UNIDO PA R T N E R F O R P RO S P E R I T Y
02 News and features 05 Special feature: Agro-industrial value chains in Egypt
06 Special feature: Small farmers - big business
07 Special feature: Helping post-war Sri Lanka improve food standards
08 Regional focus: project summaries from UNIDO's regional programmes Still from UNIDO's public service announement screened on CNN. Photo by UNIDO
13 Partnering for prosperity 14 Research, policy and statistics
THE GREEN INDUSTRY PLATFORM The membership of the advisory board for the Green Industry Platform (GIP) – the global, multi-stakeholder initiative launched by UNIDO – was announced in late November 2012 during a high-level discussion on the sidelines of the 40th session of the Industrial Development Board. The GIP advisory board is composed of the Governments of Colombia, Jordan, Kenya, the Philippines and Poland; the following private sector companies: Broad Group, Microsoft Corporation, Novozymes A/S and Viyellatex Group; and the Environment Directorate-General of the European Commission, the Global Environment Facility, the Global Green Growth Institute, the International Chamber of Commerce and the Turkish Association for Energy Efficiency. The GIP is a unique forum in which businesses, governments, international organizations and civil society organizations can work together at the highest levels to help introduce and strengthen economically viable, environmentally sound and socially
conscious practices throughout the global manufacturing process. Members of the GIP undertake concrete actions to improve resource efficiency, strengthen waste management, reduce and eliminate toxic materials, employ energy efficiency practices and renewable energy and adopt a lifetime approach to product manufacture, as well as to put into practice a number of measures which support the “greening” of existing industries and the creation of new “green” industries. The announcement of the Platform’s advisory board members was made by Heinz Leuenberger, the Director of UNIDO’s Environmental Management Branch, as around 200 participants gathered for the Green Industry Platform panel discussion. In his opening remarks, the DirectorGeneral of UNIDO, Kandeh K. Yumkella, outlined the political context in which the Green Industry Initiative was launched, and emphasized the cross-regional and highlevel character of the Platform. (Continued on page 2)
15 Management issues 16 Forthcoming events and new publications
news and features (Continued from front page) BENEFITS OF THE GREEN INDUSTRY PLATFORM By encouraging the efficient use of energy and raw materials in manufacturing processes and services, the Green Industry Platform contributes to clean and competitive industrial development, and reduces pollution and reliance on the unsustainable use of natural resources. The Platform also promotes new ways to create sustainable jobs and economic growth, thereby reducing poverty. By participating in the Platform, stakeholders are given the opportunity to contribute to policymaking and enhance their reputation as active players in the communal response to global challenges. Businesses can inspire the policy dialogue by introducing challenges and needs. By being involved in the policymaking process, businesses can also gain by mitigating risks and capturing opportunities created by newlyintroduced regulations at an early stage. Networking and partnering with likeminded companies, governments and civil society organizations can build a better understanding of how to operationalize green growth models and design strategies for new market segments and geographic areas. Taking part in the Platform gives private sector participants the chance to improve their bottom lines, since improved resource management and innovation capacity reduce operating costs and mitigate against the risk of exposure to price volatility, as well as reduce dependency on scarce elements in manufacturing processes.
Sustainability expert, Paul Hohnen, moderated a lively debate on the need to shift from labour to resource productivity in models of economic growth. Panellists included Ecuador’s Minister of Industry and Productivity, Verónica Sión, and Poland’s Minister of Environment, Marcin Korolec. Further perspectives were provided by Monique Barbut, the former Chief Executive Officer and Chairperson of the Global Environment Facility, and Friedrich Hinterberger, the President and Founder of the Sustainable Europe Research Institute. The Green Industry Platform was launched by UNIDO and the United Nations Environment Programme (UNEP) during the United Nations Conference on Sustainable Development (Rio+20) in Rio de Janeiro, Brazil. During the launch event, Director-General Yumkella said he saw the Green Industry Platform as being “exemplary for the public-private partnerships that are needed to scale up and mainstream the greening of industrial development and the creation of green industry. It will give impetus to the many inspiring initiatives at national and sector levels that will unite to direct a global transition to low-carbon and cleaner industry.”
Potočnik, explained, “We are supporting this initiative because we think it is a good one, that is quite innovative and is on the global level. It is encouraging not only businesses but also other stakeholders, from governments to civil society, to join and to push the process. I think it is really something that was needed and that is why we are committed to help both United Nations institutions - environmental and industrial that are behind this concept.” Of the approximately 100 current members of the Platform, slightly more than half are businesses, ranging in size from small and medium-sized enterprises, such as Cambodia’s Modern Rattan, to global multinational companies, like Total S.A. Speaking at Rio+20, Microsoft’s Chief Environmental Strategist, Rob Bernard, echoed the general tone of participating businesses in declaring that he was honoured to “work with political and business leaders to help achieve a shared vision for bringing the principles of sustainability into manufacturing and industry’’. • Additional information about the Green Industry Platform can be found at: www.greenindustryplatform.org For further information, contact: firstname.lastname@example.org
Another speaker at Rio+20, the European Commissioner for the Environment, Janez
Verónica Sión, Ecuador’s Minister of Industry and Productivity, makes a point during the panel discussion on the Green Industry Platform, Vienna, 21 November 2012. The minister said that a green growth strategy is integral to the Ecuadorian government’s strategy for economic development, as demonstrated by efforts to reduce ozone-depleting substances, chlorofluorocarbons, and persistent organic pollutants, and to transform the energy matrix. Photo by UNIDO
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news and features Celebrating 25 years of the Montreal Protocol In September 2012, UNIDO organized a week-long event at its headquarters in Vienna to celebrate the success in achieving significant reductions in substances that deplete the ozone layer. The tenth of September 2012 marked the 25th anniversary of the Montreal Protocol on Substances that Deplete the Ozone Layer and the 20th anniversary of UNIDO as an implementing agency of this Protocol.
implementation of the Montreal Protocol. As such, UNIDO has played a key role in supporting developing countries in their efforts to phase out ozone depleting substances and replace them with sustainable alternatives. “More than 100 countries have benefitted from UNIDO’s support,” said Wilfried Luetkenhorst, UNIDO Managing Director, during his speech at the ceremony. “The comprehensive support that has been provided to help strengthen institutions, build capacity, raise awareness, and develop and introduce policy and legislation, is one of the keys to the Protocol’s success.”
