Multi-Donor Trust Fund

Multi-Donor Trust FundThe Multi-donor Trust Fund for Trade and Development (MDTF-TD) is a multilateral Aid for Trade trust fund managed by the World Bank with the contribution of the governments of Finland, Norway, Sweden, and the United Kingdom.


MDTF is to support developing countries’ access to trade on a national, regional and global level and contribute to a final goal of poverty reduction and sustainable economic growth. It converges low-income countries (middle-income countries can also be considered for projects whose implementation would constitute a positive externality for neighboring countries or at a regional level).The Fund works on a wide set of topics, including trade policy and facilitation, export competitiveness and the identification of barriers to international trade. Particular attention is given to initiatives that include private sector development, climate change-related issues and the mainstreaming of gender.


The second Multi-Donor Trust Fund for Trade and Development (MDTF-TD2) is an umbrella facility to fund 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 $18.9 million in pledges to the MDTF-TD2 from the governments of Sweden, the United Kingdom, and Switzerland over the next three years.


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.


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