Industrial

UNITED NATIONS development INDUSTRIAL DEVELOPMENT ORGANIZATION in a changing global landscape www.unido.org

UNIDO Headquarters UNIDO Brussels Office UNIDO Geneva Office UNIDO New York Office Vienna International Centre UN House Palais des Nations 1, United Nations Plaza Wagramerstr. 5 14, rue Montoyer Le Bocage, Pavillion I New York, P.O. Box 300 B-1000 Bruxelles 8-14, avenue de la Paix NY 10017 A-1400 Vienna Belgium CH-1211 Geneva 10 of America Austria Switzerland Tel: +43 (1) 26026-0 Tel: +32 2 511 16 90 Tel:+41 (22) 917 3367/64 Tel: +1 (212) 963 6890 Fax: +43 (1) 2692669 Fax: +32 2 511 75 88 and 917 1434/23 Fax: +1 (212) 963 7904 [email protected] [email protected] Fax: +41 (22) 917 0059 office.newyork@unido [email protected] UNIDO General Conference 2007

Human security in the The twelfth 4 Report card widest sense comprises not session of The Director-General outlines only politics, but also busi- the General UNIDO’s recent achievements ness, energy supply, and Conference and coming challenges the environment. Being at took place in the interface between the midst of 6 Industrial development business, technology, and the environment, remarkable changes. Rapidly chan- forum the UNIDO stands for what is vital in ging patterns of global production, Linkages between re- today’s world: networked thinking, and consumption, and trade are having duction, trade capacity building, interdisciplinary work. a significant impact on the process and environment and energy Our peoples expect, above all, a life in of industrial development in de- 8 Wealth creation for poverty freedom from fear and in freedom from veloping countries and countries reduction want. It is therefore essential that we make in transition. At the same time, the Mano River Union; Cane and every effort to meet the Millennium De- United Nations system is also bamboo; UNIDO and Microsoft velopment Goals by determined, concerted undergoing a major reform, action. UNIDO is a key partner in this - especially in the way that the de- 12 Building productive endeavour. Poverty reduction through velopment-oriented organizations capacities for trade productive activities, trade capacity buil- of the system deliver their services competitiveness ding as well as environment and energy – to developing countries and transi- Activities within the EPAs; UNIDO’s three pillars – are the organi- tion economies. Upgrading and modernization; zation’s effective and successful tools. These changes and challenges, Three regional round tables As the past has shown, even preferential and UNIDO’s response to them, access to markets is not sufficient if the pro- were the central theme of the 16 Green Industry: Promoting ductive capacities are not there to actually General Conference. The Indus- growth and protecting the use the opportunities offered. Austria trial Development Forum, held environment therefore places strong emphasis on sup- within the plenary of the General Phasing out CFCs and POPs; porting small and medium-sized enter- Conference, highlighted the role Hydrogen initiatives; Sekem’s prises in its partner countries – we know and relevance of UNIDO’s the- success; UN-Energy from our own experience that they form matic priorities – productive ca- 21 Prime Ministers’ corner the very basis for a successful export-driven pacities for poverty reduction, Extracts from keynote speeches economy. trade capacity building, and en- Employment is the essential bridge vironment and energy – for the 22 Conference decisions and between economic growth and poverty re- achievement of the global develop- resolutions duction. Only when sustained growth is ment agenda. The related side Support for LDCs; new budget translated into employment opportunities events examined the importance for 2008-9; External Auditor for all, will people have the chance to earn and implications of these thematic 23 Conference events and the income needed to lift themselves and priorities to industrial develop- exhibitions their families out of poverty. In this endea- ment in a changing context. A list of all the 2007 General vour, women and youth are key agents for This publication is not intended Conference events change in their societies. They need to be to be a summary of the procee- given realistic and tangible perspectives. dings of the General Conference. UNIDO’s cooperation with other organiza- Instead, its aim is to give a sense of tions and, for instance, the countries of the the issues discussed, of UNIDO’s Mano River Union, to create productive and accomplishments during the last Copyright © 2008 by the United Nations decent work for youth is a prime example two years, and of UNIDO’s plans to Industrial Development Organization in this respect. provide improved services in a The designations employed and the Some two billion people worldwide do rapidly changing world. presentation of material in this not have access to electricity. UNIDO takes publication do not imply the expression of any opinion whatsoever on the part concrete action to address this challenge, of the Secretariat of the United Nations e.g. with the establishment of renewable Industrial Development Organization (UNIDO) concerning the legal status of energy technology centres and cleaner pro- any country, territory, city or area, or of duction centres in a number of countries. Omar Zniber its authorities, or concerning the delimi- At the beginning of this year, Director- Ambassador Extraordinary and tation of its frontiers or boundaries. Plenipotentiary Designations such as “industrialized,” General Kandeh Yumkella has assumed the “developed” or “developing” countries chairmanship of the UN-Energy inter- Permanent Representative of the are used for statistical convenience and Kingdom of Morocco to UNIDO do not necessarily express a judgment agency committee, which brings together about the stage reached by a particular all UN entities with energy mandates. President of the twelfth session of the country or area in the development UNIDO General Conference process. Mention of firm names or Austria stands ready as partner and host commercial products does not imply country to support UNIDO in this new and endorsement by UNIDO. important responsibility. This document has not been formally edited. All photographs copyright of the United Nations Industrial Development Organi- zation unless otherwise captioned. Ursula Plassnik Editor: Charles Arthur Minister for European and International Affairs of Design: Karlheinz Maireder the Republic of Austria Maireder Visual Design, Vienna

