FEBRUARY 2011
Issue 02
Times unido
Partner for Prosperity
CONTENTS
02 News and features 04 Special feature: boosting agricultural value chains in Africa
07 Partnering for prosperity through analysis and investment
08 Regional focus: project summaries from UNIDO’s regional programmes
13 South-South focus on strengthening ties
14 Research, policy and statistics At the Cancún summit, UNIDO urges prioritizing global action on energy efficiency. Photo: UNCCC
At COP16, UNIDO urges for energy efficiency, green industry At the United Nations Climate Change Conference (COP16) that took place from 29 November to 10 December in Cancún, Mexico, UNIDO advanced its role in several areas of its activities to a broad international audience. During the conference, two events organized by UNIDO stressed the need to prioritize energy efficiency and green industry in order to achieve sustainable development, as well as tackle climate change concerns in both developing and developed countries. Global action on energy efficiency In cooperation with the Government of Mexico and the Secretary-General’s Advisory Group on Energy and Climate Change, UNIDO organized an event entitled Energy Efficiency in the Post-2010 Framework, which focused on prioritizing global action on energy efficiency and its role in the COP16 mitigation negotiations. In his opening address, Mexico’s President, Felipe Calderón, stressed the importance of
15 Management issues: change management and staff changes
16 Forthcoming events and new publications
encouraging energy efficiency worldwide. Addressing some 500 participants, he urged them to speak up for a massive dissemination of energy efficiency. UNIDO’s DirectorGeneral, Kandeh K. Yumkella, pointed out the energy saving potential in energyintensive industries, and emphasized the need to make energy efficiency a central priority in political and development agendas. Participants agreed that immediate progress is possible and that energy efficiency should therefore be considered a key building block in negotiations on a comprehensive climate change agreement. The Mexican Energy Secretary, Georgina Kessel, the Danish Minister of Climate and Energy, Lykke Friis, and World Bank President, Robert Zoellick, were among the panellists at this event. The environment in a climate deal A second event, co-organized with the Mexican Ministry of Environment and Natural Resources, addressed synergies between Montreal Protocol actions and climate change in Mexico. (continued page 3)
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news and features UNIDO working with India In October 2010, UNIDO’s DirectorGeneral, Mr Yumkella, travelled to India to meet with senior Government officials, as well as to attend the Delhi International Renewable Energy Conference (DIREC 2010) and pursue UNIDO’s interests in promoting sustainable energy and development. The Director-General met with the Secretary of the Department of Industrial Policy and Promotion, Rajinder Pal Singh, to discuss the strategic importance of UNIDO’s operations in India, and the Organization’s expanding cooperation portfolio in the country, which is UNIDO’s largest and among its most diversified. At DIREC 2010, the Director-General stressed how “energy access is vital for accelerating economic growth and wealth creation.” He mentioned that the United Nations SecretaryGeneral’s Advisory Group on Energy and Climate Change—which he heads—had agreed on two ambitious goals: to ensure universal access to modern energy services by 2030, and to reduce global energy intensity by 40 per cent by 2030. During his visit, the Director-General received the degree of Doctor of Philosophy from the Energy and Resources Institute (TERI University) in New Delhi, in honour of his work promoting sustainable industrial development in developing countries and economies in transition. For more information, contact: A.Fujino@unido.org
Mr Yumkella receives the degree of Doctor of Philosophy from the Chancellor of the TERI University, Rajendra Pachauri
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Modern chillers eliminate the use of ozone depleting substances and reduce the consumption of fossil fuels
Chiller replacements: linking the Montreal and Kyoto Protocols In 2005, under the auspices of the Multilateral Fund for the Implementation of the Montreal Protocol, UNIDO in cooperation with France, Germany, and Japan launched a chiller replacement project for Africa. The national surveys identified approximately 340 chlorofluorocarbonbased (CFC) centrifugal chillers operating in Cameroon, Egypt, Namibia, Nigeria, Senegal and Sudan. Chillers are refrigeration systems that cool air for industrial and commercial purposes. Most of them suffer from high leakage rates and excessively high energy consumption. Their replacement with new ones (40 per cent more energy efficient), will lead to a reduction of 462,400 tons of carbon dioxide per year and a phase-out of around 80 tons of CFCs required for servicing the chillers annually.
rarely happens, so owners/users normally wait until the end of their economic life before considering new ones. Without proper interventions, chillers produced before 1995 will continue to operate until 2020 unless owners have a motivation to change. To encourage replacements, public awareness of the mandatory CFC phase-out is a driving factor. The UNIDO project evaluates and demonstrates the incentives, and removes barriers for operators to replace chillers, through coordinating inputs from engineering facilities and energy contracting providers, investors, financial institutions, government and stakeholders in the region. The project aims to replace 10 per cent of the chillers in the six countries, serving as an example for the remaining users. The approach promotes synergies between two multilateral environmental agreements: the Kyoto Protocol on Climate Change, and the Montreal Protocol on Ozone Depleting Substances. •
Owners do not realize the benefits of chiller replacements for many reasons. The economic life of chillers in developing countries exceeds 30 years, and the maintenance costs for old chillers is much lower than the initial cost required for replacing For more information, contact: the equipment. Early chiller replacement S.Si-Ahmed@unido.org
news and features Enabling production of much-needed drugs in developing countries During the November session of UNIDO’s Industrial Development Board, a high-level panel addressed the opportunities and challenges of producing essential generic drugs in developing countries. Co-hosted by the Federal Government of Germany, the high-level debate focused on bridging the gap between public health and industrial development, as well as on maintaining quality standards of generic drugs. Together with government officials and representatives from multilateral organizations, including the Joint United Nations Programme on HIV/AIDS, private sector representatives from developed and developing countries shared their experiences. A consensus was reached on the importance of further developing local manufacturing of generic drugs, which would have a positive impact on developing countries, and in turn add to economic growth.