The Montreal Protocol is a milestone treaty, adopted in 1987, which has since been ratified by 197 countries - it is the first ever international agreement to achieve universal ratification. It is considered crucial in the efforts to restore and protect the ozone layer by phasing out various substances UNIDO’s performance has continuously been rated highly by the Executive responsible for ozone depletion. Committee of the Multilateral Fund. In During the ceremony to mark the 2011, UNIDO was acknowledged as the anniversary, Marco Gonzalez, the Executive top implementing agency (together with Secretary of the Ozone Secretariat, United the United Nations Development Nations Environment Programme (UNEP), Programme), a distinction that the said that the Montreal Protocol was a clear Organization has achieved in eight out of example of how a political commitment can the last ten years. address global challenges. He added that “UNIDO has been a successful At the ceremony, Thomas Jackl, Deputy implementing agency” and has carried out Director General of the Austrian Federal “innovative, ground-breaking work in many Ministry for Agriculture, Forestry, Environment and Water Management, ways.” inaugurated an exhibition of international Since the signing of the Protocol, the phase- art posters and children’s drawings on global out of ozone-depleting substances used in a environmental challenges and the wide range of economic activities has made protection of the ozone layer. • an invaluable contribution to protecting the ozone layer, significantly reducing the For more information on the Montreal health and environmental effects related to Protocol, please contact: its depletion. The Montreal Protocol has S.Si-Ahmed@unido.org also substantially contributed to global efforts to mitigate climate change, due to the fact that most of the substances targeted by the Protocol are also potent greenhouse gases. For this reason, the Montreal Protocol is frequently referred to as the most successful international environmental agreement.
CHINESE GODDESS, NÜWA, UNVEILED In November 2012, a sculpture of the Chinese goddess, Nüwa, was unveiled at the UNIDO headquarters in Vienna to mark international efforts to protect the ozone Layer. The 4.1-meter-high sculpture, designed and donated by the Chinese artist, Yuan Xikun, is inspired by the ancient Chinese myth about the goddess who smelted a seven-colour stone to block a hole in the sky. Yuan Xikun chose the figure of Nüwa to draw parallels with modern-day challenges of ozone depletion and climate change. He said, “I am donating this sculpture to the United Nations as a sign of my commitment to support the organization in its efforts to protect the Earth, especially for future generations.” At the unveiling ceremony, Ambassador Cheng Jingye, China's permanent representative to the UN and other international organizations in Vienna, said, "As a signatory country of the Montreal Protocol, China is also actively involved in the programme of the Protection of the Ozone Layer, and has created noteworthy achievements under the coordination of UNIDO."
In 1992, UNIDO became one of the four implementing agencies of the Multilateral Fund, the financial mechanism for the UNIDO TIMES | JANUARY 2013
news and features UNIDO Institute for Capacity Development summer course Between March and July 2012, the Institute for Capacity Development organized its first summer course, “Green Industry: Moving towards the Industry of the Future”. The course – a collaboration with the Organization’s Environmental Management Branch and Budapest’s Central European University - provided participants with the opportunity to learn about green industry strategies and pathways from UNIDO experts, senior policymakers and renowned international scholars. From the initial 178 applications from over 50 countries, the best 100 candidates were accepted for the online part of the course, which took place over four weeks in March and April. The e-learning part of the course gave the participants an oversight of the main theoretical approaches in the field of green industry. On the basis of the assigned reading materials, web resources and multimedia content, participants debated key questions in online discussion forums. In addition, participants were required to submit a case study selected from a variety of green industry-related topics, and to sit an online test based on assigned reading materials. The participant’s overall performance in the three components of the e-learning module was assessed, and the 25 most successful candidates, a mix of young professionals and researchers from 22 developing and developed countries, were selected for the in-residence part of the course.
The 2012 summer course was a collaboration between UNIDO and Budapest's Central European University. Photo by UNIDO
During the summer school, participants were split up into small groups, focusing on case studies, where they developed scenarios, wrote papers and presented their findings on the ‘greening’ of industry and the creation of new green industries. A one-day field trip took the participants to the former Nitrokemia gun factory, near Lake Balaton, which is now an industrial park hosting a variety of green small and medium-sized enterprises.
One notable feature of the group taking part in the summer school was the diversity of their backgrounds. Course coordinator, Jacek Cukrowski, said that the mix of engineers, young policymakers, cleaner production practitioners, academics, nonThe second part of the summer school took governmental organization representatives, place over two weeks in late June and early public relations specialists and July, at the Central European University environmental professionals, provided a (CEU) campus in Budapest, Hungary. good background for discussion and Participants attended 37 sessions, delivered allowed insights into important issues from by senior UNIDO staff from five different different perspectives. branches and invited lecturers, and took part in interactive scenario simulations and “In the immediate future, we hope that the webinars, and a roundtable discussion with knowledge gained during the course will representatives of non-governmental help participants in their work and deepen organizations and academics. their understanding of green industry 4
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issues,” Cukrowski said. “We also believe that participants from our course – young professionals and researchers – as they deepen their knowledge and further develop their skills, will become valued partners and counterparts in UNIDO’s work in the years to come.” In light of the great interest in the first summer course, UNIDO and the CEU will partner with the University of Applied Sciences and Arts Northwestern Switzerland (FHNW) to deliver a second summer course in 2013, with additional financial support from the Swiss State Secretariat of Economic Affairs (SECO). • For more information about the UNIDO Institute for Capacity Development, visit: http://institute.unido.org or send an email to: email@example.com
special feature Upgrading agro-industrial value chains in Egypt Recent developments in the Arab region have heightened awareness of key socioeconomic challenges, the most important of which is the creation of more and better employment opportunities for the 2.8 million young people entering the labour market every year. In this context, in Egypt, UNIDO is stepping up its support for agroindustrial sectors using the value chain approach as a tool for inclusive growth and enhanced youth entrepreneurship. Building on the knowledge and experience provided by the Egyptian Traceability Centre for Agro-Industrial Exports (E-trace), established in 2004, UNIDO’s approach is market-driven, participatory and comprehensive, with a number of customized interventions addressing productivity and compliance, as well as market access and business development.
