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MakingIt Industry for Development






able entrepreneurship



global policy

the global economic system, we can see three broad streams of action for countries at different stages of development. For least-developed countries (LDCs), industrial development offers the most promising opportunity for adding value to their natural resource endowments or agricultural produce, hence bringing about the structural transformation that lies at the heart of inclusive and sustainable development. For middleincome countries (MICs), faced with the prospect of being caught in the “middleincome trap” as their cost structures rise but their capacity to produce highervalue products remains constrained, appropriate policy options need to support the upgrading of their manufacturing sectors to maintain their international competitiveness. Meanwhile, where “developed” countries are concerned, the lasting legacy of the financial crisis highlights the structural

problems hindering their recovery, including the dangers of deindustrialization, which accentuates the relevance and pertinence of industrial policymaking today. And how should this fit with the post2015 goals? First, it is clear that the best of the MDGs should be retained after 2015. Eliminating extreme poverty should still be the overarching aim. But it is also clear that the new agenda has to better promote a comprehensive approach to sustainable development, providing cross-sectoral solutions to allow for goals to be met simultaneously without one coming at the expense of another. In this context, fostering inclusive and sustainable industrial development not only promises to effectively contribute to shock-resilient economies and flourishing societies, but also presents a welcome meeting point between the aid agenda of traditional donors, the priorities of emerging development partners and the current development concerns of recipient countries, thus laying the foundation to realize a truly global partnership for sustained prosperity for all. In November 2013 the issue of sustainable industrialization will be considered in the Rio+20-mandated Open Working Group on Sustainable Development Goals, the main intergovernmental body currently discussing the post-2015 framework in New York. Just a week later, UNIDO will host its General Conference in Lima, Peru – the last to be held before the new global goals are finalized. Both events will be important opportunities for confirming the centrality of industry to development. Let’s hope that development partners take the opportunity to address a glaring deficiency of the MDGs and bring industrial development back where it belongs.

Altenburg, Tilman – Industrial policy in developing countries: overview and lessons from seven country cases Asian Development Bank – Asia’s Economic Transformation: Where to, How, and How Fast? in Key Indicators for Asia and the Pacific 2013 Chandrasekhar, C.P. – Poor Empiricism: The “Middle Income” Trap ECLAC – Financing for development and middle-income countries: new challenges ECLAC – Middle-Income Countries: A Structural-Gap Approach Ghani, Ejaz – How to Avoid Middle Income Traps? Glennie, Jonathan – What if three quarters of the world’s poor live (and have always lived) in Low Aid Countries? Herbert, Siân – The future of European Union aid in middle-income countries. The case of South Africa Ohno, Kenichi – Avoiding the Middle-Income Trap: Renovating Industrial Policy Formulation in Vietnam Ohno, Kenichi – The Middle Income Trap: Implications for Industrialization Strategies in East Asia and Africa. Sumner, Andy – Global Poverty and the New Bottom Billion: What if Three-Quarters of the World’s Poor Live in Middle-Income Countries?’ Sumner, Andy – Global poverty, aid and middle-income countries: Are the country classifications moribund or is global poverty in the process of 'nationalising’? Szirmai, Adam, Naudé, Wim and Alcorta, Ludovico (eds) – Pathways to Industrialization in the Twenty-First Century: New Challenges and Emerging Paradigms Thomas, Anna – Do Middle-Income Countries Need Aid? UNIDO – Industrial Development Report 2009. Breaking In and Moving Up: New Industrial Challenges for the Bottom Billion and the Middle-Income Countries UNIDO – Networks for Prosperity. Connecting Development Knowledge Beyond 2015

FURTHER SURFING – How the World Bank classifies countries home.aspx– The UN Global Compact/Accenture CEO Study on Sustainability 2013 intdev/Index.aspx– King’s International Development Institute (IDI) focuses on “emerging economies,” both to explore the sources of their success as well as understand the major development challenges they continue to face – The Overseas Development Institute (ODI) is a leading independent think-tank on international development and humanitarian issues – State of Green contains information about Denmark’s transition to a green growth economy – High-level conference on middle-income organized by the government of Costa Rica and facilitated by the UNIDO initiative, Networks for Prosperity, in June 2013 – A global network of independent non-profit initiatives helping young people to start and grow their own business and create employment

MakingIt 47

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...