Inclusive and Sustainable Industrial Development

INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

The Lima Declaration, adopted by UNIDO’s Member States in December 2013, set the foundation for a new vision of inclusive and sustainable industrial development (ISID) and highlighted the role of industrialization as a driver for development.

Inclusive and sustainable industrial development (ISID) is the primary source of income generation, allows for rapid and sustained increases in living standards for all people, and provides the technological solutions to environmentally sound industrialization. Technological progress is the foundation of efforts to achieve environmental objectives, such as increased resource and energy-efficiency. Without technology and innovation, industrialization will not happen, and without industrialization, development will not happen.

"Inclusive" in this context means that industrial development must include all countries and all peoples, as well as the private sector, civil society organizations, multinational development institutions, and all parts of the UN system, and offer equal opportunities and an equitable distribution of the benefits of industrialization to all stakeholders. The term “sustainable” addresses the need to decouple the prosperity generated from industrial activities from excessive natural resource use and negative environmental impacts.

ISID therefore implies that no one is left behind and all parts of society benefit from industrial progress, which also provides the means for tackling critical social and humanitarian needs.

Over the past few years, the international community has made a quantum leap in advancing new approaches to accelerate progress and pave the way for a more ambitious, inclusive and universal development framework beyond 2015. While industrialization was not factored into the Millennium Development Goals framework, inclusive and sustainable industrialization now features strongly in the 2030 Agenda for Sustainable Development.

ISID - UNIDO's vision at a glance

Introduction to UNIDO and inclusive and sustainable industrial development Play video

ISID enhances and reinforces economic growth and diversification in a socially inclusive and environmentally sound manner, guided by four overarching principles:

1. No one is left behind in benefiting from industrial growth, and prosperity is shared among all parts of society in all countries as industry creates the wealth needed to address critical social and humanitarian needs.

2. Every country is able to achieve a higher level of industrialization in their economies, and benefits from the globalization of markets for industrial goods and services.

3. Broader economic and social progress is supported within an environmentally sustainable framework.

4. The unique knowledge and resources of all relevant development actors are combined to maximize the development impact of ISID.

UNIDO’s mandate is reflected in Sustainable Development Goal (SDG) 9: “Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation”.

SDG 9 includes the following targets:

9.1	Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all.
9.2	Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry's share of employment and gross domestic product, in line with national circumstances, and double its share in least developed countries.
9.3	Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets.
9.4	By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities.
9.5	Enhance scientific research, upgrade the technological capabilities of industrial sectors in all countries, in particular developing countries, including, by 2030, encouraging innovation and substantially increasing the number of research and development workers per 1 million people and public and private research and development spending.
9.A	Facilitate sustainable and resilient infrastructure development in developing countries through enhanced financial, technological and technical support to African countries, least developed countries, landlocked developing countries and small island developing States.
9.B	Support domestic technology development, research and innovation in developing countries, including by ensuring a conducive policy environment for, inter alia, industrial diversification and value addition to commodities.
9.C	Significantly increase access to information and communications technology and strive to provide universal and affordable access to the Internet in least developed countries by 2020.

SDG 9 vision confirms the provisions of the Lima Declaration and the relevance of ISID for the new global development architecture. Successfully implementing ISID in our current era of globalization requires approaches that harness globally available knowledge, technology and innovation, and capital.

Investments in infrastructure – transport, irrigation, energy and information and communication technology – are crucial to achieving sustainable development and empowering communities in many countries. It has long been recognized that growth in productivity and incomes, and improvements in health and education outcomes require investment in infrastructure.

Technological progress is the foundation of efforts to achieve environmental objectives, such as increased resource and energy-efficiency. Without technology and innovation, industrialization will not happen, and without industrialization, development will not happen.

Operationalizing ISID through three main pillars

In light of the renewed mandates given to both UNIDO and the United Nations as a whole, the Organization’s programmatic focus is accordingly structured in three main fields of activity, each of which represents different aspects of ISID: creating shared prosperity, advancing economic competitiveness and safeguarding the environment.

Creating shared prosperity

Advancing economic competitiveness

Safeguarding the environment

ISID - A priority around the world

The centrality of industrialization for development has increasingly been recognized across the globe, due to its ability to create more equitable, just and environmentally sustainable solutions in the interest of peace and security:

"…a robust industrial transformation of economies of middle-income countries that contributes to sustainable development is one of the most important tools in the achievement of internationally-agreed development goals…"
(San José Declaration of Middle Income Countries, June 2013)

"Europe needs a strong and competitive industrial base, in terms of both production and investment, as a key driver for economic growth and jobs."
(European Council Conclusions, Heads of States and Government, March 2014)

"The first of the six pillars identified by the AU as development priorities for Africa, defined as “structural economic transformation and inclusive growth”, specifically includes “diversification, industrialization and value addition."
(Common African Position on the Post-2015 Development Agenda, March 2014)