www.unido.org
General Conference 16th Session 30 November – 4 December 2015, Vienna, Austria
Sustainable industrialization for shared prosperity
UNIDO focusing on Sustainable Development Goals #SDG9: Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation. Contents
General Conference Overview 3 Snapshot of Side Events 24
Highlights from Keynote Speeches 4 UNIDO Open Data Platform 27
The Conference in Pictures 10 Introducing UNIDO Goodwill Ambassador, Janne Vangen Solheim, Fourth UNIDO Forum on Inclusive and Norway 27 Sustainable Industrial Development 12 The Least Developed Countries Second Donor Meeting 15 Ministerial Conference 28
UNIDO’s Cooperation with the General Conference Outcomes 30 European Union and the European Investment Bank 22 Looking Forward 32
2 General Conference Overview Vienna, Austria
Partnership (PCP). The PCP is being General Conference Overview piloted in Ethiopia and Senegal and has just been extended to Peru.
During the Conference, participants agreed that: Sustainable • UNIDO’s thematic priorities fully reflect the economic, social and environmental dimensions of sustainable development; Industrialization for • The Organization’s role will be pivotal in implementing Goal 9 and the 2030 Agenda; Shared Prosperity • UNIDO is well equipped to deliver on the SDGs to eradicate poverty, create jobs, combat environmental degradation and promote sustainable economic growth; The sixteenth session of the General “important role of UNIDO in providing • The Organization offers valuable Conference of the United Nations decent livelihoods, especially in those services which are, inter alia, helping Industrial Development Organization countries from which we are now to tackle the root causes of migration (UNIDO) took place in Vienna, Austria, receiving refugees”. by supporting job creation. from 30 November to 4 December 2015. The theme of this year’s biennial event Promoting equitable, inclusive Other key events during the was ‘Sustainable Industrialization for and sustainable development Conference included: Shared Prosperity’. Over 800 participants One of the highlights of the Conference • A meeting between UNIDO attended the Conference, including was a keynote speech by Nobel-prize Director General LI Yong and the government officials, representatives winner in Economic Sciences, Joseph Vice-President of the European of all UNIDO Member States and Stiglitz, who underscored UNIDO’s call Investment Bank, Ambroise Fayolle. representatives from the private sector, for equitable, inclusive and sustainable The two institutions reaffirmed academia and the international media. development. their commitment to promoting inclusive and sustainable industrial The Conference was convened at a The Second UNIDO Donor Meeting development, particularly in Africa. defining moment in the history of global demonstrated the effectiveness • The launch of three publications: development cooperation, coming just of UNIDO’s technical assistance 1. A new report on the cooperation months after world leaders adopted interventions. The event highlighted between UNIDO and the European the Sustainable Development Goals the additional value that donors Union; 2. The new Oxford Handbook (SDGs). These 17 SDGs constitute the receive when resources invested in of Africa and Economics; and core of the 2030 Agenda for Sustainable UNIDO’s projects are aligned with the 3. UNIDO’s flagship publication, the Development. United Nations (UN) Organization’s expertise and services. Industrial Development Report (IDR). Member States are expected to use • Three events held on the sidelines of the SDGs to frame their agendas and The Fourth UNIDO inclusive and the Conference addressing: political policies over the next 15 years. sustainable industrial development 1. The role of innovation hubs for (ISID) Forum offered a platform for sustainable industrialization and UNIDO’s mandate is to promote and participants to discuss multi-stakeholder shared prosperity; 2. Youth and accelerate inclusive and sustainable partnerships. The forum provided an women entrepreneurship; and industrial development (ISID) in order overview of the achievements to date of 3. Sustainable industrialization for to achieve shared prosperity and UNIDO’s new Programme for Country climate action. environmental sustainability around the world. The concept of ISID is included in Goal 9 of the SDGs, which calls “Voluntary contributions received from our donors reached their upon the international community to ”build resilient infrastructure, second-highest levels ever in 2014, when they were 110 per cent higher promote inclusive and sustainable than in the year 2000, and the full-year figure for 2015 is expected to industrialization and foster innovation”. be close to that for 2014. No less than 60 donor countries provide us with funding for the delivery of our services in technical cooperation, Austrian President Heinz Fischer research or global forum activities.” welcomed participants to the Conference, acknowledging the UNIDO Director General, LI Yong.
3 Highlights from Keynote Speeches
Austria’s long-standing support for of the poorest and most vulnerable. • People stands for the eradication of UNIDO and the Organization’s contribution poverty and hunger. • Planet stands for the protection of the to the 2030 Agenda planet which is our environment. • Prosperity is a synonym for achieving Highlights of the opening address by the President of Austria, Heinz Fischer economic, social and technological progress. • Peace means fostering peaceful, just In accordance with this declaration, and inclusive societies which are free UNIDO began to position the concept from fear and violence. of inclusive and sustainable industrial All of these areas are interconnected development in all processes, leading and cannot be tackled separately. to the formulation of the post-2015 development agenda. Decoupling economic growth from negative environmental impact Providing decent livelihoods Austria takes the Sustainable In September 2015, at the Summit for Development Goals very seriously and the Adoption of the 2030 Agenda for is committed to their implementation. Sustainable Development in New York, The successful implementation of at which I had the honour to represent the Sustainable Development Goals Heinz Fischer, President of Austria, Austria, 17 Sustainable Development is intrinsically linked to UNIDO’s delivering opening remarks at the sixteenth Goals were adopted, among them contribution. One of the major session of the UNIDO General Conference. Goal 9: “Build resilient infrastructure, challenges for sustainable development promote inclusive and sustainable is decoupling economic growth from This Conference comes at the juncture industrialization and foster innovation”. negative environmental impact. With of four landmark anniversaries: The I would like to congratulate Director the new mandate for inclusive and 70th anniversary of the United Nations, General LI Yong for the important sustainable industrial development 60 years of Austrian Membership of the role he played during the negotiation contained in the 2030 Agenda, UNIDO is United Nations (UN); the soon upcoming process. His wisdom and management the agency best suited to link economic, 50th anniversary of the establishment of capability were a cornerstone to this social, and environmental aspects of UNIDO in Vienna; and finally, 30 years success. He is also very successfully industrial development. This is why of UNIDO’s transformation into a working on changing an output-oriented Austria strongly supports the UNIDO- specialized agency… .These anniversa- organization to an outcome-oriented UNEP Resource Efficient and Cleaner ries present a stock-taking opportunity, one, thereby underlining that the effects Production Strategy. Austria has funded but also a moment to look ahead… . of UNIDO’s technical-cooperation work this very successful programme since UNIDO was created in 1966 to promote are more important than how much its introduction in 1995 with more than and accelerate industrialization in money is spent. Recent developments US$12.3 million. developing countries. The eradication of underline the important role of UNIDO in absolute poverty through industrializa- providing decent livelihoods especially Over the last 20 years, Austria has tion was the main focus of UNIDO’s work in those countries from which we receive been one of UNIDO’s largest donors and in order to underline its importance now so many refugees. in absolute terms. Austria also for the work of the UN system, UNIDO continues to fully support UNIDO and became a specialized agency 30 years Partnership, People, Planet its programme activities, thereby ago. Since then, the Organization has Prosperity and Peace supporting its valuable contribution constantly evolved to adapt its strategies In this global agenda with its to the 2030 Agenda. At the same to tackle the challenges of sustainable 17 Sustainable Development Goals and time, we appreciate when recipient development in an ever changing world. its underlying 169 targets nobody is to countries show their commitment to the In the late 1990s, UNIDO reformed its be left behind and all countries have to Organization as well as ownership for agenda to adapt it to the Millennium work together to reach these ambitious their respective country programmes by Development Goals. targets over the next 15 years in the providing national input. International following areas: Partnership, People, organizations can only fulfil their The last session of the General Planet, Prosperity and Peace. Each of mandate meaningfully if all parties Conference in December 2013 resulted the five “P’s” stands as a synonym for live up to their financial obligations. in the adoption of the Lima Declaration, actions to be taken: It is therefore crucial that all past and entitled “Towards inclusive and • Partnership stands for strengthened present Member States pay assessed sustainable industrial development”. global solidarity, focused on the needs contributions in full and on time.
