3:  Benchmarking industrial performance by the CIP index
  • The UNIDO Industrial Development Scoreboard focuses on benchmarking 87 countries in terms of their national ability to produce manufactures competitively and in terms of structural factors affecting their industrial capabilities. It includes industrialized, developing and transition economies and covers two years, 1985 and 1998.

  • The competitive industrial performance index (CIP) to benchmark industrial performances of economies is constructed from four basic indicators of industrial performance including manufacturing value added per capita; manufacturing exports per capita; share of medium and high-tech activities in manufacturing value added; and the share of medium- and high-tech products in manufactured exports.

  • Ranking economies by the CIP index reveals relative stability of economy rankings over the period, indicating that industrial performance is the outcome of slow and incremental processes. There is a general and expected pattern of industrialized economies congregate near the top, transition and middle-income developing economies around the middle, and low-income developing and least developed economies at the bottom.

  • Looking at the regional averages for developing economies, East Asia leads the CIP ranking in 1998, followed by Latin America and the Caribbean, Middle East, North Africa and Turkey, South Asia and Sub-Saharan Africa.

  • There are also notable examples of improvements in industrial performances experienced by middle-income developing economies: China, Costa Rica, Malaysia, Mexico, the Philippines and Thailand.

  • Low-income economies have not moved up the technology ladder, remaining at the bottom of the industrial performance scale. The gap between them and other developing economies widened, pointing to a growing industrial divergence within developing economies.

  • Among the least developed countries, Bangladesh and Nepal had stable rankings over the period, due to the upgrading of the technological structure of their exports. For most other countries, the picture is less sanguine.

  • Industrial production and manufactured exports within developing economies are highly concentrated. The top 5 countries account for 60 percent of developing country industrial production and 61 percent of exports. By contrast, the bottom 30 countries account for only 2 and 1 percent, respectively. Most worrying, these shares declined during 1985–1998.

  • The shares of technology-intensive industrial products in exports increased faster than in industrial production, reflecting the increasing trend toward the internalization of production process.

  • Only 16 of 58 developing courtiers in the sample have shown dynamic production and export structures, with increasing shares of technology-intensive products, while 42 countries had a similar technological structure in 1998 as that in 1985. Dynamic countries include Argentina, Costa Rica, Mexico, Brazil, Saudi Arabia, Turkey, South Africa, India, Singapore, Hong Kong SAR, Republic of Korea, China, Taiwan Province of China, Malaysia, the Philippines and Thailand.

  • There is no clear evidence of industrial competitiveness compromising the environment. Whilst stronger industrial performers tend to pollute more due to higher share of industrial activity in economy, they also appear to be more efficient in controlling industrial waste. None of the top countries in the CIP rankings is among the top 15 polluters in GNP units. Transition economies are placed in the middle of the ranking and have bad environmental record. Developing countries, by contrast, seem to pollute less, mainly due to lack of industrial activity rather than environmental awareness.
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