UNIDO Times 3 by UNIDO

JUNE 2011

Issue 03

Times unido

Partner for Prosperity

CONTENTS

02 News and features 04 Special feature: partnering for

pro-poor supplier development

07 Partnering for prosperity with knowledge management

08 Regional focus: project summaries

from UNIDO’s regional programmes

13 South-South focus geothermal energy and metrology

14 Research, policy and statistics Pharmaceuticals.

Photo: istockphoto.com/José Moraes

UNIDO emphasizes Pharmaceutical development at recent events Strengthening pharmaceutical industries in developing countries and economies in tran sition has the potential to deliver progress on a number of fronts, by improving health outcomes while spurring economic growth. Forming part of its ongoing work to foster local pharmaceutical production, UNIDO has recently made critical contributions to a number of events on this topic. Conference of African Ministers of Industry (CAMI 19), Algiers, 27-31 March Questioning the role of African pharmaceu tical industries was at the heart of the dis cussions on improving access to essential medicines at an event UNIDO organized during the CAMI. The topic was in response to a request from the Government of Algeria, the current chair of CAMI, and was elaborated upon during the conference. Policymakers, regulators, development practitioners and pharmaceutical produ cers from several African countries, shared insights on the sector’s potential to increase access to drugs in Africa beyond the three greatest pandemics (HIV/AIDS, malaria, tuberculosis).

During the conference, particular attention was paid to the needs of the Pharmaceutical Manufacturing Plan for Africa (PMPA), adopted by African Heads of State in 2007. Disconnects observed between the public health and industrial development per spectives resulted in explicit recommenda tions to support the revision of the PMPA and the incorporation of business development considerations in a modified action plan. In addition, the pharmaceuti cal industry was newly included as a prio rity sector in the implementation strategy of the Accelerated Industrial Development for Africa (AIDA) initiative. International conference in Cape Town, 4-6 April UNIDO, UNCTAD and the German Development Cooperation (GIZ, BMZ) came together in Cape Town for a threeday international conference on local pharmaceutical production in Africa. The organizations reviewed the progress and lessons learned during the implementation of a number of development cooperation projects geared at fostering local pharma ceutical production. (continued on page 2)

15 Management issues: change

management and staff changes

16 Forthcoming events and new publications

>11

news and features (continued from page 1) The conference brought together some 140 international participants, representing governments (public health and industry/trade portfolios), regulatory authorities, pharmaceutical manufacturers, and civil society, amongst others. The meeting identified avenues to speed up further development of the industry. Many challenges concerning on the one hand, its growth as a commercially viable industry, and on the other, its ability to supply quality medicines to the ailing population on the continent, were identified.

challenge, and participants unanimously called for a move from talk to action. Public launch of Southern African Generics Medicines Association in Cape Town, 4 April A high-profile event for the public launch of the Southern African Generics Medicines Association (SAGMA) took place in Cape Town, and attracted some 100 participants who heard two multifaceted panel discussions that sought answers to the question of whether the African Union’s Pharmaceutical Manufacturing Plan for Africa is a pipe dream or a panacea.

The conference concluded that stimulating local pharmaceutical production is one via- Following keynote addresses by representable option for tackling the access-to-drugs tives from UNAIDS and the African Leaders Malaria Alliance, speakers from the pharmaceutical industry and a range of development partners called for a better Phasing-out CFCs alignment of health and industrial developin the Russian ment agendas to fully use the pharmaceutifederation cal manufacturing sector in the region for economic development and improved At the November 2010 Global health outcomes alike. Environment Facility (GEF) meeting a project grant totaling US$ 2.55 million and co-funding equivalent to US$ 5.6 million was awarded to fund a work programme containing a project prepared by UNIDO. The project focuses on the elimination of chemicals and ozone-depleting substances in the Russian Federation. The project, entitled Phase-out of CFC Consumption in the Manufacture of Aerosol Metered-dose Inhalers (MDIs) in Russia, addresses the use of CFCs in such inhalers. MDI production was not covered by the original GEF-supported plan of CFC phase-out in Russia. In recent years, however, similar projects have been funded in developing countries for conversion from MDI manufacturing lines to CFC-free inhalers. The project will phase out 241 ODP tons of CFCs and a related two million tons of carbon dioxide. The beneficiary enterprises are co-financing nearly 70 per cent of the project, which strengthens the cost-effectiveness and sustainability of the GEF investment. For more information, contact: G.Anestis@unido.org

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UNIDO provided advisory and capacitybuilding support towards the establishment of SAGMA, and committed to help the early operational phase with additional inputs. Developing pharmaceuticals in the Arabian Peninsula region, 11 April At the request of the Gulf Organization for Industrial Consulting (GOIC), UNIDO contributed to the First Coordination Meeting for the Pharmaceutical Industry in the Gulf Cooperation Council region and Yemen, held in Doha, Qatar. Currently, the region depends on imports to meet the need for most medicines; a mere 10 per cent of medicines used in the region are produced there. The GOIC therefore considers the industry as increasingly stra tegic and intends to prioritize the sector’s development in the years to come. UNIDO presented an overview of the international debate on the role of the manufacturing of medicines in developing countries, and highlighted key policy and regulatory issues that determine the success of developing or upgrading the industry, and emphasized the important role of public-private sector dialogue.• For more information, contact: J.Reinhardt@unido.org

International Women’s Day: A group of participants at special events held throughout the day gather in the Vienna International Centre