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Aligning UNIDO’s services to inclusive full alignment with the 2030 Agenda, and provides the strategic framework and sustainable industrial development for all our programmes. Our thematic priorities rightly reflect the three and the 2030 Agenda dimensions of sustainable development – economic, social and environmental. Highlights of the opening speech by UNIDO Director General, LI Yong This framework fully prepares us to deliver on a universal, comprehensive, holistic and interrelated set of SDGs for all the Sustainable Development through inclusive and sustainable Goals… UNIDO will play a crucial role in industrial development. Operationally, supporting countries to move towards UNIDO is continuing to increase the higher degrees of economic growth, impact of its activities. We have also social inclusiveness and environmental made further progress on following sustainability. This is a powerful an integrated and holistic approach mandate, recognized by all UN Member to our service delivery, for example by States, the broader UN system, the mainstreaming even stricter criteria for private sector, and all stakeholders at gender equality, social inclusiveness large. We now have the responsibility and environmental sustainability in all to rapidly advance ISID. This is why we our programmes. have fine-tuned our strategic plans, sharpened our technical cooperation Engaging partners in technical UNIDO Director General LI Yong opened approaches, and strengthened our cooperation programmes the sixteenth session of the UNIDO General normative and policy advisory role. With regard to partnerships, UNIDO Conference. And we have let the world know of our has expanded its efforts to engage as commitment to contribute effectively to many relevant partners as possible in Two years after the adoption of the this new development agenda. its technical cooperation programmes. Lima Declaration, we can proudly say Such partnerships need to be relevant that much has been achieved. With the Implementing the 2030 Agenda to context-specific national priorities, guidance we received from you, our requires strong leadership and also to be adequately supported Member States, UNIDO has been able With the adoption of the 2030 Agenda, by a variety of financing models and to navigate through uncharted waters, ISID became more relevant than ever. industrial policies. To achieve this, we and sail safely and with reinvigorated We must now work to scale up our reached out and established close ties spirit towards new opportunities efforts to support our Member States with various prestigious institutions ahead...Under your guidance, we have as they strive towards the achievement from the public sector, finance, civil worked hard. We have strengthened our of this objective. But this cannot be society, academia, and especially the partnerships. We have been innovative. done by the Secretariat alone – despite private sector. And I am pleased that we have achieved the hard work of all UNIDO staff under considerable success in meeting increasingly challenging circumstances. Working with the private all of these objectives, despite very It will also require your leadership. sector to achieve ISID limited financial resources and great The same strong leadership that led With its financial, technological and uncertainties. to the Lima Declaration and ISID. The innovative capacities, the private same strong leadership that led to the sector represents a particularly Anchoring UNIDO’s mandate in full recognition of UNIDO’s mandate important potential contributor to the post-2015 framework in the new overarching development the achievement of inclusive and In September this year, the General framework of the global community sustainable industrial development, Assembly adopted the 2030 Agenda for – the 2030 Agenda for Sustainable and this is why I am placing great Sustainable Development at the United Development. This same leadership emphasis on engaging with private Nations (UN) Summit on Sustainable will be required for the implementation, firms and industry associations as Development. This agenda will guide follow-up and review of the new Agenda. we move ahead with our work. At the all our development efforts over the same time, we are also seeking to next fifteen years, and we are highly Aligning UNIDO’s services to enhance the impact of our services. satisfied with its provisions. ISID is fully ISID and the 2030 Agenda The new generation of UNIDO technical recognized in the new agenda, and is We have fully updated UNIDO’s strategy cooperation programmes aims to prioritized as one of the main drivers to deliver on the SDGs, in particular effectively trigger an industrialization for development, finance and stability. Goal 9. We have designed a strategic process with tangible results and, Sustainable Development Goal 9 spells framework for the next four years – the ultimately, a larger developmental out the importance of ISID. But we medium-term programme framework, impact. We intend to further intensify can also see the significance of ISID MTPF, 2016-2019 – which is already in our efforts in this direction, and to
5 “Twenty years after the World Conference on Women world facing the largest crisis of forced displacement since the Second World in Beijing, we cannot wait any longer. I am determined War, I join the UN Secretary-General in calling upon you – the Member for UNIDO to make a strong contribution to the States of UNIDO – to meet this goal of achieving gender equality and to empowering immense challenge without lessening your commitment to vitally needed all women and girls by 2030.” official development assistance. To mitigate this crisis, economic and social stabilization need to be considerably scale up the impact of our a third country: Peru. This experience advanced quickly and energetically. activities by enhancing our normative will demonstrate for the first time the A holistic approach to development and policy advisory services and PCP approach in a middle-income must be adopted to prevent further creating more effective linkages and country, with a per-capita income of humanitarian disasters and tragedies. synergies between these services and around US$ 7,000, and we hope for While humanitarian support is required our technical cooperation programmes. many followers once we can show first to alleviate the immediate human results. suffering, a long-term solution can only Accelerating ISID implementation lie in the implementation of sustained through the Programme for Gender equality and the and integrated development efforts, Country Partnership empowerment of women along the lines given in the 2030 The Programme for Country Partnership During this Conference you have a Agenda. UNIDO has been engaged – or PCP – which was initiated on a challenging list of items before you. for many years to help overcome the pilot basis in Ethiopia and Senegal One of them is particularly close systemic root causes of migration in November 2014, is a unique and to my heart: Gender equality and through effective measures to create highly recognized initiative to exemplify the empowerment of women. Our employment and income opportunities. this quest for partnership-based, gender policy rightly recognizes the These measures have included our innovative, and high-impact solutions significant positive impact of gender various programmes to support to accelerate the implementation of equality on inclusive and sustainable entrepreneurs, agro-industries, SMEs, ISID. Indeed, it has been seen within industrial development, poverty and industry-related institutions – to the UN system as an outstanding reduction, social integration and mention just a few. We have also given example of how such a partnership- environmental sustainability. At this particular emphasis to support the based model of development General Conference, we are presenting creation of decent jobs for youth – to cooperation may be deployed for the a new strategy to you that will help give them a perspective for the future. broader implementation of the 2030 us implement our gender policy over A perspective for a life in dignity. In all Agenda. The premise of this new the period of the MTPF. This strategy countries: Least developed countries partnership approach is that UNIDO is based on a multi-track approach. – middle-income countries – and even needs to progressively become a First, we will make gender an integral high-income countries. Advancing coordinator, broker, and policy advisor dimension of all UNIDO programmes, peaceful and stable societies requires on industry-related matters for all our policies and practices. Second, we opportunities and prosperity for all. partners – governments, the private will engage in more gender-specific ISID is therefore a major contributor for sector, international organizations, and interventions – including women’s stability, prosperity and peace. This is development financial institutions. Only economic empowerment programmes why I plead to you – our Member States through these partnerships will we have – with the objective of allowing for – to increase your investment in our a truly catalytic effect and enhanced equal participation and benefit from our important work towards ISID. impact on the industrial development development efforts. Third, we will build of our Member States. And the a strong partnership with UN Women success of the pilot phase of the PCPs and other relevant organizations Development support for confirms that UNIDO has embarked in the UN system and beyond to Small Island Developing States. in the right direction. After a year of promote gender equality and women’s implementation, significant results empowerment in UNIDO’s country Referring to the newest UNIDO Member have already been achieved… programmes and convening activities. State, UNIDO Director General LI Yong said, The integration of country ownership, Addressing the systemic root “I am particularly happy to industrial policy alignment, and a causes of migration results-driven partnership approach is It is said that climate change would acknowledge the accession proving a successful strategy to attract create millions of climate refugees. of the Marshall Islands to the investments needed to realize However, we are already amidst one ISID. Based on this, we have now of the most significant migration UNIDO.” decided to expand the programme to emergencies for decades. With the
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Meeting global challenges Negotiators are now headed to Paris to reach a meaningful new agreement through collective action on climate change. Progress on these fronts can help boost human rights and Highlights of the message by the United Nations Secretary-General security. The imperatives of sustainable Ban Ki-moon, delivered by the Under-Secretary-General, development and climate change are UN Department of Economic and Social Affairs (UNDESA), WU Hongbo closely linked to each other — and to industrialization. This is recognized in Sustainable Development Goal 9 This gathering comes at a critical on building resilient infrastructure, juncture. The world is facing multiple promoting inclusive and sustainable humanitarian crises. More than industrialization and fostering 60 million people have fled their innovation. homes — a record since the Second World War. Conflicts continue to rage, Progress will help diversify economies, destabilizing fragile regions. Violent promote technological innovation and extremism presents one of the gravest spark economic synergies. We need security threats of our time. Poverty, to work with partners in industry to discrimination and preventable create momentum for environmental disease still afflict hundreds of millions sustainability by protecting the planet’s of people. These challenges, while resources, promoting sustainable WU Hongbo, Under-Secretary-General, daunting, can be met if countries and consumption and production, UNDESA, delivering a message from the peoples rise to the moment. and transitioning to a low-carbon UN Secretary-General at the opening of the economy. I count on UNIDO to continue sixteenth session of the UNIDO General World leaders have just adopted the demonstrating leadership for inclusive Conference. Sustainable Development Goals. and sustainable industrial development.
Bringing about the transformation promised by the 2030 Agenda Highlights of the statement by the President of the United Nations General Assembly, Mogens Lykketoft
UNIDO’s expertise will be particularly there is a need for structural as well relevant in relation to Goal 9 as we as technological transformation. seek to promote and accelerate There is a need, for example, for inclusive and sustainable industrial economic diversification into sectors Mogens Lykketoft, President of the seventieth development. But that expertise will characterized by higher productivity, session of the UN General Assembly, also be required in relation to many increased technological intensity and addressing the sixteenth session of the other aspects of the Goals such as greater value added. UNIDO General Conference. poverty eradication, creating full and productive employment, protecting This transformation demands a strong the environment and achieving gender focus on finding solutions – from as a shift to low carbon and climate equality. Indeed, the theme of this governments, from industry, from resilient development pathways. It also year’s Conference, “Sustainable international policy makers and from requires a major change among key industrialization for shared prosperity”, international partners. It requires private sector partners from short- itself captures the integrated nature of the identification of appropriate term profit maximization to long-term the Agenda. Clearly industrialization public policies and the creation of an value creation, and the alignment of alone is not the objective – what enabling environment, more broadly, investment portfolios with long-term we need is industrialization that to support technological innovation public priorities. And, if we are to is compatible with a flourishing and industrial development particularly advance effective implementation in an environment, that delivers decent in developing countries. It demands integrated manner then it also requires jobs and that reduces inequality. To actions to support cleaner industry and an evolution in approach from the advance this kind of industrialization, improved resource efficiency as well United Nations.