3 Report card

mately US$235 million at the end of headquarters, but it is concrete action on 2007, and the volume of funding for the ground that breathes life into them. The 2006-2007 programmes and projects under active In this context, the reinforcement of consideration for approval in 2008 is UNIDO’s field capacities was another also at record levels. important focus during the 2006-2007 biennium. A new field mobility policy biennium: Strengthening was introduced and this has reduced partnerships unequal treatment between head- Reinforcing existing and forging new quarters and field staff, made the recruit- a report card partnerships has been a major focus of ment process more rigorous and compe- work during the last two years. Within titive, enhanced field level technical the UN system, UNIDO has built new cooperation implementation, and in- In his opening remarks to the General UNIDO Director-General creased the rotation between head- Conference, the Director-General of Kandeh Yumkella: quarters and field posts. The impact of “UNIDO has to look at UNIDO announced his intention to the inter-linkages of this policy is shown, in part, by the provide a ‘report card’ on his per- growth, trade and reduction in vacancies of international formance in his first two years in office, environmental field posts from 48 percent to only and to highlight the key challenges for challenges. This is what 11ipercent. the next two years. makes our programmes and our support to Member States so Challenges ahead Technical cooperation complex.‘Moving out of The General Conference confirmed that delivery poverty’ is a simple UNIDO remains a trusted, efficient and slogan. In reality, it is a effective partner for development. State- The Director-General noted that the major challenge involving ments from high-level delegations re- phrase, ‘Programmatic continuity and cultural, institutional, affirmed the strong support of Member growth with quality’, best sums up his social, technological, and economic change: States for the Organization. At the same goal of building on the success of the a challenge to which time, rising programme delivery, in- Organization, while ensuring that it UNIDO can rise.” creased funding commitments from donors, and record collection rates of remains responsive to the changing Conference in Malaysia; the meeting on policy, a new evaluation policy, a new alliances around a number of thematic assessed contributions (a record high of UN reform and UNIDO needs of Member States. UNIDO’s export consortia promotion in Morocco; publications policy with the setting up clusters and joint programmes. Tangible 94 percent in 2006, with the 2007 per- Serious reform efforts are underway within the UN system, technical cooperation work continued the G-77 Chapters meeting in Austria; of a publications committee, and a cross- results have been achieved in coopera- centage expected to be as high, or especially at the country level. If UN agencies are to be to focus on its three priority themes, and and the Technology Foresight Summit organizational steering committee for tion with FAO, IAEA, IFAD, ILO, ITC, higher) show a high level of confidence more efficient and effective, it is not enough to improve managed to increase the volume of in Hungary. The latter, with its emphasis results-based management. In addition, UNCTAD, UNDP, UNEP, and the WTO. in and support for the work of the each agency’s own operations; it is important that the delivery substantially in 2006-2007, on water management issues, was a good a gradual alignment of the Organiza- Intensified cooperation between system as a whole focuses its efforts, eliminates duplicat- Organization. Looking ahead, the showing an 8ipercent increase in tech- example of UNIDO’s global advocacy tional structure with the thematic UNIDO, FAO and the IFAD has been Director-General sees a number of ions, and reduces transaction costs. UNIDO is participating nical cooperation delivery compared to and convening role: conflicts resulting priorities was initiated, including the given special emphasis because of the actively in the process, from broader UN reform strategic challenges over the next two years: the previous biennium, despite a zero from the scarcity of water will shape the creation of a new dedicated branch for importance of linking the two key pro- discussions to country-level UN coherence activities. • According high priority to increasing Participation takes place at several levels: growth regular budget. Progress is thus future global agenda, and all regions will trade capacity building. The Director- ductive sectors – agriculture and being made towards the goal of achiev- be able to benefit from the key con- General also underscored UNIDO’s industry. Unless the full potential of cooperation and coherence in the field • UNIDO takes part in the policy and strategy debates on of energy. UN reform through the inter-agency mechanisms of the ing annual technical cooperation clusions of that Summit. strong commitment to the reform of the agri-business, of agro-processing, and of UN Chief Executives Board for Coordination and its high- delivery volumes of US$150-170 million UN system [see box]. agro-industrial value chains, is brought • Better conceptualization, demonstra- level committees; it has also hosted high-level meetings within the next five or six years. Continuing to reform to bear on economic development in a tion, and measurement of UNIDO’s on UN system-wide reform, including a meeting of the The Director-General underlined his Mobilizing funds coherent way, many countries will not activities in the area of poverty reduc- ‘High-level Panel on UN Reform’, in March 2006. In 2008, Upholding the universality commitment to continuing reform to Future technical cooperation delivery is be able to move out of poverty and tion UNIDO will organize a high-level dialogue on ‘United expected to continue to increase con- stagnation. of UNIDO improve both the effectiveness and effi- • Increased cooperation with develop- Nations System-wide Coherence: The Next Steps’, which sistently as a result of increased donor UNIDO’s partnerships with inter- UNIDO made significant headway in ciency of the Organization. In the past ment finance institutions, such as the will provide a platform for interactive and action- commitment to UNIDO’s programmes. governmental organizations outside the other areas. It continued to strengthen two years, he has introduced far- regional development banks, the Is- oriented discussions on the development aspects of reaching managerial reforms and inno- Funding available for future implemen- UN system are also gaining ground, as system-wide coherence among representatives of govern- the universality of the Organization, a lamic Development Bank, the OPEC vations, including a new field mobility tation reached a record high of approxi- illustrated by the Organization’s work ments, aid agencies, and UN system organizations. pledge made by the Director-General on Fund, and IFAD. assuming office, and provided support to with the Islamic Development Bank and • UNIDO takes an active role in the committees, task • Strengthening UNIDO’s performance all developing countries and regions, the Ibero-American Secretariat. The teams, and working groups of the United Nations Deve- measurement capabilities by establis- lopment Group (UNDG). The UNDG has the responsibil- while still giving special emphasis to the continued excellent cooperation with hing baselines to better assess pro- ity for coordinating the operational activities of the UN needs of and LDCs. Over the past the European Commission deserves gress, and by applying results-based system at country level, and it is within the UNDG that two years, it stepped up support to all special mention, and has diversified management in all areas of operations, issues related to joint programming, joint implementat- developing countries and countries in beyond trade capacity building into including technical cooperation pro- ion, programme monitoring and evaluation, and other transition, including an increase in private sector development, technology activities vital to ‘Delivering as One’ are ironed out. grammes, headquarters support func- global advocacy in all regions. In parti- foresight, investment promotion, and tions, and staff performance apprai- • UNIDO engages in country-level coherence activities, cular, several important meetings were industrial statistics. In Africa, joint work and is part of the One Programmes in all eight of the sals. organized on issues of concern to diffe- with the African Union, NEPAD, and ‘Delivering as One’ pilot countries. It is expected that rent regions: the meetings of the Con- CAMI has yielded positive results. • Enhancing ethics and accountability these efforts will reveal lessons that can be applied to all to assure UNIDO’s continued credi- future United Nations Development Assistance Frame- ference of African Ministers of Industry Strengthening field works and One Programmes, so that ‘Delivering as One’ in in Egypt and South Africa; the Latin bility as a transparent and account- country-level development activities becomes the norm, American and the Caribbean Ministerial representation able UN organization with the ultimately increasing impact and improving efficiency. Meeting on in Cooperation agreements and Memo- highest standards of integrity and Uruguay; the International Bio-fuel randa of Understanding are signed at professionalism.

