved their sourcing, product development and design operations. Two Tajik laboratories dealing with products in the agroprocessing sector now comply with the requirements of ISO/IEC 17025, an international standard relating to laboratory accreditation, and have been accredited by the German Accreditation Body (DakkS), a full member of the International Laboratory Accreditation Cooperation (ILAC). The Kyrgyz Accreditation Centre is ready for pre-peer evaluation by ILAC. TUNISIA An ongoing ITC project in Tunisia has been improving the skills, capacities and networking capabilities of trade intelligence providers. It has been working through the Tunisian Trade Intelligence, Analysis, Economic and Vigilance Network (IAVEC), which was established in It holds regular meetings to agree on themes it may cover. With ITC support, the project put in place an IT platform to serve as a repository for all economic intelligence information. It also facilitated the preparation of two sector strategies for consulting services and agriprocessing. The strategies were prepared using ITC participatory methodology, which brings together representatives from the private and public sectors, civil society and academia. URUGUAY A project in Uruguay has strengthened the trade intelligence platform in the Ministry of Foreign Affairs. Through the development of information resources and tools such as a frequently asked question system, technical notes on international trade-related issues and access to international market studies on priority sectors for the country the platform is able to provide information not only to Uruguayan exporters, but also to potential partners abroad thanks to the development of a company directory based on the national classifi cation system. It also allows for greater transparency on foreign markets and more visibility to companies wanting to engage in international trade. The project is currently designing a system to improve understanding of companies needs and disseminate information to them more effectively, and to foster closer relationships with the business community. VIET NAM The programme in Viet Nam is developing better integrated, pro-poor and environmentally sustainable green value chains, enabling poor growers, collectors and producers to improve their products and to link them to more-profi table markets. ITC is the coordinating organization among several UN agencies operating under the One UN umbrella and other partners contributing to this programme. Following a participatory process, ITC contributed in 2010 to an improved understanding of the handicrafts and small furniture value chains in four provinces through the preparation of value-chain studies for bamboo/rattan, sericulture, sea grass, lacquerware and hand-made paper. ITC also contributed to an increase in incomes from sales of crafts by rural households and enterprises in the four provinces by supporting enterprises in developing new product collections and exhibiting these at Lifestyle Vietnam 2010, the country s fi rst international home décor trade fair. Organized by the Vietnam Handicraft Exporters Association, LifeStyle Vietnam is supported by ITC and will constitute an important component of the programme s trade promotion strategy in the future. A study visit to the Canton Trade Fair was organized for eight enterprises. Design and marketing support for an additional 18 enterprises is under way.

36 34 ITC ANNUAL REPORT 2010 STATUS OF PROJECTS Table 3 lists projects focused on export capacity building through integrated country solutions by their status within the project cycle. It does not include country projects in LDCs, LLDCs, SIDS and sub-saharan Africa. These can be found on pages Table 3: Export capacity building through integrated country solutions PROJECT / PROGRAMME Planned expenditure (gross) Delivery end Dec 2010 (gross) % spend OTHER COUNTRY FOCUS LAUNCH Georgia Capacity building in market analysis and trade information; trade development programme preparation Oman Centre for Investment Promotion and Export Development (OCIPED) feasibility study % % IMPLEMENTATION APEX Brazil Advisory services to build TSI capacity % Enhancing Arab Capacity for trade (EnACT) Algeria, Egypt, Jordan, Morocco, % Tunisia Export strategy design and management % Malaysia Global Information Hub on Integrated Medicine (GLOBINMED) % business information on traditional and complementary medicine Malaysia Strengthening the training department of the National Trade Promotion % Agency, MATRADE Peru Strengthening the export competitiveness of women entrepreneurs in the % textile and clothing sector in Arequipa Trade promotion in Kyrgyzstan % Trade promotion in Tajikistan % Tunisia Project for the Promotion of Tunisian Exports % Viet Nam One UN Green production and trade to increase income and employment opportunities for rural poor % COMPLETION Certifi ed trade advisers programme (CTAP) China % Eastern Europe Export development % Follow-up of the Trade-Related Technical Assistance Programme in Pakistan % Peru Programme development and support of the Peruvian national export plan % Training on foreign trade representation % Tunisia Strengthening the training department of the Ecole Supérieure de % Commerce et Technologie (ESCT) Turkey Strengthening the training department of the Export Promotion Centre of % Turkey (IGEME) Uruguay Upgrading of Ministry of Foreign Affairs trade intelligence platform %

37 ITC ANNUAL REPORT REGIONALLY STRUCTURED SOLUTIONS Where regional solutions respond to common trade challenges, ITC supports stronger links between and among countries. This requires introducing a regional dimension to export development by involving regional bodies, development banks, academic or vocational training organizations, chambers of commerce, sector associations and private-sector enterprises. Based on the experience of PACT II, ITC is also expanding the number of its largerscale regional programmes. This will facilitate the identifi cation of common opportunities and constraints, encourage regional partnerships, and contribute to regional and South-South trade. It will also allow for economies of scale, enabling ITC to share its knowledge and experience with a greater number of enterprises, support institutions and policymakers. LESSONS LEARNED Regional programmes have tremendous potential to achieve sustainable gains in export development while continuing to provide a challenge for delivery, both for ITC and its partners. The lessons learned in the implementation of the AAACP programme in establishing a coherent project framework with clear responsibilities for each of the multiple project partners must be more widely disseminated. Overemphasis on internal steering of projects and programmes can lead to resistance from local counterparts. ITC has learned to listen to its clients and is undergoing a shift in focus in the design and implementation of PACT II to ensure greater ownership by the regions themselves in planning, implementation and governance. This has slowed progress as the programme has had to be revised; however, ITC is confi dent that the shift toward greater local investment and ownership will lead to improved results in the longer term. Weakness in programme design places constraints on programme resources and implementation progress. The issue of overlapping regional groupings has emerged as a signifi cant challenge associated with developing regional solutions, one that affects a programme s scope, and thus its resources. ITC is aware of the challenge and will work in partnership with counterparts to fi nd solutions that take advantage of overlapping regions. AFRICA THE AFRICA PRIVATE SECTOR FORUM The Africa Private Sector Forum, jointly convened by ITC and the African Union Commission, brought together business leaders from within and outside Africa to discuss the development of African regional and global business partnerships. Participants examined business development solutions that would create an enabling business environment for trade and investment growth for African enterprises. They also identifi ed priority actions for implementation by the private sector, governments, regional economic communities and the African Union, and defi ned the follow-up required to link structures. This would include the establishment of an all-inclusive African Business Council based on public-private partnerships. The Forum showed that engagement with both the private sector especially with SMEs and the public sector is crucial for implementing the Aid for Trade agenda, which connects private and public sectors, large and small, to regional, national and

38 36 ITC ANNUAL REPORT 2010 Graduates of training in Tanzania ACCESS! II PROGRAMME Regional gender meeting of the UN and ITC PACT II PROGRAMME global players and promotes South-South business linkages. EXPORT PERFORMANCE AND A4T A4T has grown steadily over the past 15 years, accounting for more than 25% of all overseas development assistance by This rise in importance has sparked stakeholder interest in the relationship between export performance and A4T disbursements. In 2010, ITC began developing a methodology for country studies that captures the views of the private sector, in particular SMEs, on how A4T can be most benefi cial to their businesses. The country case study approach was pioneered in Uganda in collaboration with the Ugandan Export Promotion Board. The results, presented in October 2010 at a WTO workshop on Mainstreaming of Aid for Trade, were well received, and ITC was strongly encouraged to conduct similar studies in other countries. PROGRAMME FOR BUILDING AFRICAN CAPACITY FOR TRADE (PACT) There was a signifi cant increase in buy-in to PACT II by the regional economic communities. The three regional economic communities, COMESA, ECCAS and ECOWAS, together with their member countries, have shown strong interest and commitment in achieving PACT II objectives and making them sustainable. In 2010, PACT II strengthened the capacity of regional and national African institutions to take the lead in trade development and promotion and to enhance export competitiveness. Programme activities were implemented in partnership with COMESA, ECCAS and ECOWAS, always with a view to building sustainable trade development capacity as a step towards regional integration. The year saw increased emphasis on the programme s key outcome priorities. Some specifi c milestones included: Strengthening of the trade development and promotion capacities of regional economic community secretariats and TSIs; Increasing skills/know-how and practical application of RBM; Initiating enterprise- and sectorcompetitiveness and export strategies in the three regions; Mainstreaming trade development promotion for women. Staff members in the regional economic communities and TSIs were trained in RBM and export potential assessment and have begun to apply their newly acquired skills in planning and managing their regional programmes. Both COMESA and ECCAS now apply RBM principles in their planning, the former to design its Medium-term Strategic Plan , and the latter for its annual budget programming. In the case of ECOWAS, the Commission, member countries and their TSIs turned market analysis and research training into a new initiative for constructing a trade infrastructure combining an export competitiveness strategy with a trade experts network. The ECCAS Secretariat and the ECOWAS Commission both used export potential assessment reports to select priority sectors for regional trade development promotion. The programme facilitated the development of a coffee-sector strategy for the Central African region and a matrix for the leather sector in COMESA. A strategy for the mango value chain in the ECOWAS region is replicating these successes. PACT II also reinforced regional trade support and business networks to provide an effective interface between regional economic communities and the private sector as an outreach mechanism for trade development promotion. In Western Africa, the ECOWAS