Field trial for the production of sun-dried tomatoes in Qena, a governorate located in the south of Egypt. Photo by UNIDO
horticultural sub-sectors. In addition, the project is helping to build the capacities of In one project, UNIDO, together with the local institutions, input suppliers, traders, Government of Egypt and other UN technical experts and agronomists, thereby partners, is implementing a pro-poor value localizing knowledge and expertise. chain intervention in Upper Egypt. The objective of the three-year project, which UNIDO is also customizing its approach to started in 2010 and is funded by the MDG address the specific features of the medicinal Achievement Fund, is to build the technical and aromatic plants (MAP) value chain in and institutional capacity of small farmers’ Egypt, which is complex, dynamic and associations, and to improve their linkages to export-oriented, yet has a low level of value export and domestic markets, with a focus on addition and poor linkages between supply fruit and vegetables. The project promotes chain members. A four-year project, equitable partnerships between small farmers Upgrading MAP Value Chains – Access to and other value chain members in six Export Markets (EMAP), funded by governorates in Upper Egypt. UNIDO Switzerland’s State Secretariat for Economic assists small-scale operators in implementing Affairs (SECO), integrates UNIDO good agricultural and manufacturing methodologies for value chain development, practices, adding value to their existing export consortia and quality and products through post-harvest operations standardization. The project addresses all the and further processing steps, meeting bottlenecks identified by a detailed value international quality and safety standards, chain analysis. and exploring new market opportunities. In Since it began in 2011, EMAP has achieved delivering the above services, focus is placed remarkable results, including the on encouraging the private sector to invest in development of the first Egyptian standard agro-industrial value-adding activities. of good practice for producing, handling and So far, the project has more than 2,000 direct manufacturing MAPs, a step which is beneficiaries, and the introduction of new considered a milestone. In cooperation with technologies and value-added products, as Egyptian counterparts, the project has demanded by local and international markets, established two specialized service centres, is having a significant impact on five located in the main production areas in
Upper Egypt, to offer technical assistance to identified clusters, including small-scale producers, pre-processors, traders and exporters. These centres are currently serving more than 700 production and export facilities. In addition, the project is implementing a comprehensive market access programme, based on trade promotion, product development, value addition, export consortia and business partnerships. To satisfy further development needs and to build on the lessons learnt, UNIDO is developing a number of new sectoral and geographical initiatives to capitalize on the existing tools for value chain and cluster development. The Organization is currently involved in the development of the Green Trade Initiative, funded by the ItalianEgyptian Debt-for-Development Swap programme, which aims to develop the export chain of a number of fresh food products for the European market. In addition, another project, which aims to upgrade the date palm value chain, is being designed in cooperation with the Canadian International Development Agency. • For more information, contact: G.Ceglie@unido.org
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special feature Mohamed Ibn Chambas, Secretary General of the African Caribbean and Pacific (ACP) Group of States. Photo by UNIDO
volume than some of our competitors. So, we want to be close to the producer. Many of them have high-quality standards, but not all of them. So, we need to help them produce what the consumers want. And we also exclude the middle-man, who does not care about quality.” Metro Group works in partnership with UNIDO in the framework of the Sustainable Supplier Development Programme, which aims to enable clusters of suppliers in developing countries to gain access to profitable new market opportunities and establish longlasting business linkages with potential buyers.
Small Farmers – Big Business In October 2012, UNIDO joined with four other organizations to organize a successful event at the European Development Days (EDD), Europe’s premier annual forum on development and international affairs which is hosted by the European Commission and held in Brussels.
Opening the discussion, Mohamed Ibn Chambas, Secretary General of the African Caribbean and Pacific (ACP) Group of States, said, “If more SMEs and small-scale farmers are to have a viable future, there is a need for concerted efforts by governments, NGOs, civil society, the private sector and donors to work together to create an enabling environment for ‘Small Farmers, Big Business? Engaging the their development.” Private Sector in Sustainable Agricultural Development’ was jointly organized by Panellists discussed what needs to be done to UNIDO, the German International ensure poorer producers and workers benefit Cooperation (GIZ), the Europe-Africa- from participation in local, regional and global Caribbean-Pacific Liaison Committee value chains. (COLEACP/PIP) and SNV Netherlands Development Organization, and was supported Apollo Owuor, Director of Agriculture and by the Practitioners‘ Network for European Corporate Affairs at Kenya Horticultural Exporters, explained how small farmers in Development Cooperation. Kenya had been able to reach the standards The high-level panel discussion considered the required by the European market, while Rashid challenge of strengthening rural economies in Mamu, director of Nyemo Investment, a developing countries in order to meet the medium-sized oilseeds producer in Tanzania, challenges of the population explosion, climate underlined the importance of capacitychange, water scarcity and competition from building support in sector development. non-food crops. The starting premise for this discussion was that promoting value chains is As well as agricultural practitioners from the an effective tool but that this requires private field, representatives from the private sector also joined the debate on how to increase sector investment and engagement. private sector involvement in the food and The panel discussion offered the opportunity agriculture sector. for an in-depth exchange of views and ideas between representatives of the public and Hans-Jürgen Matern, Head of Sustainability private sectors, and development agencies and Regulatory Affairs at Metro Group, one of involved in sustainable agriculture, value the world’s leading retailers, said, “As a retailer, chains, and smallholder support programmes. we need hundreds of products but a lower 6
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“Creating business value and societal value go hand in hand,” said Frank van Ooijen, Director of Sustainability at the dairy multinational, FrieslandCampina, during the panel. Van Ooijen also voiced his interest in forging a partnership with UNIDO. During the discussion, a representative of the European Commission declared that it was keen to promote equal power relations between smallholder farmers and the private sector in developing countries. Gerardo Patacconi, Chief of the Cluster and Business Linkages Unit at UNIDO, expressed his satisfaction with the discussion, saying, “Small Farmers, Big Business is very strategic for UNIDO in view of our growing partnership with the European Union and the private sector. UNIDO’s participation in the event provided a great opportunity for enhancing our visibility, as well as for expanding the possibilities for fund mobilization and networking.” Apart from the Small Farmers, Big Business debate, UNIDO also organized another event at the EDD. At the meeting entitled, ‘Investment monitoring and green industry platforms: tools for successful public-private partnerships for development’, Dmitri Piskounov, Managing Director of UNIDO’s Programme Development and Technical Cooperation Division, delivered the keynote speech, and Mithat Kulur, Chief of UNIDO’s Investment and Technology Unit, presented UNIDO’s Investment and Monitoring Platform. • For more information, contact: G.Patacconi@unido.org
special feature Employees of the DehiwelaMount Lavinia Municipal Council taking part in an awareness-raising training session run by Ind-Expo. Photo by Ind-Expo
able to identify those establishments displaying crowns and can dine without fear of food poisoning. The scheme is based on, and partners with, the highly successful Scores on the Doors scheme operated in the United Kingdom.