Women key to economic growth On 8 March, the Vienna-based United Nations organizations celebrated International Women’s Day—marking the 100th anniversary—and focused on equal access to education, training and science and technology. On behalf of UNIDO, Fatou Haidara, Director of the Policymaking Organs Secretariat, spoke to staff and guests at the Vienna International Centre. She stressed the need to focus on the MDG goal to promote gender equality and empowerment of women. She also asserted that women in developing countries can further contribute to economic growth, but need access to knowledge, credit, markets and energy. “Countries that eliminate gender disparities in primary and secondary education will indirectly accelerate progress toward reducing poverty, hunger, maternal mortality, and improving child health. If women are able to access credit to invest in business ventures, markets to sell their products, knowledge to expand their businesses, diversify and undertake value addition, they will be in a position to better contribute to economic growth and development,” Haidara said. As a core contribution to poverty reduction, UNIDO projects support the economic empowerment of women through entrepreneurship development and the creation of business environments that are conducive for small and medium enterprises. Training courses on capacity-building in entrepreneurship knowledge and skills are offered to girls in secondary and vocational schools in a range of developing countries. (continued page 15)

news and features New UNIDO publication: Agribusiness for Africa’s Prosperity In April, UNIDO published a book entitled Agribusiness for Africa’s Prosperity, which analyses current challenges, as well as potentials and opportunities, of African agribusiness after dramatic changes in global agro-industrial markets, and builds a case for agribusiness development as a path to Africa’s prosperity.

them in historical and global contexts. It analyses the opportunities for diversified growth, and assesses the existing and potential sources of demand growth for agribusiness development in Africa. Several development pillars are outlined and analysed in detail, including enhancing productivity, upgrading value chains, exploiting international, regional and local demand, strengthening technology and innovation, promoting effective financing, stimulating private participation, and improving infrastructure and energy access.

Written by a range of international experts, from agribusiness practitioners to academic experts, and with inputs from other United Nations agencies, the book fills a significant gap in knowledge concerning these issues. It stands as an important resource for The book addresses possibilities and chalpolicymakers, agribusiness managers, and lenges for agribusiness development under researchers in agribusiness development. each pillar, and provides a range of strategy and policy recommendations. This analysis In recent years, a renewed focus on agriculof the seven pillars is synthesized into a ture has been evident in policy and developcomprehensive agenda for action, with a key ment agendas for the African continent; yet focus on visions, policies and strategies for little knowledge has been generated on the Africa’s agribusiness development. • inter-linkages of production, agro-industry and markets, or the potential and capacities Agribusiness for Africa’s Prosperity is available for developing these. to download at: www.unido.org/index.php? id=1001590 Agribusiness for Africa’s Prosperity outlines the current status of agribusiness and agro- For more information, contact: industrial activities in Africa, and situates P.Kormawa@unido.org

Liberia and UNIDO literally break ground at the Tubman University The first bricks were laid for an Institute of Rubber Sciences and Technology at the William V.S. Tubman University, in Liberia, on 29 March—an event celebrated by representatives from UNIDO and the Government of Liberia.

University President, Elizabeth Davis-Russell, underlined that the Institute, which is expected to be operational within a year, is key not only to providing qualified staff to the rubber industry, but to developing local entrepreneurship as well.

The President of Liberia, Ellen Johnson-Sirleaf, took the opportunity to break the ground for the construction of the Institute, and thanked UNIDO and partners for their support.

The institute, which is part of a US$ 1.6 million project funded by the Government of Japan for the rehabilitation of training centres in vulnerable communities in Liberia, supports capacity-building of institutional and human resources, which are critical to Liberia’s recovery and renewal for social and economic development, sustained stability and the reduction of youth unemployment. •

To rehabilitate the University,s infrastructure to accommodate the new institute, US$ 575,000 have been allocated to the project, which will also help develop a curriculum for rubber and rubber wood processing, provide basic equipment, install a 20 kilowatt photovoltaic solar energy system to supply energy to the institute; and train the faculty in rubber processing and For more information, contact: G.Ott@unido.org rubber wood processing.

The President of Liberia, Ellen Johnson-Sirleaf for the new Institute for Rubber Sciences and Technology at the Tubman University unido times | june 2011

special features Sun-dried tomato producers working with UNIDO and the METRO Group comply with market requirements of effective, safe, and high and constant quality

Making an impact as the Russian Federation grows UNIDO’s partnership with the METRO Group has expanded to the Russian Federation, recognizing the need to help local SMEs meet the growing global demand for Russian exports, and respond to the new Food Security Doctrine issued by the Russian Government in 2010.

UNIDO partnerships on pro-poor supplier development In developing countries and economies in transition, owners of small- and mediumsized enterprises (SMEs)—either producers or manufacturers—are often unable to comply with market requirements. UNIDO has recognized that this happens for a number of reasons, often due to a lack of knowledge, or of the technical and financial means to produce goods that are cost effective and safe, of high and constant quality, and of sufficient quantity.

Joining forces with the METRO Group A growing partnership to promote social and economic development has come to fruition between UNIDO and the METRO Group—a German retailer that operates globally with a network of 2,100 outlets in 33 countries—and is making a significant impact helping SMEs reach their potential as suppliers.

