UNIDO s Operational Strategy for South-South and Triangular Industrial Cooperation Weixi GONG Senior Coordinator for South-South and Triangular Industrial Cooperation United Nations Industrial Development Organization
Outline 1) What is SSTIC at UNIDO? 2) What is UNIDO s Operational Strategy for SSTIC? 3) Positioning UNIDO s SSTIC Services 4) Aligning UNIDO s SSTIC Services 5) Ensuring Commitment to SSTIC 2
What is SSTIC at UNIDO? South-South and triangular industrial cooperation (SSTIC) is a form of cooperation for the promotion of inclusive and sustainable industrial development (ISID). SSTIC aims to contribute to the achievement of ISID, as well as the 2030 Agenda for Sustainable Development, in particular Sustainable Development Goal 9. It involves multi-stakeholder partnerships, bringing together ministries of industry, private-sector organizations and influential southern institutions. Partners exchange knowledge and technology to help countries reap the benefits of industrialization. The role of the United Nations Industrial Development Organization (UNIDO) is to coordinate partners and facilitate exchange between them. 3
What is UNIDO s Operational Strategy for SSTIC? Although already well-established as a modality, UNIDO s SSTIC services need to be revisited and integrated within the Organization s renewedisid mandate and partnerships approach. UNIDO s Operational Strategy aims to: 1) POSITION UNIDO s SSTIC services within the Organization and the external development cooperation architecture; 2) ALIGN UNIDO s capacities to maximize SSTIC service delivery 3) PROMOTE and ensure internal and external commitment to SSTIC. 4
Positioning UNIDO s SSTIC Services UNIDO s single-window approach: The Senior Coordinator for SSTIC will harmonize UNIDO s partnership-based activities and act as a single window for all activities related to ISID and SSTIC. Mainstreaming SSTIC services: All departments at UNIDO engaging/engaged in SSTIC activities will nominate a focal point to facilitate mainstreaming. Embedding SSTIC into technical cooperation guidelines: SSTIC must be integrated into UNIDO s project and programme cycle. Expanding and promoting SSTIC networks: The development of knowledge networks for exchange, peer learning and coordination among development partners would help UNIDO to collect data more systematically, to codify southern solutions for industrial development, to broker expertise and knowledge, and to facilitate partnerships. Positioning SSTIC through UNIDO s partnerships approach: Partnerships for sustainable industrial development are envisioned as collaborative and inclusive involving all levels of society. 5
Aligning UNIDO s SSTIC Services SSTIC services: UNIDO s SSTIC services are demand-driven as needs vary significantly from country to country. They range from basic services to tailor-made SSTIC services. SSTIC institutional arrangement: The Senior Coordinator for SSTIC acts as a focal point for all SSTIC-related activities. Focal points in each department will be identified and established to ensure implementation of the Strategy. Human resources and management: UNIDO will establish a Staff Performance Appraisal system to promote SSTIC. Financial resources: Tapping into new resources from the South and engaging with solution providers through bilateral development and/or technical cooperation activities is essential to the fulfilment of ISID. Communications and knowledge management: In order to promote UNIDO s global ISID campaign, UNIDO has established the ISID Operation Platform, a dedicated web-based platform. The platform presents an opportunity to illustrate successful southern solutions and lessons learned. 6
Ensuring Commitment to SSTIC Action Plan: The Operational Strategy will be implemented via a series of activities intended to strengthen UNIDO s in-house capacities with regards to SSTIC service provision and coordination. These activities will involve defining roles, setting-up dedicated resources and raising awarenessinternally and externally. Accountability and appraisal: The single-window approach will ensure that all relevant departments involved are held accountable to and coordinated by the Senior Coordinator for SSTIC. 7
Four Case Studies from UNIDO s Programmes for Country Partnership in Senegal and Ethiopia and Green Industrial Park Development in China Weixi GONG Senior Coordinator for South-South and Triangular Industrial Cooperation United Nations Industrial Development Organization
Outline 1) UNIDO s Programmes for Country Partnership 2) CASE STUDY #1: PCP for Senegal a) Cross-Cutting SSTIC Intervention in the Rice-Processing Sector 3) CASE STUDY #2: PCP for Ethiopia a) Opportunities for South-South Engagement 4) UNIDO Green Silk Road Projects 5) UNIDO Green Silk Road Project Guidelines for Green Industrial Parks 6) What are Green Industrial Parks? 7) The Framework of a GIP 8) GIP Pilot Projects 9) CASE STUDY #3: LianyungangXuwei New Area 10) CASE STUDY #4: Yantai Economic and Technological Development Area 9
UNIDO s Programmes for Country Partnership The Programmes for Country Partnership (PCPs) are based on UNIDO s traditional technical cooperation (TC) activities. UNIDO s TC assistance has therefore not changed within the PCP, but it is applied differently within the framework of the PCP. All PCPs share common features: 1) Strong government ownership; 2) Designed to upscale UNIDO s TC assistance for increased development impact; 3) Have a strong regional dimension. Each PCP reflects its national country context via different features: 1) The existing national industrial strategy/prioritized sectors; 2) Ongoing (funded) national programmes; 3) UNIDO TC projects support the implementation of the national industrial strategy and can create greater synergies with partners interventions. 10
CASE STUDY #1: PCP for Senegal Background: Agriculture, industry and service sectors account for 18%, 24% and 58% of GDP, respectively. PCP focus areas: 1) Industrial policy 2) Agro-poles 3) Industrial parks All interventions have been designed to support Senegal s national development plan, Plan Senegal Emergent. 11