7 Promoting equitable, inclusive and system with short-term financial markets trying to intermediate between long-term sustainable development investment and long-term savings needs. These are all examples of the ways in Highlights of the keynote speech by Joseph Stiglitz which our markets clearly aren’t working well, examples of market failures, examples where there is a need for interest would lead as if by an invisible government policy.” hand to the wellbeing of everybody. In general, markets on their own did not Industrial policies lead to efficient outcomes, particularly Stiglitz explained that industrial policies problems of information imperfections should promote a whole range of non- and knowledge – many of the issues traditional activities and non-traditional that are central to the issues in which technologies. “For instance, UNIDO is UNIDO is engaged. These problems are very involved in promoting clean energy present in all countries but especially in technologies. More broadly, my concept developing countries.” of industrial policy is any government policy that affects the sectorial The links between innovation composition or the choice of technology and unemployment or the direction of innovation. That can On the subject of innovation, Stiglitz include energy policies, modern service argues that it is not working as it should. sectors - many different aspects of an Joseph Stiglitz, Professor, Columbia Business “The world today clearly needs to have industrial policy.” School, and Nobel-prize winner in innovation to protect us against global Economic Sciences, delivering his keynote warming and other environmental According to Stiglitz, all countries have speech at the sixteenth session of the disasters. But innovation is directed industrial policies, “It’s just that some UNIDO General Conference. today at saving labour. Nobody would countries don’t know it. And some rationally design an economic system countries don’t own up to it. The basic Widely regarded as one of the most where you have massive unemployment point is that markets don’t exist in a distinguished economists in the world, of unskilled labour. Then you have people vacuum, they have to be structured. Joseph Stiglitz began by explaining how doing research to figure out how to The way we structure markets works to UNIDO’s upcoming 50th anniversary create more unemployment of unskilled the advantage of some sectors relative holds special significance for him. workers. It doesn’t make any sense. And to other sectors. All governments have “This year is the 50th anniversary of meanwhile, no attention, or insufficient to make decisions about expenditure my beginning to teach economics. To attention, is paid to the problems of policies and tax policies. Those policies think of myself as being in development saving the planet.” favour one industry over another, economics one year longer than UNIDO one technology over another. You is a little bit of a scary thought. From the Market failures have to make a decision about which very beginning I’ve been involved with Disagreeing with the suggestion a infrastructure to invest in, and those some of the issues in which UNIDO has few years ago by Ben Bernanke, then infrastructure decisions affect one over been involved.” Chairman of the Federal Reserve, that another.” there is a savings glut, Stiglitz stated: The Washington Consensus “When I travel around developing UNIDO’s role in helping Reflecting on UNIDO’s early involvement countries, even when I go to New countries formulate good in cost benefit analysis and appropriate York, I see huge investment needs industrial policies technology, Stiglitz went on to talk for infrastructure, for technology, for UNIDO’s focus should be on trying to about the intervening years when retrofitting the world for climate change, help countries understand “what a the Washington Consensus, which and for human capital. How do you good industrial policy is, one that will emphasized the importance of reconcile? It’s another example of a promote inclusive sustainable growth macroeconomic stability and integration market failure. One of the important that is consistent with the sustainable into the international economy, markets in our economy, the financial development goals. And that’s what dominated. “Unfortunately, in that period market, is supposed to intermediate I believe UNIDO has been doing. It’s there was a process of discrediting between savings and investment. But important when we think about growth industrial policies; there was a belief that it’s failing to do so. You have long-term that we do not confuse the ends with the markets would solve all problems.” investment needs, long-term savings, means. As we think about the broader and in between, you have financial agenda of industrial polices, we need The invisible hand theory markets that are worrying about the next to go beyond just the increase in GDP Stiglitz explained that “the invisible hand quarter or the next hour. Something which was the view at one time, to what was the idea that the pursuit of self- is wrong where you have an economic UNIDO has been emphasizing: equitable,
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sustainable, inclusive development, and climate change.” “Over its almost half century of work, UNIDO has played a very important role in the During a lecture at the UN Conference on Trade and Development in 1998, Stiglitz development of thinking about development.” reflected that “the language I used was that we ought to be promoting equitable and sustainable and democratic The fundamental point, Stiglitz argues, the right way, and I believe that many development. I think all of these issues “is that markets on their own don’t make of the countries in Africa can succeed are related: when you have high levels this kind of structural transformation in doing this. There have been some of inequality, it inevitably undermines well. One of the simple reasons is that big successes: for example, in Ethiopia democracy. So when I say we need a people in those sectors that are dying 50,000 jobs have been created in broader agenda, it’s going beyond just don’t have the capital to move into the the shoe industry: a real success in the focus on GDP, which was the major new sectors, and financial markets in industrial development. There are theme of the International Commission general are not very good at that kind of some other aspects of the change that on the Measurement of Economic investment, lending to people who are will be going on in industrial policy. Performance and Social Progress that I doing very badly. The imperfections of In the success of East Asia, a lot of chaired. It emphasized that GDP does not risk markets and capital markets are part the focus was export-led growth, but give us a good assessment of how well of the fundamental reasons why markets one of the aspects of the global move society is doing. The report is published are not very good in these structural towards the service sector economy is under the title ‘Mis-measuring our lives, transformations.” that trade as a ratio to GDP will almost why GDP doesn’t add up’, which really surely be going down. Trade went up summarizes what we’re saying.” Less jobs in manufacturing when manufacturing was in its heyday, As a result of the success of the but its service sector traded less than The agenda of manufacturing sector, “the overall manufactured goods. So the implication structural transformation number of jobs in manufacturing is that there will have to be strategies There are many dimensions of structural globally is going to decrease,” said other than export-led growth for long- transformation, according to Stiglitz: Stiglitz. “Productivity and manufacturing term development in many countries. “Development is to a large extent a are increasing faster than the output These are among the global challenges structural transformation; it’s not just of manufacturing goods. If the total that are going to be facing the world as growth, it’s changing the structure of the employment in manufacturing is one thinks about industrial policies in economy. We’re going towards a green decreasing, not all countries can plan to the next quarter century.” economy from a dirty economy, we’re expand manufacturing jobs. There will be going towards a learning society, an a significant decrease in countries like The importance of inclusive innovation economy.” the United States and Europe, and we industrial development are going to have to accept and adapt to Inequality will increase if employment In advanced countries, Stiglitz notes that that kind of decrease in manufacturing doesn’t go up, Stiglitz told participants. there are other aspects of a structural employment. The failure to make that “And if inequality increases, then transformation. “I think one of the things transformation is part of the weakness aggregate demand will become weak. that UNIDO has been very good at is right now in Europe and in the United This is one of the problems facing the emphasizing that the issues of industrial States. Some countries will be able to global economy today. If aggregate policy do not apply just to developing grab some of those jobs that are leaving demand is weak then GDP growth will be countries and the least developed the United States, Europe and China. weak and we can get into a vicious circle. countries, but also to advanced countries. UNIDO can play an important role in It will be very important for us to frame In advanced countries they’re moving helping some of the countries in Africa, polices that prevent this from happening. towards a service sector economy. In for instance, to seize a larger fraction of That’s why the emphasis on inclusive the developing countries, they are going those jobs that are going to be moving industrial development is so important. from agriculture to manufacturing. In all out of where they are today. The increase It is going to be very important to make of our economies, we should be moving in the cost of labour, the changing sure that the industrial policies create from a finance-based economy to a real comparative advantage, will mean that employment, that the benefits are shared economy. In most of our economies, manufacturing will be moving elsewhere.” widely, that there is shared prosperity, if especially in developing countries, we are going to have sustained economic there is a process of moving to an urban Stiglitz argues that there are some growth. The only sustainable economic economy. This year marks the first year in real advantages to developing a growth will be shared prosperity.” which a majority of the world’s population manufacturing sector. “It is an important will probably be living in cities. Life in way of going from agriculture into a “As we look forward and think about cities is different than rural life and that’s more advanced economy. There is a lot industrial policies, I think shaping the a very big transformation, it’s one of the of learning that goes on as part of the direction of technology is going to be very big issues in China’s transformation.” manufacturing process, if it’s done in important. “
9 The Conference in Pictures Highlights of the events that took place at UNIDO’s 16th General Conference
Austrian President Heinz Fischer and UNIDO Director General LI Yong at the opening of the General Conference.
Keynote speaker and Nobel Prize-winning economist, Joseph Stiglitz, and UNIDO Goodwill Ambassador HAI Helen.
Ambassador of Peru and Outgoing President of the fifteenth session of the General Conference, Alfredo Chuquihuara Chil.
Panellists at the “Sustainable industrialization for climate action” side event, 3 December 2015. 10 UNIDO Deputy to the Director General, Taizo Nishikawa, at the Second Donor Meeting. General Conference Overview Vienna, Austria
Ambassador of Austria and President of the sixteenth session of the General Conference, Christine Stix-Hackl, and UNIDO Director, Fatou Haidara, at the general debate.
