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MakingIt IndustryforDevelopment

Editor: Charles Arthur editor@makingitmagazine.net Editorial committee: Thouraya Benmokrane, Jean HaasMakumbi, Sarwar Hobohm (chair), Kazuki Kitaoka, Jo Roetzer-Sweetland, and Ravindra Wickremasinghe Cover illustration: David Rooney Design: Smith+Bell, UK – www.smithplusbell.com Thanks for assistance to Maria Grineva and ZHONG Xingfei Printed by Imprimerie Centrale, Luxembourg, on PEFC-certified paper – http://www.ic.lu To view this publication online and to participate in discussions about industry for development, please visit www.makingitmagazine.net To subscribe and receive future issues of Making It, please send an email with your name and address to subscriptions@makingitmagazine.net Making It: Industry for Development is published by the United Nations Industrial Development Organization (UNIDO), Vienna International Centre, P.O. Box 300, 1400 Vienna, Austria Telephone: (+43-1) 26026-0, Fax: (+43-1) 26926-69 E-mail: unido@unido.org Number 14, 3rd quarter 2013 Copyright © The United Nations Industrial Development Organization No part of this publication can be used or reproduced without prior permission from the editor ISSN 2076-8508 The designations employed and the presentation of the material in this magazine do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development 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.

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Contents GLOBAL FORUM 6 Letters 8 The right green industrial policies Dani Rodrik considers the use of subsidies to support and nurture green technology 10 Hot topic – Is business doing enough? Georg Kell and Peter Lacy discuss the United Nations Global Compact/ Accenture CEO Study 2013 16 Business matters – news and trends

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FEATURES 18 Policies to overcome the middleincome trap – Kenichi Ohno takes a look at the risks and challenges facing emerging economies 22 Growth at the centre of the confluence – Marian V Jones explores the connections between internationalization, entrepreneurship and innovation in middle-income countries KEYNOTE FEATURE 24 The role of development cooperation in “middle-income” countries – Jonathan Glennie on poverty reduction, sustainable industrial development and the role of international public finance 30 From silos to systems – Annalee Babb considers how middle-income countries can leverage global value chains in a digital age

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Making It: Industry for Development (#14)  

Over recent decades, middle-income countries (MICs) have made a significant contribution to global development through their higher growth r...

Making It: Industry for Development (#14)  

Over recent decades, middle-income countries (MICs) have made a significant contribution to global development through their higher growth r...