4 Industrial development in a changing global landscape 5 Industrial development forum

The internationalization of industrial production, investment, and technology Linkages between poverty flows, reinforced by a dramatic ex- pansion of trade flows, has caused a “I am hearing calls for sharp increase in the industrial pro- reduction, trade capacity ‘solutions not barriers’,for more duction of developing countries; South- South trade in manufactures recorded investment in human capital particularly strong growth. Though un- building, and environment precedented in its overall magnitude, and infrastructure, and more this growth in manufacturing and trade public/private partnerships.” in developing countries has been highly and energy uneven, with most of the increase oc- Todd Benjamin, forum moderator. curring in a handful of fast-growing Asian countries, creating a growing industrial divide and widening dis- parities, not only between developed and developing countries, but also among developing countries themselves. Variations in the industrial perfor- mance of different regions are the result of numerous factors, and addressing the problems of many of the developing countries will require a wide range of corrective measures and external support. In many cases, the countries concerned need external assistance in formulating and applying those measures. At the Industrial Develop- Luis Carlos Carvalho, Director, ment Forum at the 2007 General Canaplan, Brazil: We must think ahead, about the new opportuni- Conference, a panel of experts – mode- trade capacity building, and environ- countries. The excerpts shown here give ties that we have. We will not rated by Todd Benjamin, financial editor ment and energy activities, and how a sense of the discussions that took place. have food security, if we don’t of CNN International – discussed the technical cooperation in these areas can have energy security. We are linkages between poverty reduction, living in a new century, and we contribute to reducing the marginaliza- have great opportunities. For tion and impoverishment of developing Ali A. Mufuruki, Chairman example, with bio-energy…. and CEO, Infotech Investment Countries, like those in Africa, Group,Tanzania: Just look at have great potential for agricul- the satellite image of Africa at ture. Sometimes I hear people night – it is the very definition talking about agriculture, and of darkness itself. I do not be- they imply that people producing lieve that Africa can develop if from agriculture are poor be- it continues to be as dark as it cause that is what they do. But is at night. What Africa needs is that’s wrong – the essential more energy production, and problem is that value must be Professor Miguel A. Centeno, more energy consumption by added, and energy is very impor- Department of Sociology, Princeton people on the African con- tant in this. It is not a ‘food versus University, USA: To the extent that tinent. Even though this fuel’ argument. For countries in the poor have been involved in unfortunately may also add to Africa, it is a development issue. globalization, it has been good, but the burden on the global Bio-fuels can reduce poverty. For unfortunately, the way we describe H.E. Karl Bláha , Deputy Minister of the environment, I don’t see any example, in Brazil, we have globalization’s impact is as a Patricia R. Francis, Executive Environment, Czech Republic: On the other alternative…. I do care created one million direct jobs, 20-20 proposition. Right now, Director, International Trade Centre Dr. Sawako Takeuchi, Advisor to question of the balance between bio- very much about the environ- we have better income per globalization essentially exists for (ITC): One of the big challenges for Minister of Foreign Affairs, Japan, and fuel and food production, in small ment, but I have to have the capita, and we have created a lot the top 20 percent of countries in organizations like UNIDO and ITC is Mansour Cama, Professor at Kyoto University: We have Chairman, National countries with a high population resources to be able to care. For of opportunities in terms of jobs. terms of wealth, and the top to actually show countries how they to start the new learning – global Confederation of Employers, Senegal: density, this is going to be quite critical. example, recently the Inter- Every 10,000 cars that we 20 percent of the population in the can empower their disenfranchised learning. The new principles should be Infrastructure is very important, but I If the government decides to subsidize national Olympic Committee produce that run on gas, equals poorer parts of the world. That people and, importantly, beginning based on diversity and different think we need to consider the holistic the plant crops that are used for bio- went to China, and they ex- one job, whereas if you produce leaves approximately four billion with SMEs, to really get them into cultures, but at the same time, when approach. I don’t think that having the fuel, there is going to be a shortage of pressed some concern about cars that consume a combination people who are largely excluded the frame of mind where they begin we see progress on issues such as trade required infrastructure will allow my plants for food production… My final the quality of the air in some of of gas and ethanol, you create six from globalization. They don’t to understand how to play the game or investment, we have to share more company to hire the right workforce with point is that the environment and its the host cities. What did the jobs per 10,000 cars. But for an participate in it as producers, except of globalization. What I mean is that knowledge on technological advance- which to compete or to raise pro- components, like the atmosphere and Chinese say? They said,“We’ll ethanol-only consuming car, it’s at the most basic level, and they firstly it takes the right mindset. ment in that area, and on how it can ductivity. Training and technical training water, don’t recognize borders. The air fix it.”Why could they say they 22 jobs per 10,000 cars. What certainly don’t participate as Secondly, there needs to be a benefit human beings, their security, are also very important issues. So when is global. Water is global. Once we could fix it? – because they would be better for Africa – to consumers. To put it crudely, they do business environment to facilitate it. and their happiness. We have to create it comes to this matter of being a part of pollute it, the pollutant doesn’t have the money to fix it. Poor produce gas or ethanol-con- not have the money to purchase And thirdly, you need the resources a new theatre for global learning, and the world trading system and increasing recognize the country of origin. The people cannot fight global suming cars? what the world wants to sell, and to make it happen…But first of all we have to exchange more views productive capacity, then Africa needs a effect is felt by all. We have a shared warming – they have much they don’t have the products that you must begin to think about the about what is really appropriate for holistic approach. The second point is the responsibility. more important fights on their the world wants to buy, except again process, to think about what it our cultures and our standards. We necessity of having real public-private hands. at the very basic level of primary actually takes to win. This is some- partnership. In terms of vision and especially need more transparency in goods. As long as this situation thing that evades people from time definition of strategies, and when it terms of long-term development – exists, the poor are not going to be to time. We spend a lot of time comes to implementation, government what it really costs and what is the able to participate. thinking about the barriers, rather can play a crucial role, alongside the price for countries and regions. We are than thinking about the solutions – private sector. If you have a government in a challenging era in which to create about the ‘how’ to do it. We need to that doesn’t carry out that role, I think it a new framework. spend more resources on the ‘how’. will fail to lead the country forward in 6 development. Industrial development in a changing global landscape 7 Wealth creation for poverty reduction

Halfway to the target date of 2015, developing countries and their deve- lopment partners are still struggling with the challenge of achieving the Millennium Development Goals, par- ticularly the target of halving the proportion of the world’s poor that has an income of less than one dollar per day. As part of the wider international effort, UNIDO is committed to helping developing countries achieve this target. It does so by fostering pro-poor private sector development, and promoting entrepreneurship. It is generally recognized that for poverty reduction to be achieved, the first priority has to be rapid and sustain- able growth. Only industrialization can deliver such growth, since industry is the only sector in which rapid and sustained rises in productivity are feasible. The second priority is to make sure that institutions and policies create the conditions for the poor to participate in and benefit from sustainable growth. Both the private sector and public policy have a role to play. UNIDO offers a variety of services for developing countries to promote the private sector and foster entrepre- neurship. These services in particular address the needs of small and medium- sized enterprises (SMEs), and often focus on the agro-industrial sector. In addition, UNIDO offers services that target the role of the public sector in private sector development, since government has a crucial role to play in promoting and regulating industry, and ensuring that economic growth provides opport- unities for the poor to engage in and benefit from productive activities. Spencer Platt/Getty Images

8 Industrial development in a changing global landscape 9 Poverty reduction

Partnerships and dialogue Three current UNIDO partnership Mano River Union countries (Guinea, Cane and bamboo projects [see feature boxes for more de- Liberia and ) and of Côte for poverty reduction tails] illustrate the breadth and scope of d’Ivoire, senior officials from other The Cane and Bamboo Techno- logy Centre in Guwahati, north- In recent years, UNIDO has been giving African countries, and representatives the Organization’s engagement in we- east India, is a joint venture of more emphasis to developing support alth creation to reduce poverty: of the donor community, the private UNIDO, UNDP, and the Indian programmes that combine the strengths • In West Africa, UNIDO is working sector and civil society, participated in government. Cane and bamboo – and complementarities of development with other UN entities and non- a round table to agree on measures to strong, resilient and eco-friendly partners to create the programmes and governmental organizations on a pro- provide employment for youth and resources with a wide variety of activities that strengthen the private gramme to combat youth unemploy- women in the sub-region; uses – have the potential to play a sector. ment. At the UNIDO General Con- central role in the economy of the • The Cane and Bamboo Technology One obvious example is the increase ference, heads of state and govern- region. Especially for the rural Centre in Guwahati, north-east India, in public/private sector dialogues to in- ment and senior ministers of the three poor, both are an excellent sure effective and inclusive policy deve- is a joint venture of UNIDO, UNDP, resource with which to build lopment. Such dialogue and partner- and the Indian government, to help income and generate employ- “Public-private partnerships are important. generate employment opportunities ment opportunities. ships should also incorporate and allow Each will bring a different perspective… for the rural poor; The Centre has become the for structured communication with the UNIDO is in the public sector. It can create some focal point for information, tech- poor. conditions that we in the private sector cannot • UNIDO and Microsoft have estab- nologies, and networking in Other examples include joint demon- create in the areas of policy and building some lished a partnership promoting India’s cane and bamboo sector. It stration projects among UN agencies, do- kind of relationship with decision-makers. We in innovative uses of information and identifies and promotes technolo- nors, governments, and, increasingly, the private sector are the agents for any kind of communication technologies to gies in order to improve the in- growth in the economic sector. And this is why non-governmental organizations and support entrepreneurship, and help comes of small entrepreneurs; it persons and provides them with stronger and lighter than wood, variety of other purposes. Bam- this partnership is very important.” – strengthens existing institutions access to improved technology. and provide an economically-vi- boo is also a very appropriate ma- the private sector. UNIDO has found Dr Cheick Diarra, chairman, Microsoft Africa, promote investment and create these to be particularly relevant as deve- business opportunities, especially for by improving their networking With modern technology, able, aesthetically-pleasing, and terial for use in the construction speaking during a high-level panel discussion and linking them with specia- bamboo components (particle, environmentally-superior alter- of safer housing in areas prone to lopment partners strive for greater co- small and medium-sized enterprises at the UNIDO General Conference, December lized institutions in India and mat and ply boards, flooring tiles, native, whether for housing, earthquakes. operation and coherence in their work. 2007. (SMEs) in Africa. abroad; and it trains crafts corrugated sheets, etc.) are furniture, packing materials or a