manufacturing capacities for pharmaceutical products, as well as to elaborate on the Organization’s promotion of access to essential medicines. Financial support of the German Govern ment for UNIDO’s project to strengthen local production of essential generic drugs in developing countries allows the Organization to assist in expanding and upgrading small- and medium-sized enterprises in a number of African and Asian developing and least developed countries to locally manufacture essential generic drugs. A new contribution of EUR 1.2 million complements Germany’s previous assistance in providing EUR 3.3 million in funding to strengthen the local production of essential generic medicines to fight pandemic diseases such as HIV/AIDS, malaria and tuberculosis.•
The event also allowed UNIDO to show- For more information, contact: case its current activities in building local J.Reinhardt@unido.org (continued from page 1)
At COP16, UNIDO urges for energy efficiency, green industry Participants were welcomed by the Mexican Secretary of the Environment and Natural Resources, Juan Rafael Elvira Quesada, who stressed the role of the private sector in achieving environmental protection.
UNIDO’s Director-General said he was pleased to see that representatives from various industries were present, interpreting their participation as a strong sign of stakeholder involvement and commitment to integrate environmental dimensions into their production patterns to ensure competitiveness.
Nobel Laureate, Professor Mario Molina, emphasized the importance of science in making the Montreal Protocol as successful as it is today—not only in terms of the Follow-up activities to the negotiations will phasing-out of ozone-depleting substances, include collecting data on relevant indicators relating to climate benefits derived from but for its climate benefits as well. Montreal Protocol activities, as well as The Executive Secretary of the Ozone replication of projects with dual impact on Secretariat, Marco González, highlighted climate and ozone protection in Mexico and the Montreal Protocol’s success as an envi- other countries assisted by UNIDO.• ronmental treaty and explained potential linkages between the Montreal and the For more information, contact: M.Bazilian@unido.org Kyoto Protocols.
UNIDO Guidebook on Private Standards In October, UNIDO launched a new guidebook on private standards, which targets exporters from developing countries and seeks to help them access global production and supply chains in the garments, footwear and furniture sectors. Entitled Making Private Standards Work for You: A guide to private standards in the garments, footwear and furniture sectors, the guidebook outlines a strategic approach for suppliers in developing countries. In addition to formal international standards that have been established to address global challenges (such as those from ISO), private standards have been developed by business entities to address a number of stakeholder-driven priorities. As such, the guidebook narrows the information gap by providing invaluable data so that in addition to national, regional or inter national standards and technical regulations, businesses can also more easily comply with private standards. Funded by the Norwegian Agency for Development Cooperation and developed in collaboration with the Dutch Centre for Promotion of Imports from Developing Countries, the guidebook is available in English, French and Spanish at www.unido.org/index. php?id=1001204 For more information, contact: U.Dolun@unido.org unido times | FEBRUARY 2011
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special features
(above) Workers in Côte d´Ivoire benefit from the African Agro-Industry and Agri-business Initiative, which helps them produce higher quality products. (left) A ship being constructed in Port Sudan, where the UNIDO initiative benefits local businesses
Mobilizing know-how and investment to boost agricultural value chains in Africa “We are putting in motion an ambitious programme that will test new levers of development assistance,” says Philippe Scholtès, Director of UNIDO’s Agri-business Branch. “We expect to mobilize public and private investment and know-how to boost selected value chains and agri-business development. Raising disposable incomes in rural areas jump-starts domestic demand and triggers multiplier effects from agriculture to manuThe leaders of 44 African countries launched facturing and services.” this initiative in March 2010, during the High Level Conference on the Development The initiative focuses on key agricultural of Agribusiness and Agro-Industries in Africa, products in each country that have potential which took place in Abuja. The initiative for growth and development impact. The aims to set up investment programmes that selection process is facilitated by participatory increase the transformation of agricultural and analytical tools. For example, in the produce into diverse high-value products. Democratic Republic of Congo, palm oil and The investments will be mobilized from cassava were selected due to the importance of both public and private sources. The 3ADI improving food security. A focus on wood targets enabling policies and public goods, processing is also expected to help overcome a value chain skills and technologies, post- situation where wood is being exported while production support, as well as financing wood-based products are being imported. In United Republic of Tanzania, the Ministry of and risk-mitigation mechanisms. Industry identified red meat and cashew nuts. UNIDO has set up a pilot group of ten countries, including Comoros, the Using UNIDO’s tools and expertise, a value Democratic Republic of Congo, Ghana, chain analysis will be prepared to map out Liberia, Madagascar, Nigeria, Sierra Leone, development potentials, constraints, stakeSudan, Rwanda and the United Republic holders and multidisciplinary solutions. of Tanzania, and multidisciplinary teams Some of these may be profitable by nature from the FAO, IFAD and UNIDO have and will attract private capital; others will been visiting these locations to prepare exhibit significant externalities or high entry barriers, falling in the realm of the public national strategies. UNIDO, the Food and Agriculture Organization of the United Nations (FAO) and the International Fund for Agricultural Development (IFAD), are jointly developing programmes under the African Agro-Industry and Agri-business Development Initiative (3ADI), which aims to increase added-value in agricultural produce and natural resources on the continent.