UNIDO Director General Music legend Lokua Kanza performing LI Yong (centre) with during the side event “Africa: panellists of the Whatever you thought, think again” Fourth ISID Forum, part 2. on 1 December 2015.
One of the exhibitions during the Keynote speaker Joseph Stiglitz and General Conference. UNIDO Director General LI Yong.
Melvin Archbold from Nicaragua sharing his entrepreneurial story at a side event on youth and women entrepreneurship, 2 December 2015. 11 Fourth UNIDO Forum on Inclusive and Sustainable Industrial Development 30 November – 1 December 2015
Panellists (Part 1) WU Hongbo, Under-Secretary-General of the United Nations Department of Economic and Social Affairs (UNDESA); Moona Mupotola, Division Manager, Regional Integration and Trade Division, African Development Bank (ADB); Heike Rüttgers, Head of Division, ACP Policy and Portfolio, European Investment Bank (EIB); Pavel Kabat, Director General and Chief Executive Officer, International Institute for Applied Systems Analysis (IIASA); Martin Ledolter, Managing Director, Austrian Development Agency (ADA); Philippe Scholtès, Managing Director, UNIDO; Todd Benjamin, Moderator.
Moono Mupotola, Division Manager of the Regional Integration and Trade Division at the African Development Bank, speaking at the Fourth ISID Forum. Panellists (Part 2) Mebratu Meles, State Minister of Industry of Ethiopia; The Fourth UNIDO Forum on On the first day, the moderator, Modienne Guisse, Director, Minister’s inclusive and sustainable industrial former CNN presenter Todd Benjamin, Cabinet, Ministry of Industry and development was held under the theme engaged speakers from development Mining, Senegal; “Partnerships: Moving SDG 9 into finance institutions, academia and Dejene Tezera, UNIDO Team Leader for action”. The event explored how UNIDO development partners in a discussion PCP Ethiopia; can contribute to advancing industry, on how partnerships can advance Tidiane Boye, UNIDO Team Leader for infrastructure and innovation in the Goal 9 and the rest of the 2030 Agenda. PCP Senegal; context of Goal 9 through its multi- Piero Ghezzi Solis, Minister of stakeholder partnerships. Moono Mupotola from the African Production of Peru; Development Bank and Heike Rüttgers Andreas von Wedemeyer Knigge, from the European Investment Bank President of the National Society emphasized the benefits of partnering for Industry of Peru; with UNIDO to develop infrastructure. Johannes Dobinger, UNIDO Both speakers commended UNIDO’s Representative in Colombia; global presence and technical Petra Schwager, UNIDO Team expertise in preparing feasibility Leader for PCP Peru. studies and social/environmental impact assessments. Private sector development was described as crucial productive capacity. The importance for poverty eradication. Martin Ledolter of industrialization for sustainable from the Austrian Development Agency development was reiterated throughout Mebratu Meles, State Minister of Industry stressed the importance of capacity- the forum, with UNIDO urged to of Ethiopia, speaking on day 2 of the Fourth building, such as vocational training, spearhead efforts by the United Nations UNIDO Forum on ISID. for increased employability and system in this regard.
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The second day of the forum to achieve broad and sustainable The forum helped to raise awareness highlighted the achievements of industrial development. about the value of UNIDO’s technical UNIDO’s new Programme for Country expertise in advancing the Sustainable Partnership (PCP) in Ethiopia and The PCP model will operationalize Development Agenda, particularly Senegal (outlined on pages 13 and 14). UNIDO’s new ISID mandate. At the through the PCP approach. Participants Peru was introduced as the newest pilot same time, it can be used to address expressed their determination to PCP. The session illustrated how PCPs a wide range of current development continue collaborating with UNIDO, with are promoting the implementation of challenges, including those highlighted many representatives requesting the Goal 9 as well as attracting investments in the SDGs. PCP’s extension to other countries.
Programme for Country Partnership (PCP)
Pilot countries What is the PCP? Ethiopia Peru Senegal Achieving ISID is a complex goal that no single organization or entity can manage successfully on its own. Partnerships enable the pooling of diverse resources and expertise, helping to ensure that industrialization benefits everyone and safeguards the environment. Aims of the PCP: • Achieve ISID at the country level by bringing Senegal partners together to coordinate and optimize their contributions; Ethiopia Peru • Through this partnership, accelerate the implementation of the government’s industrial development agenda and deepen its impact.
The Programme for Country Partnership in Ethiopia
Ethiopia is one of the continent’s fastest growing economies. The country’s gross domestic product was US$46.87 billion in 2013, with a growth rate of 10.4 per cent the same year and an average growth rate of 10.9 per cent since 2004. The rate of growth is projected to average 7.3 per cent from 2015 to 2018. Economic growth is largely driven by government-led development policies, with a rapid expansion of public infrastructure and basic services. Increasing exports and foreign direct investment have also fuelled growth.
Background to the PCP UNIDO has been actively involved in Ethiopia’s development since 1968, “A large investment is required to establish and operationalize these with nearly 300 projects covering a parks at an estimated US$1.5 billion for the four parks as well as wide range of technical assistance US$870 million for infrastructure. There are huge opportunities: they interventions. The PCP is being are going to host more than 400 companies and also generate job developed with the Government of opportunities - over 400,000 direct employment opportunities. And Ethiopia in line with the country’s when we look at the value chain, it will generate more than that: it will goal to acquire middle-income status impact millions of farmers. This calls for significant involvement of the within a decade and to transform the economy from one based on private sector, and development and financial institutions.” agriculture to one driven primarily by State Minister of Industry of Ethiopia, Mebratu Meles. light industries. }
13 The PCP in Ethiopia focuses on three can better address pollution range of cross-cutting issues. These light manufacturing sectors: challenges. include industrial zones, investment promotion, and South-South and (1) Agro-food processing through Why were these sectors selected? triangular industrial cooperation. industrial development initiatives • Job creation prospects; such as establishing integrated • High export potential; Early achievements include: agro-industrial parks; • Ability to attract private sector • Establishment of national (2) Textiles and apparel through the investment; structures for PCP governance and preparation of an investment • UNIDO’s capacity to deploy a range monitoring; promotion portfolio of Ethiopian of technical assistance services in • Completed feasibility studies for textiles and garment companies; these sectors. integrated agro-industrial parks; (3) Leather and leather products • Mobilization of several investors for through the creation of a leather The PCP also features a capacity- infrastructure development. district so that stakeholders building component and addresses a
The Programme for Country Partnership in Senegal
Senegal is one of the most industrialized countries in West Africa and currently has the fourth largest economy in the region. The agriculture, industry and service sectors account for 18 per cent, 24 per cent and 58 per cent of the gross domestic product respectively. Senegal is also recognized as a key player within the Economic Community of West African States (ECOWAS) and its solid democratic institutions have made the country a role model for political stability in Africa.
Background to the PCP The PCP will also include cross-cutting • Development of a business plan Senegal’s new national development interventions related to: private for the country’s first integrated strategy – the Plan Sénégal Emergent sector development and investment industrial platform. Public financing – seeks to unlock the country’s promotion; the environment; energy; of US$32 million has been industrial potential to generate trade facilitation; South-South and mobilized, construction has already inclusive and sustainable economic triangular industrial cooperation; started and the first garment factory growth. UNIDO’s long-standing as well as innovation, science and is expected to start operations technical cooperation with Senegal, technology for industry. in 2016; combined with its potential for • The preparatory phase for the building partnerships with other Early achievements include: establishment of three integrated development actors, have enabled • Establishment of a national and competitive agro-poles was the Organization to offer an integrated coordination mechanism; initiated in 2015. package to help the country achieve its national development goals. “Within these agro-poles, Senegal sees poles of development which The PCP in Senegal focuses on three will allow us to provide value chains with both vertical and horizontal main areas: partners. This means that energies or synergies will produce (1) Industrial policy development; cooperation on both these fronts. It’s the same for the regional (2) The establishment of agro-poles mining hubs.” (food processing industry parks) for agricultural value chains; Modienne Guisse, Director, Minister’s Cabinet, (3) The operationalization of Ministry of Industry and Mining, Senegal. existing industrial parks and the development of new ones. “Our national plan for an emerging Senegal is all about growth. And UNIDO with its PCP has enabled us to get up to cruising speed with this Why were these sectors selected? motor force. Thanks to the PCP UNIDO label, Senegal has become visible Because of their high potential in on the international radar in industrial countries, which wasn’t possible terms of: before the implementation of the PCP.” • Job creation; • Industrial capacity; Djiby Diagne, Head of Project Monitoring, • Value addition. Department Delivery Unit of Senegal Emerging Plan.
14 General Conference Overview Vienna, Austria Second Donor Meeting 1 December 2015
The Second Donor Meeting illustrated ways in which UNIDO’s highly specialized services have been promoting social inclusion, economic competitiveness and environmental sustainability in different regions of the world. The meeting provided an important opportunity for donors to see the additional value they receive for the resources they invest in UNIDO’s projects through the Organization’s expertise and services. It also highlighted UNIDO’s work and future role in the context of the 2030 Agenda for Sustainable Development and the implementation of the SDGs. The event presented a number of recent success stories (summarized below) from UNIDO’s technical cooperation portfolio, illustrating the Organization’s recent work.