Mano River Union - Youth and women Union countries and Côte UNIDO and Microsoft: d’Ivoire. The multi-stakeholder for sustainable development programme is a response to in- working together creasing calls to regard youth as a In July 2006, UNIDO and Micro- and help promote investment The round table potential social and economic soft signed a strategic partnership and create business opportunit- discussion: resource for peace-building and that aims to tackle the root causes ies, especially for small and ‘Mano River stability, instead of seeing them of poverty by promoting innovat- medium-sized enterprises (SMEs) Union – as a problem or a threat. It is ive uses of information and com- in Africa. The partnership is Towards sustainable meant to provide an immediate munication technologies (ICT) being piloted in Uganda. peace: strategy for addressing poor that support entrepreneurship Empowering youth needs through direct pro- youth to gramme action, which is com- “We must support youth strengthen Business information centres economic plementary to other approaches. programmes focusing on resilience The main objectives of the sub- labour-intensive manu- in Uganda and human regional multi-stakeholder pro- facturing. Agri-business is the obvious place to start to UNIDO has established eight neurship development. Microsoft security’ gramme are to: address youth unemploy- business information centres is supporting the BICs by contri- • Complement national youth ment… For enterprise (BICs) in rural districts in Uganda. buting to a refurbished computer employment initiatives by fost- development and self- An important focus of the BICs is and e-waste recycling initiative, ering sub-regional cooperation employment, only a multi- income-generation by the SME cooperating on the development among key actors, in particular stakeholder approach – business community through the of a sustainable local software among United Nations agenc- including youth, the private provision of sustainable services economy, and providing training In Uganda, although 10 percent PowerPoint, and how to make use Business sector and NGOs – can ies; of the Internet. He said, “The per- information succeed.” - such as ICT training and entrepre- and skill development in ICT. of the population owns a cell- centre • Strengthen the capacity of the Mr. Ernest Bai Koroma phone, only one in 140,000 has a formance of my chickens has im- in Uganda The Mano River Union (MRU) prospects of finding decent jobs H.E. , labour market and other insti- President of Sierra Leone, PC, and less than 2 percent have proved because I did a search on countries and Côte d’Ivoire offer a and means of livelihood. Until tutions to develop and imple- speaking during the round access to the Internet. Many the Net, and now I am able to particularly acute example of the this problem is resolved, it will ment integrated policies and table discussion,‘Mano River believe that this will have to make better feed, which I make dangers of high unemployment remain difficult to establish programmes on youth employ- Union – Towards sustainable change if Uganda’s people are to myself here at the farm.” and underemployment, which in genuine peace, security, and de- ment; peace: Empowering youth prosper. UNIDO’s BICs now pro- In November 2007, UNIDO and turn have become closely linked velopment in the sub-region. to strengthen economic • Generate labour market infor- vide computer training and Microsoft won the Africa Investor to insecurity in these countries. West Africa will continue to face resilience and human security’, access to the Internet. One Award 2007 in the category, “Best mation at the sub-regional during the UNIDO General The four countries comprise one spillover-effects, not least from Initiative in Support of SME level; Conference, December 2007. farmer, Turimulugendo Charles, of the world’s youngest and poor- the impact of irregular and un- used his local BIC to learn how to Development”, for the Uganda • Improve the employment pro- est populations. Nearly three- controlled migration, as young find markets for his new crop of Business Information Centre spects of marginalized, poor • Provide additional financing for quarters of the people living there people leave their countries in se- aloe vera. It’s worked so well that project. The award, an inter- youth, particularly in urban youth-led projects through a are under the age of 30. At around arch of a future. he now has to hire extra workers. national benchmark for ex- areas; sub-regional financial scheme; 70 percent, youth unemployment In early 2007, UNIDO, UNDP, Another small entrepreneur, cellence in responsible investing runs high in the sub-region. and the International Labour Or- • Enhance youth entrepreneur- • Share information and ex- Michael Kasede, runs a newly- in Africa, recognizes and rewards The future of the MRU coun- ganization pledged to “deliver as ship and empowerment, includ- periences for policy and pro- established poultry farm. He only innovative development projects tries, and West Africa as a whole, one” on the issue of youth em- ing youth-led projects and gramme harmonization and started using the centre at the be- initiated by the private sector, is conditioned by young people’s ployment in the Mano River cross-border initiatives; development. ginning of 2007, and has already governments and NGOs. Ugandan farmer, Turimulugendo Charles taken courses in Word, Excel,

10 Industrial development in a changing global landscape 11 Trade capacity building

Trade is an integral part of economic growth and development – it allows countries to exploit their comparative advantages. Trade has become more im- portant in recent years, as a result of trade liberalization and technological advances that have made global trading operations more effi- European Commission recognizes cient and effective. UNIDO’s EPA role Nonetheless, open mar- kets have not treated all Stefano Manservisi, Director- countries equally. In General, Development, the European Commission: many developing coun- “UNIDO is supporting efforts tries, enterprises have to generate economic growth not responded to the and, even more important, to incentives available, the turn it into development…. domestic supply capa- UNIDO is a crucial partner in the EPA process because it is an city is weak, and there is institution that is able to a paucity of information bridge gaps and to identify the Pascal Lamy , Director-General and support services to right needs at the right of the World Trade Organiza- moment.” tion (WTO), addressing the develop, produce, and UNIDO General Conference: export products to new Addressing a panel discussion challenges ahead. Mr Manservisi “In my view, the WTO and markets. In addition, on the EPAs at the UNIDO Ge- said that the complexity of the UNIDO are two sides of the many countries lack the neral Conference, the EC’s EPA negotiations had perhaps same coin. The WTO’s core infrastructure, both phy- Stefano Manservisi pointed out been underestimated, and that mandate is to foster trade the importance of UNIDO as a the new approach had been ne- opening in a manner suppor- sical and institutional, to tive of the developmental make it possible for ex- Building productive neutral partner. He said the EC cessary in order to achieve WTO- priorities of developing coun- porters to operate effi- recognizes UNIDO’s expertise compatible agreements. He con- tries, and UNIDO’s mandate is ciently. and role with regard to the cluded that interim agreements EPAs, adding that UNIDO’s sup- are the first step, but full and to support developing UNIDO has long sup- countries to develop adequate capacities for trade port and knowledge can help comprehensive EPAs, which he industrial and productive ported developing coun- meet the need to foster regional admitted involve risks as well as capacities necessary to exploit tries in various aspects of integration and upgrade capaci- offering opportunities, are the the potential benefits of trade trade, and the increasing ties, and to allow existing and final objective. opening.” competitiveness importance of trade was new enterprises to meet the recognized by UNIDO in

