Outline

1. EU-UNIDO Dialogueon Industrial and SME Policy Implementation NilgünTaşUnit Chief and Deputy to the Director, BITVienna, 6 May 2014

2. Outline • Inclusive and sustainable industrial development (ISID) • Common goals for industries and SMEs • Implementing industrial and SME policies for greater market access and partnerships INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

3. ISID aims • Creating shared prosperity • Safeguarding the environment • Multi-stakeholder partnerships • Addressing diversified needs of UNIDO Member States INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

4. Common goals Matching market access needs of European SMEs with foreign investment needs of developing Member States INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

5. PRIORITY AREAS UNIDO’s MULTI-DIMENSIONAL APPROACH Investment Policy and Strategy Advice Public Private and Business Partnerships link local industries to global value chains Creation and Development of Enterprises through special programs EDIP, ICT services INVESTMENT AND TECHNOLOGY PROMOTION Investment Promotion Institutions To mobilize investments and forming regional networks Investment promotion through IPAs Upgrading & Restructuring pilot projects and building national consulting capabilities Clusters, Business Linkages and Export Consortia Industrial Partnerships through UNIDO’s ITPO and SPX networks Creation/Strengthening of Support Institutions BMOs, BDS, technical centers, upgrading offices Tools and Services Investment planning, technological upgrading and innovation MICRO MACRO MESO IMPROVING COMPETITIVENESS AND UPGRADING Business Environment Policy for competitive productive industrial activities Transfer of Knowledge and Methodologies technology foresight, CSR principles, etc. Fostering Inter-Firm Partnerships and Cooperation PROMOTING CLUSTERS AND BUSINESS LINKAGES Innovation Systems policy and initiation of public-private innovation networks Capacity Building in monitoring of industrial performance, technology foresight, cluster& export consortia Industrial Upgrading and Modernization Policy INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

6. Improve business environments for SMEs • Reducing regulatory burdens on SMEs • Company registration reduced from 15 days to3.5 days in Viet Nam; SME savings on new and amendment registrations per annum: ~US$ 8 million per annum since 2010; on-line registration at www.businessregistration.gov.vn (funded by Norway and Switzerland) • New phase to enable registration of “Foreign Invested Enterprises”, under similar circumstances • Market entry and transparency improved with on-line access to records of over 830,000 enterprises, including annual financial statements (160,000) • SME Development Plan created 320,000 new enterprises INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

7. ISID through Industrial Upgrading and Modernization (IUMP) INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

8. Cameroon IUMP EU financed pilot and follow up phases at € 3.6m and € 10m Results achieved in the pilot phase INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

9. UEMOA Regional IUMP • At the enterprise level, diagnostics studies for 116 firms and provision of technical support to 99 firms in management and production improvements • For €6 millions offirm level technical assistance, firms investedover €21 millions on new technologies and equipment. • Second phase– €12 million will support 800 SMEs in the areas of quality, production processes, management and market access. • EU-UNIDO on regional IUMP for CEMAC at €6 million in design INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

10. Local production of essential medicines • Policy • AUC PMPA Business Plan implementation in partnership with WHO, UNAIDS and the private sector • Public-private dialogue on sector strategy development (e.g. Ghana, Kenya, Viet Nam, Zimbabwe) • Institutions • Specialized courses in industrial pharmacy, support to business membership organizations, medicines regulatory authorities, and quality control laboratories • Enterprise • Assessing feasibility of local production, technical advice and training INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

11. C2C, Sustainable Supplier Development and Business Linkages • Cluster development for ISID • Collective efficiency and Innovation • Market Access, Profitability, quality/safety/sustainability • Linking buyers and suppliers (manufacturers & retailers) • Cluster-to-cluster partnerships • Export/quality Consortia • Formalindustrial sectors (Competitiveness/market access/Sourcing) • Micro enterprises/farms (Pro-poor income generating approach including youth/women empowerment) • Development objectives • improving income, jobs and food security • Diversification • Value addition and integration • Consumer protection • Social, Economic and Environmental Sustainability (CSR) and Human Rights • Inclusive • Sustainable/CSR-focus • Pro-Poor • Ethical/Human Rights • Gender-balanced • Market Integration (North-South) INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

12. C2C, Sustainable Supplier Development and Business LinkagesA few examples INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

13. CULTURAL AND CREATIVE INDUSTRY CLUSTERS IN THE SOUTHERN MEDITERRANEAN REGION* Partner Countries: Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, Palestine, Syria and Tunisia. Currently, EU cooperation with Syrian authorities (government entities) is suspended INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

14. OBJECTIVE • EU-funded (EUR5 million) and UNIDO/Italy (EUR600K) • Foster entrepreneurial cooperation in Cultural and Creative Industries (CCI) through the promotion of promising CCI pilot initiatives, demonstrating contribution to inclusive growth • Establish business linkages between South Mediterranean and EU clusters and support institutions and between international buyers and local suppliers (Already with French Habitat) • Demonstrate the benefit of adopting a cluster approach, and promote new employment opportunities and inclusive growth in the region • CCI Clusters will be encouraged to adopt values and practices related to social inclusion, fair trade, sustainable development INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