39 ITC ANNUAL REPORT COMESA regional training of trainers for African businesswomen ACCESS! II PROGRAMME Ethiopia major achievements brochure ACCESS! II PROGRAMME Commission and member states formally endorsed the creation of the ECOWAS Trade Expert Network initiated with PACT II technical support. The network provides support to the Export Promotion and Enterprise Competitiveness for Trade (EXPECT) initiative and was launched by a group of TSIs and experts trained and coached in market analysis by ITC. PACT II also increased exports by SMEs through targeted sector-specifi c product and market development, and through gender-responsive business support to women entrepreneurs. Within the framework of activities aimed at the leather sector in Eastern and Southern Africa, a COMESA core team for leather was established as the consultative and advisory body to the Secretariat and other development partners, ensuring ownership and appropriate allocation of responsibilities among the relevant parties. ACCESS! The ACCESS! II programme formally established new partnerships with national institutions in the three regional economic communities covered by PACT II, and in three countries in the SADC and East African Community regions. It completed a comprehensive export training package, which it made available to African women exporters. It also has made special efforts to provide targeted information for trainers and women entrepreneurs on gender issues, environmental protection and the principles of RBM. Following the selection of national training teams, it organized three regional training for trainers events, which served not only to strengthen the training teams but also to consolidate technical and administrative relationships with partner institutions in the region. The success of this initiative has generated signifi cant demand to expand to other areas and to benefi ciaries outside of the regional economic communities. Institutional partners in Africa have also shown interest in fi nancing ACCESS! in their respective countries, and ITC has approached various donors to discuss the funding of programme replications. Linkages are being developed to other corporate programmes on gender mainstreaming, such as Women and Trade, both within and outside of ITC. SENEGAL, THE GAMBIA AND GUINEA BISSAU GROUNDNUT SECTOR REVITALIZATION The project s immediate objectives were to identify the constraints facing the groundnut sector in each of the three benefi ciary countries, and to recommend ways to address these constraints. In 2010, the project produced a detailed report on the cultivation, processing, marketing and export of groundnuts in the three countries. The report included an action plan for reviving the groundnut sector in each country, together with an indication of the resources required. ASIA AND PACIFIC ACCESS TO FINANCE IN SOUTH-EAST ASIA The Trade Finance Programme conducted a study on the feasibility of creating a regional trade fi nance centre responding to the needs of SMEs in the Asia and Pacifi c region. A detailed needs assessment was undertaken of the potential benefi ciaries in eight pilot countries (Bhutan, Cambodia, the Lao People s Democratic Republic, Nepal, Samoa, Tonga, Vanuatu and Viet Nam). The assessment identifi ed specifi c areas and sectors of the economies that would benefi t directly from access to a regional trade fi nance centre. In another initiative, ITC, in cooperation with the International Institute for Trade and Development in Bangkok and the Association of Development

40 38 ITC ANNUAL REPORT 2010 COMESA regional training of trainers for African businesswomen ACCESS! II PROGRAMME First Ministerial Conference on the Aid for Trade Roadmap for SPECA, Baku, Azerbaijan CENTRAL ASIA Financing Institutions in Asia and the Pacifi c (ADFIAP) in Manila, designed a strategy outlining steps to be taken in establishing a knowledge centre for fi nancial management and detailing the centre s potential as a unique forum for defi ning new initiatives for SME lending, sharing best practices for SME support and providing a wide range of coaching and capacity-building services adapted to the region s specifi c needs. A total of 110 development banks from 44 ADFIAP countries have endorsed this strategy and the proposed project for implementation. PACIFIC ISLAND NATIONS In 2010, ITC was close to completion of a project focused on women entrepreneurs from Pacifi c island nations, with the support of the Australian Agency for International Development. In partnership with the World Bank s International Finance Corporation, the project contributed to raising the awareness of its target audience to the opportunities offered by regional trade, and to the support services already available within the Pacifi c island countries. It strengthened both regional networks and business partnerships, while also fostering a promising mentoring system. The project has already enabled women entrepreneurs from Samoa and Vanuatu to secure trial export orders from buyers in New Zealand. To support and strengthen the trade capacity of women entrepreneurs, ITC formed partnerships with a number of regional institutions, national agencies and private-sector organizations. These included the International Finance Corporation, the Pacifi c Islands Trade and Investment Commission, Pacifi c Islands privatesector organizations, women in business associations, national chambers of commerce and small business associations. CARIBBEAN THE CARIBBEAN FORUM This large programme focuses on developing Caribbean creative industries as a viable export sector. Its three main activities are: Building the capacity of micro-, small- and medium-sized enterprises to respond to international market demands; Enhancing the capacity of partner TSIs to provide improved services; Increasing awareness of the sector. In 2010, the programme organized a study tour to Colombia to learn from that country s handicraft development. It provided information to stakeholders on entrepreneurial promotion policies and sectoral export promotion activities. It also mounted an implementation planning and assessment mission to Barbados, the Dominican Republic, Jamaica and Trinidad and Tobago. The programme will carry out a study on the contribution of the creative industries sector to the national economy of Trinidad and Tobago in 2011, in collaboration with the World Intellectual Property Organization. CENTRAL ASIA ITC continued to promote active private-sector engagement in A4T regional reviews during the year. As part of the United Nations Special Programme for the Economies of Central Asia (SPECA), it ensured the participation and meaningful contribution of the private sector at the fi rst Ministerial Conference for the Aid for Trade Roadmap for SPECA. In wide-ranging dialogue among business representatives from all seven countries concerned, there was agreement on the need to improve the business environment in the region, to overcome existing constraints to cross-border trading, and to step up trade within and outside the region.

41 ITC ANNUAL REPORT STATUS OF PROJECTS Table 4 lists ITC regionally structured solutions by their status within the project cycle and priority country focus. Table 4: Regionally structured solutions PROJECT / PROGRAMME Planned expenditure (gross) Delivery end Dec 2010 (gross) % spend PRIORITY COUNTRY FOCUS LAUNCH CARIFORUM creative industries promotion % Strengthening the pineapple export value chain in selected West African countries Business generation % IMPLEMENTATION Pacifi c private sector engagement in trade and Pacifi c Agreement on Closer % Economic Relations (PACER) Plus Programme for Building African Capacity for Trade Phase II (PACT II) % COMPLETION Africa and the Caribbean Trade facilitation programme development % Africa regional public-private forum on Aid for Trade % Expansion of intra- and interregional trade in the West African Economic and Monetary Union (UEMOA), the Central African Economic and Monetary Community (CEMAC), the Indian Ocean Commission (IOC) and the francophone Mekong % ITC Africa network of enterprise level trainers and advisers Pacifi c horticultural and agricultural market access (PHAMA) programme design % Promoting the voice of the private sector in Aid for Trade % OTHER COUNTRY FOCUS DESIGN AND PLANNING South East Asia Pilot for a regional SME fi nance and knowledge centre % LAUNCH Offi ce for Latin America and the Caribbean (OLAC) Regional Offi ce in Mexico % IMPLEMENTATION Commonwealth of Independent States (CIS) regional trade development Consultation and preparation of a concept paper % COMPLETION Mekong region Export programme development %