the last two years with the creation of a PhotoDisc separate branch specifically focusing on trade capacity building. UNIDO’s gram below illustrates, a country’s trade support their enterprises to produce approach is based on the concept of for- competitiveness depends on its capacity more and better products, and to estab- Sir John Kaputin, Secretary-General of the African, Caribbean and Pacific ming strategic partnerships with other to, first, produce enough products that lish institutional infrastructure for (ACP) Group of States, addressing the multi-lateral and technical organiza- can be sold (Compete), then insure that standards compliance, certification test- General Conference round table on tions to deliver services more efficiently those products meet the requirements of ing and accreditation that enterprises trade, said: and effectively. UNIDO views trade ca- the new markets (Conform), and finally rely on when assuring their customers “The ACP economies will require pacity building as a comprehensive pro- nothing short of a complete structural to transport and sell those products in that their products meet all necessary transformation to establish a strong, cess that UNIDO terms the 3Cs: Com- new markers (Connect). Accordingly, market requirements. competitive, and diversified economic pete, Conform, and Connect. As the dia- UNIDO helps developing countries to base. The ACP group’s national and regional development strategies have Economic Partnership to shift their structures away from Agreements goods with low demand and growth, and stagnant or declining price trends, towards production of higher-value goods and services. This can come about Although UNIDO provides a wide range by enhanced production, marketing, distribution, and transportation of services that support developing systems, while at the same time upgrading capacity countries to build their capacity to trade, to attract quality investment.” particularly to increase their supply capacity and to establish and upgrade Harry Sieplinga/ HMS Images/ institutional trade infrastructure, the EPAs are the WTO-compatible trade ting to gradually opening their own mar- • strengthen productive and trade capa- Getty Images focus of the trade segment of the 2007 and development arrangements bet- kets to direct competition from highly cities, and the export competitiveness General Conference was on UNIDO’s ween the European Union and six competitive EU goods and services. Pre- of small and medium-sized enterprises activities within Economic Partnership African, Caribbean and Pacific (ACP) re- paring for such radical liberalization re- and related services in high potential Agreements (EPAs). This is a relatively gions: Central Africa, East and Southern quires a fundamental restructuring and export and employment sectors; new programme for UNIDO, but one Africa, Southern Africa, West Africa, the upgrading of the economies and indus- • enhance capacities of quality infra- which provides the opportunity for Caribbean, and the Pacific. It is envi- tries in ACP countries. structure; and large-scale technical cooperation saged that these EPAs will gradually lead This is why, at the request of the six • Develop • Enhance • Upgrade • Strengthen • Promote • Streamline activities calling on the wide array of to an EU-ACP free-trade area. ACP coun- ACP EPA regional groupings, UNIDO is • upgrade or assist in the establishment Produtive capacity to conformity export business custom of technical support institutions. Capacity meet assessment promotion partnership procedures UNIDO expertise, depending on the tries are to be given free access (except formulating programmes for the upgra- standards capacities actvities and trade and specific and individual needs of the for sugar and rice) to EU markets with ding and modernization of their priority These programmes, based on UNIDO’s agreements mechanisms countries. 500 million consumers, while commit- industries. The objectives are to: technical expertise and experience in

12 Industrial development in a changing global landscape 13 Trade capacity building

Mediterranean and sub-Saharan Africa countries, will eventually cover most of the 78 ACP member states. UNIDO’s work within the framework of the EPAs will rely, to a large extent, on the skills resident in its Upgrading and Modernization programme, in which UNIDO works to unleash the UNIDO works to unleash the potential potential of developing countries’ of developing countries’ productive sectors with high export prospects. One productive sectors with such sector is often found in the high export prospects agro-manufacturing industries. The Or- ganization provides assistance to up- grade product and production quality, and helps enterprises to comply with - standards and regulations so that they can export successfully. Special assist- ance is provided to countries that have acceded to WTO, or are in the accession process, to help them develop the standards and conformity assessment infrastructure to fulfil the requirements and obligations under WTO agreements on Technical Barriers to Trade, and Sanitary and Phytosanitary measures. In recent years, UNIDO has developed and implemented upgrading and mo- dernization pilot programmes in Algeria, Cameroon, Egypt, Senegal, Syria, Tunisia and the UEMOA group of West African countries. These pro- grammes support the dynamics of res- tructuring and upgrading industries and related services, and improve their growth, competitiveness, quality, and export capacities.

Photo MEV Upgrading Tunisia’s Trade competitiveness: Industrial Sector three regional round tables An example of the way that leather and footwear, and UNIDO’s trade capacity building At the General Conference, The Arab regional round table The purpose of the Asia and the The Latin America and Caribbean re- mentation of CSR principles, and fosters UNIDO will work with ACP food. programmes help developing round table meetings focused on considered the role of manufactu- Pacific regional round table was gional round table discussed potential the sustainable growth of the business. It countries within the frame- In the first 12 years of im- countries generate the industrial different aspects of the trade com- ring industries in the process of to exchange perspectives on the strategies for the region, and reviewed the does this by providing a structured work of the EPAs is provided plementation, the upgrading capacity to produce more and petitiveness challenges faced by economic diversification. Arab implications of the rapid develop- options and instruments available to pro- framework in combination with analyti- by the successful collabora- programme recorded signifi- better products that can be sold in the countries of the Arab, Asia countries are looking to diversify ment of China and India for the mote social and environmentally sustain- cal software, which can be used to gather, tion with Tunisia. As the cant results: global markets. Support for this and Pacific, and Latin America in order to meet the challenge of developing countries in the rest able development. The participants also process, evaluate, and report data to country’s industrial enter- • A four-fold increase in in- process is provided by way of an and Caribbean regions. depletion of their oil resources in of the region. In particular, parti- explored ‘responsible competitiveness’: track progress in implementing CSR in prises prepared to adapt in dustrial exports from €2 to array of activities, ranging from the future as a result of steadily cipants examined ways that the the concept that national economic com- SMEs. the context of the pro- €9 billion; investment facilitation, techno- increasing energy consumption developing countries and LDCs petitiveness will increasingly be deter- gressive establishment of a logy acquisition, and develop- in the world, as well as the could benefit from cooperation mined by how well countries integrate Free Trade Area with the • Foreign Direct Investment ment focusing on agro-industry, gradual replacement of oil by with China and India in enhan- superior standards in relation to environ- European Union, the to the industrial sector in- to enterprise development fo- renewable energies and energy cing sustainable development of mental, social, and governance issues. Tunisian government en- creased from €40 to 250 cusing on SMEs. To help enter- efficiency consumption. Included their own economies, and ways in Since smaller enterprises are by far the listed UNIDO’s support to million per year; prises to develop the competitive- among the participants’ recom- which they can transform the most numerous component of the design and implement a • The European Union is now ness to participate in global mendations were calls for sup- challenges of the ‘China and India economic landscape in Latin America and national programme for up- Tunisia’s largest trade markets, UNIDO has done con- port for the development of Factor’ into opportunities for elsewhere, getting them engaged with grading the economy and the partner (representing 85% siderable work in enterprise re- micro, small and medium-sized growth. Corporate Social Responsibility (CSR) industrial base. The UNIDO of all trade); structuring and upgrading in enterprises, and enhanced entre- policies and practices can be an important pilot programme focused on order to formulate a strategic preneurship development pro- developmental force. In order to enhance • 3,860 enterprises have parti- the improvement of the busi- vision and develop managerial grammes with special emphasis the capacity of business support and ad- cipated (85% of them em- ness environment and the skills in the key disciplines: mar- on women and youth. visory institutions to assist SMEs in their ploying 20 persons and competitiveness of enter- keting, production, finance, pro- efforts to implement socially and en viron- more). prises, and resulted in the duct development, and manage- mentally friendly business approaches strengthening of three ment information services. and operation methods, UNIDO has sectors: textiles and clothing, developed the Responsible Entrepreneurs Achievement Programme (REAP). This programme facilitates the practical imple-

