Number 20 MakIndustryfor DevelopmentingIt Shared prosperity 19 18 17 16 15 A quarterly magazine. Stimulating, critical and constructive. A forum for discussion and exchange about the i ntersection of industry and development. www.makingitmagazine.net makingit_20_pp2-3_intro.qxp_print 17/11/2015 08:34 Page 3 Editorial With 2015 marking the transition from the Millennium to the Sustainable Development Goals, the international community can celebrate many development successes since 2000. However, steady prosperity has not been achieved throughout the world and there remain remarkable differences between and within regions, countries and societies. Growth in the past has occurred too often without providing the opportunity of participation and reward to significant segments of the population, and women and youth in particular. To really improve the living standards of all women and men, the benefits of growth have to be shared more equitably. This can be achieved when decent employment opportunities are available for all segments of the labour force. Manufacturing industries and their related services sectors can absorb large numbers of workers, provide them with stable jobs and good benefits, and increase the prosperity of their families and communities. An efficient agro-industry, combined with increased investment in agriculture, enhances economic stability for rural households, increases food security and promotes innovation throughout industrial value chains. Experiences from the past decade show that shared prosperity has, in most cases, been based on progress made in absorbing the labour force more effectively into higher-income industrial jobs. Based on this experience, it is essential to better integrate women and youth in the process of creating an industrial workforce. This not only yields positive multiplier effects for households and communities but also contributes to greater social cohesion. Increased participation in international trade also helps to improve local working conditions through the need to comply with international standards and greater access to modern technologies and best practices. Industry is an important source of decent employment, accounting for almost 500 million jobs worldwide – or about a fifth of the world’s workforce. Only those economies that have the ability to constantly generate new activities based on upgrading to higher levels of value-addition, higher productivity, or higher returns to scale – economies characterized by structural change – can sustain stable jobs and increase the prosperity for a growing share of the population. MakingIt 3 makingit_20_pp4-5_contents.qxp_print 16/11/2015 15:17 Page 1 MakIndustryforDevelopmentingIt Editor: Charles Arthur [email protected] Editorial committee: Manuel Albaladejo, Thouraya Benmokrane, Jean Haas-Makumbi, Sarwar Hobohm (chair), Kazuki Kitaoka, Victoria Nussbaumer, Dejene Tezera, and Ravindra Wickremasinghe Design: Smith+Bell, UK – www.smithplusbell.com Thanks for assistance to ZHONG Xingfei Printed by Imprimerie Centrale, Luxembourg, on PEFC-certified paper – http://www.ic.lu To view this publication online and to participate in discussions about industry for development, please visit www.makingitmagazine.net To subscribe and receive future issues of Making It, please send an email with your name and address to Contents [email protected] Making It: Industry for Development is published by the United Nations Industrial Development Organization (UNIDO), Vienna International Centre, P.O. Box 300, 1400 Vienna, Austria Telephone: (+43-1) 26026-0, GLOBAL FORUM 10 Hot topic: Sustainable Fax: (+43-1) 26926-69 E-mail: [email protected] 6 Letters development in the climate Number 20, 4th quarter 2015 8 Learning from misfit change era From New York to Copyright © The United Nations Industrial Development Organization subculturesAlexa Clay on Paris –Pavel Kabat on the No part of this publication can be used or reproduced without prior learning from innovators in World in 2050 project and permission from the editor the black, grey and informal Christiana Figueres on the ISSN 2076-8508 economies United Nations conference The designations employed and the on climate change in Paris presentation of the material in this magazine do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development 16 Organization (UNIDO) concerning the legal 14 Business matters – news status of any country, territory, city or area or of its authorities, or concerning the and trends delimitation of its frontiers or boundaries, or its economic system or degree of development. Designations such as “developed”, “industrialized” and FEATURES “developing” are intended for statistical convenience and do not necessarily