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sector (e.g. roads); some will require support from technical service providers such as the FAO, IFAD or UNIDO. Strategic alliances have been established with the European Commission, development finance institutions, private technology, expertise and finance providers, as well as with business associations across Africa. UNIDO expertise in technology transfer, skills development, industrial organization, quality control and certification, energy supply or resource-efficient production is being mobilized. In the Democratic Republic of Congo, funding for the establishment of an agro-industrial support centre with UNIDO technical cooperation was approved by the Government of Japan in December. A Programme Management Unit, hosted by UNIDO’s Agri-business Branch, supports the country teams in developing and implementing the national strategies, consistently and continuously improving methodologies, mainstreaming gender and resultsbased monitoring. The number of African countries benefiting from the 3ADI is expected to increase. In addition, two non-African countries— Afghanistan and Haiti—are already embarking on a similar initiative.• For more information, contact: P.Scholtes@unido.org
special features
(above) Olea Partners Export Consortia exhibition to the International Agriculture Exhibition in Meknes, Morocco: How to add value to a traditional product and access international markets (left) Interaction with buyers at a UCFA export consortia shop in Agadir, Morocco
Adding value to traditional products of regional origin Both in developed and developing countries, customers are showing a greater tendency to purchase food or agro-industrial products that are rooted in popular gastronomic cultures, even if this means paying higher prices.
Successes achieved through export consortia support programmes around the world have triggered the interest of counterparts and beneficiaries in developing more partnership strategies specifically focused on adding value To respond to increased product demand, to traditional products of regional origin. UNIDO has developed projects promoting the establishment of quality consortia in The efforts have offered the chance to the agri-food sector. Quality consortia are establish a link between UNIDO and the voluntary collective alliances of producers, World Intellectual Property Organization, cooperatives and companies operating in to actively engage in collective branding and the same sector that: the promotion of geographic indicators. essence of these networks and export consortia, has also enabled small-scale agroindustrial producers to work together to access new markets.
For producers and small- and medium-sized enterprises that operate in the agroindustrial sector, this new trend signifies a major opportunity, as it frees them from having to compete in price with generic and standardized products. It also rewards them for doing well in what, to a certain extent, • Set collective product specifications; they have always been doing: using age-old • A ssist, coordinate and certify members’ methods to produce traditional products compliance with the specifications; that are firmly rooted in a region and have a • Register a collective label; and, unique appeal. • Promote the collective label through an adapted marketing strategy. UNIDO’s approach in this area has been to develop and improve the production methods and processing techniques, the management and commercial skills necessary to produce and commercialize such traditional products, as well as to actively engage in encouraging and promoting the creation of local production systems and company networks. The system of cooperation and mutual support, which forms the
The cooperative initiative also creates an opportunity to develop an integrated interagency pilot project, which is currently being considered in Morocco. The concept of quality consortia has triggered serious interest for Moroccan producers (see page 9 for further information) and others, of traditional and regional products. These products are now being developed to respond to the requests received by the local counterparts.•
Access to and proficiency in new technologies, management of the consortia, compliance with international standards, and organic and equitable commerce certifications, amongst others, are examples of how the programmes increase added value to products. In turn, the efforts help companies obtain premium For more information, contact: prices for traditional products in domestic F.Russo@unido.org or and international markets. J.Moll-de-Alba@unido.org
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special features
Ambassador Jargalsaikhan Enkhsaikhan of Mongolia (right) and UNIDO Director-General Kandeh K. Yumkella hold a new publication, Strategic directions on industrial policy in Mongolia, in Vienna, February 2011 (above) Ulan Bator Photo: Wikimedia Commons
UNIDO study outlines strategic directions for industrial policy in Mongolia A new UNIDO report proposes a policy that would help the Government of Mongolia turn its industrial development goals and projects into reality. The paper, Strategic Directions on Industrial Policy, is based on rigorous research assessing the performance of Mongolia’s most important sectors: minerals, natural fibres and meat processing, as well as suggesting new areas of comparative advantage. It looks at the current characteristics of the manufacturing sector, its contribution to the overall economy, the prevailing macroeconomic and institutional circumstances of the country, and its perfor mance relative to other countries at the same stage of development. “Mongolia is currently at a crucial juncture in its development process and key strategic decisions are being taken to ensure long-term sustained growth,” said Director-General, Mr. Yumkella. “The Government of Mongolia is giving high priority to developing an industrial 6
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programme, which features ambitious goals and involves developing a range of new industrial activities. To reach those goals and realize such ambitious projects, many obstacles will have to be overcome. Industrialization will play a leading role and UNIDO is pleased to accompany the country in this major endeavour. I am confident that this study will contribute to Mongolia’s industrial policymaking process,” said Mr. Yumkella.
entrepreneurs, academics, non-governmental and international organizations and other stakeholders.
The study suggests a strategy and a set of policies that stimulate structural change toward and within the manufacturing sector. Because of the importance of the mining sector for Mongolia’s economy, the study also examines the options for moving from resource-based industries into higher valueThe report points out that the diversification added manufacturing activities. of Mongolia’s manufacturing capacity is essential if it is to weather the shocks associ- “If the findings of this report are used ated with the volatile minerals markets. strategically, in 20 years Mongolia will have Historical and current empirical evidence a much more diversified economy. The show that countries which produce and manufacturing industry will be a major export manufactured products have experi- driver of economic activity, with producenced a more stable economic performance, tion taking place in modern, environmenespecially if their products are in demand in tally friendly and resource-efficient plants. high-income countries. This will mean high-quality employment opportunities and higher incomes,” added The study combines analysis of long-term Mr. Yumkella.• structural change with the role of an active industrial policy. It takes into For more information, please contact: account the contributions of policymakers, A.Alcorta@unido.org
partnering for prosperity Africa Investor Survey means better foreign investment in Africa The fourth EU-Africa Business Forum (26 and 27 November, Tripoli), co-organized by UNIDO, provided substantive inputs to the EU-Africa Heads of States Summit, which followed. The Forum is a platform that brings together African and European business leaders, regional economic commissions and financial institutions, as well as the private sector, to discuss the business environment and investments in Africa. UNIDO organized the participation of Chief Executives from 25 African investment promotion agencies and over 50 African private-sector CEOs. UNIDO presented its Africa Investor Survey, which was conducted in 20 sub-Saharan countries, to help investors better understand the geographic and sectoral flows of investments and assess the impact of these flows. The analysis of the results serve to improve the targeting of foreign investors, design effective investor services, and use resources available for investment promotion more efficiently. The data will also inform foreign and domestic investors of investment choices.