42 40 ITC ANNUAL REPORT GLOBAL PUBLIC GOODS FOR GLOBALLY ACCESSED SOLUTIONS To spread understanding of how markets work and promote market transparency, it is essential for developing countries to have access to global trade information. ITC is responding to this crucial need by expanding its provision of online information, including trade information, intelligence, and publications related to enterprise competitiveness, trade policy and business analysis. This will not only ensure wide access to information but will also bring about greater understanding of market intelligence as a public good. ITC continues to develop and deploy global training initiatives to support the creation and management of TSIs and SMEs, and to make the services they provide to exporting enterprises more effi cient. Following expert quality control of the training material, training is delivered through a global network of recognized partners and through an e-learning platform. ITC also organizes global events such as the World Export Development Forum (WEDF) and the World Trade Promotion Organization Awards. The 2010 WEDF was held in Chongqing, China, in September, and the 2010 Trade Promotion Organizations Network World Conference and Awards in October in Mexico City. LESSONS LEARNED The relative success of conferences and events should be measured by the benefi ts produced after the closing session. In order for major events to produce signifi cant benefi t for target groups, it is critical for them to be linked closely with other ITC programmes and priorities and seen within a wider context. The 2010 WEDF and TPO Network World Conference demonstrated that, with a focus on outcomes, events can have benefi ts beyond their short duration. Regular use of ITC online databases continued to increase signifi cantly in 2010, particularly by users in developing countries and LDCs, who made up 86% of total users. User profi les are highly diverse and, while the number of private-sector users has grown steadily, efforts will be made to continue this growth. ITC is responding to the need to improve its knowledge of emerging markets to assist developing country entrepreneurs in taking advantage of the burgeoning opportunities there. As demand for intelligence on emerging markets grows, ITC will need to continuously improve its knowledge and networks. BENCHMARKING The creation of a viable benchmarking tool and services for TSIs continued. ITC consulted widely on these issues and regularly tested concepts and operational procedures. In addition, it conducted test roll-outs of the current tool in a number of countries during the year and appointed a consultant to complete the development phase so that benchmarking could become operational as soon as possible. BUSINESS AND TRADE POLICY During the year, the Business and Trade Policy Programme expanded the scope of the Trade Policy for Business Managers modular learning programme by adding further modules and case studies refl ecting developments in the international trading system. The learning programme was delivered in fi ve countries during the year, and 300 business representatives were also trained in the context of fi ve WTO regional trade policy courses. A total of 25 policy makers were trained on the business implications of trade policy formulation and on the merits of interacting with the business community while designing trade policy and regulatory frameworks. The programme developed and disseminated new case studies on the fragmentation of trade and integration into global chains, including identifi cation of potential business opportunities stemming from the fragmentation process, and the implications of regional integration for the private sector, with a specifi c focus on textiles and clothing. Other programme activities in 2010 included: Testing and further improving the framework for ensuring coherence between national export strategies, trade policies and other trade-related regulations, and for bringing about sustainable export success in selected LDCs; Encouraging participation by the private sector in the preparation of regional Aid for Trade strategies and in Aid for Trade regional reviews;

43 ITC ANNUAL REPORT Supporting WTO acceding countries (Bahamas, Belarus and Tajikistan) in building stakeholder confi dence in their accession negotiations to WTO, by improving dialogue with the private sector, civil society and academic institutions; Distributing regular business briefi ngs to public and private stakeholders on subjects such as WTO (including latest news on the Doha round negotiations, accession, dispute settlement, trade remedies, intellectual property), regional integration, free trade agreements (including economic partnership agreements) and other trade news; Releasing a series of business briefi ngs on the implications of trade in services, technical barriers to trade and the views of private-sector organizations on the European Union s new General System of Preferences regime. MARKET NEWS SERVICE The Market News Service has a long history of providing weekly and monthly market information in a number of mainly agro-product sectors, with the aim of encouraging price and quality competition. With the market information provided, TSIs and enterprises can make informed business decisions. Following a review of the impact of the service, there were some signifi cant developments in The review confi rmed that the service was effectively supporting exports across a wide variety of enterprises. A new trade intelligence partnership with the Centre for the Promotion of Imports from Developing Countries is being explored. ITC is currently establishing formal partnership agreements with 20 TSIs that will act as information hubs. This will contribute to improved dissemination of trade information to assists enterprises in their day-to-day decision-making. MODULAR LEARNING SYSTEM SUPPLY-CHAIN MANAGEMENT (MLS SCM) The MLS SCM programme moved into its second phase, which comprises three interdependent modules involving: expanding and consolidating networks; developing new course material and improving existing material; and transforming the MLS SCM Learning Net website into a global leader in supply-chain management training for developing countries. During the year, the network was expanded to include 15 new institutions and nine new countries; 174 new trainers were trained; and close to 7,000 professional exams were taken (an increase of more than 50% over 2009). The programme launched two new training modules in English; updated one module; arranged for the translation of two modules into Spanish and six into French; had six workbooks and the answerbook translated into Chinese; and introduced the fi rst-level certifi cate in French. It also developed 12 new cases, games and training tools, offered online exams for the fi rst time, and completed the e-learning pilot and the fi rst phase of online reporting. NON-TARIFF MEASURES (NTM) ITC continued its work in 2010 on improving international transparency on non-tariff measures (NTMs) and researching how these are perceived by exporting and importing enterprises as obstacles to trade. Through this programme, ITC is collaborating with national partners and other international organizations to collect information on offi cial regulations on NTMs. These regulations will be accessible in early 2011 at ITC is also rolling out national surveys of enterprises experiences with NTMs, the fi ndings of which are shared through workshops with public- and private-sector stakeholders to facilitate dialogue and joint action on policies and programmes that address the key issues. The fi ndings have important implications not only for national trade policies but also for policies affecting the competitiveness of the domestic business environment and ultimately the ability of fi rms to export competitively. In 2010, the programme completed surveys of company experiences with NTMs in

44 42 ITC ANNUAL REPORT 2010 Burkina Faso, Morocco, Paraguay, Peru, Sri Lanka and Uruguay, and organized workshops in Burkina Faso and Sri Lanka to share results with public- and private-sector stakeholders. It launched additional surveys in Kenya, Malawi and Rwanda, and initiated surveys in Egypt and Mauritius. It collected offi cial regulations relating to NTMs for Hong Kong and Turkey; initiated the process for Burkina Faso, China, India, Malawi, Rwanda and Sri Lanka; and cooperated with the European Union Export Helpdesk for the classifi cation of European Union data. Furthermore, during the year it incorporated a gender dimension into its methodology in order to better understand the export activities of enterprises owned or operated by women. Results for Burkina Faso and Peru have been fi nalized to date. ONLINE DATABASES ITC continued to expand its network of international data providers to maintain the granularity, or level of detail and precision, of data and the frequency with which they are updated in the organization s online databases. There was a further signifi cant increase in the total number of registered users to more than 130,000, and the wide geographical spread of users was maintained, with the numbers from developing and least developed countries increasing to 86% of the total. Over the three-year period that ITC tools have been supplied free to LDCs and other developing countries, the number of countries and territories using them has grown substantially: from around 75 at the beginning of 2008 to almost global penetration at 224 countries and territories by December Private-sector users grew to 28% of the total, with SMEs representing more than two thirds of those. In an online survey of users in mid-2010 (to which 4,558 usable responses were received) respondents scored the tools 84 out of 100 in terms of the infl uence they had on the services they deliver, and 73 in terms of the impact they had on their export/import activity. When respondents were asked to consider the decisions they had made using ITC market analysis tools, and to quantify the turnover resulting from these decisions, their answers revealed an aggregate impact of US$ 2.7 billion. Other developments during the year included: The successful update of data in Trade Map, with annual 2009 data reported by 133 countries, and 110 of these reporting their data at the most detailed product level, the national tariff line. For data relating to 81 countries, monthly or quarterly updating continued. The frequency of Trade Map updating also increased in The Trade Map server and software were updated, bringing further effi ciencies. To facilitate access for users in low-bandwidth countries, ITC created a Trade Map light version, which has improved response times. Market Access Map data were also upgraded, with 188 countries now reporting their applied tariff data, and 74 of these with sameyear 2010 tariff data. Among these were the world s biggest markets including the United States, Europe and China. ITC continued its collaboration with the World Bank in 2010 on the development of the new application to replace the Market Access Map and the World Bank s World Integrated Trade Solution application. Investment Map was updated, enabling 2009 or 2008 aggregate foreign direct investment (FDI) infl ow data to be available for 195 countries. Of these, 80 countries showed FDI infl ows detailed by industry. As part of its collaborative agenda and as in previous years, ITC contributed trade and market access data and indicators to the World Bank s World Trade Indicators publication, to the World Economic Forum s Global Enabling Trade Report, and to World Tariff Profi les, jointly published by ITC, UNCTAD and WTO. It also maintained updates to the monitoring of market access indicators relevant to MDG 8 (a global partnership for development). It organized more than 40 workshops during the year to build market analysis and research capacities, with trainees mainly from LDCs and Africa. In addition, it upgraded the content of the market analysis training in line with new methodologies. This included the development of multimediarich training materials for use in distance and blended learning environments.