14 Industrial development in a changing global landscape 15 Environment and energy

Environment and Energy is the third of Garment factory workers It involves research, demonstration, and industrial production and consumption UNIDO’s three thematic priorities, and a cross flooded streets scaling-up of new sources of energy for of POPs. on their way home from work. major focus of its technical cooperation Dhaka, Bangladesh. rural electrification and industrial activities. It is also an area that is be- Shehzad Noorani/Still Pictures application, linking rural energy activities coming more and more important as a services with productive activities in As UNEP’s Achim Steiner points out, result of the debate about climate order to increase jobs and provide climate change poses challenges but change. Indeed, for the participants at incomes, and strengthening manu- offers opportunities for developing the UNIDO General Conference – aware facturing capabilities for renewable countries. UNIDO’s activities to help that their meetings coincided with the energy technology absorption. developing countries meet those opening of the United Nations Climate challenges and take advantage of those UNIDO also provides: Change Conference in Bali - sustainable opportunities are found primarily in its development in the context of climate • industrial energy efficiency services to programmes for industrial energy change was clearly an issue of special help reduce energy use in industry efficiency, renewable energy, and the concern. As Achim Steiner, Executive and make industrial production less Montreal Protocol. Director of the United Nations Environ- costly, primarily by facilitating the Energy use is a major contributor to ment Programme (UNEP), said in his adoption by enterprises in developing global warming, and industry is a major address to the General Conference, countries of a systems approach to the user of energy. Industrial energy “Environmental change is driving the management of energy; efficiency measures, then, offer imme- future of industrial development. Clim- • a cleaner and sustainable production diate prospects for the mitigation of ate change can drive a different kind of programme to provide developing climate change, as well as for increasing development process….” country enterprises with advice and enterprise competitiveness. In China, technology to help them use material for example, UNIDO has demonstrated Environmental and and energy inputs in the production that industrial motor-driven systems energy-related services process more efficiently, thus re- have the potential for a 20-50% im- ducing pollution and waste, while UNIDO’s services in the areas of environ- provement in energy efficiency, often at increasing profitability and competi- ment and energy address poverty reduc- modest cost. tiveness; Renewable energies offer more environ- tion concerns, as well as climate change, mentally efficiency in resource use and pollution • water management services that in- friendly sources of energy, and reduction. The rural and renewable clude information and advisory serv- UNIDO is increasing its activities in this energy programme addresses the needs ices to help developing countries area. In addition to its work with solar of the poor for access to energy, since protect their water resources from in- energy and mini-hydro projects, it is access to energy is fundamental to dustrial effluents, and increase water moving into hydrogen energy research practically all aspects of human welfare. supplies by increasing the pro- and demonstration activities. ductivity of water use by industry. The work on the Montreal Protocol con- tributes to the reduction of climate Renewable energy International agreements change, since many ozone-depleting In view of ever rising energy potential energy of falling substances also contribute to global demands, renewable sour- water into mechanical and and protocols warming. UNIDO has been the second ces of energy have gained eventually into electrical In line with the Montreal Protocol on largest implementer of projects for importance in recent years. energy. Such relatively Substances that Deplete the Ozone Layer, Ozone Depleting Substances (ODS) UNIDO is focused on pro- small schemes have little UNIDO’s technical cooperation assists reduction within the Montreal Protocol, moting the following: environmental impact, governments that are signatories to the and has provided assistance with over • Bio-energy - obtained from and can provide a range of protocol to reduce their industrial con- 1,100 projects, in some 85 countries, biomass. The main valuable energy services, sumption and production of ozone- with total funding of over US$500 mil- sources of biomass are in- especially in rural areas. depleting substances. Governments also lion. UNIDO has phased out more than • Solar energy – using semi- dustrial and agricultural receive help to comply with the 50,000 ODP tonnes of consumption and wastes and residues, such conductors (photovoltaic Stockholm Convention on Persistent Organic as sugar cane waste (ba- devices) to produce electri- almost 17,000 ODP-tonnes of production gasse); organic waste pro- city as well as in solar Pollutants (POPs) by implementing legal, (An ODP tonne is a metric tonne mul- duced by animal hus- thermal applications. This organizational, and environmental tiplied by the ozone-depletion potential bandry; and energy crops, form of renewable energy management measures to reduce their of the substance). such as sugar cane or corn. provides an economical The main processes of uti- and environmentally- lizing these biomass friendly alternative to con- Phasing out CFCs and POPs in China At a presentation at the UNIDO sources are direct combus- ventional fossil fuel tech- Green Industry: General Conference, SEPA’s repre- tion; gasification via a nologies. President of Sierra Leone, sentative, Lifeng Yu, announced, physical or chemical con- • Wind power – using a tur- Ernest Bai Koroma, and “By July 2007, we achieved the version processes to a se- bine to convert wind China’s Deputy-Minister of advanced phase-out of CFCs and Yi Xiaozhun condary gaseous fuel; bio- energy into mechanical promoting Commerce, halons – that was two and a half logical conversion to me- and/or into electrical (right), opening the General years ahead of the schedule set by Conference exhibition thanol-rich biogas for use energy. Even though the the Montreal Protocol. We have staged by China’s State phased out 100,000 tons of CFCs as a gaseous fuel; and che- total amounts of energy growth Environmental Protection and 80,000 tons of halons, and mical or bio-chemical con- produced by stand-alone Administration (SEPA). version to produce me- wind systems may be com- UNIDO and SEPA have been stopped production and use of thanol, ethanol or other li- paratively small, they still jointly implementing a CFCs/halons in eight sectors….I am and protecting proud of this work, which is good quid fuels. provide an economical al- series of projects under both • Mini-hydro – small-scale ternative for the provision the Montreal Protocol and for the Chinese people and for the projects that convert the of basic energy services. the environment the Stockholm Convention. whole world.”

16 Industrial development in a changing global landscape 17 Environment and energy

UNIDO’s Transfer of Environmentally Sound Technology (TEST) programme helped enterprises in the Danube River Basin to respect environmental standards and still maintain or even enhance their competitive position. The “Industry is a major contributor General Conference’s Europe and Newly Independent States round to water pollution but at the table on “Technology Foresight same time needs water supplies of and Water Productivity” provided best practice examples of the a high quality. It is therefore in technology foresight concept, and raised awareness on the industry’s own interest to ensure concept of “zero discharge” that it uses water efficiently related to water productivity, rationale use of water resources and does not pollute existing by industry, waste water treatment, reuse and water supplies.” – recycling. Kandeh Yumkella, UNIDO Director-General.