Helping post-war Sri Lanka improve food standards In 2009, more than two decades of civil war in Sri Lanka came to an end, and the country began the task of recovering from the immense hardships experienced by the population and the massive disruption of the economy. Even though tourism boomed immediately after the end of the war, problems remained. Among them a growing concern about the safety of food consumed by locals and tourists. Improving food quality and standards, and the process of assessment, became immediate necessities in order to support the restoration of the country’s economy. The tourism industry; food hygiene and safety; occupational safety; environmental management - all these had to be adapted to meet international standards. Fully aware of the coming challenge, in 2007, UNIDO had helped the Ceylon National Chamber of Industries, and the National Chamber of Exporters, to establish Ind-Expo Certification, a body created specifically to provide internationally accepted and credible conformity assessments and training. When the civil war finally ended in 2009, the move to set up Ind-Expo significantly
improved Sri Lanka’s prospects for a quick recovery, and, since then, positive steps have been taken to build on the post-war recovery momentum. Today, Ind-Expo is registered as a public, non-profit, training and certification body. It maintains a strong portfolio offering certification services, food safety training and awareness programmes for the catering sector throughout the country, and training about the requirements and internal auditing of numerous ISO-created, food safety and occupational health and safety standards. Ind-Expo participates in Crowns for Food Hygiene, a scheme based on international best practices that has been developed to assist and encourage food businesses in Sri Lanka to follow good hygienic practices. By registering with the scheme, food businesses are able to receive training for their food handlers on how to prepare and serve safe and hygienic food for their customers. Following the training, food-handling establishments, including hotels, restaurants, and school and hospital canteens, are inspected and categorized, according to their hygienic level, and are then awarded between one and five crowns. The general public is
The continuing Ind-Expo project, which is part of UNIDO’s trade capacity building activities, is funded by NORAD (the Norwegian Agency for Development Cooperation). NORAD’s senior advisor, Dag Larsson, recently commended the achievements of Ind-Expo and the support provided by UNIDO, and expressed his hope that the establishment of Ind-Expo can be used as a model for similar support in other countries. Rishad Bathiudeen, Sri Lanka’s Minister of Industry and Commerce, also recently commended the Crowns for Food Hygiene scheme initiated with the Colombo Municipal Council, and announced the project’s imminent expansion to neighbouring districts. Minister Bathiudeen said he anticipated a remarkable change in the tourism industry of the country as a result of the efforts of Ind-Expo and the Sri Lanka Tourism Development Authority to upgrade food safety and hygiene conditions in the country’s tourist hotels and restaurants. By the end of the project, Ind-Expo should be able to govern and maintain itself without any external help and will have reached its ultimate goal of becoming an independent, transparent and sustainable business. • For more information, contact: A.Badarneh@unido.org UNIDO TIMES | JANUARY 2013
africa region FOR MORE INFORMATION, PLEASE CONTACT: M.Dionne@unido.org
BOOST FOR EAST AFRICAN AGRO-PROCESSING UNIDO, the East African Community (EAC), and Ipack-Ima (Italy’s leading organizer of exhibitions for the processing and packaging technology industries), will stage a major processing and packaging exhibition in Nairobi, Kenya, in September 2014. An agreement to organize the exhibition, the first of its kind in East Africa, was signed in Vienna in June 2012 by the Secretary-General of East African Community (EAC), Richard Sezibera, the Director-General of UNIDO, Kandeh K. Yumkella, and the Chief Executive Officer of Ipack-Ima, Guido Corbella. The EAC’s Sezibera said the event would be “a major milestone in addressing one of the key challenges of the agro-processing, pharmaceuticals and other strategic sectors of our industrial policy.” He added, “We anticipate that a good number of companies, including SMEs, will have the opportunity to access appropriate packaging and processing technologies.” Also in June, representatives of the Coffee Boards of Ethiopia, Kenya, Tanzania, Uganda, Burundi and Rwanda joined delegates from the World Bank and the International Coffee Board, and experts from UNIDO and from Brazil and Colombia, for a conference focusing on technologies and best practices for the optimal utilization of by-products in the East African coffee value chain. The conference, held in Trieste, Italy, was organized by UNIDO’s International Centre for Science and High Technology, in cooperation with the Ernesto Illy Foundation and illycaffè.
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ACCELERATING AGRIBUSINESS GROWTH IN WEST AFRICA In October 2012, over 200 participants from 14 African countries took part in a workshop on developing agribusiness entrepreneurship and agribusiness value chains as a way of empowering young women and men in western Africa. The four-day event, held at the Songhai Centre, Porto Novo, Republic of Benin, was organized by UNIDO, UN Women, the International Fund for Agricultural Development, the Food and Agricultural Organization , the International Labour Organization and the UN Development Programme. Participants shared best practices in implementing agribusiness strategies, showcased state-of-the-art processing machinery, established a network of young agro-entrepreneurs in the region to share information and developed a strategic plan of action to promote agriculture as a lucrative business. Grace Ongile, the UN Women Representative to Nigeria and to the Economic Community of West African States (ECOWAS), said that “when women and youths are empowered there is a strong linkage between the growth of the agribusiness sector and the development of the economy”.