Success stories
1 Facilitating market access for typical food products in Morocco and Tunisia (PAMPAT)
Bangladesh: Fostering trade performance for 2 inclusive growth and employment
3 Egypt: Empowering people – building resilient communities (HAYAT)
4 A journey towards responsible gold in West Africa Global network of regional sustainable energy centres: A post-2015 5 South-South and triangular partnership – powering the path to inclusive and sustainable industrial development and sustainable energy for all
Women’s economic empowerment in the 6 Middle East and North Africa (MENA) region
15 Success stories Facilitating market access for typical 1 food products in Morocco and Tunisia (PAMPAT)
Panellists Thierry Buchs, Head, Trade Promotion Division, State Secretariat for Economic Affairs, Switzerland; Dhaou Sadok Bejja, General Director, Small and Medium Enterprises Development, Ministry of Industry, Energy and Mines, Tunisia; Otman El Mrabet, Head of Service, Trade and Logistic Development of Local Products, Moroccan Agriculture Development Agency, Morocco; Mounira Ayed Jalled, Marketing Director of Société Industrielle des Conserves Alimentaires (SICAM), Mounira Ayed Jalled, Marketing Director of the Tunisian company SICAM, Tunisia. speaking at UNIDO’s Second Donor Meeting.
Project objectives: ▸ Ensure that products comply with ▸ Two export consortiums of Moroccan ▸ Improve performance, market access geographical indication and labelling Argon are being formed; and socio-economic conditions of requirements, thus enabling ▸ Over 250 people have been the Argan oil and prickly pear value producers to obtain a premium price; integrated into value chains through chains in Morocco, and the harissa ▸ Increase product sales both cooperatives formed for the Djebba (chili pepper paste) and prickly pear domestically and internationally. fig, prickly pear and harissa; value chains in Tunisia. In particular, ▸ Over 350 local products entered the the project supports women and Results include: first Moroccan Contest for Traditional producers from disadvantaged ▸ Establishment of a certification system Products in September 2015, with the regions; for Tunisia’s new food quality label; winning products being promoted worldwide.
“The unique selling proposition “The idea is to provide guarantees of origin and traceability for Tunisian for UNIDO is the possibility of products. Consumers in the Tunisian market or, more importantly, in the creating value, differentiating international market, will know that they are buying superior Tunisian niche products with all the products, which of course will create new export possibilities and better economic and social advantages highlighting of Tunisian products. We are sure that this will lead to that gives.” higher demand for our products, which will create more jobs, more Thierry Buchs, Head, Trade Promotion inclusive regional development, and improve the economic and social Division, State Secretariat for Economic situation for the country people throughout those regions.” Affairs, Switzerland. Dhaou Sadok Bejja, General Director, Small and Medium Enterprises Development, Ministry of Industry, Energy and Mines, Tunisia.
“This PAMPAT project is helping us to find sustainable ways to enter the international market.” Otman El Mrabet, Head of Service, Trade and Logistic Development of Local Products, Moroccan Agriculture Development Agency, Morocco. 16 General Conference Overview Vienna, Austria Success stories Bangladesh: Fostering trade performance 2 for inclusive growth and employment
Panellists Md Amir Hossain, Minister for Industries, Bangladesh; Bente Angell-Hansen, Ambassador, Permanent Representative of Norway; Didier Lenoir, Ambassador, Head of the EU Delegation to the International Organizations; Mala Khan, Project Director and Senior Scientific Officer, Designated Reference Institute for Chemical Measurements, Bangladesh Council of Scientific and Industrial Research, Bangladesh; Saleh Ahmed, Project Director, Better Speakers of the second panel titled “Fostering trade performance for inclusive growth and Fisheries component of the Better employment”, at UNIDO’s Second Donor Meeting. Work and Standards (BEST) Programme, Bangladesh.
Project objectives: Results include: “The Programme has helped us ▸ Improve performance of the fishery ▸ The fisheries sector is exporting develop our quality infrastructure and textile sectors and increase to international markets again to international best practice market access by supporting as a result of better hygiene and public and private partners to environmental impact management …We plan to further develop develop skills in these sectors, thus and the introduction of traceability sectorial advisory institutions enabling Bangladesh to comply with schemes; that provide world class business international market requirements; ▸ A long-term plan has been developed advisory services on technologies, ▸ Strengthen local quality infrastructure for textile training, aimed at long- innovation, productivity, food and services to better serve the term sustainability and international safety etc., which will make our country’s exporters and consumers competitiveness, in particular through internationally recognized through investments in people and products more competitive.” good practices. skills. Md Amir Hossain, Minister for Industries, Bangladesh. “Today, in terms of food safety, standards in Bangladesh are assessed as being equivalent to EU standards...Jobs have been created, better “We now export to international livelihoods have been developed, families enjoy better standards of markets with an annual value of living. This is really the logic of what we should try to get through the life about 650 million Euros in the past cycle of this project and take it forward in the long run. Because at the year.” end of the day, this is what development is all about.” Saleh Ahmed, Project Director, Didier Lenoir, Ambassador, Better Fisheries component of the Head of the EU Delegation to the International Organizations. BEST Programme, Bangladesh.
“What is pivotal here has been the results-oriented commitment of the Bangladesh Government. We’ve seen in the fisheries sector, 12,000 jobs for women! That is really delivering on the sustainable development goals.” Bente Angell-Hansen, Ambassador, Permanent Representative of Norway.
17 Success stories Egypt: Empowering people – 3 building resilient communities (HAYAT)
Panellists Khaled Abdel-Rahman Shamaa, Ambassador, Permanent Representative of Egypt; Yuichi Oba, Counsellor and Head of Economic Section, Embassy of Japan to Egypt; Khaled Abdel-Halim, Head, Local Administrative Reform Unit, Ministry of Local Development, Egypt; Gamal Hassanein, Farmer and Entrepreneur, Egypt.
Gamal Hassanein, who was one of the first to benefit from UNIDO’s specialized training programmes on agricultural value chains, speaking at UNIDO’s Second Donor Meeting.
Project objectives: Results include: “The date industry has been ▸ Improve the socio-economic well- ▸ 2,346 farmers have been trained in transformed through UNIDO’s being of the most vulnerable irrigation techniques, pest control project. Before the project, I was households in El-Minya Governorate management, fertilization and selling dates for 2 pounds per in Upper Egypt by creating local harvesting techniques; ownerships of productive projects; ▸ Food productivity has increased, unit. Now our prices have gone ▸ Develop local sectors through production costs have decreased and up to 15 pounds per unit after agricultural extension, small-scale farmers now make greater profits; the industrialization process. I’m processing and value addition; ▸ 4,500 women have joined village also using these technologies to ▸ Support neighbourhood upgrading saving and loan associations. combat palm tree diseases.” and entrepreneurship initiatives; ▸ Promote rural village savings and loan “The Hayat project gives a human Gamal Hassanein, Farmer and associations for women; face to development. It touches Entrepreneur, Egypt (project ▸ Help unemployed youth find jobs by the lives of 20,000 people and beneficiary). providing employment counselling even more. It enables employment services, and link micro, small “UNIDO has helped local farmers and medium enterprises to bigger generation and has a ripple effect in many ways including pest markets. which leads to jobs in other sec- management, drying dates, tors such as transportation, pro- packaging and marketing. In this duction of packaging material at way local farmers have increased the artisan/small to medium-size productivity and their incomes. level. It gives a sense of ownership UNIDO has also supported the to small entrepreneurs repre- introduction of greenhouses for sented by the farmers in getting local farmers, helping them to together and starting a develop- increase productivity and incomes. mental process, which leads to This project is sustainable even economic development and in turn after we leave the area and can be to social development.” replicated elsewhere.” Khaled Abdel-Rahman Shamaa, Yuichi Oba, Counsellor and Head of Ambassador, Permanent Economic Section, Embassy of Japan to Representative of Egypt. Egypt. 18 General Conference Overview Vienna, Austria Success stories A journey towards responsible gold in 4 West Africa
Panellists Watta Ouedraogo Koulibaly, Director, Sanitation and Environmental Risk Prevention, Ministry of Environment and Development, Burkina Faso; Tabara Cissokho, Local Coordinator, Senegal Action Development, Senegal; Anil Sookdeo, Coordinator, Chemicals and Waste Focal Area, Senior Environmental Specialist, Global Environmental Facility (via recorded message).
Tabara Cissokho, Local Coordinator, Senegal Action Development (left), speaking at UNIDO’s Second Donor Meeting.
Project objectives: Results include: “This is a very noble project ▸ Artisanal Small-scale Gold Mining ▸ Mercury free processing systems have and a very valuable tool that (ASGM) is a major cause of mercury been established in Burkina Faso and genuinely helps these three releases and environmental pollution. Senegal and are producing mercury countries (Burkina Faso, Mali and This project aims to improve the free gold; health and environment of ASGM ▸ 72 miners have received training Senegal) to fight poverty. The communities in Burkina Faso, Mali in mercury free technology, and 73 UNIDO project aims to improve and Senegal in the following ways: health professionals/ASGM leaders the situation of people in the • Create national strategic action have been trained on health risks sector by making better use of plans; related to mercury use; mercury free technologies. It also • Implement mercury reduction/ ▸ 5 kg gold has been exported to the helps us understand the quantity elimination projects; international market; • Develop health education and ▸ 175 miners have gained official of mercury that countries use. In technology training programmes; mining rights. Burkina Faso, to produce 1 gram • Raise awareness about Fairmined of gold we use 1.3 grams of Certification and pre-application mercury.” for certification. “Zero mercury equals greater profitability.” Watta Ouedraogo Koulibaly, Director, Sanitation and Environmental Anil Sookdeo, Coordinator, Chemicals and Waste Focal Area, Risk Prevention, Ministry of Environment Senior Environmental Specialist, Global Environment Facility. and Development, Burkina Faso. “Since 2013, UNIDO and the Alliance for Responsible Mining have been working in synergy with local partners to make sure that employers adopt good practices and that the health and safety rules at work are respected.” Tabara Cissokho, Local Coordinator, Senegal Action Development, Senegal.
