Inclusive and Sustainable Industrial Development

Inclusive and Sustainable Industrial Development

Creating Shared Prosperity | Safeguarding the Environment


“UNIDO is promoting inclusive and sustainable industrial development to harness the full potential of industry’s

contribution to the achievement of sustainable development, and lasting prosperity for all.”

LI Yong, Director General, UNIDO


• UNIDO’s activities aim to ensure that the social, economic and environmental dimensions of the challenges we face today are addressed.

• As a means of addressing such challenges, the Organization serves as a global forum for industrial cooperation and standard-setting, and provides policy advisory and technical cooperation services.

• In 2013, UNIDO Member States endorsed the new vision of the Director General through the Lima Declaration (LD). The LD reiterated Member States’ support for Inclusive and Sustainable Development (ISID) being an integral part of reframing the post-2015 development agenda.

UNIDO is the specialized agency of the United Nations that promotes industrial development for poverty reduction, inclusive globalization and

environmental sustainability


MDGs Current Process Beyond 2015

lays the foundation, agreed to by all the world’s countries, for concerted efforts to meet the needs of the world’s poorest.

with the MDGs now almost behind us, the focus has shifted to the post-2015 development agenda.

builds on the previous goals, but with the intention of rectifying gaps and broadening their scope.

aims at shaping a more inclusive and sustainable development future, with a view to creating shared prosperity for all.

Post-2015 development agenda: The past - the present – the future


• Globally:

by providing significant contributions to intergovernmental and UN system-led processes towards reframing the development architecture of the future, such as:

- Open Working Group on SDGs ;- High-Level Political Forum (HLPF) ;- Second round of UNDG consultations, particularly in dialogues on “Engaging

with the Private Sector”, in its role as co-lead with UN Global Compact.

• Nationally:

by providing support to Member States through local initiatives and consultations that will help governments make better informed decisions when defining and implementing the agenda.

In order for ISID to be fully embraced as part of the post-2015 development agenda by all stakeholders, UNIDO works with other organizations in the following

processes:


ISID means that:

• Every country achieves a higher level of industrialization within their economies, and benefits from the globalization of markets for industrial goods and services.

• No one is left behind in benefiting from industrial growth, and prosperity is shared among women and men in all countries, as well as between younger and older generations.

• Broader economic and social growth is supported within an environmentally sustainable framework.

• The unique knowledge and resources of all relevant development actors are combined to maximize the transformational impact of ISID.

Through the above elements and with a committed global constituency, ISID can make significant contribution to achieve the overarching goal of

eradicating poverty within the next generation


• Economic growth is driven by entrepreneurship, continuous economic diversification, growing trade relations, industrial upgrading and technological innovation.

• Industrialization is an effective poverty reduction strategy, as demonstrated in several countries during the past century.

• Structural transformation of economies, moving from reliance on agriculture to activities that foster local value-addition, has a dramatic development impact: positive outcomes include employment and income generation, facilitation of international trade and efficient use of resources.

• To ensure inclusive and sustainable industrial development, the benefits of growth need to be shared equitably amongst men and women, by providing decent employment opportunities to both. Likewise, young people are disproportionately affected by recession and mass unemployment, and thus stand to benefit from greater growth and employment opportunities.

• Constantly generating new activities based on upgrading to higher levels of value addition and higher productivity is the key to enable economies to sustain stable jobs and increase prosperity.

Creating Shared Prosperity


• To achieve ISID and to fight poverty, it is essential to promote and facilitate networks and partnerships with all stakeholders.

• Multi-stakeholder partnerships are crucial for effectively managing the transformation towards inclusive and sustainable industrial development, and they need to include the private sector, civil society, academia, governmental institutions, and the international development organizations.

• Reinforcing international cooperation at all levels is essential, particularly with regards to financing, based on the difficulties many developing countries face with attracting investments.

• Diverse sources of expertise and resources are essential and require a strong commitment of local and national governments for ISID strategies.

Partnering for Prosperity

South-South and Triangular Cooperation call for greater emphasis, so as to strengthen andconsolidate multi-stakeholder partnerships that leverage the impact of development efforts.


• Structural changes require institutions capable of designing, implementing and monitoring industrial development policies that promote and encourage private sector development.

• A long-term strategy that puts in place a framework of stable economic, legal, and political conditions is required.

• Policy incentives need to be created to invest in the necessary education, infrastructure, product quality, agri-business solutions, innovation, and entrepreneurial skills.

• Industrial policymaking needs to be stressed, as industry can be a primary driver in fighting poverty, ensuring food security, and preventing social polarization and fragmentation.

Building Institutional Capacity


• Any progress on poverty eradication will be short-lived if we do not succeed in achieving the necessary economic growth within an environmentally sustainable framework.

• Cleaner and resource-efficient pathways to production need to be promoted, as well as the decoupling of economic growth from environmental degradation.

• Environmentally-sound interventions in manufacturing industries can significantly reduce environmental degradation.

• We must promote “green industries” for the delivery of environmental goods and services.

• Sustainable production patterns also have economic benefits, in terms of reduction of the wastage of costly resources, and contribution to increased competitiveness. Energy efficiency in industrial production equally proves to be an incentive in the form of cost reduction.

Safeguarding the Environment


UNIDO ISID Activities in Mongolia

Helping to include disadvantaged Mongolian groups in the national economy, by building competitiveness of agro-based industriesPast/current projects• Established a mobile camel milk processing unit• Technical assistance to develop policies for industrialization

Planned/pipeline projects• Value Chain development and management in strategic agro-industry sectors• Entrepreneurial training through the Technical and Vocational Education and Training

(TVET) programme

Assisting Mongolian enterprises to be included in the global marketsPast/current projects• Trade capacity building for export market access

Planned/pipeline projects• Fostering ISID in the New Silk Road economic belt through intra-regional cooperation

on trade capacity building, private sector development, and knowledge and information sharing


UNIDO ISID Activities in Mongolia – contd.

Supporting Mongolian enterprises to be more sustainablePast/current projects• Update of National Implementation Plan (NIP) for the Stockholm Convention on POPs• Capacity building for environmentally sound PCB management and disposal• Demonstration of BAT/BEP in fossil fuel-fired utilities and industrial boilers• Reduce exposure of mercury to human health and the environment by promoting sound

chemicals management in Mongolia• With UNEP, UNITAR, ILO and UNDP through the Partnership for Action on Green

Economy (PAGE), UNIDO will bring to the programme its expertise and experience on Green Industry.

Planned/pipeline projects• Climate Change Risk and Vulnerability Assessment and Adaptation• Demonstration of BAT/BEP in open burning activities in response to the Stockholm

Convention On Persistent Organic Pollutants (POPs)• Sustainable management of Hazardous and other Wastes


The Way Forward

• Regular consultations with counterparts and partners to analyze Government’s existing and emerging initiatives and the possible roles UNIDO can play to support and catalyze the processes

• Provide support to both the Government and the private sector in areas of ISID policy formulation, capacity building, investment promotion and technology transfer

• Regular briefings with partners and donors to establish synergies and complementarities of development programmes in Mongolia and areas of possible cooperation and collaboration

• Awareness and public education on UNIDO’s mandate and the implementation of the ISID to diversify the Mongolian economy and support economic growth and transformation

• Encourage and support public-private partnership (PPP) mechanisms as a platform for Government’s engagement of the organized private sector (OPS) as an engine of growth and promote their involvement in and contribution to national development

• Support institutional strengthening and capacity building of the OPS to enhance their contribution to industrial growth, economic development, poverty alleviation and inclusive development


Thank You!

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Inclusive and Sustainable Industrial Development