What is the United Nations Industrial Development Organization?

The United Nations Industrial Development Organization (UNIDO) is a specialized agency of the United Nations that promotes industrial development in developing as well as transitioning economies in order to reduce poverty and foster inclusive globalization and environmental sustainability. UNIDO is a member of the United Nations Development Group and is headquartered in Vienna, Austria.

What does the United Nations Industrial Development Organization Do? 

The primary objective of the United Nations Industrial Development Organization (UNIDO) is to promote inclusive and sustainable industrial development (ISID). UNIDO engages in interventions in order to reduce poverty and inequality, while, at the same time, conserving energy and protecting the environment. The organization has played an active role in propagating the concepts of science, technology and innovation in the poorest of economies. UNIDO has unveiled its new strategy of strengthening knowledge and institutions as part of its medium-term programme framework (MTPF) for the period 20182021. The MTPF has four distinct strategic priorities that seek to complement its thematic focus areas:

• Striving for shared prosperity.
• Promoting economic competitiveness.
• Protecting the environment.
• Enhancing the knowledge base and strengthening institutions.

UNIDO campaigns for structural transformation as well as sustainable industrialization of Africa. The organization has championed the implementation of the Third Industrial Development Decade for Africa (IDDA III). UNIDO has formulated its own ISID promotion vehicle, known as Programme for Country Partnership (PCP). PCP is currently active in Ethiopia, Peru, Senegal, Morocco, Cambodia and Kyrgyzstan. It is expected to be implemented in four more countries - Cte dIvoire, Egypt, Rwanda and Zambia, in the foreseeable future.

UNIDO Statistics

As of April 2019, UNIDO has a membership of 170 countries. Member nations hold regular discussions in order to determine UNIDOs guiding principles and policies. The UNIDO headquarters located at the Vienna International Centre has an employee strength of about 670. In addition to this, UNIDO has field representatives in around 80 nations worldwide. The organization also enlists the services of approximately 2800 specialist professionals annually, half of which are drawn from developing economies. These professionals include both national as well as international experts that are assigned various projects around the world. Between the period 20122013, UNIDO operations cost an estimated 460 million, of which technical cooperation delivery alone amounted to $189.2 million for the year 2012.

UNIDOs Areas of Focus

The United Nations Industrial Development Organization has three thematic focus areas. They are:

1. Reducing poverty through productive undertakings.
2. Building trade capacity.
3. Conserving energy and the environment.

Reducing Poverty through Productive Undertakings

The UNIDO acknowledges the significant role played by private sector industries in driving economic growth and creating employment opportunities. A direct outcome of such economic growth is the reduction of poverty as well as the attainment of the eight Millennium Development Goals (MDGs) of 2015, as outlined in the United Nations Millennium Declaration. The industrial development brought forth by private sector industries is a major step in setting poorer economies on the path of sustainable economic development. As such, UNIDO has streamlined its own services in such a way as to facilitate job creation as a means of eradicating poverty in developing countries. UNIDOs services include:

• Counseling regarding industrial policy.
• Development of entrepreneurship and small and medium-sized enterprises (SME).
• Promotion of investment and technology.
• Formulation of rural energy strategies for productive uses.

Building Trade Capacity 

To establish international trade relations with other economies, developing countries need to acquire the capability to produce export-grade products that are compliant with international standards. UNIDO plays a vital role in this regard by offering the following services:

• Counseling and technical collaboration pertaining to market competitiveness.
• Collaboration in areas such as industrial modernization and upgradation.
• Guidance with respect to compliance with international trade standards, testing procedures and metrology.

Conserving Energy and the Environment 

UNIDO has identified several factors that have been subverting the prospects for a long-term robust economy, especially in poorer regions. These are:

• Pollution
• Climate change
• Destruction of habitat
• Over-exploitation of natural resources

As such, UNIDO has prescribed certain rudimentary changes in the methods of production and consumption in order to negate the effects of the factors mentioned above. The organization actively promotes sustainable means for industrial production and consumption as a way of ensuring that economic growth does not lead to environmental degradation. UNIDO actively advocates the use of renewable energy sources and offers services for enhanced energy efficiency among industries. The organization also supports developing economies in executing multilateral environmental agreements, while at the same time, achieving their economic as well as environmental targets.