Regional Programme, which undertook the survey, set up the portal, and continues to build up national capacities for investment promotion and supplier/buyer exchanges. The forum concluded with recommendations aimed at the expansion of the programme to all African countries in terms of the survey, platform and institutional capacity-building. Finland announced its participation in the programme with a contribution of EUR 700,000, and the European Commission indicated its intention to increase its contribution for institutional capacity-building. At the Summit that ensued, the Heads of States and Governments of Africa and Europe approved the Action Plan 2011-2013. The plan makes the Strategy for the Accelerated Industrial Development of Africa, elaborated in collaboration with UNIDO, an overall objective of the partnership between the European Union and the African Union. • For more information, contact: M.Kulur@unido.org
A sample of over 100,000 firms in 20 countries, from which random samples were drawn to ensure proportionate representation, formed the basis of the survey. A total of over 6,400 questionnaires were collected.
In October, Chevron allocated US$ 1 million towards a UNIDO project that helps introduce entrepreneurship as a subject in Angola’s secondary schools. The project aims to develop entrepreneurship skills among young people and a sustainable private sector in the country; it also complements the national education programme of the Government of Angola. The UNIDO Representative and Director, Regional Office in South Africa, Stefano Bologna, welcomed Chevron as the first private-sector donor to support UNIDO’s Entrepreneurship Curriculum Programme, and said he hoped others would join the initiative. “This programme helps bring together young people, the education system and the private sector. It breaks down walls and links the classroom with the real world,” Bologna said. General Manager of Policy, Government and Public Affairs of Chevron, Eunice de Carvahlo, said, “Chevron is proud to support the initiative of the Government of Angola to develop a future generation of competent professionals committed to the country.” Since 2009, UNIDO has been supporting the Ministry of Education in Angola in developing and introducing entrepreneurship curricula in secondary schools. Portugal and the Republic of Korea have funded the project until now. Entrepreneurship is currently part of the syllabus in 40 schools in nine provinces of Angola, with over 2,000 students taking part on a pilot basis. The Government plans to roll out the programme throughout the country, reaching some 500,000 students by 2013. The project is carried out in cooperation with the National Institute for Educational Research and Development.
The survey database will be hosted on a web-based portal, developed in partnership with the Microsoft Corporation, and will allow users easy access and provide them with tools to conduct their own research and analysis (aid in policy formulation, investment decision-making, performance benchmarking, and finding business partners, local suppliers and buyers). A demonstration of the beta version of the portal, entitled The Africa Investment Monitoring Platform, was given at the forum. The survey was funded by the European Commission. Other donors, including Austria, Italy, Republic of Korea, South Africa and Turkey, have contributed to the implementation of the overall Africa
Chevron contributes to UNIDO project in Angola
Discussions of the presentation of the Africa Investor Survey prior to the EU-Africa Business Forum in November
For more information, contact: S.Hisakawa@unido.org unido times | FEBRUARY 2011
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africa region
Energy for Rwanda’s rural communities In response to a request from the Government of Rwanda, UNIDO, in collaboration with the country’s Ministry of Infrastructure, has implemented a project to promote renewable energy for productive uses, by providing access to affordable modern energy in rural areas through the establishment of minihydropower stations. On the basis of their development potential, four pilot sites were selected for the mini-hydropower stations in rural locations throughout the country. Throughout the implementation process, which covered the construction, operation, maintenance and management of the facilities, UNIDO fostered the development of technical capacities and skills. At the same time, the project reviewed existing policies and proposed new solutions. Two thousand households, small businesses, cottage industries, schools and health centres have gained access to locally-produced clean energy. Beginning in 2006, UNIDO’s initiative in Rwanda has led to a breakthrough in mini-hydropower development. Based on the initial results of the project, the Government has decided to establish another 17 mini- and small-hydro sites, some of which are already completed or in the process of being completed. The mini-hydropower stations are an affordable approach to rural energy development; if replicated throughout the country, the additional stations would contribute significantly to employment creation and poverty reduction.
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Promoting sustainable ecotourism, protecting ecosystems In conjunction with the United Nations Environment Programme, the World Tourism Organization and local ministries, UNIDO has initiated the Collaborative Actions for Sustainable Tourism Project with funds from the Global Environment Facility. The project seeks to reduce the degradation of coastal and marine environments due to development activities on 48,000 km of coastline in sub-Saharan Africa. It also aims to enhance sustainability in the region. The project will identify best practices and technologies for pollution reduction and investment opportunities in sustainable collaborative tourism; develop mechanisms for sustainable governance and management, which reduce degradation of coastal ecosystems from land-based tourism; implement related training and capacitybuilding; and develop knowledgesharing material. Currently, the five-year, EUR 6 million project is being implemented in Cameroon, Gambia, Ghana, Kenya, Mozambique, Nigeria, Senegal, Seychelles and the United Republic of Tanzania.
