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UNIDO’s approach in supporting LDCs is primarily based on the conceptualization of Integrated Programmes capable of addressing the requirements of industrial development in a holistic perspective. UNIDO is convinced that without enhancing the role of industry, a sustainable path of economic development will not be achieved. It is industry more than any other productive sector that drives the economic growth process, provides a breeding ground for entrepreneurship, fosters technological dynamism and associated productivity growth, creates skilled jobs, and through inter-sectoral linkages, establishes the foundation for both agriculture and services to expand. Prices of manufactured exports are both less volatile and less susceptible to long-term deterioration than those of primary goods providing the potential for sustainable export growth and integration into the global economy. Unless competitive production is built up, unless supply-side capacities are created, the LDCs will be unable to benefit from liberalized trade flows and will fail to integrate into the global economy.
UNIDO promotes sustainable industrial development. The aim is to connect marginalized countries and communities to the process of globalization. The key objective is to strengthen the industrial fabric, in order to build systemic capacities. This requires assistance in gradually moving small enterprises from the informal to the formal sector of the economy, in supporting the upgrading of micro enterprises, and in creating a pool of growth oriented small and medium industries capable of serving local markets and producing inputs for export-oriented industries.
Another objective is to support towards improving the performance of agro-related industrial sectors which, in conjunction with rural entrepreneurship programmes, can help both to reduce poverty among large parts of the population, adding value to exportable products, and to diversify the processing of natural resources. Assistance in strengthening capacities of investment promotion bodies and efforts to attract foreign investment to the manufacturing sector in LDCs complement this.
Recently, in the context of the multilateral trading system, the issue of technical barriers to trade and new standards related to health, food safety and consumer protection has assumed added importance. Structured information about these standards is badly needed in LDCs. UNIDO has this Special Programme that supports developing countries in a whole range of issues relating to quality control, metrology, standardization, accreditation systems and conformity assessments. This Programme calls for close cooperation with UNCTAD and ITC and should be seen in conjunction with UNIDO’s functional and sector-specific programmes to enhance the competitiveness of small and medium enterprises. Together, they can provide comprehensive support packages that address the key constraints to LDCs effective access to global markets.
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