FIRST CLIMATE INNOVATION CENTRE The Kenya Climate Innovation Centre (CIC), a cutting-edge facility to boost locally sourced green technology, was launched in Nairobi, Kenya, in late September. The centre will offer financing and other services to a growing network of climate technology entrepreneurs and innovators. The launch was attended by members of the Kenyan government, private sector leaders and representatives of development agencies. The Kenya CIC is expected to support up to 70 sustainable climate technology ventures within five years. It is estimated that these companies could create up to 4,600 direct and indirect jobs over 5 years and over 24,000 jobs in total within 10 years. In addition to reducing greenhouse gas emissions, the Centre will accelerate business in high-growth sectors, such as renewable energy, clean water, agriculture and energy efficiency. The concept for the Centre was developed in a 2010 report jointly prepared by UNIDO, the UK’s Department for International Development (DFID), and infoDev, the World Bank’s global partnership programme. The Centre will serve as a model for six other climate innovation centres that are being established in other developing countries.
arab region FOR MORE INFORMATION, PLEASE CONTACT: A.Morssy@unido.org
DURING VISIT TO SUDAN, UNIDO DG UNDERLINES IMPORTANCE OF INVESTMENT During his visit to Khartoum, Sudan, in April 2012, Director-General Yumkella confirmed UNIDO’s willingness to help Sudan make development projects attractive to investors and financial institutions.
AJMAN SECOND INTERNATIONAL ENVIRONMENT CONFERENCE IN THE UAE Under the patronage of His Highness Sheikh Humaid bin Rashid Al Nuaimi, the Ajman 2nd International Environment Conference took place from 4-6 June 2012 in the Emirate of Ajman, the United Arab Emirates. The conference, which had the theme, “An innovative approach to sustainability”, brought together decision-makers, regulators, the private sector, professionals, youth and intellectuals to implement the most innovative and practical solutions for common challenges facing sustainable development. UNIDO was represented by Azza Morssy, Chief of the Arab programme, who participated in the opening panel discussion and gave a keynote address on the subject of green growth, innovation and sustainable development. Her address focused on UNIDO’s efforts to overcome barriers to green growth and, in particular, the organization’s green industry initiative and its support for innovation and innovation-related activities.
Talks with government ministers focused on the need to strengthen industrial, agro-industrial and other related businesses, with the aim of generating jobs and filling the vacuum left by the loss of 75 per cent of national revenue as a consequence of the separation of the Republic of South Sudan. UNIDO’s assistance was requested in the realization of a number of new projects concerning, amongst others, leather products, food processing, the prevention and elimination of aflatoxins from the food supply, and the establishment of renewable energy sources. In response to these requests, the Director-General stressed that the solution is to attract investment. He confirmed UNIDO’s willingness to carry out feasibility studies and to help package the proposed projects to make them attractive to investors, as well as to promote the opportunities to investors and financial institutions. The Director-General also met with Abdulaziz Al Khalaf, CEO of the Arab Bank for Economic Development of Africa (BADEA), which has its headquarters in Khartoum. During this meeting, the Director-General expressed his appreciation of BADEA’s continuing support for UNIDO and the Arab Regional Centre for Entrepreneurship and Investment Training.
HELPING COOPERATIVES IN LEBANON’S BEKAA VALLEY In July, UNIDO and its partners in Lebanon delivered new equipment worth some € 78,000 to two cooperatives in the Bekaa Valley. The Zadat El Khayrat cooperative in Bednayel, and the Cooperative Association for Beekeepers in Baalbeck, received the equipment as part of the Community Empowerment and Livelihoods Enhancement Project (CELEP) funded by the Italian Government, and implemented by UNIDO in partnership with the Italian non-governmental organization, the Istituto per la Cooperazione Universitaria. The CELEP project has been developed to empower conflict-affected communities in Lebanon through the revitalization of their productive capacities. It will stimulate selected agro-processing enterprises and other economic activities in the south and north of Lebanon and in the Bekaa Valley. The project has so far upgraded 32 small and medium-sized agro enterprises, which has benefitted approximately 950 households. Receiving the equipment, Hamad Jaafar, the president of the Cooperative Association for Beekeepers in Baalbeck, said that the wax foundation sheet machine, the first of its kind in the Bekaa Valley, will help enhance the quality and bring down the cost of production of honey. Raghida El Masri, president of the Cooperative Association of Zadat El Khayrat in Bednayel, said that the new equipment will help producers of essential oil and jam products, and in doing so will create jobs and empower women in the region.
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asia & the pacific region FOR MORE INFORMATION, PLEASE CONTACT: S.Hisakawa@unido.org
VIET NAM: TOWARDS GREEN GROWTH THROUGH GREEN INDUSTRY DEVELOPMENT E-WASTE MANAGEMENT PROJECT IN CAMBODIA CREATES JOBS In August 2012, UNIDO launched a new project in Cambodia aiming to create employment opportunities and ensure effective e-waste management. The project is funded to the tune of US$1.3m by the Republic of Korea, through the Korea International Cooperation Agency East Asia Climate Partnership (EACP), and Samsung Electronics. The EACP is Korea’s international development cooperation initiative aimed at combating climate change and supporting green growth in developing countries. UNIDO’s involvement will ensure that Cambodia’s electronic industry is effective in promoting economic and environmental sustainability. UNIDO will help to create employment and business opportunities in the electronics industry, as well as improve e-waste management skills, knowledge and practices, with a special focus on young people. As a key player in the global electronics industry, Samsung Electronics will partner with UNIDO for the corporate social responsibility-related activities of the project.
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UNIDO has published a new report that shares some of the key results and lessons learnt from the Organization’s collaboration with the Government of Viet Nam in developing an overall policy framework for Green Industry and assessing opportunities and challenges in selected sectors. This collaboration was undertaken under the One UN Initiative, with funding from the Viet Nam One Plan Fund, between July 2011 and June 2012. The report looks at three pilot projects: creating a replicable sectoral benchmarking model and a roadmap to resource efficiency for the steel sector; piloting the Eco-City concept in Hoi An City; and investigating and documenting environmental pollution in micro-level household enterprises in handicraft villages around Viet Nam. Writing in the foreword, Director-General Yumkella affirmed that the report demonstrates that the Green Industry initiative can have “positive additional benefits in the context of a developing country endeavouring to achieve sustainable development, regardless of such constraints as population size, natural resources limitations, grave environmental pressures and climate change.”