Since 2009, the Organization and the METRO Group have joined forces to “Often these companies fail, rather than suc- develop and implement better food standceed, because they aren’t able to compete ards in developing and transition countries, with other market players, or their products thereby increasing food security. don’t meet certain quality and production requirements,” says Gerardo Patacconi, Head In 2010, the METRO Group opened two of the Clusters and Business Linkages Unit stores in Egypt, where 90 per cent of the at UNIDO. 20,000 products for sale must be produced locally. UNIDO helped the METRO “What we are trying to do is to help compa- Group to upgrade suppliers, enabling them nies reach [their] potential[s] by giving them to comply with international quality and standards and by building business networks safety standards. and clusters,” he says. As a result, 88 food-processing enterprises UNIDO’s approach to pro-poor supplier complied with the Global Food Safety development is to help companies better Initiative (GFSI), Global Markets Protocol compete in the market, conform to stand- at the “basic level,” while an additional 25 ards, and connect with buyers, as well as suppliers were trained, assessed and coached other suppliers locally and abroad. Through to implement the “intermediate level”. At standardization and compliance measures, as the same time, over 800 smallholders engaged well as through collective actions, these com- in primary production are being assisted panies are able to tap into opportunities that through the Egyptian Agriculture and Agrothey might not have been able to previously. Industry Centre (ETRACE). 4

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A joint supplier development programme for the Eurasian Economic Community was launched in March 2011 in Moscow. The aim of the project is to qualify suppliers for the METRO Group, and covers Russian, Kazakhstan and Ukrainian suppliers. Negotiations are underway to involve local supermarket chains, as the UNIDOMETRO agreement prohibits exclusivity. Moving into the future Discussions are underway to widen the outreach and scope of the partnership to launch initiatives in China, India, and Viet Nam, taking into account the need to match retailers buying clusters with a cluster of suppliers in a specific region or country. In terms of content, the partners are planning to address social and environmental sustainability and compliance with schemes such as the GLOBALGAP Risk Assessment on Social Practices, the Business Social Compliance Initiative and the Global Social Compliance Programme, and to integrate the UNIDO Responsible Entrepreneurs Achievement Programme as a key tool to reach this goal. UNIDO is looking to expand this programme and to cooperate with other leading retailers and manufacturers, including members of GFSI and of the Global Consumer Forum. Cooperation with other Consumer Goods Forums’ members and development partners is currently under discussion to implement similar programmes elsewhere. The programme will in the future reach out to clusters of suppliers of both food and non-food products with a view to increasing the inclusiveness of small suppliers in local and global markets.• For more information, contact: G.Patacconi@unido.org

special features Creative industries: solutions from within Today, a spectrum of avenues is being explored to alleviate poverty and to reach the Millennium Development Goals. That is why UNIDO is actively engaging with partners to identify unrecognized values that exist in cultures and traditions among developing and emerging economies, in order to push productive enterprises forward within the creative economy. Can a development model that does not see where and how a culture has existed for hundreds or thousands of years be applied sustainably to the industrial sector? UNIDO’s creative industry projects are based on harnessing cultural and intellectual productive activities that support innovation and creative entrepreneurship as a cross-cutting sector. In other words, the projects identify traditional cultural products and services, which cannot be outsourced to other countries, and then enhance their capacity to be used or traded. The skills referred to are those which cannot compromise the traditional cultural heritage of a province or region. The creative industries concept includes several sectors that have potential for wealth creation when accompanied by appropriate programmes and policies. Those include advertising, art and antiques, architecture, crafts, design, designer fashion, audio-vision and film sectors, performing arts, publishing, and even the food sector, amongst others.

• H arnessing a community’s traditional United Nations agencies and communities throughout the world by expanding creative skills and knowledge-base human capital, entrepreneurial skills, infra“When a project team engages with part- structural and institutional tools, thereby ners, it does not try to tell them what and helping to innovate and move these industries when to create,” says Inez Wijngaarde, a towards new markets. • project manager at UNIDO. For more information, contact: “Instead, as ownership is with them, creative I.Wijngaarde@unido.org entrepreneurship is to focus on how to keep the uniqueness and authenticity of products and services sustainable, and suitable for domestic or international markets,” says Wijngaarde. Promoting creative industries as a cross-cutting sector More recently, at the requests of member States including Bhutan, China, Egypt, Pakistan, Peru and the Caribbean Island States, UNIDO’s technical assistance to promote cultural and creative industries has been supported through donor funding from Austria and Turkey, and by Spain through the MDG Achievement Fund. Creative industries are considered a key sector in facilitating new perspectives and technologies. They can contribute to new national development strategies for job creation—particularly by creating a critical mass of young creative entrepreneurs—ultimately contributing to poverty reduction. UNIDO aims to continue creating crosscutting global partnerships with other

Centuries-old traditional skills are currently being revived with innovations used in modern marble and mosaic furniture in Pakistan

Increasing the value of traditional knowledge Take, for example, date production in Egypt. The production of dates is a profitable industry throughout Northern Africa and the Middle East, but little attention is paid to the rest of the date palm. This part of the plant has traditionally been used to produce a line of household items, a value chain that could be developed provided that countries are given the tools and expertise in design and quality. In recent years, UNIDO has increasingly focused on: • B uilding trade and supply capacity for date production to develop a sustainable date sector; • Adding value to traditional products through industrial design and innovation for niche markets

With the hotel industry in mind, sofas from eco-friendly date palm wood are being processed and designed with rural entrepreneurs in Egyptian communities where traditions and value added skills cannot be outsourced unido times | june 2011

special features Bridging effective industry and environmental protection Industrial development and environmental protection do not always go hand in hand, especially in the developing world. Outdated technology and insufficient knowledge often result in inefficient use of resources and sometimes heavy pollution.

This has been beneficial for the enterprises themselves, as costs have been reduced, and productivity and product quality have increased. “This is good news for the planet and society at large,” says van Berkel.

UNIDO and UNEP have joined forces to Bettering Sri Lanka’s environmental change this reality. performance An initiative called the Resource Efficient The Rathkerewwa Desiccated Coconut and Cleaner Production (RECP) Programme Industry, established in 1966, is one of the aims to improve productivity of local busi- first desiccated coconut mills in Sri Lanka. nesses, boost human development and It worked with UNIDO on the RECP decrease pollution. Programme with the assistance of the Sri The strategy includes scaling-up national Lanka National Cleaner Production Centre. capacities, increasing dialogue between business and local governments and facilitating the financing and establishment of the proper technical basis to adapt the technology in the developing world to international environmental standards. But most of all, it helps industries save thousands of dollars annually —a huge plus for the developing world. It’s all about Green Industry, which is an umbrella term for UNIDO’s preventive environmental strategies, most of which have already proven effective in many developing countries.

