About the Program
The second Multi-Donor Trust Fund for Trade and Development (MDTF-TD2) supports analytical trade work across the World Bank to implement the Trade Strategy from 2012-2015. The trust fund supports work programs developed annually by the Bank's Regions, Networks and other operational units that work on trade to implement activities that fall under the four pillars of the Trade Strategy, namely (i) trade competitiveness and diversification; (ii) trade facilitation, transport logistics and trade finance; (iii) support for market access and international trade cooperation; and, (iv) managing shocks and promoting greater inclusion.
The World Bank has received $29 million in pledges to the MDTF-TD2 from the governments of the Netherlands, Norway, Sweden, Switzerland, and the United Kingdom over the next three years.
For furthur information on the MDTF-TD2, please contact: Ian Gillson, Senior Trade Economist, International Trade Unit
Funding Our Trade Work
The MDTF-TD2 complements other global partnerships and World Bank trust funds on trade, notably the Trade Facilitation Facility, the Enhanced Integrated Framework for Trade-Related Technical Assistance for Least Developed Countries (EIF), and the Aid for Trade initiative. It finances global public goods--such as toolkits, benchmarking databases, and research--that help inform country-level activities supported by these programs. It also finances diagnostics, capacity building and analytical activities needed to make projects funded through the TFF, EIF and Aid for Trade initiative more effective.
Approximately 70 percent of funding provides direct support for country and regional activities responding to specific client needs. For fiscal year 2013, the Trade Council has allocated 50 percent of this funding to work in sub-Saharan Africa. Each of the other five Regions receives ten percent of this funding.
At the global level, the trust fund finances development of benchmarking datasets (e.g., the Logistics Performance Indictors), policy analysis, economic research, capacity-building programs, and analytical tools. These activities are managed by the International Trade Unit and the Development Research Group. Approximately 30 percent of the trust fund’s resources support this work program.
Eligible Topics and Activities
The MDTF-TD2 supports work on a wide range of trade topics, including issues such as trade policy and agreements, export competitiveness, trade facilitation, behind-the-border constraints to international trade, and distributional effects of trade and trade policy reform. The program seeks to ensure that trade-related activities at the country level draw on cross-sectoral expertise, bridging gaps between economic policy, infrastructure, private sector development, and rural development, as well as new cross-cutting issues such as climate change and gender.
Activities eligible for financing include technical assistance, research and policy analysis, project preparation, capacity building and training, compilation of trade data, analytical tools and other toolkits for policy makers, and dissemination of knowledge through conferences and workshops. Activities financed by the trust fund may be executed by the World Bank or by recipient governments.
Since it became operational in June 2012, the MDTF-TD2 has been supporting 39 activities at the country and regional level, mostly analytical work and technical assistance activities, but also activities that enable investment lending.
Examples of activities being supported under the MDTF-TD2 include:
Outputs: Country and Regional Work
Archive: Country and Regional Outputs from the first Multi-Donor Trust Fund for Trade and Development (MDTF-TD1)
Outputs: Global Knowledge Products
Global Knowledge Products supported by the MDTF-TD2 originate from two sources within the World Bank:
Archive: Global Knowledge Products and Outputs from the first Multi-Donor Trust Fund for Trade and Development (MDTF-TD1)