EAC and UNIDO work toward modern and sustainable industry A two-day workshop on the Industrial Modernization and Upgrading Programme organized by the East African Community (EAC) in cooperation with UNIDO took place on 7 and 8 December, in Dar es Salaam, United Republic of Tanzania. The workshop reiterated the importance of micro, small- and medium-sized enterprises (MSMEs) in the region‘s economies and the need to target them to promote sustainable economic growth. The sector accounts for over 90 per cent of firms and between 60-70 per cent of employment generation in the region. The EAC and UNIDO are working to increase added value in the production process of MSMEs, as well as increase their contribution to the economy. Through the workshop, the EAC aimed to benefit from UNIDO‘s experience in implementing similar programmes in other parts of the world.
arab region
UNIDO workshop in Rabat, Morocco On 3 November 2010, UNIDO, in cooperation with the Ministry of Agriculture and Fisheries and the Ministry of Trade of Morocco, organized a workshop in Rabat to present quality consortia as an efficient strategy for adding value to traditional products of regional origin, such as olive and argan oil, dates, couscous, saffron and figs, amongst others. The workshop was an occasion for all stakeholders to brainstorm what a future cooperation programme focusing on quality consortia would look like, and how technical cooperation in traditional product development and promotion could aid the country in developing these types of networks.
Support to SMIs in Arab States Twenty-one Arab States are seeking support from UNIDO in their efforts to prop up small and medium industries as an important portal toward economic and social development, and more particularly, for job creation and a better involvement of women and youth in economic growth. A programme has been proposed to enhance regional and national capacities for employment creation, value-added generation, economic diversification, export promotion, and development of priority industrial sectors. The programme will help domestic manufacturing small- and medium-sized enterprises to grow and upgrade to internationally competitive level. This in turn will enable them to compete effectively in the domestic, intra-Arab regional markets, as well as international markets. The three-year programme will have a proposed budget of nearly EUR 63 million.
Increasing growth in Southern and Eastern Mediterranean In close consultations with its offices in the region, UNIDO has developed a programme proposal entitled Increasing Growth in the Southern and Eastern Mediterranean Countries through Promoting SMEs and Job Creation. The proposal aims to address the key objectives of the Union for the Mediterranean (UfM) and its Mediterranean Business Initiative. The programme further aims to increase national capacities by strengthening diversification and competitiveness of manufacturing enterprises, export promotion, youth and women entrepreneurship development, innovation and technology promotion and the development of agro-food and green industries. The three-year programme has an estimated budget of EUR 47 million and will be implemented in Algeria, Egypt, Jordan, Lebanon, Mauritania, Morocco, Syrian Arab Republic, Tunisia, and the West Bank and Gaza.
Developing Iraq’s industrial zones At the beginning of 2011, UNIDO launched a EUR 3 million technical cooperation project in Iraq to develop industrial zones and increase investment in the country. The two-year project is funded by the Government of Italy, and implemented in coordination with the World Bank. Under the project, UNIDO aims to enhance the capacity of the Iraqi Government in planning, designing and promoting industrial zones in a sustainable manner. This includes the establishment of an inter-agency coordination mechanism, the drafting of a comprehensive roadmap on industrial zone development, as well as capacitybuilding activities for counterpart institutions. The project also facilitates the establishment of industrial zones in two pre-determined areas to revitalize the private sector there, and rehabilitate the local economy. UNIDO has successfully implemented post-crisis projects in many countries, including Afghanistan, Haiti, Indonesia, Iraq, Liberia, Sierra Leone, Sudan and Uganda.
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europe and newly independent states
Market Access for Russian Automotive Component Industry Initiated in 2008, the three-year UNIDO project, Facilitating International Market Access for Manufacturing Suppliers in the Automotive Component Industry, in the Samara region of Russia, works with over 30 manufacturers to enhance their production processes, help them engage with business partners and overcome constraints. The projects have provided upgrading services, and established a Samara Supplier Network, as well as supporting training, research and technology initiatives.
UNIDO supports Aid-for-Trade in Central Asian countries The development needs of the SPECA countries and ways to address them were put in focus at the Aid-for-Trade Road Map for SPECA (United Nations Special Programme for the Economies of Central Asia) Conference, held in Baku, Azerbaijan on 1 and 2 December. Co-organized by UNIDO, the conference promoted Aid-for-Trade as a priority for these countries, highlighted related projects, encouraged donors to scale-up trade-related development assistance, and urged governments to agree on follow-up actions. High representatives of the seven SPECA countries adopted the Baku Ministerial Declaration, outlining priority areas for trade development in the region.
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Industrial energy efficiency for the republic of Moldova Increasing competitiveness and efficiency of Ukrainian industry In 2007, UNIDO initiated its first Cleaner Production (CP) project in Ukraine and demonstrated a great potential in applying the CP concept in the manufacturing sector. National experts trained by UNIDO are now providing support for local companies. Companies successfully introduced CP options in their operations and achieved considerable economic savings due to more efficient use of raw materials, water and energy. The project is being implemented in the regions of Kyiv, Vinnitsia and Zaporizhzhia.
Funded by the Global Environment Facility, and co-financed by UNIDO, the Government of the Republic of Moldova and the private sector, the Industrial Energy Efficiency (IEE) project aims to accelerate improvements in industry and market transformation in energy efficiency through combined policy and normative measures, awareness and capacity-building and implementation of showcase IEE projects. Energy savings corresponding to 500,000 tons of carbon dioxide emissions between 2012 and 2023 will be achieved under the project. As part of the Republic of Moldova’s energy strategy 2020, the IEE project complements other ongoing UNIDO technical cooperation initiatives.
asia and the pacific region
Curbing greenhouse gas emissions in Chinese brick sector As part of the China Climate Change Partnership Framework programme, UNIDO, in partnership with the Chinese Ministry of Agriculture, is implementing a three-year project entitled Promoting Waste Heat Recovery for Power Generation within the Chinese CoalGangue-Brick Sector (WHRPG).