An after-shot of the boiler room at a paper manufacturing plant in Kenya, where UNIDO has implemented a CP model

RECP has helped the Rathkerewwa Desiccated Coconut Industry improve the efficiency of raw material utilization and reduced the discharge of waste water. The factory has also recovered most of the oil previously discharged with waste water, thereby reducing the total pollution load. And the initial investment of US$ 5,000 has paid off several times over. The initial phase of RECP alone managed to save the industry some US$ 50,000. The current annual savings for Sri Lanka’s desiccated coconut industry amount to US$ 200,000.

At a desiccated coconut plant in Sri Lanka, UNIDO has worked to improve the efficiency of raw material utilization and reduced the discharge of waste water

To promote RECP, UNIDO and UNEP have set up National Cleaner Production Centres (NCPC) in a range of countries to provide technical assistance and training, and promote the dissemination of information and awareness creation, policy advice and green technology and investment.

UNIDO helps save money in Kenya Chandaria Industries Ltd is a paper manufacturing and conversion company in Nairobi, Kenya. The company’s core business is the production of tissue paper through wastepaper recycling and virgin pulp blending into hygiene grades that include toilet tissues, Since 1994, UNIDO together with UNEP, tissue napkins, paper towels, facial tissues, have established almost 50 NCPCs that as well as the recycling of cotton fibre into work to increase information and experience absorbent cotton wool. sharing among the local businesses through The company began implementing RECP in regional and international networking. 2005, with the support of the Kenya Cleaner The outcome benefits local businesses, Production Centre and has since reduced its operational costs, and improved efficiency regardless of sector, location or size. in resource use and environmental perform“Our Centres have demonstrated the poten- ance. The company now saves US$ 633,000 tial of RECP in a wide range of enterprises, annually. It has won the Cleaner Production over multiple industry sectors. Waste, efflu- Award for three consecutive years, from 2007 ents and emissions have been reduced, the to 2009. use of energy, water, materials and chemicals has been decreased, and work places and Cleaner production can benefit communities have become safer,” says many others René van Berkel, Chief of the Cleaner and Since the RECP programmes began, they have been working to create benefits throughout Sustainable Production Unit at UNIDO. 6

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In a project for Cleaner Production in Kenya, steam pipes were retrofitted for efficiency

developing countries and emerging economies, by saving money, cutting pollution and improving working conditions. UNIDO, in cooperation with its partners, aims to increase its reach using RECP methodology, and is currently discussing plans to begin working in other countries. • For more information, contact: R.VanBerkel@unido.org www.unido.org/cp

partnering for prosperity Agribusiness focus at LDC-IV side event

UNIDO meets to develop global knowledge management system In March 2011, UNIDO met with other United Nations agencies in Panama to establish a global knowledge sharing and management system for inter-agency projects in the field of private sector development. The three-day event was organized by UNIDO, along with UNDP and the MDG Achievement Fund (MDG-F). This inter-agency initiative is seen as a mechanism for the exchange of knowledge, concepts and ideas among local practitioners and global strategists. The MDG-F programmes are joint programmes that bring together an average of six United Nations agencies in a collective effort to strengthen the United Nations system’s ability to

deliver as one, within the framework of the Millennium Development Goals. The meeting brought together programme managers from 12 projects in private sector development, including from Costa Rica, Cuba, the Dominican Republic, and Panama, as well as key stakeholders from the United Nations system, representatives of the private sector and of the Government of Panama. The event was part of a UNIDO project to establish a global knowledge management system for private sector development, which focuses on enhancing the United Nations system’s knowledge capabilities in the field.• For more information, please contact: K.Kitaoka@unido.org

Coming together for Least Developed Countries On 7-8 February, UNIDO and the Scientific and Technological Research Council of Turkey (TÜBİTAK) organized a preparatory event in Istanbul preceding the fourth United Nations Conference on the Least Developed Countries (LDCs). The event— entitled “Science, Technology and Innovation: Setting Priorities, Shaping and Implementing Policies for LDCs”—highlighted the importance of an effective science, technology and innovation approach for development and sustainable growth. As one of the main speakers, UNIDO’s Policymaking Organs Secretariat Director, Fatou Haidara, argued that “despite the improvements in the last decade, the LDCs are still behind international development goals in the areas of economy and social development as a result of the obstacles they face in gaining access to technology and information (as well as insufficient physical infrastructure)”. In this context, she emphasized the importance of science and technology for development

and said that progress in this area will break this vicious cycle. The Chairman of the LDC group, Gyan Chandra Acharya, proposed the establishment of a fund for capacity-building projects and argued that an international network will facilitate LDCs’ access to necessary technologies. All participants jointly declared that sustainable development goals can be better realized for the LDCs through improvements within the fields of science and technology. The participants recommended the vital role of science, technology and innovation in removing barriers and promoting development for the LDCs to be recognized by the wider international community and furthermore treated as a separate agenda item at the LDC Conference in May. Senior officials from 48 LDCs and 71 representatives from different international organizations and universities participated in the event. •