19 Success stories Global network of regional sustainable energy centres: 5 A post-2015 South-South and triangular partnership – powering the path to inclusive and sustainable industrial development and sustainable energy for all
Panellists Donville Inniss, Minister of Industry, International Business, Commerce and Small Business Development, Barbados; Martin Ledolter, Managing Director, Austrian Development Agency, Austria; Mahama Kappiah, Executive Director, ECOWAS Centre for Renewable Energy and Energy Efficiency (ECREEE), Cape Verde.
Mahama Kappiah, Executive Director of ECOWAS Centre for Renewable Energy and Energy Efficiency, speaking at the Second Donor Meeting.
Project objectives: Results include: “We believe that regional ▸ Address the challenges of energy ▸ Reinforcing ongoing national activities cooperation can help address access, energy security and climate in policy and capacity development, some of the barriers that challenge change by increasing regional knowledge management and us in terms of sustainable cooperation and capacities through awareness-raising, and promoting the establishment of regional investment in businesses; economic development and sustainable energy centres in the ▸ Empowering local energy industries climate change. We’re very Caribbean, the Pacific, the Indian to take advantage of the growing grateful for the involvement of Ocean and Africa; renewable energy and energy UNIDO, the EU, the Government ▸ Create investment and business efficiency market opportunities. of Austria and others who have opportunities for local industries and come to our assistance in the businesses. creation of a renewable energy centre. Certainly we recognize the importance of a regional approach to build capacity in these areas.” Donville Inniss, Minister of Industry, International Business, Commerce and Small Business Development, Barbados.
“This is an excellent example of South-South cooperation and the development of local capacities … Regional cooperation allows an effective exchange of lessons learned.” Martin Ledolter, Managing Director, Austrian Development Agency, Austria.
20 General Conference Overview Vienna, Austria Success stories Women’s economic empowerment in 6 the Middle East and North Africa (MENA) region
Panellists Bianca Pomeranzi, Senior Gender Specialist and Member of the United Nations Committee on the Elimination of Discrimination Against Women, Ministry of Foreign Affairs, Italy; Pierre Antoine Omran, Head, Beirut Permits Committee, Ministry of Industry, Lebanon; Shereen Allam, Chief Executive Officer, Association for Women’s Total Advancement and Development, Egypt; Speakers at the panel titled “Women’s economic empowerment”, Sinda Soussia, Entrepreneur, at the Second Donor Meeting. SEABEX, Tunisia.
Project objectives: Results include: “Women entrepreneurs are ▸ Promote public-private dialogue ▸ Almost 200 women entrepreneurs challenged by networking. on policy reforms to make the from the region have helped This project helps young women to environment more conducive for formulate their business proposals cross borders, to go regional, and women entrepreneurs in the Middle for international markets; East and North Africa (MENA) region, ▸ About 300 business-to-business to go international.” which has the world’s highest meetings in the service and artisanal Shereen Allam, Chief Executive unemployment rate and an extremely manufacturing sectors were held Officer, Association for Women’s Total low level of women entrepreneurship; between MENA and European Advancement and Development, Egypt. ▸ Enhance capacities of national entrepreneurs in October 2015. business women associations as service providers through training and coaching; ▸ Identify investment opportunities and encourage business partnerships through international investment forums and access to finance.
“This opportunity (Milan Expo 2015) helped us to know more about international markets. We’re ready to go global as soon as possible. Nothing will stop us from innovating!” Sinda Soussia, Entrepreneur, SEABEX, Tunisia (project beneficiary).
21 UNIDO’s Cooperation with the European Union and the European Investment Bank
(From left to right): Head of UNIDO Brussels Office to the EU, Christophe Yvetot; UNIDO Director General LI Yong; Vice-President of the European Investment Bank, Ambroise Fayolle; and Deputy Director General for International Cooperation and Development, European Commission, Klaus Rudischhauser.
The EU and UNIDO support the transfer in resource and energy General for International Cooperation development of the private sector efficiency, cleaner production, and Development of the European focusing on small and medium-sized renewable energy, and climate action. Commission, praised the excellent enterprises (SMEs). This support cooperation with UNIDO and said that includes building the capacity of SMEs With the launch of a report on the last “the new 2030 Agenda creates an to add value to their products, 10 years of cooperation at this year’s excellent framework to further develop creating jobs and helping them to General Conference, UNIDO and the EU our cooperation for inclusive and move towards quality production. celebrated this important partnership sustainable industrial development”. At the same time, the partnership and paved the way for a closer and supports the transition of beneficiary stronger future together. UNIDO Director General LI Yong added: countries towards a green economy “UNIDO looks forward to continuing and industry. This is achieved Speaking at the event, Klaus this fruitful cooperation with the EU through knowledge and technology Rudischhauser, Deputy Director and to working together towards the
22 General Conference Overview Vienna, Austria
achievement of the 2030 Agenda. We believe that together we can help create jobs opportunities, limit migrations and move towards a more circular ility economy. The new SDG framework will inab for ta al us l very much support our cooperation on s d inclusive and sustainable industrial n a development”. y t i r e
p
The event illustrated the convergence s o
of interests between UNIDO and the EU r P and the achievements already attained through the existing cooperation.
A new partnership: UNIDO and UNIDO AND EUROPEAN UNION COOPERATION 2005-2015 the European Investment Bank A partnership for inclusive and sustainable As the United Nations specialized industrial development agency mandated to implement ISID, UNIDO is increasingly engaging with development finance institutions to maximize the impact of its operations. Over recent years, UNIDO and the European Investment Bank (EIB) have UNIDO and the European Union decided to develop their cooperation to Cooperation Report upscale efforts towards industrialization in developing countries.
During the Conference, UNIDO and the EIB presented their new partnership “Cooperation between the EU and UNIDO has been steadily and cooperation to combine industrial growing and now covers over 80 countries. The EU Member States expertise with development finance. are the main contributors to UNIDO’s regular budget and the EU Vice-President of the EIB, Ambroise and its Member States together also provide one of the largest Fayolle, stated that “the collaboration contributions to UNIDO’s technical cooperation activities. We are with UNIDO will further enhance the EIB’s impact in ACP countries. Cooperation will open to discussing new projects and programmes that match focus on some of the key sectors for ACP our partners’ priorities in areas where UNIDO has established development, most notably energy and expertise and can provide value for money.” climate action, while much attention will also be paid to agri-business and the Romain Schneider, Minister for Development Cooperation and Humanitarian development of the private sector.” Affairs, Luxembourg, on behalf of the EU.
How does UNIDO engage with the private sector?
Through the following types of partnerships: >> Core Business and Value Chain Partnerships, which harness the core strengths of the private sector and/or aim to change the way businesses operate to be more in line with social, environmental and development goals. >> Social Investment and Philanthropy Partnerships, which provide the UN system with different types of support. These include traditional philanthropy, social venture funds, financing mechanisms, volunteers or by contributing of core business expertise, products or services to the public cause. >> Multi-stakeholder and Transformational Partnerships, which enable consultation and scalable operations among numerous private and public parties, as well as including private sector representatives in their governance structures.
23 Snapshot of Side Events The Industrial Development Report 2016: The Role of Technology and Innovation in Inclusive and Sustainable Industrial Development
Panellists Xiaolan Fu, Founding Director, Technology and Management Centre for Development, Professor of Technology and International Development and Fellow of Green Templeton College at the University of Oxford, UK; Augusto Luis Alcorta, Director of the Research, Statistics and Industrial Policy Branch of UNIDO; Dirk Willem te Velde, Head of the International Economic Development Group, Overseas The General Conference provided an and environmental sustainability at the Development Institute, UK; excellent opportunity to launch UNIDO’s same time. Michael Landesmann, Scientific flagship publication, the Industrial Director, Vienna Institute for Development Report (IDR) 2016. The report’s main finding is that International Economic Studies and The report addresses a challenging there are conditions under which Professor of Economics, Johannes question: under which conditions do ISID is feasible and technology Kepler University, Linz, Austria. technology and innovation achieve can simultaneously serve all three inclusive and sustainable industrial dimensions of sustainability, including development (ISID)? economic, social and environmental. formal jobs at an early stage of While technological change is Other key findings include the following: development. It also drives technological recognized as one of the main drivers of • When policymakers use sound development and innovation to sustain long-term growth and industrialization, policies to steer the industrialization productivity growth in manufacturing there has been uncertainty about process and avoid past mistakes, rap- and other sectors. whether it can promote social id inclusive and sustainable industri- inclusiveness alization can occur more frequently; In the report’s foreword, UNIDO Director • Innovation needs to be supported General LI Yong states that the current by interventions that strengthen the trend of technological change “does process from invention to adoption, not guarantee that we will follow a as capabilities are developed and sustainable path” in the future. He Industrial Development Report 2016 high tech manufacturing sectors are explains that while transitioning to high- The Role of Technology and Innovation in created. This will lead to higher rates tech industries can lessen environmental Inclusive and Sustainable Industrial Development of sustainable growth. pollution, concerted global action is needed to stimulate the creation and For long-term structural change, the diffusion of environmentally friendly report notes that manufacturing plays technology and reduce greenhouse gas a key role. It creates many productive, (GHG) emissions.
