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Trade Trust Funds

April 30, 2014


Specialized Funding for Research, Aid, and Rapid-Response
  • The trust funds hosted at the World Bank allow for a range of analytical work in addition to that funded by the World Bank's core budget.
  • Some of this funding is focused on specific sub-sectors, such as trade facilitation

Trust Funds

Trust funds complement and support the World Bank’s operational work and help deliver enhanced support to our client countries. Trust fund resources are critical to implementing the Bank’s trade work in three ways. First, trust fund resources are a key element in implementing the expansion of the World Bank’s trade program. Second, trust funds provide additional resources to help countries mainstream trade into their national development strategies. Third, trust funds are a vehicle for helping bilateral donors deliver increased Aid for Trade, helping to strengthen the integration of developing countries in the global economy.

Trust fund resources for the World Bank's trade work include: the Multi-donor Trust Fund for Trade and Development 2 (MDTF-TD2), the Trade Facilitation Facility (TFF) and the Enhanced Integrated Framework Trust Fund (EIF).

Multi-Donor Trust Fund for Trade and Development 2

The Multi-Donor Trust Fund for Trade and Development 2 is the largest source of donor funds to support analytical trade work across the World Bank Group. Until the end of 2015 it will support work programs developed annually by operational units that work on trade to implement activities that fall under the four pillars of the World Bank Group's Trade Strategy. The World Bank Group has received US$34.6 million in pledges to the MDTF-TD2 from the Governments of the United Kingdom, Sweden, Switzerland, Netherlands and Norway.

Trade Facilitation Facility

The Trade Facilitation Facility (TFF) is a rapid-response trust fund. Its objective is to help developing countries reduce trade costs and enhance their ability to move goods and services across borders rapidly, cheaply, and predictably. It is designed to finance activities that will make immediate, direct, and effective improvements in trade facilitation systems by modernizing infrastructure, institutions, and policies, and improving regulations. The TFF finances activities at country, regional, and global levels including projects and project preparation activities, advisory work, and technical assistance. Read the 2009-2015 TFF Report

Related Documents: 
External Evaluation of the TFF: Final Evaluation Report
DFID Comments on the Final Evaluation of the TFF
Peer Review of the External Evaluation of the TFF: Jens Andersson
Peer Review of the External Evaluation of the TFF: Elke Kreuzwieser

Enhanced Integrated Framework (EIF) Trust Fund

The Enhanced Integrated Framework for Trade Related Assistance for Least Developed Countries (LDCs) is a global partnership supporting LDCs to be more active players in the global trading system by helping them tackle supply-side constraints to trade. As a founding member and core agency of the program, the World Bank helps to assist LDCs to more fully benefit from the use of international trade to support their economic growth and poverty reduction strategies and programs, as well as to benefit from donor harmonization. As part of this initiative, the EIF trust fund supports the global EIF partnership by funding World Bank-executed activities that build capacity of EIF implementation units in LDCs, identify key trade constraints (e.g. through Diagnostic Trade Integration Studies and updates to these), and facilitate the implementation of technical assistance projects identified in EIF action matrixes. The trust fund has received $4 million in pledges and is currently providing trade-related support to 14 LDCs (Burundi, Bangladesh, Haiti, Uganda, Sierra Leone, Zambia, Sao Tome and Principe, Malawi, Liberia, Guinea, Burkina Faso, Benin, Madagascar and Sudan).