Business Environment Reforms in Viet Nam On 29 October, the Swiss State Secretariat for Economic Affairs joined the partnership between the Vietnamese Ministry of Planning and Investment, NORAD and UNIDO on the Business Registration Reform in Viet Nam, and contributed US$ 6.6 million to its second and third phases. The project provides technical assistance for business registration reform in Viet Nam, and completed its first phase in December 2010 with the establishment of a single-point, fully computerized registration service for business, tax, statistics and public security registration for enterprises in 63 provinces. There are nearly 550,000 enterprises on the National Business Registration System database. Phase two of the project provides a web-enabled, nationwide information service with access to legally relevant information on all registered enterprises. The third phase establishes a financial statements filing system, and is expected to start at the beginning of 2011.
Fitting Thai industry to EU regulations The Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) Information Centre in Thailand conducted a series of seminars in Bangkok and several provinces throughout 2010, as part of a public campaign on REACH, targeting both the public and private sectors.
Coal-gangue is the rock-type waste material left over from coal mining and it is being promoted as a brickclay substitute in order to reduce pressure on agricultural land. The WHRPG technology being developed is applicable for factories using tunnel brick kilns, and will reduce energy costs and carbon dioxide emissions.
REACH is a 2006 European Union regulation addressing the production and use of chemical substances, and their potential impacts on both human health and the environment.
To date, a full sectoral scoping and analysis of the Chinese coal-gangue brick sector has taken place. The first WHRPG pilot plant in the Shanxi Province has been completed, and the construction of the second plant in the Hebei Province has begun. In its final phase, the project will assess and assist the Chinese government to strengthen the health and safety functions of the Chinese coal-gangue brick sector, as well as determine the potential health and safety implications resulting from the introduction of WHRPG throughout the sector. Recommendation reports are expected in 2011.
For more information visit: www.REACHtalk.net
The project is funded under the UNDPSpain MDG Achievement Fund.
The centre provides information to Thai industries producing and exporting goods to the EU on how to comply with REACH regulation, and about tools and activities related to REACH.
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latin america and the caribbean
Training for export consortia in Latin America The 2009-2010 training sessions of the Latin American Network of Export Consortia Promoters were held in Turin, Italy. They were organized in collaboration with the International Labour Organization, at the International Training Centre in Turin. The goal of the training sessions was to give consortia promoters appropriate technical capacity and widen the Latin American Network of Export Consortia Promoters. As a follow-up, an online course from November 2010 to February 2011, was organized for training participants who will go on to train a wider audience in the Latin America and Caribbean region. Twenty-six institutions participated in the Turin training session, including various Chambers of commerce, scientific centres and universities from Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, Honduras, Mexico, Peru, Venezuela and Uruguay.
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Strengthening cultural industries in Uruguay
Increasing competitiveness in Cuba
UNIDO has taken a leading position in the One UN programme in Uruguay by strengthening the cultural industries of the country and improving the accessibility of cultural goods and services to its citizens.
Since 2009, UNIDO has been working with the Cuban Ministry of Investment and Commerce, and the DISAIC Consulting House, to enhance capacities in the Cuban productive sector by upgrading managerial skills and introducing productive management of organizational resources, using UNIDO’s Pharos software.
Among UNIDO’s main technical inputs are the strengthening of the production, commercialization and quality of the craft sector of Uruguay, as well as the promotion of cultural enterprise development. Since the programme’s establishment in 2008, participants have displayed their products in 21 national and 32 international fairs as a part of the marketing strategy.
The software is a set of simple, yet powerful, ICT tools for entrepreneurs of small- and medium-sized enterprises, business consultants and vocational training professionals. For more information, visit: www.cubaindustria.com/english/ riic.htm
south-south focus Strengthening South-South cooperation At the end of 2010, the UNIDO Centre for South-South Industrial Cooperation (UCSSIC) in Hyderabad, India, and Vimta Labs Ltd. launched a training facility for testing laboratories. The facility will train scientists from the Least Developed Countries in food and agro testing to help them address the challenge of standardization and exports to international markets. The new facility will also contribute to know-how transfer and skill development in operating and managing laboratories. The overall aim is to improve the technical and management capabilities of staff working in testing laboratories in the food and agro sectors, and ultimately enhance the trade capacity of exporting countries. UNIDO currently has two Centres for South-South Industrial Cooperation: one located in India and the other in the People’s Republic of China. The Centres support ongoing cooperative initiatives between developing countries—a model which has proven to be successful in sharing knowledge
related to sustainable industrial development—particularly in the field of new and renewable energy technologies, and agroindustry projects. The Centres facilitate investment and manufacturing trade partnerships between host countries and other developing countries, as well as enhancing the dissemination of valuable development experiences and technological progress. The Centres have initiated, and in some cases already completed, projects in Bangladesh, Benin, Cameroon, Côte d’Ivoire, Ethiopia, Ghana, Kenya, Liberia, Madagascar, Mozambique, Nigeria, Senegal, Sierra Leone, South Africa, Sudan, Timor-Leste, Uganda, United Republic of Tanzania and Zambia. The projects focus on entrepre neurial capacity-building, building low-cost housing and support for infrastructure in agri-processing, amongst others.• For more information, contact: M.Dionne@unido.org
Further information on the UNIDO Centres for South-South Industrial Cooperation can be found on our website: www.unido.org/index.php?id=o59119, as well as at www.ucssic.cn/ for the Beijing Centre.
The third African study tour to Latin America —April 2011 Within the framework of UNIDO’s activities to foster African and Latin American interregional cooperation, two study tours for African experts to Brazil (2007) and to Colombia (2008) were organized in the field of bio-fuels production.