“I am particularly pleased that the Industrial Development Report 2016 emphasizes the critical need for international cooperation to promote technological change and achieve ISID, and that it reaffirms the commitment of my Organization to fulfil its unique mandate in support of this effort.” UNIDO Director General LI Yong.
24 General Conference Overview Vienna, Austria
Launch of “The Oxford Handbook of Africa and Economics” during the side event “Africa: Whatever you thought, think again”
Panellists Célestin Monga, UNIDO Managing Director; Nadereh Chamlou, former Senior Advisor at the World Bank; Justin Yifu Lin, Professor at Peking University, China.
Special musical performance by Lakua Kanza.
“The Oxford Handbook of Africa and viewpoints of internationally-acclaimed the lessons learned in the successful Economics” was released in September economists are complemented by the experiences of industrialization, UNIDO’s 2015 and explores economic thinking perspectives of philosophers, political approach to ISID on the continent, and in Africa as well as the continent’s scientists and anthropologists. During possible policy recommendations for contribution to economics. The diverse the book’s launch, participants explored employment generation.
Innovation Hubs for Sustainable Industrialization and Shared Prosperity
Panellists Catherine Johns, Innovation and Business Growth Director, Business Durham, UK; Sanzhar Kettebekov, Chief Executive Officer, Autonomous Cluster Fund (Almaty Tech Garden), Kazakhstan; Tadeusz Peczek, President of the Board, Office for Economic Policy and Regional Development Ltd, Poland; Yerbol Shormanov, Deputy Chairman, Panellists at the side event on “The role of innovation hubs for Astana EXPO-2017, Kazakhstan; sustainable industrialization and shared prosperity”, 1 December 2015. Valery Tsepkalo, Director, High-Tech Park, Republic of Belarus; The overall objective was to explore research and technology transfer, and Matthias Weber, Head of Research, how to catalyze technology-oriented how to bring innovation hubs to self- Technology and Innovation innovation and development. The sufficiency and sustainability. They Policy Unit and Deputy Head of panel comprised experts from also shared examples of best practices Department, Austrian Institute of science, industry and technology from established innovation hubs, and Technology, Innovation Systems parks (SITPs), technology-based discussed the role of different Department; incubators, academia, the public sector stakeholders, such as international Olga Memedovic, Chief of the Europe and business. Panellists discussed organizations, government, local and Central Asia Bureau, UNIDO. how to leverage multi-stakeholder authorities, real estate developers, partnerships to provide high quality universities and research institutions, services supporting entrepreneurship, investors, and business incubators.
25 Snapshot of side events Panellists Youth and Women Ellen Pratt, Deputy Minister for Industry of Liberia; Entrepreneurship Raimund Magis, Deputy Director, Multilateral Development Cooperation, This event highlighted the significance Federal Ministry for Europe, of youth/women entrepreneurship Integration and Foreign Affairs of Austria; as a key driver for Inclusive and Delphine Borione, Deputy Secretary Sustainable Industrial Development General of the Union for the Mediterranean; as well as showcasing UNIDO success Mohammad Naciri, Regional Director for stories in developing youth and Participants at the side event on “Youth and Arab States Region of UNWOMEN; women entrepreneurship. Through the Women Entrepreneurship”, 2 December 2015. Janne Vangen Solheim, Chief Executive Officer interactive discussion with panellists Janusfabrikken AS of Norway and newly and audience members, it identified unemployment. The event featured a appointed UNIDO Goodwill Ambassador. a range of opportunities to support panel discussion, first-hand testimonials Entrepreneurs the achievement of successful young of entrepreneurs assisted by UNIDO, an entrepreneurs, while mitigating the interactive discussion and Q&A session, Sinda Soussia,Tunisia; challenges of poverty and youth as well as a networking reception. Julius Mugisha, Rwanda; Melvin Archbold, Nicaragua; Maw Maw Aung, Myanmar; Youth unemployment is a global issue Young men and Yordanos Goushe Girmay, Ethiopia; 17 % which disproportionally affects 1.2 women represent Luiza Nalbandyan, Armenia. 17 per cent of the billion young people between 15 and world’s population. Moderator 24 years old around the world. Selma Prodanovic, speaker, entrepreneur, Youth employment has reached a philanthropist, and advisor. Young men and record high of 1.8 billion, while it is women make up over also estimated that around 500 million 40 % 40 per cent of the via skype young people live on less than 2 global unemployed Ahmad Alhendawi, UN Secretary dollars a day. labour force. General Envoy on Youth.
Sustainable Industrialization for Climate Action
This session addressed the profound session described the role that successful integration of industrial linkages and interferences between the international community, and development and climate action. The economic development and climate more specifically UNIDO, might play event featured a keynote speech, action. Discussions revolved around in bringing about these changes. followed by an interactive panel the most immediate priorities and Panellists also provided examples of discussion. opportunities for climate action at the national and global level. Panellists explored the changes needed and UN Climate Change Panellists possible ways for industry to further Conference COP21 Donville Inniss, Minister of Industry, contribute to achieving the 2030 International Business, Agenda through pursuing climate Speaking about the UN Climate Commerce and Small Business resilient development pathways. The Change conference in Paris, UNIDO Director General LI Yong Development of Barbados; said that UNIDO would present its Masahiko Horie, Ambassador of “new policy direction with regard Global Environmental Affairs of Japan and to climate resilient industri SE4ALL Advisory Board Member; alization and an integrated and Christine Lins, Executive Secretary, ‘nexus’ approach to greenhouse Renewable Energy Policy Network for st gas emissions and resource the 21 Century (REN21); depletion in the context of the Leena Srivastava, Vice Chancellor, 2030 Development Agenda. Energy and Resources Institute (TERI); Nebojsa Nakicenovic, Deputy Director General/ “The fight against climate change Deputy Chief Executive Officer, is one of the most important International Institute for Participants at the side event on goals of the new agenda for Applied Systems Analysis (IIASA). “Sustainable industrialization for development,” said LI. climate action”, 3 December 2015.
26 General Conference Overview Vienna, Austria UNIDO Open Data Platform Building trust through transparency https://open.unido.org 2015 Key features of the Open Data Platform: 850 ongoing projects • An interactive world map with details on UNIDO’s ongoing Implementation budget “In the future, this programmes and projects in various countries and regions; planned for 2015 platform will also be the • Provides information about project outcomes and outputs, $185.87 million interface for a new results timelines, financial status, gender equality, project and expenditure of monitoring system, fully documents, country statistics and information about donors. $177.45 million so far aligned with the results The Platform has been designed to enforce accountability, in 2015. demonstrate efficiency and effectiveness, highlight the results framework presented and impact of projects, and build trust. Total in the medium-term UNIDO’s Open Data Platform was officially launched to the The total programmable programme framework.” general public at the General Conference as part of UNIDO’s resources of ongoing transparency initiative, which aims for more transparency for projects amounts to UNIDO Director all stakeholders to enable better monitoring and reporting $442.22 million for 2015 General, LI Yong, on results. and beyond. 30 November 2015.
Introducing UNIDO Goodwill Ambassador, Janne Vangen Solheim, Norway
In order to enhance UNIDO’s visibility, profile and global reach with governments and the private sector, the Organization selects outstanding public figures, business leaders and industrialists from various regions of the world. These Goodwill Ambassadors champion UNIDO’s core theme – the role of manufacturing and sustainable industrial development in the overall development process.
“Based on her extensive and successful experience as an entrepreneur in the manufacturing sector, Ms. Solheim will champion UNIDO’s mandate of inclusive and sustainable industrial development, and in particular will support our work to promote women’s entrepreneurship.” UNIDO Director General, LI Yong, 30 November 2015.
UNIDO’s other Goodwill Ambassadors are: • HAI Helen: the CEO of the Made in Africa Initiative and adviser to the Governments of Ethiopia, Rwanda, and Senegal for investment promotion and Janne Vangen Solheim, Chief Executive industrialization; Officer of the Norwegian garment • Marc Van Montagu: an eminent scientist at the Vlaams Instituut voor manufacturing company, Janusfabrikken AS, Biotechnologie, a life sciences research institute in Flanders, Belgium; was appointed as a Goodwill Ambassador • Marcos Pontes: one of the most experienced jet pilots in the Brazilian Air Force. of UNIDO during the sixteenth session of On March 30 2006, Pontes became the first Brazilian and the first native the Conference. Portuguese-speaking person to go into space.