Cross-Cutting SSTIC Intervention in the Rice- Processing Sector The SSTIC intervention embedded within the PCP for Senegal focusses on upscaling the rice-processing sector. As a result of UNIDO s preliminary work in the rice-processing sector and ongoing coordination with the Government, China Xinjiang International, the China-Africa Development Fund (CADFund) and the Senegalese Ministry of Agriculture and Farm Equipment entered into a Memorandum of Understanding in July 2016. This partnership will ultimately promote the creation of an agroindustrial park. Each partner will contribute according to their areas of comparative advantage, with China Xinjiang Intnl. providing technical expertise, the CADFund undertaking a feasibility study and furnishing the necessary finances, and the Ministry providing the land, under the overall coordination of UNIDO. 12
CASE STUDY #2: PCP for Ethiopia Background: In Ethiopia, agriculture accounts for 80% of jobs, 45% of GDP, 85% of exports. PCP targeted sectors/industries include: 1) Agro-food 2) Textiles and garments 3) Leather and leather products All interventions support the Government of Ethiopia s structural transformation agenda. 13
Opportunities for South-South Engagement Within the PCP for Ethiopia, the focus remains on attracting Southern investment, in particular from Asia, to the light manufacturing sector with a focus on the three targeted industries. The PCP for Ethiopia also aims to assist the Government of Ethiopia in the establishment of four integrated agro-industrial parks, which place importance on South-South cooperation for the purpose of infrastructural upgrading. The agro-industrial parks have already attracted a mix of public and private investment, with private-sector investment largely focused on specific agro-processing value chains. South-South investment in the textile and leather industries is also envisioned due to Ethiopia s long history of textile manufacturing and its ample natural and human resources. 14
UNIDO Green Silk Road Projects In 2013, UNIDO initiated the development of guidelines for green industrial zones along the New Silk Road, in cooperation with the governments of China and Kazakhstan, technically backstopped by partners from the Republic of Korea and Japan. The project produced the UNIDO Green Silk Road Project Guidelines for Green Industrial Parks, the first such guidelines for UNIDO on green industrial park construction and management in its Member States. In 2015, UNIDO initiated a joint project along with 5 UN agencies to promote ISID through partnership building for trade and investment flows along Maritime and Continental Silk Road. The project aims to raise awareness of ISID, to promote green industrial growth patterns and eco-industrial parks, to strengthen institutional capacity-building and networking of MCSR cities and centres of excellence, and to achieve the industrial and economic integration of all countries concerned. This project has produced a verification manual for Green Industrial Parks (GIPs) for operational use. 15
UNIDO Green Silk Road Project Guidelines for Green Industrial Parks The objective is to provide guidance on policies and technologies for GIPs in China according to international standards and experiences. It is hoped that the guidelines will become an important reference on the construction of green industrial parks and will serve to achieve ISID in China and other countries along the Silk Road. 16
What are Green Industrial Parks? 17
The Framework of a GIP 18
GIP Pilot Projects Urumqi Economic and Technological Development Zone Zhangye Economic and Technological Development Area Yantai Economic and Technological Development Area Lianyungang Xuwei New Area Lianyungang Xuwei New Area Yantai Economic and Technological Development Area Urumqi Economic and Technological Development Zone(Toutunhe District) Zhangye Economic and Technological Development Area 19
CASE STUDY #3: Lianyungang Xuwei New Area Became a UNIDO Green Silk Road Project Pilot Green Industrial Park in 2014. It is the leading demonstration zone of the China Eastern-Central- Western Demonstration Area for Regional Cooperation. Eastern starting point of the Continental Silk Road. A new economic growth pole of Jiangsu costal areas. Main Features: Ecology, intelligence, integration and demonstration. A world-class petrochemical industry base and fine steel industry base. Pillar industries include: petrochemical industry, fine steel industry, manufacturing of advanced equipment industry, energy saving and environmental protection industry, and modern logistics industry. 20
Lianyungang Xuwei New Area (cont.) Energy saving and environmental protection exhibition hall Renewable resources processing centre 21
CASE STUDY #4: Yantai Economic and Technological Development Area Became a UNIDO Green Silk Road Project Pilot Green Industrial Park in 2016. One of the first 14 national development zones approved by the State Council of China in 1984. Construction started in March 1985. Ranks the 6 th in terms of a comprehensive evaluation of its investment environment over the past consecutive six years among all the national development zones. Main Features: Covers an area of 228 square kilometers with 400,000 permanent residents. Has attracted investments from more than 40 countries and regions, including more than 70 Fortune 500 Companies. Electronic information and automobiles are the two pillar industries. Other product clusters include mobile phones, shipbuilding, equipment manufacturing, chemical materials, wine and biopharmacies. 22
Yantai Economic and Technological Development Area (cont.) Schematic diagram of hazardous waste disposal and disposal of home appliances and electronic products Overall planning and layout of Yantai Economic & Technological Development Area 23
Thank you for your attention! Weixi GONG Senior Coordinator for South-South and Triangular Industrial Cooperation E-mail: w.gong@unido.org Tel.: +43 1 26026 3381, ext. 3381 24