15. Investment, Technology, Innovation and Entrepreneurship Services and Networks for Business Partnerships for ISID • Entrepreneurship Development programs for women and youth employment • Access to finance for enterprise creation • Investment Promotion Fora ( e.g. Africa –EU business Forum 2014) • Network of Investment Promotion Agencies (IPAs), AfripaNet • Investment and Technology Promotion Offices (ITPOs) • International Technology Centers (ITCs) • Subcontracting and Partnership Exchanges (SPX) INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

16. UNIDO Investment Monitoring Platform IMP INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

17. Investment and Technology Promotion Offices (ITPO) Beijing and Shanghai - People’s Republic of China Manama- Bahrain Moscow - Russian Federation Rome - Italy Seoul - Republic of Korea Tokyo - Japan Yerevan - Armenia • ITPOs broker investment and technology agreements between developed, developing countries and with economies in transition • ITPOs assist investors and technology suppliers in the ITPO host countries to find potential partners aboard and offers unique services to entrepreneurs and institutions. INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

18. A growing global network • PROGRAMME COMPONENTS: • SPX enterprise profiling & benchmarking • SPX buyer engagement & opportunity development • Supplier development & policy advocacy INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

19. In summary, UNIDO-EU collaboration on SMEs address diverse needs by: • Creating favorable business environments for investments, technology transfer and innovation in third countries • Enable global SME partnerships by closer linkages between UNIDO and EU programs on: • Industrial Upgrading andCluster development • ITPOs, ITCs, SPXs and networks of IPAs • Enterprise Europe Networks • Missions for Growth • SME Envoys INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

20. Thank you for your attention Contact n.tas@unido.org +43-1-26026-3474 INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

21. UNIDO Methodologies and Tools-a Sample INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

22. ISID through Industrial Upgrading and Modernization (IUMP) • IUMP acts on three interrelated levels: helping formulate policies to create a conducive business environment, developing support institutions and markets for services and upgrading enterprises • IUMP focuses on upgrading industrial sectors based on domestic comparative advantage to sustain existing jobs and create new employment for women and men for shared prosperity • IUMP helps upgrade technologies and implement innovative solutions, while ensuring compliance with international standards on quality, quantity and safety to access markets INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

23. ISID through Industrial Upgrading and Modernization (IUMP) • IUMP works to replace environmentally unsustainable production patternswith smart solutions to ensure efficient resource management, reduction of waste and pollution and improved industrial energy efficiency • IUMP builds up partnerships and strengthensindustrial governanceby aligning domestic and foreign private sector, institutions, the financial sector, academia, civil society and other development partners along a clear and unified goal INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

24. Survey of Enterprises in Selected ACP Regions UNIDO Africa Investment Promotion Agency Network (AfrIPANet) • The programme (2008-2012) was supported by the African, Caribbean and Pacific Group of States (ACP) and European Union Commission and funded through the 9th European Development Fund (EDF). • Long term objective “to support African countries to maximize the impact of foreign and domestic investment on sustainable and equitable growth and poverty reduction; to enhance competitiveness of the manufacturing and services sectors in order to capture export markets and achieve greater integration with global value chains and regional economic markets.” • Results: • Capacity building for national counterparts, including Investment Promotion Agencies (IPAs); • Production of the Investment Monitoring Platform (IMP) (7000 companies in data bank); • Publication of 2 Investment Reports (2011, 2013) • Regional harmonization of investment strategies through relevant bodies. INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

25. PROGRAMME COMPONENTS: • SPX enterprise profiling & benchmarking • SPX buyer engagement & opportunity development • Supplier development & policy advocacy INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

26. ITPO Services Information Fast Lane • On screened bankable industrial business opportunities in developing countries • On legal and economic environment • On investment financing and technology supply sources Industrial Partnership Promotion • Establishing/maintaining contacts with host country institutions and business community • Advisory services at each stage of the investment cycle • Targeted investment/technology promotion events (investment fora, technology exhibitions) • Facilitating business contacts between project sponsors and potential foreign investors Investment/Technology Promotion Delegate programme • On the job training in investment promotion techniques for Delegates from developing countries • Assistance in promotion of a portfolio of screened investment/technology projects • Business negotiations and follow-up as a contact point Business negotiations • One-to-one meetings • Tours of project sponsors and of potential investors • Country presentation tours Global Forum • ITPO Network meets periodically to exchange views, lessons learnt, exchange opportunities for cooperation on sectoral and geographic programmes, projects and investment and technology opportunities INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT

27. What is the IMP? Malawi Mali Mozambique Niger Nigeria Rwanda Senegal Tanzania Uganda Zambia Burkina Faso Burundi Cameroon Cape Verde Ethiopia Ghana Kenya Lesotho Madagascar • Global web-based tool to analyse, research, and share investment data • Data and knowledge sharing for the public and private sector • Initially launched for 19 African countries • Hosts in-depth data on almost 7,000 companies in the target countries INCLUSIVE AND SUSTAINABLE INDUSTRIAL DEVELOPMENT