45 2010 ADVISING, EMPOWERING & INSPIRING TRADE 2010 ADVISING, EMPOWERING & INSPIRING TRADE 07 10: WORLD VIEW ENVIRONMENTAL CRISIS : PHOTO ESSAY WASTE TO CLEAN ENERGY IN INDIA GROWTH & INNOVATION IN A CLIMATE OF CHANGE 2010 ADVISING, EMPOWERING & INSPIRING TRADE 2010 ADVISING, EMPOWERING & INSPIRING TRADE PAGE 08 PAGE 09 PAGE 20 PAGE 06 ITC ANNUAL REPORT SHIFTING MARKETS INTERNATIONAL TRADE GLOBAL VALUE CHAINS INTERNATIONAL TRADE FORUM EMERGING MARKETS & THE FUTURE DIRECTION OF SOUTH SOUTH TRADE ISSUE 1 CLIMATE CHANGE & TRADE INTERNATIONAL TRADE FORUM QUALITY & STANDARDS SustainabiliTEA INTERNATIONAL TRADE THE STATE T OF WORLD TRADE GLOBALIZATION IN THE ERA OF QUALITY CONTROL SPECIAL WEDF & TPO REPORTS MY CLIMATE FROM ORGANIC STANDARDS & TRADE MEETING & INFLUENCING GLOBAL STANDARDS Regional Roundtable for Africa in Kenya MLS-SCM PROGRAMME Magazine covers INTERNATIONAL TRADE FORUM TRADE FOR SUSTAINABLE DEVELOPMENT (T4SD) Exporters, producers and retailers can now sort through a complex landscape of voluntary sustainability standards with the Trade for Sustainable Development website Standards Map ( It is aimed at exporters and producers in developing countries, addressing issues such as: The private or voluntary standard certifi cation schemes currently operating in a country; The cost of obtaining certifi cation to the various schemes; The requirements of various schemes. The 30 standards or codes of conduct available for comparison on the Standards Map website operate in over 180 countries and collectively certify more than 60 product groups. Additional standards will be added in 2011 and the site will be translated into French and Spanish. Sustainability standards were the topic of a conference jointly organized with the Friedrich- Ebert Foundation in July. Participants discussed the most pressing issues and initiatives in the area of voluntary sustainability standards. The project also contributed to the content and launch of the State of Sustainability Report published by the International Institute for Sustainable Development. During the year, the project continued its close collaboration with the ISEAL Alliance, and the Committee on Sustainability Assessment. TRADE FORUM ITC produced four issues of Trade Forum in 2010, in English, Spanish and French, in print and online versions. It also took the redesign and repositioning of the publication, initiated in 2009, one step further: the new design comprises a clearer structure and overview, allowing, among other things, more space for the forum letter by the ITC Executive Director. Topics featured in 2010 ranged from growth and innovation in climate change and trade, to South-South trade as the future direction of emerging markets, and the wide range of global standards and global value chains. Contributors included directors from the private sector, ministers, heads of international organizations and NGOs, as well as internationally recognized experts in trade and development. While readership of the print versions of Trade Forum has remained steady, there was an increase of around 2,500 visitors to the online version ( in 2010, with 72,505 unique visitors. TRADE LAW ITC continued to extend its support for the legal aspects of trade. It revised the LegaCarta database of multilateral trade treaties and instruments and updated it monthly, thus providing a valuable service for organizations from developing countries. ITC also continued to assist TSIs in developing a better understanding of contractual requirements and models for exporting SMEs, using ITC model agreements. It offered training on model contracts for SMEs in one pilot country and completed a training package on establishing commercial mediation services and on mediators training. At least two commercial mediation centres in pilot countries are now better informed and equipped to respond to the needs of SMEs for quick and inexpensive out-of-court dispute resolution processes, especially mediation.

46 44 ITC ANNUAL REPORT 2010 Standards Map homepage TRADE FOR SUSTAINABLE DEVELOPMENT (T4SD) Group photo TPO NETWORK WORLD CONFERENCE AND AWARDS TRADE LEADERS PROGRAMME During the year, ITC launched and completed its inaugural Trade Leaders Programme, sponsored by the Canadian International Development Agency. Three trade leaders, from Burkina Faso, Kenya and Malawi, took part in the six-month work and training programme in Geneva. The programme was designed so that participants could lead trade development initiatives in their own countries by applying their newly acquired knowledge, networks of contacts and work experience. The participants will act as ambassadors of the ITC mission to generate Export Impact for Good and will support building long-term partnerships between ITC and national partner institutions. The trade leaders worked mainly on market analysis and research but also engaged with other ITC programmes, including Women and Trade. They received a strong grounding in the fundamentals of traderelated analysis, enabling them to identify opportunities to improve national export performance through product and market diversifi cation and have a clearer understanding of market access opportunities and obstacles. TPO NETWORK WORLD CONFERENCE AND AWARDS The TPO Network World Conference and Awards event in Mexico attracted more than 150 senior participants from 60 countries. There was good attendance from LDCs, developing and developed countries, which facilitated successful networking among TPOs. TPOs discussed their approaches to enhancing their impact through service selection and delivery, as well as the methods they employed to measure their effectiveness. From a quality pool of candidates, the judges selected three TPO Network Award winners: Enterprise Mauritius; Apex-Brasil; and UK Trade and Investment. At the Conference members also agreed a formal mandate to establish a TPO network based on regional networks of TPOs, as well as a governance structure for the network, which will allow the TPO Network to become more self-sustaining. ITC supported a revamped TPO network website, which was launched in 2010, and is also preparing a best practice publication for release in 2011.

47 ITC ANNUAL REPORT TPO Award winners with ITC s Executive Director TPO NETWORK WORLD CONFERENCE AND AWARDS Yi Xiaozhun, Vice Minister of MOFCOM, Wang Jinzhen, Vice-Chairman of CCPIT and Balasubramanian Muthuraman, Vice-Chairman of Tata Steel. WEDF WORLD EXPORT DEVELOPMENT FORUM (WEDF) The 11 th WEDF took place in Chongqing, China, in September. With more than 300 delegates from 48 countries attending, it was the largest WEDF during the 11 years that ITC has been organizing the event. Participants expressed optimism about trade growth in the post-crisis era and reaffi rmed their commitment to the export-led growth model. The meeting concluded that there were still many business opportunities to be exploited. The large emerging economies needed to balance the growth of domestic demand with boosting exports. For enterprises and countries, the focus should be on terms of trade improvement and export diversifi cation. Regional integration continued to have a vital role, particularly in Africa and small island regions such as the Caribbean and the Pacifi c. South-South trade would become one of the most important drivers for trade and growth in the foreseeable future, with long-term incentives having a role. Trade in services would expand and tourism represented an easier entry point for many least developed countries. As a result of WEDF, ITC has now formed a new working relationship with Chongqing and consolidated its working relationships with the Chinese Ministry of Commerce and the China Council for the Promotion of International Trade. During WEDF, ITC created the Chongqing Platform for Action on Sourcing from Women Vendors, to increase women s share of corporate, government and institutional procurement. Members include Boeing, Dell, Accenture and Walmart enterprises that are actively seeking to source from women s business enterprises and interested governments such as China, India and Jamaica. The bridges built between corporations seeking to source specifi cally from women business owners have continued to grow in projects across ITC. Understanding supply-chain management is critical for the success of all enterprises, including those owned by women. ITC PUBLICATIONS In 2010, ITC released the fi rst in a series of fl agship publications on Market Access, Transparency and Fairness in Global Trade: Export Impact for Good 2010 and three new business guides for entrepreneurs and TSIs (see next page). These publications, available free online, are practical and accessible resources to enable businesses to navigate the maze of trade rules and regulations and seize new opportunities.

48 46 ITC ANNUAL REPORT 2010 MARKET ACCESS, TRANSPARENCY AND FAIRNESS IN GLOBAL TRADE EXPORT IMPACT FOR GOOD 2010 As part of a series on market access issues, this report focuses on the role that improved market entry and trade transparency can play in reducing poverty in developing countries. It argues that a further reduction of trade barriers among developing countries is essential. Applying a new methodology, it offers estimates of global poverty distribution and the impact of export growth on poverty. ISBN: BUILDING LINKAGES FOR EXPORT SUCCESS TRADE PROMOTION ORGANIZATIONS AND NATIONAL STANDARDS BODIES WORKING TOGETHER This handbook explores the different ways that closer collaboration between national standards bodies (NSBs) and trade promotion organizations (TPOs) can support and enable export enterprises. A joint publication of ITC and the International Organization for Standardization, the handbook was written for offi cials working for NSBs, TPOs or government agencies whose responsibilities include international trade. ISBN: MODEL CONTRACTS FOR SMALL FIRMS LEGAL GUIDANCE FOR DOING INTERNATIONAL BUSINESS Small fi rms in developing and transitional countries often have limited ability to access legal advice and are under pressure to cut costs. Recognizing that access to model contracts could encourage small fi rms to expand their businesses beyond borders and could ensure successful agreements, ITC has made quality model contracts available for free to small fi rms around the world. Nine contracts have been developed, covering the main international transactions ranging from a simple sale of goods to the establishment of a joint venture. ISBN: WORLD TARIFF PROFILES This annually updated publication provides a comprehensive picture of tariff profi les from around the world in an abridged format. It shows summary statistics for all WTO members and other countries, and customs territories for all products. ISBN: THE WORLD OF ORGANIC AGRICULTURE This 11 th edition, published jointly by ITC, the Research Institute of Organic Agriculture and the International Federation of Organic Agriculture Movements, documents recent developments in global organic agriculture. It includes contributions from representatives of the organic sector worldwide and provides comprehensive organic farming statistics. ISBN:

49 ITC ANNUAL REPORT TECHNICAL PAPERS ITC also issues technical papers on diverse topics. In 2010 these included: In trade analysis, the revised Trade Analysis System on CD-ROM provides fi ve years of revised import and export statistics covering 200 countries and territories, broken down into some 5,000 products, for the Harmonized System and the Standard International Trade Classifi cation. In market development, ITC developed The Coffee Sector in China: An Overview of Production, Trade and Consumption, which comprises information on coffee production, export, import, processing and consumption in China. There were also papers on leather and leather products, clothing and agrifoods from Africa. Climate Change and the Coffee Industry describes different strategies and solutions for adaptation to climate changes and measures to reduce greenhouse gas emissions. Trends in the Trade of Certifi ed Coffees is a guide to the main sustainability certifi cation and verifi cation schemes and presents an overview of the market trends for coffee certifi ed as sustainable over most of the past decade. The online Cotton Exporter s Guide is a dynamic, interactive trilingual version of the printed Cotton Exporter s Guide. It aims to increase the exchange of information in the sector and improve the skills and abilities of developing countries in cotton trading and marketing. For packaging, guides were created on processed food and sub-saharan Africa. On environmental issues, along with a technical paper on climate change and the coffee industry, papers were issued on exporting green business solutions from developing countries (Thailand), and on green technology and related services (Cambodia). ITC issued six reports on inclusive tourism, including on building local capacity for the tourism job market and linking various sectors such as artists, business and agriculture to tourism markets. A study on Increasing Access to Credit Reforming Secured Transaction Law invites national legislators as well as all those involved in enhancing the national business environment to consider secured fi nancing schemes that will allow an increase in the amount of credit offered to SMEs. A study on the challenges facing regional information networks was carried out under PACT and issued under the title Networking or Notworking: Trade Information Networks Learning from Experience. Approaching Organic Buyers Directly focuses on a May 2009 survey of European importers of organic products with the objective of identifying importers main requirements when approached by exporters, highlighting ways in which exporters can improve the information that they provide when contacting buyers directly. Three technical papers were issued focusing on South Africa: South Africa: A Potential Market for Agri-food Products from Africa aims to guide exporters in developing countries mainly in Africa on how to access the newly emerging agrifood market in South Africa; South Africa: A Market for Clothing from Africa describes some attractive niche market opportunities and highlights some issues critical to entering the South African market that are especially relevant to African exporters; and South Africa: Market Opportunities for Leather and Leather Products from Africa uncovers a growing import potential for leather articles such as clothing, handbags and accessories. In trade information, ITC published its Online Market Research 2010 CD-Rom comprising several hundred market research papers presented by sector. A wide range of bulletins and newsletters were also issued.

50 48 ITC ANNUAL REPORT 2010 STATUS OF PROJECTS Table 5 lists ITC s global public goods by their status within the project cycle and priority country focus. Table 5: Global public goods for globally accessed solutions PROJECT / PROGRAMME Planned expenditure (gross) Delivery end Dec 2010 (gross) % spend PRIORITY COUNTRY FOCUS COMPLETION Trade leaders of Africa training in market analysis and research % OTHER COUNTRY FOCUS LAUNCH LoanCom maintenance % IMPLEMENTATION Business and trade policy % Enterprise Competitiveness Section Revolving Fund % Export quality management product portfolio and services expansion % partnership with ISO Legal aspects of foreign trade % Market News Service % MLS SCM Revolving Fund % Non-tariff measures increasing transparency and understanding % Revolving fund for market analysis and research % Modular Learning System in Supply Chain Management (MLS SCM) % Trade for sustainable development (T4SD) % Trade information services revolving fund % TSI Revolving Fund % World Trade Promotion Organization conference and awards % COMPLETION Senior Adviser, Supply Chain Management % ITC ILO joint training programme to strengthening employers organizations % Revolving Fund on the 'World Trading System' % 2010 World Export Development Forum China % World Export Development Forum %

51 ITC ANNUAL REPORT Vivienne Westwood s Ethical Fashion on the catwalk in Paris ETHICAL FASHION PROGRAMME Designer Ilaria Venturini Fendi, founder of Carmina Campus, working with locals in Kenya ETHICAL FASHION PROGRAMME 5 TARGETING THE MILLENNIUM DEVELOPMENT GOALS All ITC work contributes to MDG 8 (global partnerships for development). ITC has a proven track record in supporting countries in using trade for more sustainable development, including alleviating poverty (MDG 1), empowering women exporters (MDG 3), addressing environmental standards in trade (MDG 7) and supporting post-confl ict trade development. ITC promotes the exchange of good practice in export development, targeting sustainable economic growth and achievement of the MDGs. Using project design and quality assurance tools, it designs projects that systematically tie trade and export goals to internationally agreed development objectives with the aim of achieving Export Impact for Good. LESSONS LEARNED Key impact areas in regional strategies have been identifi ed on the basis of their potential contribution to achievement of the MDGs. In 2010 several MDG-focused projects were in their inception phase. This has been demanding and has proved to be a steep learning curve for the organization. ITC is confi dent that the investment in learning will pay dividends during implementation of these projects. MAINSTREAM- ING MILLENNIUM DEVELOPMENT GOALS IN ITC ITCs Strategic Plan clearly sets out the organization s commitment to supporting countries in achieving their MDGs through trade. In 2010, ITC focused on highlighting the importance of trade for the achievement of all the MDGs in discussions at the MDG World Summit. It also formulated its regional strategies for trade support in 2011, taking into consideration partner countries trade-related priorities as outlined in the Follow-up to the outcome of the Millennium Summit. At the Summit, world leaders committed to accelerating progress towards the achievement of the MDGs by 2015 by further implementing Aid for Trade [...] to help strengthen and enhance the trade capacity and international competitiveness of developing countries so as to ensure equitable benefi ts from increased trading opportunities and to foster economic growth (Keeping the promise: united to achieve the Millennium Development Goals, A/65/L.1, p.30). ETHICAL TRADE The Ethical Fashion Programme now links more than 5,000 people from marginalized communities in East Africa with large fashion houses. The majority are women who can now cater for their basic needs, are gaining skills as artisans, and have also improved their social status, health and housing as well as their children s education. This programme is currently at such a mature level that ITC has assisted with the development of a catalogue from which large distributors and event organizers can purchase a range of products. Another dimension was added to the project when the fi rst top fashion collection made from recycled materials was produced in Kenya. ITC also entered into a partnership with the Fair

52 50 ITC ANNUAL REPORT 2010 Burundi patchouli fi eld EPRP/TPRP PROGRAMME Burundi lime distillation EPRP/TPRP PROGRAMME Beads MOZAMBIQUE CREATIVE INDUSTRIES Labour Association and carried out risk mapping on fair-labour conditions with communities involved in the ethical fashion approach. The focus of ITC work in 2011 will be on the full transfer of responsibility to a local trust and local management. ITC advisers investigated opportunities to replicate the East African experience in West Africa by adapting the approach to the local circumstances and other market options. A full project proposal is being prepared, with project start-up anticipated for EXPORT-LED POVERTY REDUCTION PROGRAMME (EPRP) / TOURISM- LED POVERTY REDUCTION PROGRAMME (TPRP) EPRP makes the benefi ts of export opportunities available to the poorest and most vulnerable communities whereas TPRP ensures that this target group enjoys a share of the profi ts from the tourism sector. In Burundi, EPRP trained 50 farmer families and encouraged them to join patchouli cooperatives; subsequently, these cooperatives concluded sales of this essential oil to an international buyer. In Brazil, in collaboration with Sebrae, an organization that provides support for micro and small businesses, TPPR established two capacity-building projects funded by Banco Santander and launched a capacity-building programme in the tourism sector. The programme has trained 600 people in hospitality management, 420 of whom are now directly employed by the new Grand Palladium Resort and Spa Imbassaí (Grupo Fiesta). With ITC support, a new TSI was established to cooperate in similar socio-environmental projects nationwide. In Mozambique, TPRP completed a new project assessment in partnership with the Ministries of Agriculture and Tourism, the Netherlands Development Organization, the Danish-funded Support for Private-sector Initiatives in the Agriculture Sector programme, Lupa (a local NGO) and Pick n Pay (a supermarket chain). A memorandum of understanding was prepared for training poor people in tourism-related skills and strengthening the capacity of Mozambique s National Institute of Tourism as a support institution. As part of its efforts to link support for poor communities to export markets, ITC is integrating the experience of EPRP and Ethical Fashion into a single framework for future projects. The aim is to build on previous successes and to maximize the benefi t of access to additional ITC expertise and experience. Progress on these developments will be reported in the 2011 Annual Report. MOZAMBIQUE CREATIVE INDUSTRIES This joint programme with UNDP promoted cultural and creative industries in order to further social and economic development in Mozambique. The programme supported the craft and music sectors by increasing access to vocational and business training, improving the quantity and quality of services and goods, and strengthening marketing at various levels. A two-day workshop was held on contracts for artisans and musicians in Maputo in November.