ROUNDTABLE ON ASIA’S SUSTAINABLE FUTURE In September 2012, UNIDO organized a roundtable discussion on the sustainable future of Asia. The event, which took place at the Austria Center in Vienna, was co-hosted by the Asian Development Bank, the Austrian Research Foundation for International Development, and the Austrian Federal Economic Chamber. Regional experts and policymakers from Asian countries, as well as representatives of industry, regional and international organizations and civil society organizations working in the fields of sustainable development, trade and commerce, focused on the prospects for achieving sustainable and inclusive industrial development in Asia. Participants also discussed ways for Asian countries to avoid the so-called “middle-income trap”, whereby middleincome economies find themselves unable to compete with either low-wage economies or highly skilled advanced ones.
europe & newly independent states FOR MORE INFORMATION, PLEASE CONTACT: O.Memedovic@unido.org
TURKEY’S TEXTILE SECTOR: HARNESSING SUSTAINABLE LINKAGES FOR SMES A joint programme launched in 2010 is continuing to improve the performance of the textile value chain in Turkey. The programme, run jointly by UNIDO, the UN Development Programme and the International Labour Organization, aims to increase the global competitiveness of small and medium-sized enterprises in the textile sector in vulnerable regions, to help them integrate into national and global value chains and to create more and better employment opportunities for women and men. Currently, a UNIDO cluster development expert is active in the field, stimulating joint activities among textile companies, such as training programmes on various aspects of business, and providing companies with hands-on information related to accessing sources of finance. UNIDO has also carried out training programmes related to environmental management, cleaner production and energy efficiency, and has completed an environmental situation analysis of the textile sector and a subsequent environmental assessment of pilot companies. Recently, 35 representatives from various organizations, including Li & Fung, Marks & Spencer, H&M, Nike and Coca-Cola, participated in a CSR training programme.
ENHANCING INDUSTRIAL INTEGRATION IN EURASEC COUNTRIES In 2013, UNIDO will reach the final implementation phase of one of its most ambitious projects in the area of industrial cooperation in recent years. The project aims to enhance the industrial integration of the Member States of the Eurasian Economic Community (EurAsEC), namely Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan, which is the project’s donor. This goal will be partially reached through the creation of Centres for International Industrial Cooperation to be established in Armenia, Belarus, and Kazakhstan. These Centres will be integrated into the UNIDO Investment and Technology Promotion Office (ITPO) Global Network, allowing for the development of mutually beneficial cooperation between industrial enterprises in EurAsEc countries. Together with the UNIDO project offices in EurAsEC Member States, these Centres will assist organizations and enterprises in the EurAsEC region in preparing investment projects and proposals for industrial cooperation, including the modernization of manufacturing processes, energy management, the introduction of new technologies, increasing quality standards and environmental protection.
CLEANER PRODUCTION CENTRE IN SERBIA Since it began in 2007, the National Cleaner Production Centre in Serbia has carried out a large number of projects to provide national industry with the necessary tools to help it compete in the regional and international markets with products made with minimal environmental impact. The overarching aim is to further enhance the resource productivity, competitiveness and environmental performance of industry in Serbia, and to promote sustainable social development in harmony with environment preservation. The Centre has carried out Resource Efficient and Cleaner Production (RECP) assessments in 42 companies, with about 8,000 employees, from the metalworking, food and beverage, and chemical industries. The following benefits have been achieved: average annual savings per company of €100,000; an average annual decrease of water consumption per company of 50,000 m3; an average annual decrease in electrical power consumption per company of 500 MWh; and an average annual decrease in CO2 emissions per company of 500 tonnes. UNIDO TIMES | JANUARY 2013
latin america & the caribbean FOR MORE INFORMATION, PLEASE CONTACT: C.Chanduvi-Suarez@unido.org
PROMOTING EXPORT CONSORTIA IN ECUADOR As part of a UNIDO project underway in Ecuador since mid-2011, four export consortia have been created. The consortia integrate 32 small and medium-sized enterprises from the flower, traditional plants, honey and cosmetics sectors. (An export consortium is a voluntary alliance of companies formed with the objective of promoting the export of goods and services of its members through joint actions.) The project is financed by the Government of Italy and is implemented in cooperation with Ecuador’s Ministry of Industry and Productivity, the Export and Investment Promotion Agency, and the Intellectual Property Rights Office. The consortia have participated in several international fairs and are in the process of registering collective marks for their products in order to establish recognized levels of quality. Furthermore, steps are being taken to create an origin consortium involving producers of the traditional Montecristi straw hat to ensure that local communities reap the benefits of maintaining hand-weaving techniques. In June 2012 a Latin American Seminar on Export and Origin Consortia was organized in Quito by UNIDO, the Latin American Economic System (Sistema Económico Latinoamericano) and Ecuador’s Ministry of Industry and Productivity. More than 150 participants, including 30 experts, participated in this high-level event which was inaugurated by Ecuador’s Minister for Industry and Productivity and the UNIDO DirectorGeneral.
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DISPOSAL OF OZONEDEPLETING SUBSTANCES IN MEXICO UNIDO INITIATIVE TO DEVELOP AND MONITOR GREEN GROWTH The first results of UNIDO’s Green Growth Indicators initiative were presented and discussed at a ministerial meeting during the Energy Efficiency Week in Quito, Ecuador, in late September 2012. The initiative to evaluate and monitor green growth in Latin America uses a series of indicators developed by the Organization for Economic Co-operation and Development (OECD) and the UN Environment Programme (UNEP), in collaboration with the Latin American and Caribbean Economic System (SELA) and the Latin America Development Bank (Corporación Andina de Fomento). The overall objective of the initiative is to establish a measurement framework in Latin America to bring together economic and environmental data to help governments and other stakeholders assess opportunities for green growth. In the first stage, UNIDO has been working with seven countries in the region (Colombia, Costa Rica, Ecuador, Guatemala, Mexico, Paraguay and Peru). The aim is to expand and to cover the entire Latin America and Caribbean region and become the first regional tool to monitor such growth.