The Sekem success story Towards a hydrogen- inclusive economy Today’s petrol-based paradigm can be succeeded by a more environment-friendly one, ultimately based on renewable primary energy sources such as the sun, wind, bio- mass, or the Earth’s internal heat. Whatever the source, there will always be a need for an energy carrier. One such carrier is elec- tricity. Another is hydrogen. Hydrogen is Green Industries Initiative the lightest and simplest element in the UNIDO’s experience over the past ‘Cleaner Production Plus’ programme universe. Clean, efficient and safe, it is the fifteen years shows that developing that has four main components: ideal energy carrier, and has the potential to countries can benefit from adopting a • Building capacity of new generations “When we started in 1977, no one believed in this kind address most future energy needs in a sustainable industrialization approach to enter industry or the environmental of business….Today the biggest organic market in the petrol-free system. In the short-term, a that increases efficiency, reduces en- that adopt a preventive approach can sig- energy productivity and efficiency, or by developing world is Egypt.” - Helmy Abouleish, hydrogen-inclusive economy can already be services sector. The entry points for vironmental effects, and supports pro- nificantly reduce their environmental providing measures that enable indus- managing director of the Sekem Group, speaking envisioned thanks to hydrogen production this capacity-building are university during the panel discussion on ‘green industry’ at techniques based on renewable energies, poor development. However, this curricula, vocational training courses, impacts, and often their costs as well. tries or enterprises to monitor and the UNIDO general conference, December 2007. and to recent progress in the fields of approach is not yet widely im- and even secondary school curricula; Rarely, however, can they completely benchmark material and energy effi- Abouleish concluded, “The vision of green industry hydrogen storage and distribution. plemented, and as a result, at the General eliminate pollutants and wastes, so they ciency. • Integrating cleaner production into re- can come true. It is possible to be competitive.” The International Centre for Hydrogen Conference UNIDO announced its lated concepts, tools and methods, need the services of others who can With the Green Industries Initiative, Energy Technologies (ICHET) is a UNIDO intention to launch a ‘Green Industries such as eco-design for products, the properly dispose of those wastes. A dy- UNIDO expects to achieve greater The Sekem initiative began system can be sold, used in project designed to develop, demonstrate, Initiative’ to help client countries scale greening of supply chains, chemicals namic environmental services sector is scaling up of its efforts in developing as an organic agricultural processing or re-used in and promote technologies for the im- up their activities in support of sustain- indispensible for environmental sustain- countries, and consequently a greater business outside of Cairo cultivation, thereby crea- plementation of a hydrogen energy and hazardous waste management, able industrialization. and industrial use of bio-energy; ability, and UNIDO will focus on pro- impact not only on environmental that combined social and ting sustainability. Sekem economy suitable for use in developing The Green Industries Initiative will moting recycling and ‘closing-the-loop’ effects, but on the standards of living in environmental objectives has grown exponentially in countries, and to encourage the utilization Involving more technical, financial concentrate its efforts in three areas, the • concepts. those countries. Some firms will prosper in its business model the last decade to become a of hydrogen as an alternative fuel. ICHET is and policy institutions in preventive first of which is awareness-raising and The third area of activities concerns by making sustainable development through training in modern market leader in organic carrying out a variety of pilot and de- activities at both national and regional farm management, organic foods, clothing and phyto- capacity-building. In this context, the policies that support green industries. part of its business model. [See: The monstration projects all over the world. levels, and expanding cooperation cultivation, and the nego- pharmaceuticals. At the main objective will be to broaden the While better enforcement of environ- Sekem success story] Most, however, Hydrogen islands initiative: Two ICHET with international organizations; tiation of long-term sup- outset, Sekem medicines pilot projects off the coast of Turkey on the traditional approach to cleaner produc- mental policies is important, industrial will continue with existing business • Strengthening the roles of UNIDO and plier contracts. Sekem was and agricultural produce islands of Sedef and Bozcaada will use wind tion that UNIDO and UNEP have fol- policies can also create positive incen- models, but in a more efficient, less the first entity to develop were exported. Now, 55% UNEP as facilitators of regional and and solar power to produce hydrogen lowed. This approach has been primarily tives for environmentally sustainable be- polluting manner. The ultimate ob- bio-dynamic farming of its sales are domestic, as through an electrolyser. In order to negate delivered through the 43 National national cleaner production networks, haviour. Providing easy access to pro- jective of the Green Industries Initiative methods in Egypt. These Egyptians have become the effect of intermittency, excess hydrogen Cleaner Production Centres (NCPCs) in order to involve both NCPCs and duct or process standards, and providing is the existence in developing countries methods are based on the more aware of the benefits is stored and will be used in fuel cells and and Programmes established since 1994, other institutions in cleaner produc- industry with the infrastructure, such as of growing, sustainable industries, pro- premise that organic cul- of organic products. Today, hydrogen-powered internal combustion and has focused on raising awareness of tion. laboratories and certification and accre- ducing jobs and minimizing environ- tivation builds up fertile Sekem employs about engines. This technology is similar to that of soil structures, improves 2,000 people, and its re- an ICHET partner in Norway providing cleaner production and its benefits, pro- The second area of activities that the ditation bodies, needed to meet those mental effects, and to help achieve this viding training and technical assistance, Green Industries Initiative will focus on standards is one example. Incentives can objective UNIDO has decided that ‘green agro-biodiversity and does venues more than qua- power to the island of Utsira, making it self- not produce any unusable drupled between 2001 and is the industry’ will be the theme of its next sufficient with renewable energy. and giving policy advice to govern- development of the environ- also be provided through laws and regu- waste. All products of the 2005. ments. It will now be augmented by a mental services industry. Enterprises lations promoting greater resource and General Conference, to be held in 2009.

18 Industrial development in a changing global landscape 19 Prime Minister’s corner

dustry ministers here in Vienna centives, and provide the is that while climate change technological assistance, then poses a challenge, particularly developing countries can play a Prime Ministers’corner to poorer nations, it is also an very significant role in the opportunity. context of global environmental The twelfth UNIDO General Conference goals. In the context of climate was attended by over 1,500 people, including the President of Sierra Leone, His Excellency If you take a continent like change, UNIDO and UNEP work Mr. Tertius Zongo, Africa, over the next ten years very closely together in the UN heads of government and ministers, Prime Minister of Burkina Faso: there will be billions of dollars family on promoting both re- delegates from other UNIDO Member “It is important to note that the invested in replacing old energy newable energy and energy States, the heads of the United Nations current dynamism of the Burkina infrastructure. Is Africa going to efficiency. For developing eco- Environment Programme, the World Trade Faso economy has a millstone be led into the adoption of the nomies, the fast-growing eco- around its neck - the high cost of Organization, and the International Trade energy. That is why Burkina Faso is same technologies from the last nomies, there is now a major Centre, and representatives of inter-govern- century? Can we, for example, potential for investment in the very interested in the different mental and non-governmental organiza- initiatives that are being taken to encourage Africa to take the next generation of much more tions. The prime ministers of four Members find alternatives. To this end, we are Achim Steiner lead in some of the renewable efficient and effective buildings, , Executive Director of the UN Environment States were among the dignitaries who joining with those involved in technologies? Can we provide in better energy-generating developing bio-fuels through the use Programme, addressing the UNIDO General Conference in made keynote speeches to the opening December 2007. technological innovation; create technology that is cleaner, and of jatropha and the by-products of jobs on the back of the need to also to leverage mechanisms session of the conference. The following cotton. Such initiatives will un- Developing countries have a key role move towards a lower carbon such as the Clean Development extracts give a flavour of the issues they doubtedly preserve our eco-system, economy? It is both a challenge Mechanism, which in a sense addressed: and limit the greenhouse effect at to play and an opportunity. provides resources from North the root of global warming, the to South to buy new tech- impact of which is felt in many different ways across the world.” We work with UNIDO on issues nology.” “On the one hand, the least Therefore the discussion here, (Unofficial translation from the His Excellency developed economies, the least and in the broader context of such as reducing ozone-deplet- Transcript of a Bloomberg French original) Mr. Lansana Kouyaté, responsible economies in terms the UN, must be how to help ing substances. We have shown Television interview with Prime Minister of Guinea: of global warming, are also on adapt to a world that is going to that if you provide the right UNEP’s Achim Steiner “Our main and essential concern is the front line of the con- look very different. But my global framework; if you during the UNIDO General to combat poverty. To this end, my provide the right kinds of in- Conference. sequences of global warming. message this morning to the in- country’s new industrial policy is focused on the quest for maximum value added in outputs, whether it is factories linked to the agro-indus- Artist’s impression UN-Energy trial sector, producing fertilizers and pesticides, or more heavy industrial In October 2007, UNIDO Director-General, plants such as those producing Kandeh Yumkella, was selected as the new alumina and aluminum.” Chairman of UN-Energy, the inter-agency (Unofficial translation from the body that brings together senior officials and French original) experts on energy from various organizations in the UN family. His selection for this role comes at a time when energy-related issues are assuming a central place in the climate