53 ITC ANNUAL REPORT Kabaale Katuna and stakeholder workshop UGANDA WOMEN TRADING ACROSS BORDERS Supporting African companies to compete in sustainable markets TRADE, CLIMATE CHANGE AND ENVIRONMENT PROGRAMME PACT II ACCESS! During 2010, ITC launched ACCESS! II for African Business Women in International Trade. This fl agship vocational training programme addresses the specifi c export challenges of African women entrepreneurs. Delivered to partner institutions and trainers from 19 countries during the year, it provides knowledge acquisition through training, which, complemented with business counselling support, provides better opportunities for women in business to reach the MDGs. The exporttraining package for women entrepreneurs contains 30 training modules and PowerPoint presentations (all in French and English) covering export strategies, capabilities, transactions, management and sector dimensions. TRADE, CLIMATE CHANGE AND ENVIRONMENT PROGRAMME The three-year Trade, Climate Change and Environment Programme (TCCEP) supports SMEs and TSIs in developing countries to strengthen their competitiveness in environmental niche markets, particularly in sustainable agriculture and biodiversity-based products. The Programme also addresses the interface between trade and climate change and mainstreams environment into ITC s operations and policies. In 2010, ITC supported four Ugandan agri-food exporters in meeting organic market requirements and participating in the Biofach trade fair in Germany. Exporters and TSIs in eastern Africa were also sensitized to product carbon footprinting methodologies through a workshop held jointly with the Swedish Institute of Standards, ISO and the Kenya Bureau of Standards. The TCCEP published three technical papers Trends in the Trade for Certifi ed Coffee, Climate Change and the Coffee Industry and Approaching Organic Buyers Directly. Articles on climate change and trade were also published in the UNCTAD Trade and Environment Review and the ITC International Trade Forum. ITC completed its draft Greenhouse Gas Emissions Reduction Strategy (ERS), which identifi es key actions to reduce emissions in its operations. This strategy will be approved and rolled out in A further project is establishing a global Internetbased information system that will support government decision-makers, development agencies and NGOs in the sector by providing easy access to organic market and production data. ITC implemented the project with the Research Institute of Organic Agriculture, completed the collection of data and published it in the World of Organic Agriculture These data were also presented on a dedicated website. UGANDA WOMEN TRADING ACROSS BORDERS This pilot project is working to build the capacity of Ugandan women who are informal cross-border traders to increase their exports to neighbouring countries by reducing and eliminating trade facilitation impediments at key border points. The project launch and stakeholder workshop took place in Kampala in November, opened by the Minister of State for Tourism, Trade and Industry. ITC organized trade facilitation capacity-building training workshops for the traders at the Uganda- Kenya border and at the Uganda-Tanzania border, and is planning two further training workshops, again one at each border. Approximately 140 traders, along with representatives from the trade facilitation and border agencies and the business community, have participated.

54 52 ITC ANNUAL REPORT 2010 Public- and private-sector leaders supporting launch of Platform for Action WOMEN & TRADE PROGRAMME Signing of the MOU between ITC and DFID WOMEN AND TRADE PROGRAMME WOMEN AND TRADE The Women and Trade programme has four components: Empowering women in the coffee sector; Linking women business enterprises to corporate and institutional buyers; Building capacity to address gender-based trade constraints; Improving gender mainstreaming in ITC. In 2010, the programme established formal ties with WEConnect International, a network of mainly Fortune 500 enterprises actively seeking to source from women business owners. ITC also signed a memorandum of understanding with the International Federation of Business and Professional Women, under which it prepared a survey for the Federation s 33,000 members to determine in which sectors members are actively exporting. The results of the survey are being used to link buyers to sellers in selected sectors and to prepare them to participate in the fi rst meeting of buyers and sellers held as a followup to the launch of the Chongqing Platform for Action on Sourcing from Women Vendors during WEDF Women from the ITC coffee programme in Africa, those involved in the alpaca sector in Peru, and others will have the opportunity to participate in this event. ITC also held an expert roundtable meeting on the gender dimension of Aid for Trade, resulting in 18 case studies detailing measures taken and impact achieved from projects and programmes targeting women and/or gender mainstreaming. The meeting s purpose was to determine how women in trade could best be integrated into and benefi t from Aid for Trade. This meeting, jointly organized by ITC and WTO with support from the Governments of Rwanda and the United Kingdom, led to calls for a sharper focus on gender in the 3 rd Aid for Trade Global Review. In 2010, the women in the coffee sector component of the programme supported groups in Burundi, Kenya, Rwanda and Uganda in becoming chapters of the International Women s Coffee Alliance (IWCA). All four groups are scheduled to become full members during The programme produced a fi lm illustrating the cooperation between women s groups in Eastern Africa and IWCA, covering IWCA guidance on the ground in fi ve countries. It also conducted a survey on credit and savings schemes for women in the coffee sector in Africa. The programme has started to prepare for a second phase of the women in the coffee sector component ( ) covering: Establishment of additional associations (IWCA chapters); Branding of coffees with a signifi cant women component; Training of women in the coffee sector; Cooperation with credit and savings schemes. The programme has also implemented a third component: building capacity to address gender-based trade constraints. Programming was infl uenced by the inclusion of gender mainstreaming in the Rwanda diagnostic trade integration study (DTIS) and in the DTIS template overall. Gender was also included in planning for the NES in Jordan and Yemen, and in valuechain analyses in the East and Central African coffee sector. ITC is taking steps to mainstream gender concerns to ensure that all its programmes, projects and activities benefi t women as well as men. It has conducted a baseline assessment of its portfolio, developed a draft gender mainstreaming policy, and set up a gender working group to refi ne and fi nalize the policy. Since the baseline is 2010, progress against the outcome of this process that is, increased evidence of gender mainstreaming through the gender assessment will be measured for the fi rst time in 2011.

55 ITC ANNUAL REPORT STATUS OF PROJECTS Table 6 lists ITC projects that target specifi c MDGs relating to poverty reduction, women and the environment by their status within the project cycle and priority country focus. Table 6: Targeting the Millennium Development Goals PROJECT / PROGRAMME MDG Planned expenditure (gross) Delivery end Dec 2010 (gross) % spend PRIORITY COUNTRY FOCUS DESIGN AND PLANNING Fairtrade Labelling Organization partnership Poverty Alleviation % LAUNCH Trade facilitation Facilitating women informal cross-border trade in Uganda Women % Ghana Pilot project fashion supply chain Poverty Alleviation % IMPLEMENTATION ACCESS! II for African business women in international trade Women % Ethical fashion East Africa Poverty % Alleviation Women and trade Empowering women in the coffee sector Women % COMPLETION Ethical fashion Strengthening the fair labour and environmental approach Poverty Alleviation % OTHER COUNTRY FOCUS DESIGN AND PLANNING Trade, climate change and environment programme Environment % LAUNCH Women and trade Linking women business enterprises to corporate and institutional buyers Women % IMPLEMENTATION Global information system for organic market and production data Environment % Export-led and tourism-led poverty reduction programmes Poverty % Alleviation Women and Trade Gender training Women % Women and Trade Improving Gender Mainstreaming at ITC Women % Women and trade Building the capacity to address gender-based Women % trade constraints Consultant on Gender in Trade programme development Women % COMPLETION Technical assistance programme Support to export development of Indian natural medicinal products Environment %

