Regional Focus

Sub-Saharan Africa

There is an increasing realization that industrialization has a critical role to play in helping Africa to deal effectively with current and emerging development challenges, accelerate economic development and reduce poverty. However, given that the industrial base is still weak, there is an urgent need to support the region in improving its productivity and competitiveness. In this connection, the UNIDO-sponsored African Productive Capacity Initiative (APCI), which was adopted by the African Union in July 2004 as the industrial component of the New Partnership for Africa’s Development (NEPAD), sets out specific objectives including market access, value addition based on local resources, diversification, technology diffusion, industrial upgrading, poverty reduction through job creation and regional integration. These are the areas in which UNIDO, through its country-level integrated programmes as well as its subregional and regional programmes, will contribute to building the productivity, managerial capability and skills of the region. In addition, emphasis will be placed on entrepreneurship development, quality improvements, the application of appropriate technology and diversification into higher value-added activities.

Arab Countries

Poverty reduction is a major challenge of the North African subregion and the Arab LDCs, which depend heavily on the creation of employment opportunities. In most of these countries, unemployment represents a severe problem, especially among the youth. Emphasis will be placed on entrepreneurship development (with special focus on rural and women’s entrepreneurship), the development of horizontal and vertical SME networks for ensuring job creation and income generation, and the strengthening of agro-based and agro-related industries;

A key part of the development process in the Eastern Mediterranean subregion will be played by SMEs. The vast majority of manufacturing businesses in this subregion fall into this category and they are the major source of private sector employment and economic growth. UNIDO will support governments and the private sector to help business close the performance gap with their international competitors. UNIDO’s involvement will be oriented towards increasing productive capacities in the manufacturing sector, supporting traditional agroindustries to stimulate productivity and efficiency gains, and increase their integration into value chains, promoting the diversity of sustainable rural livelihoods, private sector development with emphasis on SME cluster/network development, and rural and women’s entrepreneurship.

Asia and the Pacific

Although rapid economic growth in the past decades has helped reduce the overall incidence of poverty in the region, the Asia and the Pacific region is still home to about 65 per cent of all the world’s poor. Moreover, the disparity in income distribution remains high, with 14 least developed countries in the region. Rural poverty remains a significant problem, especially in the LDCs and the South Asian subregion, where the number of the rural poor approaches 500 million. Against this background, private sector enterprise development is crucial. As most of the economies in the region are rural and agriculture-based, promotion of an efficient and competitive agro-based industrial sector can promote growth and create income generation opportunities for the poor and help alleviate many social problems. In this context, UNIDO will promote programmes such as the development of an SME enabling framework and institutional support, cluster development, rural and women’s entrepreneurship development, food-safety infrastructure for agro-industries, skills development and capacity-building in the use of new technologies for available agro-resources, and support to traditional agro-industries for enhancement of productivity.

Latin America and the Caribbean

In General Conference resolution GC.11/Res.1 on the regional programme for Latin America and the Caribbean, the Director-General is requested, taking into account the resolution of the General Conference and the Industrial Development Board decision IDB.30/Dec.8, together with the long-term strategy, to adopt, in consultation with the Member States of the region, the necessary measures to establish a regional programme for Latin America and the Caribbean before the thirty-first session of the Industrial Development Board, with a view to its implementation in the biennium 2006-2007. In accordance with the mandate given by the General Conference, work will continue on the programme according to the priorities identified in the region.

While the SME cluster/network development component is expected to continue to play a central role throughout the region, specific attention will be given to the development of productive value chains, in particular in agro-industry. The rural and women’s entrepreneurship development programme will continue to be applied to the poorer countries, and in some depressed areas of the more developed ones.

Europe and the NIS

The region has a significant potential for developing the agro-industrial sector, such as food-processing, leather and textiles. While making the products of the food-processing industries competitive in the world market through various measures to increase the productivity and management effectiveness, UNIDO will provide assistance in upgrading the quality of products and food safety through specifically designed projects targeting the deficiencies of individual food industry sub-sectors;

In order to tackle the high unemployment rate prevailing in the region, UNIDO will also promote entrepreneurship programmes for the development of SMEs, with special emphasis being given to women and youth. It will also promote technical cooperation oriented towards business partnerships and the relevance of corporate social responsibility (CSR) for small and medium scale business.