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TWN Info Service on WTO and Trade Issues (Jul22/07)
22 July 2022
Third World Network

Trade: WTO Secretariat reforms without addressing core issues?
Published in SUNS #9619 dated 20 July 2022

Geneva, 19 Jul (D. Ravi Kanth) -- The proposed reforms of the World Trade Organization's Secretariat are apparently moving smoothly, with assurances from a senior WTO official that meetings will be conducted with the transformation office that is overseeing the reforms being implemented by McKinsey & Co, said people familiar with the development.

However, several serious issues concerning McKinsey's role, the need for a new Strategic and Planning Unit, a country and regional unit, and new budgetary resources needed for carrying out the proposed reforms, remain unaddressed, said a member, who asked not to be quoted.

Amidst seemingly growing concerns among WTO staff over the reforms proposed by McKinsey & Co and also apparently being implemented by the same agency, WTO Deputy Director-General Ms Angela Ellard provided an account of what is being done at a meeting of the WTO's Committee on Budget, Finance and Administration (CBFA) on Friday (15 July).

She has also assured members at the CBFA meeting that she will convene another discussion on the Strategic Vision of Director-General Ms Ngozi Okonjo-Iweala's administration.

Apparently, the DG wants to create a new Strategic and Planning Unit, even though the purpose of such a unit remains unclear, said people familiar with the development.

Sharing her speaking notes with members at the CBFA meeting, Ms Ellard noted that "at our last meeting, several Members requested a briefing session with the Transformation Office."

"I am pleased to inform you that we plan to organize such a session soon", perhaps after the summer break, she added.

Ms Ellard said that "since 30 May, the focus of the transformation work has been on the third wave of reforms, which is ongoing on data, technology, and innovation."

The so-called "third wave" of reforms, according to an earlier document (WT/BFA/W/595), involves two phases - "data, technology and innovations" in the first phase and the second phase concentrating on setting "the strategic direction and foundational structure."

As reported in SUNS #9614 dated 13 July 2022 on the Secretariat reforms, Ms Ellard elaborated on what the first phase of the "third wave" will include.

She said that "this work includes mapping all digital tools currently in use at the Secretariat to the services that we provide to Members and within the Secretariat, and identifying areas for improvement."

She said that "we are seeking to define how the Secretariat can better serve Members and drive operational efficiency through improved deployment of digital and data management tools," which appeared to sound more like corporate reform than reform of the member-driven, rules-based, and inter-governmental organization, said a person, who asked not to be identified.

Ms Ellard said that "as with the previous initiatives, this work has involved staff from across the Secretariat in an iterative process of collecting information and testing and refining ideas," even though a WTO staff member had told the SUNS about his concern over the proposed changes to the Secretariat on the basis of the recommendations made by McKinsey & Co.

The DDG said that "the launch of and communication to staff around the implementation phase will occur in the next few weeks," suggesting that "as I previously explained, implementation will respect existing processes and requirements that apply when changes are made to Secretariat rules and policies, including engagement with Members where implementation of proposals would have budgetary implications."

The DDG maintained that "we (the Secretariat) are also mindful that WTO Members are the key users of many of the existing digital tools, and that it is in the service of your needs that these tools are deployed."

She urged members to provide their inputs on this issue.

In conclusion, Ms Ellard reiterated that "this transformation process is designed to strengthen the Secretariat to better serve all Members."

On another crucial item concerning the use of WTO trust funds by the DG, including the fisheries fund, the proposal tabled by India and the United States on Financial Regulation has not been agreed due to questions raised by France and the Netherlands, said people who took part in the meeting (see SUNS #9615 dated 14 July 2022).

During the CBFA meeting on 15 July, India and the US highlighted the provisions in their joint proposal on how to bring transparency in the use of trust funds, said people, who asked not to be quoted.

Apparently, France and the Netherlands said the provisions in the India-US proposal seemed to be cast in "black and white" that would make it difficult to accept/adopt the trust funds by the DG, said people, who asked not to be quoted.

MOUNTING CONCERNS OVER PROPOSED REFORMS

In contrast to the rather upbeat account of the proposed Secretariat reforms by the DDG at the CBFA meeting, several WTO staffers told the SUNS that they remain concerned about the proposed changes to the Secretariat "on the basis of the recommendations made by McKinsey & Co", which they allege is a "discredited" company.

"Throughout, the McKinsey process was shrouded in secrecy and there was the assurance that it would be cost neutral," said a staffer, suggesting that "the DG is apparently going to ask Members for increased resources to implement the recommendations."

At a time when many countries are facing financial difficulties, the staffer said "now is not the time for the DG to be asking for increased resources."

Further, "the professional Secretariat, which has been "demonized" since she took over office in March 2021, is the same one (Secretariat) which delivered results at MC12," the staffer said.

Another staffer said that there is no need for increased resources for the Secretariat, as there are so many people who are apparently doing nothing at the WTO.

"More than half of the workforce is not working and many would be retrenched if it were the private sector," the staffer said.

Citing the example of how 25 members from the defunct Appellate Body Secretariat were shifted to different divisions, the staffer said that "most of them do not have enough to do, so to claim that there is need for extra resources is unjustified and plainly untruthful and shows lack of understanding of what goes on in the Secretariat," the staffer said.

Apparently, the Director-General's Office (DGO) itself has five senior directors who do nothing, the staffer said.

Commenting on the DG's move to create a new Strategic and Planning Unit, the staffer asked "what purpose would this unit serve," as there is already the Administration and General Services Division.

"They (the Secretariat) have so many officers who are under-employed and who can do this job if deemed necessary," the staffer said.

The WTO is not like the World Bank, where Ms Okonjo-Iweala had previously worked and where there is a Strategic and Planning Unit, the staffer said, adding that "the DG wants to model the WTO on the World Bank but these are two different institutions."

Moreover, the WTO is a member-driven organization and it is the members who set the strategic vision for the WTO, said several members, who asked not to be quoted.

The DG apparently wants to create a "country and regional unit", the staffer said, asking what is the "relevance of such an office."

It is unclear how such a unit would further the work of the members, the staffer said.

It appears that the DG seems to have complained that when she travels, every Division provides briefing notes and that it is difficult to collate them, hence, the need for such a Unit.

In the past, such collating work was done by the DGO. "There are five Senior Advisors who do practically nothing and they should do what the former DGO used to do," the staffer said.

Against this backdrop, there is no need for extra resources for the Secretariat, with the McKinsey project having already cost more than several hundred thousands of Swiss francs.

"This money could have been used to address the promotions back-log and other challenges," the staffer said. +

 


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