56 54 ITC ANNUAL REPORT 2010 INTERNAL ORGANIZATIONAL RESPONSES To create a more effective organization, ITC launched a process of continuous improvement based on the evaluation of the organization conducted in This internal response forms a critical component of the work commitments set out in the Strategic Plan It is funded and receives staff input at the same time as ITC delivers an expanded trade-related technical assistance programme to partners. Striking a balance between these competing pressures was a key concern of senior management in 2010 and will continue to be so in future years. In this Annual Report, we cover the six Internal Organizational Responses in one single chapter. LESSONS LEARNED By implementing UN-wide systems, ITC has learned from the experience of other agencies and gained from economies of scale. Nevertheless, progress has been protracted and cross-agency cooperation has been complex. Close coordination with the UN Board of Auditors and UN Headquarters in New York is necessary for successful implementation. ITC IT infrastructure is more aligned with the organization s business thanks to a partnership approach between the IT section and those leading the processes. Once ownership and responsibility are agreed, implementation tends to be much smoother. ITC must also drive its culture change and increase its staff training effort to strengthen the ownership of corporate initiatives and improve the effi ciency and effectiveness of delivery in the fi eld. 6 FOCUSING ON OUTPUTS AND IMPACT OUTPUT INDICATORS ITC s Strategic Plan identifi ed a number of output indicators to complement those detailed in the Strategic Framework as part of the RBM performance monitoring process. ITC began implementing the output indicators in This process will continue in 2011, and they will be used from the biennium onwards. EVALUATION In 2010, ITC received two evaluation reports funded by donors (Romania National Export Strategy; and Sri Lanka trade). Responses and action plans will be assembled and implemented in PLANNING AND PERFORMANCE ITC continued to refi ne its planning processes in The Operational Plan 2010 was published and presented to the Consultative Committee for the ITC Trust Fund for the fi rst time. The Consolidated Programme Document 2010 benefi ted from intensive discussions with regional stake-holders during its compilation. ITC decided that it would not revise the Strategic Plan as it considered that circumstances remained consistent with the plan s timeframe. Management maintained the monthly monitoring process started in 2009 related to all projects. Senior management adjusted the process each month in light of experience in order to meet delivery targets.

57 ITC ANNUAL REPORT AN EFFECTIVE ORGANIZATION 8 LEVERAGING RESOURCES 9 UPGRADING FINANCIAL MANAGEMENT ITC started 2010 with an ambitious organizational development programme as set out in the Operational Plan Progress was made in a number of areas, including in upgrading the formal working relationship with key international partners. RESULTS-BASED MANAGEMENT RBM was an area of priority focus for ITC in Donors and benefi ciaries are all seeking improved value for money. ITC has shifted the emphasis from outputs to the outcomes and impact of its programmes and projects, while expanding the project portfolio and delivering more advisory support. It has also paid attention to improving project design to clarify objectives for itself and partners and ensuring that delivery targets are met and that projects have a clear focus on impact. The Project Quality Assurance Group was set up in 2009 as a project design advisory service and ITC continues to develop capacity to manage a larger project portfolio in response to client demand, thus requiring access to increased levels of extrabudgetary funding. The organization has strengthened existing donor relationships to secure more predictable and longer term funding. New strategies have been pursued to exploit opportunities available through the UNCTAD Cluster, the EIF and the One UN programme, and to build strategic ITC has already improved its fi nancial reporting signifi cantly, but in the coming years will direct greater attention to linking the outputs, outcomes and impact with its expenditure of resources. As the present enterprise resource planning (ERP) system dates back to the early 1990s, successful linking will be contingent on the deployment of a new ERP system, planned for implementation in In the interim, ITC will work towards this goal within the framework established by the United Nations. Monthly and quarterly fi nancial reports highlight matters requiring management attention and have enhanced management discussions and facilitated informed decision-making. Monthly fi nancial reporting to management has also quality assurance mechanism. In 2010, ITC accelerated the implementation of its projectcycle management system. Creation of the Group led to the design of a clear and comprehensive process for project design and quality assurance, which was accompanied by a set of user-friendly guidelines and templates to be used across the organization. In order to gauge the success of the Group and the new guidelines, ITC will measure improvements in project design and implementation from 2011 onwards. Early indications in 2010 suggested positive change with respect to the quality of project design. The Management Action Group, established in early 2010 as a successor to the G19 Group of Senior Managers, provides a forum for ITC directors and section chiefs to address key managerial issues and develop solutions. It established a system of identifi ed delivery days as a mechanism to review and advise project managers on how to tackle implementation and strategic challenges. partnerships with regional development banks, bilateral development programmes and others. A critical challenge for the future is to ensure a balanced approach so that the infl ow of extrabudgetary resources remains in line with the capacity of ITC to deliver. With long project cycles, often over four or fi ve years, this task will demand signifi cant management attention. This should be facilitated with the recruitment of a new Divisional Director responsible for planning. resulted in effi cient management of extrabudgetary resources, especially the ITC Trust Fund (ITF) W1 (soft and un-earmarked contributions). Better cash-fl ow forecasting has resulted in better resource planning and availability. The level of unliquidated obligations for prior years has also decreased. Preparation for implementation of IPSAS is progressing in coordination with the United Nations. Discussions are continuing on the impact of the main ITC currency being Swiss francs on the design of the United Nations ERP and the resulting costs. Training on IPSAS also began with the fi rst two computer-based modules being mandatory for all DPS staff and all ITC directors and chiefs of sections.

58 56 ITC ANNUAL REPORT INVESTING IN PEOPLE In 2010, the Senior Management Committee adopted the ITC People Strategy as a work in progress to provide both aspirational goal defi nitions and a framework for elaborating and implementing its human resources management activities. This document has contributed to defi ning human resources strategies in all key areas of activity and has led to an overall increase in the quality of human resource monitoring and workforce planning as well as the development of a monthly comprehensive report, which has been aligned to the fi ve goals of the Strategy. ATTRACTING WORLD-CLASS TALENT The fi rst goal of the People Strategy is to source and attract world-class talent globally to pursue careers with ITC. While this can often be a complex process involving multiple steps and safeguards, ITC has been able to increase the number of vacancies fi lled. Although a 38% vacancy rate is still a long way from where ITC wants to be, the development of a new recruitment monitoring tool in 2010 has already contributed to the identifi cation of issues that slow down the recruitment process. Thanks to this tool, ITC began to improve the effi ciency with which it fi lls vacancies in 2010, and this will continue in In 2010, a total of 42 vacancies were fi lled, with 57% of completed fi xed-term competitions being fi lled by external candidates. Progress was made towards the United Nations 50/50 gender target for professional posts, with representation of women at both P3 and P5 levels reaching 60%. Consultant recruitment and related contract administration remained fairly stable in A total of 569 consultancy and individual contractor contracts were issued during the year resulting in a total of 25,621 days worked, compared with 25,599 days in In 2010, ITC disseminated a provisional Recruitment and Selection Policy, developed to align the Staff Regulations and provisional United Nations Staff Rules, and the United Nations Staff Selection System, adapted to take into account the specifi c needs of ITC. ITC will revise the provisional policy in 2011 to take further advantage of the ongoing harmonization process in the UN Common System as part of the One UN initiative. Further harmonization with the UN Common System in 2011 will also include adoption of the new e-recruitment module of the United Nations INSPIRA talent management system. ITC has decided to use the performance management module of INSPIRA rather than develop a standalone system. This approach allows ITC to benefi t from the policy and IT development work of the United Nations and ensure integration to the ERP system it will also use. LEARNING, TRAINING AND DEVELOPMENT The second and third goals of the People Strategy involve the promotion of excellence in the fi eld of leadership and people management, and support for all ITC staff in their continuing professional development and performance improvement. In terms of learning and staff development, ITC updated its training policies to align with the broader United Nations learning and development goals. New circulars were prepared that refl ect the increased focus and commitment of the larger United Nations in this area. ITC offered a wide variety of training opportunities designed to equip staff at all levels to meet the organization s strategic and operational objectives and improve divisional performance. In 2010, these activities included team effectiveness, professional skills workshops, interviewing skills, language and IT training. STAFF WELFARE AND DIVERSITY The fourth People Strategy goal is to provide ITC staff with a healthy and supportive workplace in which diversity is a recognized asset. To meet this goal, human resources management has updated relevant policies and arranged for presentations for all ITC staff on stress management, gender in the workplace, and the services provided by the staff counsellor at the United Nations Offi ce at Geneva. Refl ecting the diversity focus in recruitment, 55% of all fi xed-term posts were fi lled in 2010 with nationals from LDCs and other developing countries. This brought the percentage of serving ITC staff members from these countries to 40% and increased the number of countries represented by the 266 serving ITC staff members to 76, compared with 72 last year.