UNIDO hosted a side event on technology and knowledge transfer for agribusiness development in the Least Developed Countries at the Fourth United Nations Conference on the LDCs (LDC-IV) in Istanbul in May. The event, which dealt with enhancing the role of small and medium size enterprises (SMEs) in agribusiness global value chains contributed to shaping a new development agenda for LDCs in the coming decade. Topics discussed included the current status of SMEs in the agribusiness global value chains in LDCs, specific measures needed from LDC governments to support SMEs along the agribusiness global value chain, suitable technologies and knowledge management for SMEs vs. absorptive capacities in the LDCs context, and potential areas of contribution of large suppliers and retailers present in LDCs. The conclusions of these discussions are expected to give key recommendations and solutions within technology and knowledge transfer for agribusiness development in LDCs. The event was attended by high officials from LDCs, senior representatives from the Government of Turkey, the Turkish International Cooperation and Development Agency (TIKA), professors from Harvard University, members of LDV-IV steering committees and representatives from donor communities. UNIDO hopes that, as a next step, a special initiative will be launched to support LDCs, where a small group of experts will be selected for technical cooperation projects and be funded by TIKA. For more information, contact: F.Haidara@unido.org or M.Dionne@unido.org

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africa region

Transparency and accountability of resources must move toward diversification In March, UNIDO, together with the Ghana Ministry of Trade and Industry, organized an international policy conference in Accra on strategic challenges in petroleum-rich economies. Conference participants agreed that it is up to African governments to ensure there is full transparency and accountability of resources, including in the petroleum sector, and that they are used effectively to generate revenues for economic growth. UNIDO Director-General, Kandeh K. Yumkella, met with the President of the Republic of Ghana, John Evans Atta Mills, and the Secretary-General of the African, Caribbean and Pacific Secretariat, Muhammad Ibn Chambas. They agreed that the conference should be used as an opportunity to start a broader dialogue in the region on the issue of diversification.ď Ž

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Leveraging cultural heritage to access the market in Uganda and Ethiopia UNIDO and the Government of Japan are developing a technical assistance pilot project tailored to cultural industries in Least Developed Countries, and aim to bring strategic market knowledge expertise and provide training on product design and development. Four sites in Uganda (Kisoro and Luwero) and Ethiopia (Bahir Dar and Awassa) are being set up to host cultural industries rooted in the historical heritage and natural resources of the countries, such as bamboo, edible oil, or natural fibre ornaments, amongst others. Through the project, it is hoped that community products will be rejuvenated by using culture as a brand, and by creating relations between typical products and local history as a way to access markets.ď Ž

Keeping Member States and partners informed The African Agribusiness and Agroindustries Development Initiative (3ADI) has launched a new comprehensive website to inform member States, stakeholders and the public about projects and activities. The site provides lessons learned to the private sector and academia, and promotes public-sector involvement through the partnership section of the website. The website also includes a knowledge management aspect, allowing partner organizations to exchange information. Everything you need to know about 3ADI activities, as well as related publications, can be found on the website.ď Ž To learn more, visit: www.3adi.org

arab region

Revitalizing the date palm sector in Iraq UNIDO and partners provide Lebanese industries with equipment UNIDO and its partners in Lebanon are delivering new equipment worth nearly US$ 300,000 to factories in the southern suburbs of Beirut, which were affected during the July 2006 conflict. The action was part of the Lebanese Agro-Industrial Support and Economic Recovery Project (LAISER), funded by Lebanon Recovery Funds, and implemented by UNIDO in close cooperation with the Ministry of Industry. The LAISER project assists the Government of Lebanon with the rehabilitation of selected agro-industrial enterprises working in manufacturing areas such as food, textiles, leather and furniture making in the southern part of Lebanon.ď Ž

Youth employment and migration in Tunisia Sixty Tunisian entrepreneurs between the ages of 24 and 35 from the regions of Gafsa and El Kef have been coached by UNIDO under the entrepreneurship development programme, as part of an MDG joint programme on youth employment and migration, in cooperation with the Tunisian Ministry of Employment. As a result, 58 business plans have been formulated in the manufacturing and service sectors, 22 have been presented to the Micro-, Small- and Medium-Enterprise Bank for financing, and 12 have already been approved for a total investment of US$ 581,000, employing a total of 68 people. Two projects in the clothing and service sectors have started operating.ď Ž

A UNIDO project to revitalize the date palm sector in Iraq came to an end in February. The project assisted the rehabilitation of the selected model industry by demonstrating the best practices in date processing and marketing, as well as the transfer of state-of-the-art appropriate technology and compliance with international market requirements. The model factory continues to provide support and training to other private and public date processing enterprises. The project has created a market outlet for more than 3,000 farmers and badly needed jobs along the date palm value chain. In addition it has strengthened the capacity of the Iraqi Ministry of Trade and Ministry of Agriculture to provide services to the farmers, processors and traders.ď Ž

unido times | june 2011

asia and the pacific region

Biomass technology to help stabilize industry in Pakistan

Dialogue promotes CSR in SMEs

UNIDO is piloting a project to use biomass gasification systems to provide energy to SMEs and rural communities. With a funding contribution of US$ 1.82 million from the Global Environment Facility, the ongoing project aims to stabilize Pakistan’s industrial sector, which is suffering from an energy crisis.

UNIDO is leading a three-year project to improve the corporate social responsibility (CSR) of Vietnamese SMEs. The project, in cooperation with the Vietnamese Chamber of Commerce and Industry and seven other national and international partners, is currently establishing a multi-stakeholder platform on CSR.

This type of project, which uses biomass gasification technology, has never been promoted and used for thermal applications and power generation by SMEs and in rural areas of Pakistan, where more than half of SMEs in the country operate.

CSR events have recently taken place in Hanoi, Can Tho and Danang, where participants from both the public and private sectors discussed specific topics, such as women’s discrimination, workplace hygiene and sanitation, and reducing waste, amongst others.

UNIDO and partner organizations, including the Government of Pakistan, aim to promote the technology as one solution to the country’s energy problems.

The project, initiated under the European Union Switch Asia Programme, continues to broaden its reach in Viet Nam, as well as on a regional level.

