Allow me to begin by thanking the government of Sweden for hosting this event and in particular, Ministers Gunilla Carlson and Ewa Bjorling for their tireless efforts to make this event a success. It is entirely fitting that this conference is taking place here in Sweden, which has always been at the forefront of efforts to help the world's poorest countries better integrate in today's rapidly changing world.

We are meeting here ten years after the launch of a major international initiative focused on helping the world's least developed countries successfully integrate trade into their development strategies. It was in 1997 that six international agencies represented here today, together with the donor community and the least developed countries launched the so-called “Integrated Framework”. Ten years later it is important that we take a few minutes to reflect where these countries stand today in the multilateral trading system and their overall development situation in general.

In 1997, the share of global exports of the (then) 49 Least Developed Countries was 0.5% with primary commodities, mainly minerals and tropical agricultural products, making up 70% of this total. Their export profiles were characterised by a very narrow range of products, usually two or three products.

Ten years later we can see some positive signals with basic social indicators showing a positive trend. On the trade front, however, despite a decade of substantial economic growth in most developing and developed countries, the Least Developed Countries have only been able to marginally benefit from the tremendous expansion of world trade, their share of world exports being today estimated at 0.6% and 0.8% of world imports. Their limited capacity to broaden their export product base, the still limited institutional capacity and poor infrastructure continue to undermine their capacity to benefit fully.

This continued marginalisation of the Least Developed Countries in the global economy has not, however, diminished our acceptance that trade can be a positive engine for growth, poverty reduction and human development. Nor has it diminished our collective determination to face together the challenge of making a fairer world trading system for all its members, including the weakest.

Let us recall that the Integrated Framework — today covering 45 out of the 50 LDCs — was born out of a realisation that for the Least Developed Countries to be able to address some of these complex development and trade related challenges, they require a coordinated and integrated program in order to tap the resources and expertise of the donor community. It seeks to assist them to integrate trade priorities into their overall development strategies and to provide support towards addressing their supply side constraints and through this enhance their capacity to fully exploit the benefits of trade opening.

We are here today because we want to make sure that the new opportunities that hopefully will result from the Doha Development Agenda — whether the duty-free and quota-free access to developed and developing country markets, the sharp reductions in agriculture subsidies in rich countries, including those on cotton, the elimination of export subsidies, the disciplines on fishery subsidies or the new rules on trade facilitation — translate into trade realities for the Least Developed Countries.

An evaluation of the Integrated Framework in 2003/4 revealed three weaknesses that severely limited the effectiveness of this project: trade related reforms were not being adequately mainstreamed into the countries' development strategies; on the donor side, coordination was lacking resulting in sometimes conflicting and overlapping objectives and finally, only limited funding was available for projects once a country's priorities had been identified.

This joint diagnosis led us to the setting up of a Task force in 2005, which was mandated to provide recommendations to address the weaknesses and enhance the effectiveness of the Integrated Framework. Its recommendations were adopted in July 2006 are at the heart of what we have called the “Enhanced Integrated Framework”.

The first recommendation was the need to provide increased, predictable and additional funding on a multi year basis. The second recommendation highlighted the need to strengthen in-country institutional capacity including through mainstreaming trade into national development plans. Finally, the need to improve the Integrated Framework decision-making and management structure were also highlighted.

We are here today to respond to the first recommendation, the provision of predictable and additional funding over a multi-year basis and I am confident that you will respond generously to it. But while the importance of predictable and additional funding to the future success of this endeavour cannot be overemphasised, it is important to also note that on its own, funding will not enhance its effectiveness.

There are a number of issues that we will need to address simultaneously to achieve our stated objectives.

Key among these is the principle of full political ownership by its beneficiaries, the Least Developed Countries. Unless the governments are fully on board in the process of identification and formulation of priorities, and are committed to integrating trade into their development strategies, the Enhanced Integrated Framework will be of limited value. A demonstrable commitment to mainstreaming is therefore indispensable to the future success of this initiative.

Furthermore, the active involvement of all stakeholders in the consultative process of identification and formulation of national priorities is equally important and on this I would like to appeal to all of you to lend your support. Of particular importance is the involvement of the private sector in the process. Not just at its conclusion but from the beginning. The private sector is an important partner in this endeavour.

A set of clear and politically endorsed priorities is the only stable foundation for donor coordination. Coherence begins at home, and if coherence and ownership are there, then coordination among donors would be greatly improved. Coordination will then mainly focus on “how does what” instead of “who thinks what”.

While today you will make pledges towards the multilateral Enhanced Integrated Framework trust fund, funding for its activities can also be channelled through bilateral/regional channels. The bilateral programmes can help address some the requests for larger and more complex needs including some national and regional infrastructure projects. To this end funding for these national and regional programmes should also be guided by the needs and priorities identified in the Enhanced Integrated Framework process.

Let me conclude by highlighting two recent developments on the institutional side of the Enhanced Integrated Framework. We are moving forward in setting up a small secretariat in Geneva, administratively housed in the WTO and reporting to the Enhanced Integrated Framework Board on policy matters. This secretariat will be headed by an Executive Director for whom the search has already begun.

Furthermore, the process of selecting a trust fund manager is also underway. You will agree with me that this is an important function of the Enhanced Integrated Framework management structure, and therefore we should finalise the selection process without further delay.

Finally, last week the interim board of the Enhanced Integrated Framework endorsed an accountability framework as the basis for its operations. This is a key step forward that will — as highlighted by most of you — facilitate your ability to pledge today. I want to thank all of you for the flexibility you have all shown in concluding this founding stone of our future work and would like to encourage you to wrap up the remaining details of the overall accountability structure so that we can be fully up and running.

Let me in closing pay tribute to Swedish Ambassador Mia Horn, Canadian Ambassador Don Stephenson and Lesotho Ambassador Maruping as well as all their troops for the long sleepless nights spent over this. I am sure it will be worth it!

Thank you.