express a 16 Does gender equality judgment about the stage reached by a particular country or area in the development process. Mention of firm names or contribute to growth? A UN commercial products does not constitute an endorsement by UNIDO. Women report argues that The opinions, statistical data and estimates contained in signed articles are the improving equality for responsibility of the author(s), including those who are UNIDO members of staff, and women and their human should not be considered as reflecting the views or bearing the endorsement of UNIDO. rights requires a rethinking This document has been produced without formal United Nations editing. of macroeconomics 4 MakingIt makingit_20_pp4-5_contents.qxp_print 17/11/2015 14:19 Page 5 KEYNOTE 22 FEATURE 20 Agenda 2030 and the 34 Country feature: industrialization of Africa 36 Mauritius Diversifying Nigeria’s President the economy, plus Muhammadu Buhari on interview with President what needs to be done Ameenah Gurib-Fakim 36 Good business – KEYNOTE FEATURE profile of Mouna 22 Innovation for inclusive and Abbassy of Izil Beauty sustainable industrial from the UAE development LI Yong, Director General of UNIDO, argues that POLICY BRIEF reinforcing technology and 38 Monitoring manufacturing will deliver industrialization: a growth and jobs without statistical perspective polluting the environment 30 Entrepreneurship is a tool 40 Book review – for social inclusion Fadi Industrial Policy in 28 Overcoming environmental Ghandour wants to inspire, Developing Countries scarcity and inequality Edward empower and connect 42 Endpiece SDGs: five B. Barbier outlines a balanced entrepreneurs in the Middle challenges for city wealth strategy East and North Africa leaders Making It 5 makingit_20_pp6-13_globalforum.qxp_print 16/11/2015 15:28 Page 6 GLOBAL FORUM The Global Forum section of Making It is a space for interaction and discussion, and we welcome reactions and responses from readers about any of the issues raised in the magazine. Letters for publication in Making It should be marked ‘For publication’, and sent either by email to: [email protected] or by post to: The Editor, Making It, Room D2142, UNIDO, PO Box 300, 1400 Vienna, Austria. (Letters/emails may be edited for reasons of space). So, let’s be clear where the home nation. Here in the US, overcrowding, you would LETTERS ‘policy’ has to come from. As about 55% of bottled water think there was no room left Mazzucato concluded: “The comes from springs but the on this planet! Half of our Policy matters state is the iron horse of the other 45% comes from the population takes up just one green revolution: the speed municipal water supply – fiftieth of the space. In Anna Pegels’ thoughtful and direction of change will that’s companies bottling The second part – the very article (Making It, number 18) crucially depend on it.” what comes out of the tap and fact that cities have high on the need for a transition of GFindlay Weir, by email selling it to us! density, means it’s possible to values if we are to implement GWill Jacques, by email use smart governance and ‘green industrial policy’, she technological innovation to writes “the incentive to abide Tapped resource reduce resource and energy by new environmental In response to the issue of The century consumption. standards is simply too low”. Making It about water, can I of cities GLena Duquemin, website Although she concludes that raise the fact that the world comment “the market should remain now drinks as much packaged I saw this fact in a UN tweet the key instrument for and bottled water as we do somewhere: “The world’s Parag Khanna’s keynote policy”, she also milk? Global sales are to hit cities occupy just 2% of the feature in Making It number acknowledges that “left to the over 230 billion litres this Earth’s land, but account for 18 (“In the century of cities”) market alone, the renewable year, with a surprisingly high 60 to 80% of energy touches on a number of the energy revolution – with its amount (usually brands like consumption and 75% of challenges facing the world’s rapidly decreasing costs and Evian) imported from other carbon emissions.” cities in the 21st century. One global investments in the countries, even where there’s Take the first part – when phrase particularly stands out billions – would never have a plentiful supply in the you hear some people talk of for me: “I strongly believe that occurred”. governments should devote That’s why the ‘market’ most of their attention to the needs a push (and not just a issue of inequality between nudge)! the slums and the glamorous Mariana Mazzucato already side of the city.” (in her article ‘Who will lead A good example comes the green revolution?’