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Soft launch of Clean Development Mechanism guidebook for Pakistan During her visit to Pakistan in February, 2011, Christiana Figueres, Executive Secretary of the United Nations Framework for Climate Change Convention, carried out the soft launch of the Clean Development Mechanism (CDM) guidebook prepared by UNIDO as part of a project to enhance institutional capacity for CDM in Pakistan. The guidebook will help local project developers to reduce upfront costs of CDM project development and increase the number of successful projects. This guidebook will act as reference both at the local and international level. The UNIDO–CDM project is funded by the Government of Norway, and is carried out in tandem with the Pakistan Ministry of Environment.

europe and newly independent states

Phasing-out CFCs in Macedonia

Improving livelihood and employment opportunities in the northern region of Montenegro UNIDO, with four other United Nations agencies, developed a joint project in 2009 with a focus on mitigating the impacts of the economic crisis in Montenegro by creating green jobs in the northern region of the country. The project provided technical assistance for cluster and network development in the tourism, wood processing and agro-industries, as well as a training course to build the capacity of local public and private institutions. A follow-up project is currently being developed to support the Government of Montenegro to develop a cluster development strategy on a national scale.

In order to help it comply with the provisions of the Montreal Protocol, the Republic of Macedonia has received support from UNIDO between 2005 and 2010. In this period, the Macedonian Government received assistance in preparing a plan to phase-out the use of chlorofluorocarbon (CFC). The project introduced improvements in the certification and licensing system in the use of chemical refrigerants. The project helped train teachers and refrigeration technicians to prevent and avoid leaks that cause unnecessary emissions of CFCs. Furthermore, the project introduced customs officers to improved measures and procedures for detecting imported equipment containing CFCs. Another component of the project distributed recovery and recycling equipment to major service shops thereby helping to establish a countrywide system for refrigerant recovery and recycling.

Chemical leasing in Serbia bears fruit A project initiated by the Serbian Cleaner Production Centre in Belgrade is working to promote chemical leasing as a way to reduce industrial waste, including water and chemical overuse or mismanagement. One company that produces mineralwater, Knjaz Miloš, signed a contract with a chemical supplier for the modification of the lubrication process of packaging conveyors, and has reported a reduction in water use of 1,500 m3 per year since 2009. At the same time, the consumption of active chlorine went down by 7.5 kg per year. The company’s total savings amounted to nearly € 5,700 per year. Due to the project’s success, Knjaz Miloš decided to extend the chemical leasing method to all its five packaging lines. The project is funded by the Governments of Austria and Slovenia. For more information, visit: www.cpc-serbia.org/eng/1.

unido times | june 2011

latin america and the caribbean

UNIDO reconstructs supply chains in Nicaragua In February, UNIDO completed a project in Nicaragua that focused on organizing local producers and promoting sustainable agro-forestry systems. In cooperation with UNDP and the Nicaraguan Government, UNIDO helped reconstruct efficient supply chains and sustainable agro-production systems. Over the course of the project, between 2008 and 2011, a total of 272 people received training on different productionrelated themes through workshops, exchanges, technical group meetings, or direct expert assistance. The project, which was developed as a post-disaster response to a 2007 hurricane, supported responsible production and cultivation of cocoa, fruit and vegetables, both for subsistencebased purposes, as well as for local, domestic and international sales.

unido times | june 2011

Strengthening industrial policy in Uruguay As part of the ongoing One UN Uruguay, the UNIDO Regional Office in Uruguay completed a project that strengthens institutions in drafting long-term development strategies in the field of energy policy and foreign direct investment, amongst others. The project was carried out by UNIDO, in cooperation with the Uruguayan Office of Planning and Budget, the Ministry of Industry, Energy and Mining, the Ministry of Tourism and Sports, and National Agency for Investigation and Innovation. The project provided support for sustainable industrial growth, with an emphasis on coordination mechanisms and long-term strategies, such as the National Energy Strategy 2030.

Building competitive value chains in LAC The agro-industrial sector in the Latin America and the Caribbean region has great potential to generate wealth and employment, but is currently underdeveloped. The third Expert Group Meeting in San José, in February, focused on solutions to support value chain development in agro-industries. Experts from UNIDO, as well as other development agencies and international financing institutions, participated in the three-day summit, and presented case-studies and empirical findings with a view to finding solutions in value chain management.

south-south focus South-South geothermal energy cooperation for East Africa Within the South-South cooperation framework, expert meetings organized by UNIDO facilitated the establishment of a UNIDOMexico-Africa triangular cooperation on geothermal energy exploitation, knowledge transfer, technology development, and job creation. The focus is on the development of geothermal resources in the East African Rift System—the world’s largest valley— with the ultimate aim of promoting poverty alleviation in the participating countries on a sustainable basis. The meetings were organized in collaboration with the International Centre for Science and High Technology and the Mexican Electric Research Institute, and took place in Vienna on 7 April, in Trieste on 8 April, and in Cuernavaca and Morelia, Mexico, 11-15 April. The Mexican Government is supporting and hosting 10 African decision-makers and top geothermal experts from the East

Geothermal energy experts from the Electric Research Institute Mexico, and experts from Africa and UNIDO visit a geothermal plant west of Mexico City

African Rift System who are visiting the most advanced geothermal installations in Mexico. Technical seminars were offered by the Electric Research Institute in Cuernavaca. In Trieste, experts discussed a potential regional project to be financed by the European Union.

