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Li Yong is Director General of UNIDO and Ambassador A.L. Abdul Azeez (Sri Lanka) is President of UNIDO's Industrial Development Board.
VIENNA, Oct 30 2014 (IPS) - As representatives of the United Nations Industrial Development Organization (UNIDO), we are sometimes asked whether industrial development is still relevant to a world which many observers have claimed over the past decades to have entered the “post-industrial age”. Our answer is always an emphatic “yes”, shaped both by the evidence of history and current events.
In the wake of recession and sluggish growth, policymakers globally are increasingly recognising the merits of industrialisation, both in developing and in richer countries.
The European Union, Japan, the United States and a few other countries have given greater prominence to reindustrialisation in their respective economic policies in recent years, while both middle-income countries and least developed countries have cited industrialisation as vital for their future prosperity.
UNIDO promotes industrial development as the primary vector through which poverty can be eradicated, by enhancing productivity, stimulating economic growth and generating associated increases in incomes and employment. We cooperate with governments and private sector actors to harness the investments necessary to strengthen the productive and trade capacities of our member states.
History has shown that industrialisation has an immense potential to propel upward social mobility; as a result of the Industrial Revolutions in England and the United States in the 19th and 20th centuries, millions of people were lifted out of poverty. Latterly, industrialisation has been central to the booming growth enjoyed by East Asian economies, and especially China, where GDP per capita has risen over 30-fold since 1978.
However, UNIDO recognises that while industrialisation has often been the motor for positive economic change, this has sometimes been achieved at the expense of social inequality and environmental degradation. Industrialisation must therefore be embedded in a socially equitable and environmentally sustainable policy framework if it is to achieve the desired developmental impact.
An integrated approach to society’s most urgent challenges must address all three dimensions of sustainable development – economic, social and environmental. At UNIDO’s 15th General Conference in Lima, Peru, in December 2013, the organisation’s 172 member states unanimously adopted the Lima Declaration, giving UNIDO a mandate to promote Inclusive and Sustainable Industrial Development (ISID) as the principal means of realising their industrial development policy objectives.
The achievement of ISID represents UNIDO’s vision for an approach that balances the imperatives of economic growth, social cohesion and environmental sustainability.
The world is united in regarding poverty eradication as the overarching objective of development, and UNIDO’s member states have placed it at the core of ISID. Industrial development has been shown to be a key driver of processes which make a difference to the world’s poorest citizens.
Research from UNIDO demonstrates that countries with a larger share of industry in their economies perform better with regard to a wide range of indicators corresponding to social well-being, such as income inequality, educational opportunities, gender equality, health and nutrition. The contribution that ISID could make to youth empowerment through skills development and youth entrepreneurship is now widely recognised.
Similarly, environmental sustainability is also central to ISID. UNIDO promotes Green Industry and the use of clean technologies in industrial production; greater resource and energy efficiency; and improved water and waste management. Not only do these measures reduce harmful emissions and waste, but they also offer a significant potential for increased competitiveness and employment opportunities.
ISID also prioritises creating shared prosperity. This means that the benefits of growth must be inclusive if they are to improve the living standards of all women and men, young and old alike. Employment opportunities, particularly in the industrial and agro-industrial sectors, must be available to all members of the workforce, thus building greater prosperity and social cohesion.
As we approach the end of the Millennium Development Goals (MDG) framework in 2015, the international community has been reflecting on how best to address outstanding challenges. Although the MDGs achieved some remarkable successes, for example in terms of halving extreme poverty and increasing access to education and sanitation, much still remains to be done in order to achieve “the world we want”.
The post-2015 development agenda currently being discussed by the international community aims to address the many development issues that still need to be resolved. The Open Working Group, which was tasked with formulating the Sustainable Development Goals (SDGs) that will be at the core of the post-2015 development agenda, has recognised the importance of inclusive and sustainable industrialisation by including it as one of the 17 Goals it has proposed, clustering it in Goal 9 with resilient infrastructure and innovation.
Given the ambitious scope of the post-2015 development agenda and experience gained over MDGs, the focus of international deliberations has now shifted from the determination of the SDGs to addressing the means of implementation.
Recognising the budgetary constraints imposed by the prolonged period of stagnant growth and recession experienced in many countries, the recent report of the International Committee of Experts on Sustainable Development Financing acknowledged the necessity of mobilising alternative resources for the implementation of the SDGs, including those of the private sector.
UNIDO has already worked extensively on securing greater engagement from private industry in international development, and over the past year was honoured to have been selected to co-lead the United Nations System’s consultations on engaging with the private sector. As the organisation mandated to promote industrial development, which is quintessentially a private-sector activity, we are well-placed to partner with and promote private enterprise, and look forward to achieving increased progress in this field in the future.
Industrialisation has consistently transformed living standards throughout modern history. ISID is the next phase in its evolution. The overarching goal of the post-2015 development agenda is to eradicate poverty and improve the quality of life of the world’s poorest citizens.
This is a challenge which UNIDO is well-placed to meet in partnership with governments, the global development community, business and civil society.
Edited by Kitty Stapp
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