The study tour is a cooperative initiative between the Institute of Electrical Engineering of Mexico, the Mexican Government, UNIDO and the International Centre for Science and High Technology in Trieste, Italy. The main objective is to facilitate the cooperation between UNIDO, Mexico and Africa on geothermal energy exploitation, knowledge transfer and technology development, and to develop projects for SouthSouth cooperation on the topic at the regional level.•
The Third African Study Tour will take place in April 2011 to Mexico, with an emphasis on the geothermal industry. Twelve African countries are expected to benefit from Mexico’s expertise in this field, including Burundi, Comoros, Democratic Republic of Congo, Eritrea, Ethiopia, Kenya, Republic of Djibouti, Rwanda, Uganda, United Republic For more information, contact: C.Chanduvi-Suarez@unido.org of Tanzania and Zambia.
A scientist working in a testing laboratory, as a result of UNIDO project support.
Transferring ethanol technology between Thailand and Viet Nam Thailand and Viet Nam are strengthening their technology transfer cooperation through a recently launched UNIDO project entitled Overcoming Policy, Market and Technological Barriers to Support Technological Innovation and South-South Technology Transfer: The Pilot Case of Ethanol Production from Cassava. Under the project, the two countries receive aid to enhance the capacity of researchers, banks, policymakers and ethanol producers, by removing existing barriers and creating an environment conducive for promoting ethanol technology and techno logy transfer between the countries. The technical cooperation initiative also aims to provide assistance to entrepreneurs in Viet Nam to help them overcome operational barriers. The project is funded by the Global Environment Facility, in cooperation with the Thai National Science and Technology Development Agency and the Hanoi University of Science and Technology. For more information, contact: J.Thomas@unido.org unido times | FEBRUARY 2011
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research, policy and statistics UNIDO and UNCTAD join forces for Africa At its recent 38th session, UNIDO’s Industrial Development Board adopted a decision to strengthen the Organization’s role in providing research, statistics, and advisory and technical cooperation in the field of industrial strategies and policies to developing countries. Fulfilling its mandate, UNIDO’s Development Policy and Strategic Research Branch is working to support developing countries to formulate strategic policies to shift economic activity towards higher technology and higher value-added products that provide access to more rewarding niches in the domestic and world market. In order to draw attention to emerging regional industrial development and policy trends, UNIDO is collaborating with the United Nations Conference for Trade and Development (UNCTAD) to jointly publish the 2011 edition of the Economic Development in Africa Report. In line with a recent resolution adopted by the Second Committee of the United Nations General Assembly, UNIDO and UNCTAD have strengthened their partnership and are
jointly advocating a pragmatic approach to promote industrialization in Africa. Both organizations share the motivation to enhance the capacity of developing countries to identify their key economic constraints and develop case-specific solutions. The conviction that intervention has a role to play to address market and coordination failures is shared by the two organizations. The joint report will specifically analyse the industrial performance and capabilities of African countries and, on that basis, identify feasible future paths towards sustainable industrial development. It will highlight the argument that in order to succeed, African industrialization needs tailor-made strategic industrial policies that factor in domestic peculiarities. The Economic Development in Africa Report 2011 will be jointly published by UNCTAD and UNIDO in June 2011.• For more information contact: P.Neuerburg@unido.org
UNIDO’s mining and utilities statistics aid investment and economic growth Over the past few decades, statistics on energy production sectors have increased in importance and the demand for mining and utility data among international data users, especially knowledge institutions and deve lopment partners, has grown. In the interest of international data users, UNIDO, in consultation with the United Nations Statistics Division (UNSD), is compiling statistics on mining and utilities for global dissemination. The recent publication, World Statistics on Mining and Utilities 2010, helps understand developing countries’ resources, industrial sectors and economies, in fields ranging from energy production, to gas and water supply. The publication is intended for a wide range of researchers and development partners. Business associations and investors will also 14
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particularly benefit from this publication as they can find statistical information on different countries with potentials in mining activities. Readers can find the information on size, structure and growth of mining and quarrying activities in different countries. For example, in recent years the net output of mining and utility grew by 7.7 per cent per annum in developing countries, compared to 2.5 per cent in industrialized countries, resulting from the increasing demand for energy in developing countries arising from their high industrial growth. Since countries vary by their ability to utilize mineral resources in manufacturing, the publication helps to reveal the economies with the higher share of mining in total economy. The publication contains five principle indicators of industrial statistics including
the number of establishments and employees, the wages and salaries earned by employees, the output and value added of the establishments, and intends to aid sustainable industrial development. Statistics are compiled using data collected by UNIDO from the National Statistical Offices, as well as those obtained from the OECD and UNSD. The publication presents data on major indicators of statistics on mining and utilities using international standards. The publication complements the annual International Yearbook of Industrial Statistics, which has been published by UNIDO since 1995 for the manufacturing sector.• For more information, contact: S.Upadhyaya@unido.org
management issues UNIDO in 2011: continuing change Over the last few months, significant achievements were made under the Programme for Change and Organizational Renewal (PCOR), such as work to maintain change momentum and commitment, as well as the implementation of more than 40 operational Quick Wins, or improvements with little or no investment. Revitalized mission and a new business model A highly participatory Business Process Re-engineering exercise also took place, which not only redesigned business processes at high to medium levels, but also identified the key benefits (see below), which are linked to UNIDO’s new mission statements, Growth with quality and Delivering as one UNIDO.
In late 2011, a global management platform for UNIDO’s core business—technical cooperation activities—will be in place, allowing UNIDO to share information easily with all stakeholders, as well as report on project results and outcomes. The new system will enhance accountability, transparency and internal controls, as well as accelerate decision-making and planning capabilities.