The South-South cooperation project between Mexico, UNIDO and the Inter national Centre for Science and High Technology (ICS) on geothermal energy for productive uses evolved following a seminar at the African Union Headquarters in Addis Ababa in 2007, and two successful African study tours to Brazil and Colombia The East African Rift System has a large during 2008.• amount of geothermal resources throughout the region, totaling a geothermal energy potential of more than 15,000 MWe, though most of these resources have yet to For more information, contact: C.Chanduvi-Suarez@unido.org be developed.

UNIDO organizes first training programme for pan-African metrology at the enterprise level, and to provide participants with a sense of applied metrology. Future leaders of metrology got an overview of their field, as well as an opportunity to establish professional links and networking opportunities with future colleagues.

Participants to the 10-day pan-African metrology training gain hands on experience in legal and industrial metrology in the field

The first 10-day pan-African metrology training programme took place in Nairobi from 7-16 February, and aimed to strengthen the institutional capacity of the Intra-Africa Metrology System (AFRIMETS). The event, entitled 2011 AFRIMETS Metrology School, was organized by UNIDO and AFRIMETS, and was funded by, amongst others, the Norwegian Agency for Development Cooperation. The training programme was designed to introduce standards, quality, accreditation

and metrology infrastructure to young African metrologists, and to provide technical training addressing legal and scientific/industrial metrology requirements in selected fields. The training programme was intended for participants from African developing economies, specifically for members of AFRIMETS. The training programme focused on the basic knowledge of the theory and practice of legal and industrial metrology by including a series of visits to enterprises to see real applications of industrial metrology and legal metrology

Over 80 participants and presenters from 44 countries took part in the event, including six participants from outside Africa, and 17 international experts from renowned metrology-related institutions. The event was organized in cooperation with the International Bureau of Weights and Measures, and the International Organization of Legal Metrology. Materials from the event are available on the UNIDO and AFRIMETS websites, including videos, documents and presentations, as well as a space for participants to network.• For more information, contact: Jacqueline.Odanga-Kegode@unido.unon.org Related documents can be found at: www.afrimets.org unido times | june 2011

research, policy and statistics World manufacturing recovering from economic crisis World manufacturing industry is in the process of recovering from the recent financial crisis. According to UNIDO estimates in its recently published 2011 edition of the International Yearbook of Industrial Statistics, the total manufacturing value added (MVA) of the world grew by 5.3 per cent in 2010. Industrialized countries, which were affected most by the financial crisis, have shown a growing trend of industrial production since 2006. Their manufacturing output grew by 3.4 per cent in 2010. The International Yearbook of Industrial Statistics, which serves as a compendium of macroeconomic data and details business structure statistics on levels, growth and structure of world manufacturing. The Yearbook presents highly reliable and inter nationally comparable data on the performance of the manufacturing industries of a large number of countries of the world. Developing countries showed strong performance in industrial growth in 2010. Although the MVA of developing countries grew at a significantly lower pace in the years of financial crisis, they still maintained positive growth.

In 2010, developing countries achieved a much higher growth rate of MVA, at 9.4 per cent, compared to 2.7 per cent in 2009. Due to higher growth, the gap between the share of industrialized and developing countries reduced significantly. As a result, developing countries now account for 32 per cent of world MVA, compared to 20 per cent 10 years ago. Data users working in policymaking organs of national governments, business associations and knowledge institutions can find important statistics on industrial performance at the country, regional and international levels in the publication. •

For additional information, visit: www.unido.org/statistics or contact: S.Upadhyaya@unido.org

New research project for ASEAN green industry A new three-year research project kicked off in March, focusing on developing green industry and structural change priorities in the South-East and East Asia countries. The participating organizations, UNIDO, along with the Economic Research Institute for ASEAN and East Asia (ERIA) and the Institute of Developing Economies (IDE– JETRO, Japan), organized a two-day event to mark the beginning of the project.

strategies and policies, are necessary conditions for further economic growth.

The outcome of the project will be evidencebased policy recommendations that address specific challenges in each ASEAN country. The project will formally submit policy inputs to the Senior Economic Officials meeting, economic ministers meetings and the Summit of ASEAN through the ASEAN Secretary at the end of the threeExperts from the three organizations agreed year project. that the development of green industry and structural change go hand in hand, and con- During the three-year project, policy forums cluded that the creation of synergies are planned to facilitate regular dialogue between development priorities of South- and receive inputs and feedback directly East and East Asia countries, and the imple- from policymakers. • mentation of energy efficiency, efficient resource utilization, industrial upgrading For more information, contact: and diversification, and development of N.Haraguchi@unido.org 14

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The importance of policy in small developing countries New UNIDO research has uncovered three common features of (smaller) countries with fewer than 15 million inhabitants. First, the opportunity for development tends not to last as long for small countries, and the stage of relative decline sets in sooner than, on average, in large countries. Secondly, there is a weaker relationship between the income level of the population and the structure of the economy in smaller than in larger countries. Finally, relative to large countries, smaller countries tend to have a limited number of sectors which sustain growth over a long period of time, for example, food and beverage, chemicals and electrical machinery. As the internal dynamics of smaller developing countries are less likely to spontaneously lead to highergrowth trajectories than those in larger countries, it is more urgent for them to define actionable strategies when moving from one growth sector to another, and to enact polices that can actively support such transitions. Further details will be available in the forthcoming book, Pathways to Industrialization: New Challenges and Emerging Paradigms, published by Oxford University Press. For more information contact: N.Haraguchi@unido.org

management issues Collaboration and knowledge management at forefront of UNIDO Since its launch in early 2010, the Programme for Change and Organizational Renewal (PCOR) has made significant progress in achieving its nine benefits, which are linked to the principles of “Growth with Quality” and “Delivering as One UNIDO” as outlined in UNIDO’s mission statement. Its main achievements include the establishment and refinement of a governance structure, a comprehensive business process reengineering (BPR) exercise covering the TC project cycle, the procurement and selection of an Enterprise Resource Planning (ERP) system and implementation partner, as well as the realization of 35 operational quick wins, which increased the efficiency of the Organization, and most importantly, kept the change momentum alive and created a culture of change at UNIDO. Working together on change management In March 2011, a group was established to work towards cultural change and focus on creating a culture of “One UNIDO,” managing results and accountability, crossorganizational knowledge sharing, effective teamwork and collaboration, effective communication and staff development. Part of these efforts is to create a conducive environment for staff that will emphasize teamwork and cooperation.