UNIDO will help destroy, in an environmentally friendly way, some 166 metric tonnes of unwanted ozonedepleting substances in Mexico. The pilot demonstration project, which will be jointly implemented by UNIDO and the Global Environment Facility, is funded by French bilateral contributions to the Multilateral Fund for the Implementation of the Montreal Protocol. The ozone-depleting substances to be destroyed have been used as refrigerants in domestic and commercial fridges and air-conditioning units, and have been collected over the last two to three years at specialized recycling centres located in most of the states in Mexico. A contract to destroy the first 50 tonnes has been awarded to a Mexican company. It is anticipated that the pilot project will last two years, and will, at a later stage, be financed through the involvement of voluntary carbon markets. The project aims to identify the best technical solutions to avoid releasing unwanted ozone-depleting substances that have a high global warming potential into the atmosphere, and to eliminate them by using destruction technologies approved under the Montreal Protocol, an international treaty designed to phase out substances responsible for the ozone depletion.
partnering for prosperity Korea, at the Fourth High-Level Forum on Aid Effectiveness in November 2011. This second report was presented in Amman, Jordan, on 26 November, on the margins of the UN Economic and Social Commission for Western Asia’s annual ministerial review regional meeting, and will be presented at forthcoming events in New York, USA, and Barcelona, Spain. The Networks for Prosperity initiative is led by UNIDO and financed by the Spanish MDG Achievement Fund. The initiative has the dual goal of (i) enhancing the UN system's knowledge capabilities in the field of private sector development (PSD) by improving its institutional readiness for Participants at the Mesoamerican Forum on SMEs in Costa Rica, April 2012. Photo by UNIDO delivering policy advice, institutional capacity-building and pilot projects, particularly at country level; and (ii) supporting developing countries in acquiring and adapting PSD-relevant knowledge to their specific contexts and development needs. To achieve this, the The second report prepared by UNIDO's Connecting development knowledge beyond initiative focuses on improved methods of Networks for Prosperity initiative: 2015 provides recommendations for global knowledge networking in the field of Connecting development knowledge beyond policymakers and agents of change. These PSD. • recommendations are framed within the 2015, was launched in November 2012. context of the emerging post-2015 For more information, please contact: The first part of the launch took place as a development landscape, and aim to prompt K.Kitaoka@unido.org side-event at the Global South-South the international community to recognize Development Expo (GSSD) 2012 in Vienna, the role that knowledge networks and Austria. A panel discussion about the report network governance will play in determining featured high-ranking officials including Luis the future of the global partnership for Álvarez, Vice Minister of Economy, Industry development. An additional aim is to reflect and Commerce of Costa Rica, and Carmen the impact and relevance of South-South Buján Freire, Ambassador of Spain to the and triangular cooperation, particularly in United Nations in Vienna, as well as Professor relation to the creation of sustainable Jan Wouters, Director of the Leuven Centre growth paths in middle-income countries.
Connecting development knowledge beyond 2015
for Global Governance Studies. The second, more technical, part of the launch took place during the Knowledge Networks and Network Governance forum at the GSSD Expo, and the panellists, among them Jorge Rodríguez, Director of International Cooperation at Costa Rica’s Ministry of Economy, Industry and Commerce, focused the discussion around the new, updated version of the report’s Connectedness Index. The index shows that the more connected a country is locally, regionally and globally, the more prosperous that country is.
The Networks for Prosperity initiative has so far published two global reports. The first one, Achieving development goals through knowledge sharing, was presented to Member States in November and December 2011 in Vienna, Brussels and New York. The initiative has also been presented at events in Washington DC, in the framework of the Conference and Knowledge fair, Mobilizing Knowledge Networks for Development, organized by the World Bank in June 2012; in San José, Costa Rica, in the framework of the Second Mesoamerican Forum on small and medium-sized enterprises (SMEs) in April 2012; and in Busan, Republic of UNIDO TIMES | JANUARY 2013
research, statistics and policy LIN'S FRAMEWORK:
Lin’s lessons from development experience During a presentation to Member States, in Vienna, in August 2012, Justin Yifu Lin, one of China’s leading economists, encouraged developing countries to partner with UNIDO in order to develop successful industrial policies.
Justin Yifu Lin calls his framework for rethinking development, New Structural Economics. He argues that a country’s industrial make-up is the product of its intrinsic strengths and advantages determined by its factor endowments, including its workforce, natural resources, or human and physical capital. To best promote development, Lin advises a country to focus on sectors in which it has a comparative advantage (that is, what it can do relatively well) based on what it has now (that is, the endowments it owns). This way, the country will be most competitive, enjoy the largest returns on investment, save the most and lay the foundation for upgrading to more capital-intensive industries in the quickest way. In Lin’s framework, as in standard economics, a competitive market holds the key role in resource allocation, while the state is tasked with helping firms with the task of industrial upgrading by resolving externality and coordination issues. But Lin’s critical twist is that he also advocates using government’s limited resources strategically by targeting support for specific industries which enjoy a comparative advantage. This enables countries to take off economically more quickly.
Also participating in this event were Peter Mooslechner, Director of the Economic Analysis and Research Department, Oesterreichische Nationalbank; Werner Raza, Director of the Austrian Research Foundation for International Development; and Ludovico Alcorta, Director of Lin concluded four years’ tenure as the chief UNIDO’s Development Policy, Statistics economist and senior vice-president of the and Research Branch. • Word Bank at the end of May 2012, and then spent several weeks working with For more information, please contact: UNIDO as a senior strategic adviser, before L.Alcorta@unido.org returning to China to rejoin the China Centre for Economic Research at Peking INDUSTRIAL STATISTICS University. In his presentation to Member States at the UNIDO headquarters in August, Lin used a historical, comparative and analytic approach, grounded in mainstream economics, to explore the key reasons for China’s successful economic reform. He attributed this to the country’s successful harnessing of its comparative advantages with its “advantage of backwardness”. He encouraged developing countries today to build their industrial policies on the same dual track. To speed up this structural change, Lin stressed the importance of developing the “right” industrial policy. “This is where UNIDO can play a pivotal role as a knowledge bank,” he said. UNIDO Managing Director, Wilfried Luetkenhorst, who moderated the session, reiterated the importance of industrial policy and announced UNIDO’s commitment to follow up on Lin’s findings and translate them into concrete policy advice. “At UNIDO, we have seen that, over the past few years, industrial policy has experienced a renaissance. It is no longer a question of whether or not to have one, but what it should entail. This, of course, has to be tailor-made for each country and UNIDO is dedicated to assisting its Member States in developing this,” Luetkenhorst said. Separately, on 10 August 2012, Lin delivered a lecture entitled, “China in the world economy”, at the Austrian National Bank.
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Each year, UNIDO publishes the International Yearbook of Industrial Statistics, which provides the latest annual estimates of global industrial production. The 2012 edition highlights the rise of the BRICS (Brazil, Russia, India, China and South Africa) which together produced more than one fifth of world manufacturing value added in 2011. The Yearbook also presents detailed, countryspecific, business structure statistics, which provide empirical evidence for formulating industrial policy and carrying out comparative analysis of structural change and productivity.