27 Participants at UNIDO’s sixth LDC Ministerial Conference. Least Developed Countries Ministerial Conference “UNIDO has consistently accompanied the efforts of least developed countries towards structural change and economic growth. The current UNIDO LDC Strategy 2012-2020 aims to fill the gap of inclusive and sustainable industrial development in LDCs. It contains UNIDO’s commitments, which are articulated around the eight key development priorities of the Istanbul Programme of Action. Emphasis is placed on equity at all levels through empowering the poor and marginalized and ensuring, among others, gender equality, inclusive and equitable economic growth and sustainable development.” UNIDO Director General LI Yong.
Directly before the sixteenth session of (ISID) could better integrate the key the General Conference, UNIDO hosted targets of the Istanbul Programme the sixth Least Developed Countries of Action, the 2030 Agenda for (LDCs) Ministerial Conference in Vienna, Sustainable Development, and the Austria, from 26 to 27 November 2015. African Union Agenda 2063; • Identify ways to sustain structural Entitled “Operationalizing ISID for LDCs: change, productive capacities and the path to graduation and beyond”, the private sector development and conference brought together over 300 capitalize on achievements. participants from 70 Member States, UN agencies, international organizations, Economic growth in LDCs has been development agencies, regional impressive over recent years economic commissions, the private (see Table 1). sector, financial institutions, civil society organizations and academia. However, as UNIDO Director General LI Yong noted in his opening speech, Objectives: export-led growth based on primary The Ministerial Conference elected • Determine how inclusive and commodities has failed to lift millions Ahmed Abtew, Minister of Industry, sustainable industrial development from the poverty trap in LDCs, and Ethiopia, as the Chair of the meeting.
28 General Conference Overview Vienna, Austria
has resulted in growth without development. Productive sector-led growth that is critical for lifting people out of the poverty trap. The developed, emerging and newly industrializing economies of the world illustrate that manufacturing and related services, including trade capacity-building, are essential prerequisites for rapid socio- economic transformation.
Promoting industrial development Opening session of the LDC Ministerial Conference. From left to right: Discussions evolved around key Ambassador, Director General, Section for Development Cooperation, factors (social and economic drivers Austrian Ministry for Europe, Integration and Foreign Affairs, Peter Launsky-Tieffenthal; in particular) that foster industrial UNIDO Director General LI Yong; Minister of Industry of Ethiopia, Ahmed Abtew; development. The Conference UN Under-Secretary-General and High Representative for OHRLLS, Gyan Acharya. raised awareness among national stakeholders, including policy makers, about the importance of implementing and mainstreaming “ISID” into national Table 1 development policies, programmes and budgets. Economic growth in LDCs LDCs have recorded a relatively high rate of economic growth in recent years. Innovation and The value of LDC merchandise exports rose from US$99 billion in 2003 to capacity-building for US$-211 billion in 2014. The share of LDCs in world exports increased from industrial competitiveness 0.6 per cent in 2000 to 1.1 per cent in 2014, triggered largely by a small group of It was agreed that the LDCs need to LDCs. There has also been a steady increase in intraregional trade amongst LDCs, pay special attention to knowledge, innovation and technological flows, although the degree varies by country and region. Another positive trend is the inclusive and sustainable employment growing middle class, which offers a large domestic consumer base that could creation, environmental sustainability, to be taken advantage of to propel further economic progress in these countries. and partnerships for economic In Africa alone, where most of the LDCs are located, the middle class currently transformation. The Conference stands at 300 million people and is poised to grow to 1.4 billion by 2050. emphasized that UNIDO has the necessary expertise and provides a The value of LDC The share of LDCs in range of technical services to foster merchandise exports world exports technology transfers and give policy advice to promote innovation and US$ 250 bn 1,2 % institutional capacity building for US$ 200 bn 1,0 % industrial competitiveness. US$ 150 bn 0,8 %
Building partnerships US$ 100 bn 0,6 % Participants identified different ways US$ 50 bn 0,4 % of supporting LDC private sector 2003 2014 2000 2014 development as well as integration within global value chains. Conference sessions also encouraged partnership building and collaboration with stakeholders: a business-to-business The Conference concluded by governments, private sector entities and business-to-government exchange. reaffirming UNIDO’s commitment to and civil society, which lies at the core LDCs. The Ministerial Declaration of the 2030 Agenda. Discussions focused on the following: adopted at the end of the Conference • How to leverage innovative highlighted structural transformation, Business-to-business and partnerships to increase investments productive capacity-building and business-to-government for ISID in LDCs; and private sector development as key exchange • How to achieve the traditional and drivers of sustainable development in UNIDO facilitated two events on the emerging development cooperation least developed countries on their path sidelines of the Conference which goals of donors as well as business to graduation. were attended by more than 200 interests.
29 General Conference Outcomes
The sixteenth session of the UNIDO General Conference adopted 17 decisions and 4 resolutions. They included:
UNIDO and the 2030 Agenda for Sustainable Development Discussions at the Conference reflected the unanimous support for the 2030 Agenda for Sustainable Development, and in particular the inclusion of Sustainable Development Goal 9. The Conference called upon the Director General to develop and implement strategies to promote Goal 9 and other relevant and interlinked goals and targets. It also requested the UNIDO Director General to continue to align its activities, technical cooperation delivery, partnership approach and country programmes with the goals and targets set out in the 2030 Agenda.
UNIDO, Gender Equality and the Empowerment of Women UNIDO’s Gender Equality and Empowerment of Women Strategy, 2016-2019, recognizes the significant positive impact of gender equality on ISID, poverty reduction, social integration and environmental sustainability. The Conference called on the Director General to implement the actions outlined in the Strategy and align UNIDO’s programmes and projects with the goals and targets regarding gender equality and empowerment of all women and girls laid out in the 2030 Agenda.
The medium-term programme framework, 2016-2019 The Conference recognized the medium-term programme framework, MTPF, as an important and flexible tool for implementing UNIDO’s mandates and welcomed the main innovative features. These include the new partnership approach to promoting ISID, the enhancement of the results-based management approach and the introduction of an integrated results and performance framework.
The Vienna Ministerial Declaration for the Least Developed Countries (LDCs) The Conference took note of the LDC Ministerial Declaration and invited the Director General to take special account of the needs of LDCs on their path to graduation. The Conference called upon all development partners to continue mobilizing adequate funding for UNIDO in order to ensure the achievement of ISID in the LDCs.
30 General Conference Overview Vienna, Austria
“Without industrialization, there can be no sustainable economic development. General Conference Outcomes Industrialization creates income and employment and thus helps reduce poverty and inequality. The 2030 Agenda acknowledges this essential role as the primary source of income generation in Sustainable Development Goal 9. UNIDO now has the unique opportunity to shape this goal and prove its value to the international community.” Peter Failer, Director-General for International Development Policy, Federal Ministry for Economic Cooperation and Development, Germany.
In all these fields of work, UNIDO is fully committed to helping countries in implementing the SDGs in the new era of global development, while delivering on the Organization’s core mandate to promote inclusive and sustainable industrial development. With a field presence in more than fifty countries and a worldwide pool of thousands of experts and institutions, UNIDO will leverage its global resources, and those of its partners, to achieve significant and sustainable scale and impact in supporting Member States in achieving the 2030 Agenda.
The 2030 Agenda for Sustainable Development: Achieving the industry-related goals and targets
Vienna International Centre · P.O. Box 300 · 1400 Vienna · Austria UNIDO New York Office Tel.: (+43-1) 26026-o · E-mail: [email protected] Room DC1-1118, 1, United Nations Plaza www.unido.org New York, NY 10017, United States of America “We commend UNIDO’s UNIDO Geneva Office Tel: +1 (212) 963 6890 Le Bocage, Pavillion I, Room 77-82 Fax: +1 (212) 963-7904 policy engagement which Palais des Nations, Avenue de la Paix 8-14 UNIDO Brussels Office 1211 Geneva 10, Switzerland UN House, 14, rue Montoyer Tel: +41 (22) 917 1423 has successfully led to the 1000 Bruxelles, Belgium Fax: +41 (22) 917 0059 Tel: +32 (2) 511 16 90 incorporation of the concept Fax: +32 (2) 511 75 88 “Allow me to conclude by of ISID into Goal 9 of the reaffirming Italy’s confidence 2030 Agenda. We are pleased in the capacity of UNIDO to give to see UNIDO’s role as one of a significant contribution in the key organizations for global the global effort to implement development challenges endorsed the 2030 Agenda and build a by the international community.” more prosperous, equitable and Mitsuru Kitano, Ambassador and sustainable world.” Permanent Representative of Japan. Filippo Formica, Ambassador and Permanent Representative of Italy.
31 Looking Forward
November 2016 will mark 50 years since essential than ever. Over the years, we the achievement of the 2030 Agenda the creation of UNIDO, with the mandate have connected markets through global for Sustainable Development. As our to act as the central coordinating body value chains, and we have created journey progresses, we will continue to for industrial activities within the successful initiatives and platforms to cruise at full steam ahead with a clear UN system and to promote industrial advance sustainability and inclusiveness direction, efficient implementation, development. in industries worldwide. We have strong partnerships and continuous created opportunities for millions – innovation.” During his opening speech, UNIDO to improve their lives and livelihoods. Director General LI Yong reflected on the And UNIDO has always stood for an last 50 years and looked ahead to the inclusive and sustainable pattern of implementation of the 2030 Agenda: globalization. After 50 years, we stand “Next year will mark the 50th anniversary again at a critical juncture – with a clear of UNIDO, and our mandate is more mandate and direct responsibility for
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