ongoing organizational changes during this phase. UNIDO’s detailed requirements were captured prior to the design of the new system outlined in the new business model. In addition, more than 80 workshops have been carried out since the beginning of the year, and extensive training took place to ensure that staff involved in implementing the ERP system are well prepared. The next steps will be the implementation of the new business environment, and to develop testing and training material, as well as end-user documentation. In the final preparation phase, the system and all users will be prepared and trained to go live with the new system, which is expected to be functional in early 2013. The ERP system will support UNIDO’s new business model, allowing for gains in efficiency and effectiveness and the institutionalization of results-based management, knowledge management and risk management.

Open-space offices for collaboration and knowledge sharing To promote collaboration, teamwork and knowledge sharing, the Office for Change and Organizational Renewal together with the change agents and the ERP implementation partner moved to an open-space office environment in early 2011. This model, which proved that significant floor space Furthermore, since early 2011, a number can be saved and therefore operating costs of staff have been designated as functional can be reduced, will serve as a benchmark leads, change agents or subject matter throughout headquarters. • experts to share their in-house knowledge and experience to help design an ERP For more information, contact: system, as well as to drive and communicate T.Tomaschitz@unido.org

A model for the new open-office environment to be implemented at UNIDO for better teamwork and knowledge sharing

Staff changes in the field and HQ The following members of staff have assumed the position of UNIDO Representative (URs). Lars Ola Alteraa has been appointed UR in the UNIDO Field Office in Kenya. Patrick Kormawa is assuming the position of UR in the UNIDO Field Office in Nigeria. He was previously Officer-in-Charge of the Agribusiness Development Unit. Guillermo Jiménez was appointed UR in the UNIDO Field Office in Algeria. He was formally Senior Industrial Development Officer in UNIDO’s Mexico office. Claudio Scaratti has been reassigned to the Office in Geneva as Representative to the United Nations and other international organizations and Officer-in-Charge, replacing Jean-Marc Deroy upon his retirement.

Women key to economic growth (from page 2) By providing women with knowledge, skills and technologies, UNIDO enables them to engage in productive activities. Since employment is the most important link between economic growth and poverty reduction, providing incomeearning opportunities for poor women is crucial to overcoming poverty. Industry plays an essential role as it has the potential to offer the necessary jobs and opportunities. Over the course of the day, a discussion meeting with Austrian school students aged 16-18 years, who were invited to the United Nations to gain insight into the work and career paths of women working there. Panelists included women working for a variety of United Nations organizations in Vienna. UNIDO was represented by Industrial Policy Officer, Barbara Kreissler, who gave the visitors an insight into her work for the organization. • For more information, contact: F.Haidara@unido.org or B.Kreissler@unido.org unido times | june 2011

forthcoming events August 2011

November 2011

December 2011

Alpbach Forum: International Justice—Global Equity 28-30 August 2011 Alpbach, Austria

International Conference and Exhibition on Green Industry Development 16-18 November 2011 Tokyo, Japan

14th General Conference December 2011 Vienna, Austria

Under the heading “International Law— Global Equity”, the 2011 Alpbach Political Symposium will focus on the question of global fairness at the centre of debates among high-ranking politicians, researchers, journalists and activists. How can we make the global economic system more just? How much solidarity do the members of communities of States owe each other? Experts, including UNIDO Director General, Kandeh K. Yumkella, will discuss these questions and many more.

The conference aims to foster the transfer and implementation of the best available technologies for green industries, exchange experiences on green industry programmes and initiatives involving public and private sectors, as well as position Green Industry as a cornerstone for achieving sustainable development and poverty alleviation.

UNIDO’s 14th General Conference will open the first week of December. The event will bring together Heads of States and Governments, and other high-level officials from around the world.

For more information on registration, visit: www.alpbach.org

The conference will include exhibitions by 500 companies and institutions, and 70,000 participants are expected to attend. The Green Industry Conference and Exhibition is a very good opportunity to promote technology transfer as solutions to energy and environment issues and eventually lead to sustainable development in developing countries.

This year the event will revisit green industry by focusing on the opportunities it offers for developing countries in the current economic circumstances. The event will emphasize the crucial role of sustainable industry as a solution to emerging and global challenges for developing countries. The General Conference, UNIDO’s highest policymaking organ, consists of all 173 Member States. It will approve the programme and budgets, and establish the scale assessments for regular budget expenditures for the forthcoming biennium. For more information, visit: www.unido.org

Disclaimer

unido times | june 2011

making it #6—Agribusiness: from farm to fork Contributions by UNIDO’s Patrick Kormawa, who outlines an agribusiness-led development strategy that can be Africa’s way out of poverty; IFAD’s Kanayo Nwanze on helping the smallholder to enter the marketplace; Paul Bulcke, CEO of Nestlé, on delivering benefits for society while enhancing the company’s competitiveness; and Helmy Abouleish of Egypt’s SEKEM Group who argues that organic agriculture is the only way to save the planet and make money. There are also articles on energy efficiency and the rebound effect, alternative development in Colombia and a feature on Ethiopia.

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 26026 Fax +43 1 26026-69 www.unido.org

Printed in Austria V.11-83645—July 2011—1,000

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.