change agenda. ˆ

The main purpose of UN-Energy is to help His Excellencyˆ ensure a coordinated and coherent response Mr. Zeljko Sturanovi´c, by the UN system to the energy-related Prime Minister of Montenegro: aspects of the Johannesburg Plan of Imple- “The energy supply issue is one of mentation, adopted at the 2003 World the greatest challenges for Monte- Summit on Sustainable Development. UN- negro at this juncture. Montenegro on average is short of one third of Energy facilitates the sharing of information, electric power it needs, incurring an knowledge, experiences and good practices annual cost of 60 million dollars. on energy-related initiatives and activities in Speedy economic growth driven by the UN system. It keeps an overview of the development of tourism and the ongoing and planned energy-related ac- service sector, as well as the develop- tivities within the UN system, and helps build ment of agriculture and other and strengthen synergies among them. It also industrial sectors is just fuelling the promotes common and complementary demand for energy, making this approaches to energy policy issues, and co- issue the focus of our development strategy.” Solar energy technology ordinates support to inter-governmental bo- dies such as the UN Commission for Sustain- centre in China able Development. In March 2006, UNIDO inaugurated a major The Centre will offer a wide range of ser- His Excellency solar technology project in Lanzhou, capital vices such as the development and upgrade of “My appointment as Chair of UN-Energy of Gansu Province in northwest China. The solar energy technologies, the development Mr. Edward Lowassa, calls for dedication and commitment. I Prime Minister of the United project will transform the Gansu Natural of solar energy technology/ product believe that the link between energy access Republic of Tanzania: Energy Research Institute into an Interna- standards, and the provision of technical and climate change needs to be reinforced, “We are meeting at a time of momentous change which poses tional Solar Energy Centre directed at conti- training, specialist workshops, and seminars. daunting challenges, but also offers great opportunities to the nued research and development of appli- Renewable energy will account for over 10 that fighting climate change can only be developing countries. Globalization is accelerating. Economic and cable solar energy technologies and percent of China’s total volume of primary moved forward if and when it is considered social imbalances are growing within and among continents. enhancing the transfer of these to deve- energy consumption by 2020, with solar as part and parcel of the broader discourse Technological advancement as well as Information and loping countries to promote South-South energy providing the second largest com- on development.”- UNIDO Director- Communication Technology gaps continue widening between cooperation. ponent after hydroelectric power. General, Kandeh Yumkella. developing and developed countries. Industrial development is unevenly distributed. Developed countries continue to dominate and monopolize this sector, thus leaving developing countries to play the role of spectators. As a result, the Least Developed Countries in particular continue to produce what they do not consume and to 20 consume what they do not produce.” 21 Events andexhibitions Conference decisions Industrial and resolutions Development Forum Regional The twelfth session of the UNIDO Support for Mano River ATLANTIC OCEAN Industrial development in a changing General Conference passed a global landscape: round number of decisions and Union countries The contribution of UNIDO resolutions including: tables Support for LDCs Africa — The China and India Factor: Implications The General Conference took note of the for developing countries in Asia and the Ministerial Conference of the Least Pacific region Developed Countries hosted by UNIDO — Mano River Union in Vienna on 29-30 November 2007 – High-level GUINEA — Towards sustainable peace: Empowering the first such conference since 1997 – youth to strengthen economic resilience and invited the Director-General to take panels and human security special account of the needs of the Least SIERRA Developed Countries (LDCs) when im- LEONE COTEˆ — Wealth creation for poverty — The role of manufacturing industries in plementing the medium-term pro- D’IVOIRE reduction:The role of industry the economic diversification process of gramme framework for 2008-2011. LIBERIA — Building productive capacities for Arab countries: Challenges and The Vienna Ministerial Declaration of trade competitiveness: Economic opportunities the Least Developed Countries included Partnership Agreements — Technology foresight and water a call for UNIDO to establish a Trust — Green industry: Promoting growth productivity (Europe/NIS) Fund for LDCs and for donors to con- ATLANTIC OCEAN and protecting the environment — Industrial competitiveness and the tribute generously to it. The Declaration Maireder graphic environment in the Latin America and Caribbean regions: Corporate Social The General Conference took note of the youth entrepreneurship, and empower- Responsibility and the role of the private Mano River Union Round Table held on ment through profitable youth-led initi- sector in sustainable development 4 December 2007 during the twelfth ses- atives, as well as special considerations sion of the UNIDO General Conference, for young women, will need to be ac- Presentations and encouraged UNIDO, within its man- companied by additional financial date and where so requested, to support schemes to complement national youth The State Environmental Protection within the medium-term programme employment schemes”. The commu- Administration (SEPA), China: Compliance with framework, 2008-2011, the implementa- niqué called on the donor community to Multilateral Environmental Agreements tion of programmes proposed in the support the multi-stakeholder pro- Challenges and Opportunities in the production joint communiqué. In the communiqué, gramme on productive and decent work of biofuels: Selected Aspects of the Experience the Heads of State and Government and for youth in the Mano River Union and of Brazil in Producing Bio-Ethanol Exhibitions Senior Ministers of the Mano River Côte d’Ivoire, which has been initiated “Regard sur la Terre”: New Flagship Publication Poverty reduction through productive activities: Union countries and Côte d’Ivoire by UNIDO, in collaboration with other of the Agence Francaise de Développement Entrepreneurship curriculum development – stressed that “self-employment and United Nations agencies. (AFD) and the Institut du Développement Private sector development toolbox – Durable et des Relations Internationales (IDDRI) AfrIPAnet – Women entrepreneurship development – Mano River Union Youth International Center for Hydrogen Energy Employment – UNIDO-Microsoft Partnership – posals for the biennium 2008-2009 and Supporting UNIDO’s Technologies (ICHET),Turkey: Hydrogen and fuel Cane and Bamboo Technology Centre, India – approved estimates of gross regular cells around the world European Water Partnership – Iranian industry participation in UN budget expenditure of €159,638,038 and exhibition – Taytu leather goods and accessories system-wide coherence also approved estimates of gross ex- The General Conference noted the penditure totalling €22,759,077 for the Trade capacity building: Export consortia – United Nations reform event to be purpose of the operational budget for the Responsible entrepreneurship achievement hosted by UNIDO in Vienna in March biennium 2008-2009. programme – Traceability project in Egypt – 2008, and requested the Director- India Business exhibition – Food processing pilot General to continue the coordination A new External Auditor centres – Madagascar silk programme – and promotion of UNIDO activities in The General Conference decided to Bahrain ITPO – ITP Network of University Chairs relation to the ongoing discussions on appoint the Auditor General of Pakistan United Nations system-wide coherence as the External Auditor for UNIDO for a Environment and Energy: ECB chemical leasing at the global, regional and country also noted the importance of building period of two years, beginning on 1 July and cleaner production programmes – Energy levels. productive capacity, particularly manu- 2008 Pakistan is the first Asian and the kiosk for lighting up Kenya - Observatory for facturing capacity which is within the second to assume renewable energy in LAC – ICHET – SEPA – UNIDO mandate, and requested that Budgets for 2008-9 this office. The term of the current France: Energy - A key for development – UNIDO consider hosting an LDC con- The General Conference took note of the External Auditor, the Auditor-General of Montreal Protocol – Artisanal gold mining – ference every year. revised programme and budget pro- South Africa, expires on 30 June 2008. Germany/UNIDO Cooperation

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