As well as the Yearbook, UNIDO also publishes quarterly reports on international manufacturing statistics. The estimates in World Manufacturing Production provide information about the current status and growth trends of world manufacturing output by country groups and by manufacturing sector.
management issues STAFF CHANGES AT HQ AND IN THE FIELD Adrie De Groot retired from UNIDO on 2 November 2012. De Groot joined UNIDO in April 1982 having previously worked as a Junior Professional Officer (JPO) funded by the UNDP. During his 33 years Staff receiving SAP training. Photo by UNIDO
with UNIDO, he fulfilled a number of different assignments, including in
PCOR: successful roll-outs
the Evaluation Group. In December 2003, he was appointed Director of Financial Resources Mobilization
The organization-wide Programme for Change and Organizational Renewal continues to make significant progress. The programme aims to improve delivery in order to meet recipients’ needs and donors’ and Member States’ expectations, and to enhance a proactive culture within an efficient system, by redesigning all major business processes, and implementing an Enterprise Resource Planning (ERP) system, as well as developing staff.
In the PPM module, UNIDO can manage the identification of a request, and the design, implementation and assessment of a project in a single system. This not only allows for easier monitoring, better knowledge sharing and more systematic risk management, but also for higher quality reporting on results. A major achievement was thus made with the design of a first set of reporting tools, which provide userfriendly dashboard reports on financial information, as well as project results, outcomes Earlier in 2012, major milestones were achieved and more. with the successful roll-out of a dedicated module for UNIDO’s core business, called The next major milestone will be realized in Portfolio and Project Management (PPM), as early 2013, when additional modules for well as a number of modules for human financial management, funds and grants controlling, treasury, resource management processes in the ERP management, supplier relationship system. These roll-outs were preceded by procurement, management, asset management and material significant streamlining of business processes management are scheduled to go live in the with a view to reducing administrative effort, and the introduction of electronic approval single integrated ERP system, and the full workflows based on the ‘four-eyes principle’. functionality of the system will be achieved. The new processes follow the principles of results-based management, and knowledge and risk management. Due to the global accessibility of the system, all processes can be carried out from both headquarters and the field, which contributes to decentralizing substantive tasks to the field and better knowledge sharing. The integration of the system also ensures a single source of data and more transparency.
All these innovations are being accompanied by training to ensure that all staff members are equipped to make the best use of the new system and processes. The programme is succeeding thanks to the staff 's commitment to achieve excellent results, effective crossorganizational teamwork, and open communication and knowledge sharing. • For more information, contact: T.Tomaschitz@unido.org
(now Donor Relations and Quality Assurance Branch). During this time, he initiated many innovative agreements with partners and donors. Bert van Burik, Chief of the Donor Relations Unit, retired on 31 March 2012. Klaus Billand, Senior Coordinator for UN System Coherence, retired on 1 June 2012. Andrey Volodin, Chief of the Quality Assurance Unit, retired on 1 September 2012. Jean-Luc Bernard, UR in Morocco, retired on 1 August 2012. Imran Farooque, previously the UR in Indonesia, has been reassigned as Deputy to the Director of the Bureau for Regional Programmes. Shadia Bakhait, the UR in Pakistan, has been reassigned as the UR in Indonesia. Jean Bakole has been appointed the UR in Ethiopia. Mohamed Eisa has been appointed the UR and Director of the Regional Office in South Africa. UNIDO TIMES | JANUARY 2013
forthcoming events May 2013
Third Vienna Energy Forum 28-30 May 2013 Vienna, Austria
Forty-first session of UNIDO’s Industrial Development Board 24-27 June 2013 Vienna, Austria
Fifteenth session of the UNIDO General Conference 2-6 December 2013 Lima, Peru
The Vienna Energy Forum is a leading forum for policymakers and practitioners on issues related to sustainable energy for development. The third Vienna Energy Forum will address these fundamental questions:
The annual meeting of the Industrial Development Board (IDB) will review the implementation of the Organization’s work programme and the regular and operational budgets, and make recommendations to the General Conference on policy matters, including the recommendation to the Conference of a candidate for the post of Director-General. In reference to the latter issue, following the confirmation that the United Nations Secretary-General has asked Kandeh K. Yumkella, Director-General of UNIDO, to serve as his Special Representative for Sustainable Energy for All and chief executive of the initiative, a special session of the General Conference will be held on 28 June 2013.
The Government of Peru will host the fifteenth session of the General Conference of UNIDO in Lima.
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Are we on the right track to implement the vision of Sustainable Energy for All by 2030? How do we move from commitments to kilowatt hours of clean and affordable energy in countries where it matters most? Do we have the policies and partnerships in place to guarantee a future powered by sustainable energy?
For more information, visit: www.viennaenergyforum.org
Speaking at the UNIDO Industrial Development Board meeting in Vienna, Austria, in November 2012, the Ambassador of Peru, Antonio Javier Alejandro García Revilla, said that holding the General Conference away from Vienna headquarters would be “a unique opportunity for Peru, as well as for Latin America”, and “emphasize the importance of industry in the overall economic and social development.” Since UNIDO became a specialized agency in 1985, the General Conference has taken place away from Vienna only twice: in Bangkok, Thailand, in 1987, and in Yaoundé, Cameroon, in 1993.
UNIDO BUSINESS PARTNERSHIPS UNIDO Business Partnerships is a new publication showcasing some of UNIDO’s recent business partnerships and the progress achieved to date. It outlines how UNIDO is pooling resources and expertise to create new jobs, new trade opportunities and new sustainable markets. It also demonstrates the private sector’s contribution to achieving sustainable and inclusive industrial development, while simultaneously driving business value.
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. 16
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In the foreword, Director-General Yumkella wrote, “Let us sustain our efforts and ensure that UNIDO and the business community become even stronger partners for prosperity.”
For more information, visit: http://www.unido.org/businesspartnerships UNIDO TIMES Items for submission should be sent to: C.Arthur@unido.org UNIDO Headquarters Vienna International Centre P.O. Box 300, 1400 Vienna, Austria Tel: +43 1 26026-0 Fax +43 1 26026-69 www.unido.org
Newsletter of the UN Industrial Development Organization (UNIDO).