To ensure the smooth introduction of the new system installed by SAP, a new governance structure has been established, designating staff members as functional leads and change agents, and giving them responsibilities that will drive the necessary operational and cultural changes. Staff will be trained using the system, and the orientation of their jobs will be shifted from functional to the new integrated business A new planning system A comprehensive process to select an processes with a focus on knowledgeenterprise resource planning (ERP) system sharing and team-work. and implementation partner, which started Finally, all developments are regularly in July 2010 and included an assessment by communicated to stakeholders through a cross-organizational evaluation team, was various channels such as Board of Directors finalized in November. In December, and Town Hall meetings, informal UNIDO signed a contract with a global discussions, dedicated intranet and extranet leader in business management systems, pages, a regular PCOR Newsletter and SAP, for the implementation of the briefings to Member States. ERP system and implementation services. While the preparatory phase has already 2011 will see changes to UNIDO’s been started, the new system will be imple- processes, practices and the quality of its mented in four stages, and completed in activities, with staff being at the heart of early 2013. this change.• Revitalized mission and a new business model • Higher demand fulfillment • Increased geographical coverage • Greater development impact
• Improved ability to provide information to internal and external stakeholders • Enhanced delegation of authority with accountability and transparency • Improved risk management
• Pro-active knowledge management and better teamwork • Release staff capacity to focus on value-adding activities • Increased organizational effectiveness
Staff changes in the field and HQ The following members of staff have assumed the position of UNIDO Representative (URs). Chin-Pen Chua has been assigned UR and Regional Director at the UNIDO Field Office in Thailand. He formerly held the position as Chief of the Asia and Pacific Regional Programme. Patrick Gilabert, the former UR in Madagascar, has been appointed the Head of the UNIDO Country Office in Viet Nam. Laurence Ansermet has taken over as the UR at the UNIDO Country Office in Madagascar. She was previously working at the UNIDO Regional Office in South Africa. Alessandro Amadio is assuming the position as UR at the UNIDO Country Office in Iran. He previously worked at the Regional Office in China. Giovanna Ceglie, heads the UNIDO Office in Egypt as the UR. She was the Unit Chief of the Clusters and Business Linkages Unit. Gustavo Aishemberg, was appoin ted the UR of the newly founded UNIDO Country Office in Brazil in 2010. Gerard Gaveau took over the lead as Special Adviser of the Country Office in the Democratic Republic of Congo.
Deliver to recipient’s needs Growth with quality Meet expectations of donors and Member States Delivering as one UNIDO Work in a proactive culture within an efficient system
As 2010 came to a close, Jeannine Orlowski retired as Director of the Policymaking Organs Secretariat. She started her career at UNIDO as Assistant Industrial Development Officer, and served the Organization for over 34 years. Ms. Orlowski is succeeded by Fatou Haidara, formerly the Director of Special Programmes and LDC Group.
For more information, contact: T.Tomaschitz@unido.org unido times | FEBRUARY 2011
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forthcoming events March 2011
May 2011
June 2011
CAMI 19 27-31 March, Algiers, Algeria
Fourth United Nations Conference on Least Developed Countries 9-13 May, Istanbul, Turkey
Vienna Energy Forum 21-23 June, Vienna, Austria
UNIDO and the African Union present this year’s Conference of African Ministers of Industry (CAMI 19), focusing on the theme “Enhancing Competitiveness of the African Industries through Increased and Improved Value Addition.”
The focus of this conference is to assess the results of the 10-year action plan for the Least Developed Countries (LDCs) adopted at the Third United Nations Conference on LDCs in Brussels, Belgium, in 2001, as well as adopt new measures and strategies for the sustainable development of the LDCs into the next decade.
“Energy for all: time for action”—The Forum will facilitate dialogue on universal energy access and increased energy efficiency. Core themes to be addressed include a strategy to ensure access to energy services, and provide targets and policy options to achieve energy efficiency objectives.
www.un.org/wcm/content/site/ldc/home
www.unido.org/index.php?id=1001185
A side event entitled “Mobilizing Investment for Africa’s Agri-business and Agro-industries: Challenges, Opportunities and Feasible Options,” will also take place.
Disclaimer The designations employed and the presentation of the material in this newsletter do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. Designations such as “developed”, “industrialized” and “developing” are intended for statistical convenience and do not necessarily express a judgment about the stage reached by a particular country or area in the development process. Mention of firm names or commercial products does not constitute an endorsement by UNIDO. The opinions, statistical data and estimates contained in signed articles are the responsibility of the author(s), including those who are UNIDO members of staff, and should not be considered as reflecting the views or bearing the endorsement of UNIDO. This document has been produced without formal United Nations editing. UNIDO TIMES Items for submission should be sent to: newsletter@unido.org UNIDO Headquarters Vienna International Centre P.O. Box 300, 1400 Vienna, Austria Tel: +43 1 2606-0 Fax +43 1 26026-69 www.unido.org 16
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MakingIt 1st quarter 2011
Industry for Development
n The poverty
footprint
n Peter Sutherland n Sustainable
shipping
n China and Africa n Timor-Leste
Trade: engine
of development?
making it #5—trade: engine of development?
International Yearbook of Industrial Statistics
In this issue, contributors consider recent developments in global trade: UNIDO Goodwill Ambassador, Peter Sutherland, assesses the prospects for a conclusion of the Doha Round; the World Bank’s Xiao Ye looks at the recent surge in trade between Africa and China; and representatives of the shipping and aviation industries outline efforts to reduce their carbon footprint. There are also articles on the Afghan carpet trade, climate compatible development, Cape Verde’s graduation from LDC status, and a feature on Timor-Leste.
UNIDO’s International Yearbook of Industrial Statistics 2011 provides international data users with a wide range of worldwide statistics on performance and trends in manufacturing industry.
For more information, contact: Editor@makingitmagazine.net
For more information, contact: S.Upadhyaya@unido.org
The Industrial Statistics Yearbook presents detailed business structure statistics by country, which can be used to carry out comparative analysis on structural change and productivity. This year’s publication shows that global manufacturing is seeing the first signs of recovery from the recent financial crisis.