59 ITC ANNUAL REPORT IMPROVING COMMUNICA- TIONS AND INFORMATION ARCHITECTURE EFFICIENT, TRANSPARENT, RESPONSIVE PROCESSES As People Strategy goal fi ve is to develop effi cient, transparent and responsive human resource processes to support ITC business delivery, management has worked to ensure that INFORMATION TECHNOLOGY ITC s IT service made signifi cant progress in its work to deliver the organization s six-part IT Strategy. Experience confi rmed the need for a committed business owner for each development as well as the need for each contributing section to deliver inputs on time and to the required standard. The wider operational culture in ITC still needs to improve so that progress is made in line with the timetables. In this way, the full benefi t of the IT investment will be realized in improved ITC delivery performance. COMMUNICATIONS Communications work and products in 2010 continued to increase ITC s information outreach to benefi ciaries, and to consolidate the ITC brand and its value for developing countries. In addition to supporting events, publications and signifi cant developments through press releases, the communications team also gave greater support to communications issues for the delivery of individual projects and programmes. In general, ITC is becoming more aware of the benefi ts of, and requirements for, effective communications and this is being disseminated to its partners in developing countries. For ITC, the full value from an event or publication often comes after the event or post-publication. More time and focus in their planning, creating agreed priorities, will secure a more targeted return for developing countries. CLIENT RELATIONSHIP MANAGEMENT ITC made good progress in developing a client relationship management system in An internal working group met regularly to determine system requirements and design and map out the layout of the system, drawing on input from colleagues across the organization. ITC also all policy initiatives are straightforward, fair and responsive to the needs of staff members. Following through on this goal has led to more constructive dialogue and commitment to mutual cooperation between ITC management and representatives of the Staff Association. successfully completed a tender to select a vendor, and senior management endorsed a fi ve-year commitment to move forward with the system. Work will begin with the selected vendor to implement the system during the fi rst quarter of 2011 and roll-out across the organization is anticipated by June The system will enable ITC to: Centralize its client contact information, communications and interactions in one location that all staff can access; Better understand the needs of benefi ciary countries through a 360 view of their interactions with ITC projects participated in, publications subscribed to, events and training seminars attended, needs expressed during Joint Advisory Group and consultative committee meetings; Proactively manage ITC relationships with benefi ciary countries, donors and strategic partners; Provide better services to its clients more effi ciently, using automated technology and tracking mechanisms; Automate many of its manual business processes registration and management of incoming and outgoing mail, management of memorandums of understanding and management of statutory reporting. From an RBM perspective, the client relationship management system will support the organization in becoming more transparent and timely in its reporting. The system will also provide reports that will allow the organization to track and manage its operational performance proactively in many strategic areas. BUSINESS MANAGEMENT SYSTEMS ITC continues to be an active participant in the establishment of the Enterprise Resource Planning (ERP)/Umoja project within the United

60 58 ITC ANNUAL REPORT 2010 Nations. Migration to the new system is planned for ITC has completed extensive preparatory work, and it is expected that the United Nations will maintain the timetable. The Cost Recovery/Transparency project, related to administration services, has progressed during the year with the costing analysis under way. Development of the erecruit/inspira project was going well, but a delay in authorization from United Nations headquarters put back implementation to the fi rst half of Once operating, the system will speed the recruitment process and therefore aid project implementation. E-LEARNING PLATFORM By the end of 2010, a hosting/course content contract had been approved to support the creation of course content for a small sample of courses prior to the wider roll-out and provision of a range of e-learning materials. ITC WEBSITE AND CONTENT MANAGEMENT SYSTEM (CMS) During 2010, ITC purchased, customized and installed a web content management system to underpin improvements in communications through multiple ITC website environments. This creates the underlying system architecture for reinvigorating the ITC web presence and establishing a client-focused website. The organization has also created new information architecture for the presentation of its content and services through the Internet and the consolidation of its web properties on a single platform. ITC is in the process of migrating, editing and reorganizing its existing web content to this new platform, as well as re-purposing and making available to clients content that was not previously accessible through the website. The new website will be functional in early STATUS OF PROJECTS Table 7 lists ITC projects focused on building an effective organization by their status within the project cycle. Table 7: Building an effective organization PROJECT / PROGRAMME Planned expenditure (gross) Delivery end Dec 2010 (gross) % spend DESIGN AND PLANNING Trade support institutions benchmarking scheme % LAUNCH Trade support institutions capacity building modules % IMPLEMENTATION Communications support to extrabudgetary projects % Deployment of the export marketing and branding practice % Legal advice and services for projects % IT&S strategy implementation, staff + non staff % Trade intelligence portal % HR administration % IT Service Desk assistance XB % ITC client relationship management system % Legal support for project implementation % Organizational strengthening of the International Trade Centre % Sector Competitiveness Revolving Fund % Upgrading enterprise competitiveness diagnostic tools for exporters % COMPLETION IT&S/ E-learning % ITC Client Survey % Process improvement DPS/OD %

61 CORPORATE RESULTS

62 60 ITC ANNUAL REPORT 2010 CORPORATE RESULTS 1 CLIENT FEEDBACK AND DELIVERY PERFORMANCE CLIENT SURVEY 2010 In 2010, the ITC client survey was held for the fourth year running. Tracking our clients perceptions of the impact, quality and relevance of our services is essential for the organization. Survey results are given in the Overview section of this Annual Report, on page 16. JOINT ADVISORY GROUP MEETING 2010 The 44 th annual meeting of the ITC Joint Advisory Group was held in Geneva on December The meeting was attended by 149 delegates from 67 countries as well as the Secretary-General of UNCTAD and the Director- General of WTO. In relation to ITC performance in 2010, the main points to emerge were: The Secretary-General of UNCTAD reported a number of excellent examples of collaboration between UNCTAD and ITC. As members of the United Nations Chief Executives Board Inter- Agency Cluster on Trade and Productive Capacity, they had worked together in all of the pilot countries of the One UN programme. UNCTAD and ITC were partner agencies within the Inter-Agency Cluster in more than 20 countries across fi ve regions that had already adopted a Delivering as One approach. The Director-General of WTO congratulated ITC for not having let the change management programme disrupt the delivery of its services. Despite the changes brought about by the programme, he said ITC was able to deliver and meet its clients expectations and those of its partners including WTO. He noted the substantial progress made in implementing the joint WTO/ITC/EIF programme that provides capacity-building support to LDCs in the process of WTO accession. He also emphasized that ITC had continued to back its expressed commitment to LDCs with concrete interventions, focusing 44% of its extrabudgetary resources on LDCs, LLDCs, SIDS and SSA. Donor and benefi ciary countries welcomed the improvements in the presentation and content of the Annual Report and the quality of documentation prepared for the JAG meeting. General satisfaction was expressed at the progress made in embedding RBM in the organization, although it was recognized that further progress was still needed. Several delegates stressed that RBM was essential for ensuring and measuring the impact of ITC projects and programmes. The establishment of the Project Quality Assurance Group and the creation of related project templates as a main component of an RBM system were welcome improvements. Many delegates expressed satisfaction at the progress ITC had made in mainstreaming gender in its work, although some felt that more could be done to make this explicit in corporate documentation. Several delegates suggested that young people should be given the same sort of attention, along with the continued emphasis on poverty reduction, the environment and global partnerships. Many delegations expressed satisfaction with the focus on the MDGs in ITC work and the shift towards larger, multi-year programmes. Delegates welcomed the ITC decision to fi lter all its activities through the Aid for Trade agenda, and stressed ITC s role in demonstrating its own impact. They also emphasized the importance of multi-agency work, through the EIF and with other United Nations partners.

63 ITC ANNUAL REPORT ITC Executive Director (center) together with Dr. Supachai (UNCTAD, right) and Pascal Lamy (WTO, left) JOINT ADVISORY GROUP Country delegates from 36 countries involved in discussion JOINT ADVISORY GROUP While appreciating the work of the Joint Advisory Group, some delegations felt that there was room for greater strategic input by members, perhaps through a mechanism such as the Consultative Committee of the ITC Trust Fund. This mechanism could give ITC input as to its core competences and comparative advantages, prioritizing requests for assistance and preventing the organization from spreading itself too thin. All of the points raised at the Joint Advisory Group 2010 meeting will be dealt with within the context of the Operational Plan OIOS CHANGE MANAGEMENT REVIEW The UN Offi ce of Internal Oversight Services 2009 review of change management at ITC concluded with the receipt of an audit letter in August 2010 confi rming that ITC should adopt a more disciplined approach to managing specifi c aspects of its organizational development. ITC is committed to ensuring that all future projects have clear goals and rationales, approved workplans and budgets, and measures of success, with monitoring reports submitted regularly to senior management. 2 FINANCIAL OVERVIEW OVERALL RESOURCES A cumulative amount of US$ million (2009: US$ million) was available as overall resources for The opening balance, including re-phased and unallocated resources from 2009, amounted to US$ million. Net income received totalled US$ million and overall cumulative expenditure was US$ million. A balance of US$ million remains for activities in 2011 (table 8). Overall expenditure in 2010, including regular budget, extrabudgetary resources and programme support costs (PSC), was higher than that in 2009, as shown in the table below. This is in spite of lower expenditure under the regular budget. Table 8: Status of resources (gross, in millions), as at 31 December 2010 Description Opening balance Net income received Expenditures Total cash at hand 1. Regular budget Programme support costs Extrabudgetary resources unearmarked (ITF) 4. Extrabudgetary resources earmarked Total extrabudgetary resources Total