By Gerd Müller
Director General of the United Nations Industrial Development Organization (UNIDO)
We live in a time of multiple, interconnected crises - crises which hit developing countries the hardest. Hunger and poverty remain widespread and have been worsened by the COVID pandemic. Moreover, they are exacerbated by conflicts and crises and the impacts of climate change. Landlocked Developing Countries (LLDCs) face unique challenges in addition to all of this, which range from geographic limitations to inadequate infrastructure, all of which impede their socio-economic development. Not having direct access to the sea, and associated easy access to global markets, is a huge challenge to developing a competitive private sector and attracting foreign investors. While the challenges are indeed enormous, there are also great opportunities, and the solutions do exist - solutions that UNIDO works on together with our Member States as well as other public and private sector partners.
The private sector plays a key role in unlocking opportunities for sustainable development in LLDCs. Businesses worldwide source low value-added products and raw materials in least developed countries through global supply chains. What we need is a fairer global economy. We need fair and sustainable value chains which guarantee livable minimum wages for the hundreds of millions of workers at the beginning of supply chains, for example on the plantations and in the mines of developing countries. We also need more investments in more local value addition and decent job creation. Many more international companies need to lead the way and show how we can create real win-win situations when investing in local manufacturing in LLDCs and sustainable supply chains.
LLDCs have seen some remarkable success stories in recent years. Rwanda has experienced both notable economic growth and increased foreign private investment flows. Uganda is projected to experience strong economic performance according to the African Development Bank Group (AFDB), and ranks 4th on UNIDO’s Competitive Industrial Performance Index amongst the group of all least developed countries.
Investing in sustainable industrialization is key to accelerating economic growth and creating the decent jobs necessary to break the cycle of poverty and hunger which plagues the LLDCs. As the United Nations specialized agency for industrial development, UNIDO supports our Member States in developing industries in a future-oriented and sustainable manner, to pave successful development pathways which are both in harmony with nature and the climate, all the while providing better livelihoods for individuals and communities worldwide.
UNIDO works in LLDCs on sustainable supply chains, clean energy and climate action, and food security. Of course, we must recognize that there is no ”one size fits all” approach for LLDCs. Thus, UNIDO offers varied solutions to the challenges faced by LLDCs, all of which are tailored to the individual needs of each country.
Structural transformation, economic diversification, more local value addition and building export capacity are key for the sustainable development of LLDCs. UNIDO’s efforts foster entrepreneurship and support small and medium-sized enterprises (SMEs), while also promoting investments in technology and knowledge transfer. We invest in training, education, and job creation for women and youth. We know that access to energy is the basis of any and all development, and thus promote access to sustainable energy solutions and energy efficiency. It is a sad fact that hunger and poverty remain widespread in LLDCs, which is why food security one of our main priorities. We support sustainable agribusiness development, promote modern agri-tech transfer and invest in agro-industrial parks.
UNIDO also supports Member States in enhancing their quality infrastructure in order to facilitate trade and integration with regional and global markets while promoting sustainable practices. Sustainable supply chains and fair trade are key aspects for LLDC’s economic growth. We are working with the private sector to encourage and enable them to invest in more local value addition, devise and comply with social and ecological standards, and we create frameworks which encourage investment. With our public-private partnerships, we also support startups and SMEs, empower women and youth, and strengthen local industries particularly by enhancing industrial skills.
In Ethiopia for example, UNIDO works together with the Government of Italy and illy Caffè, supporting small producers and cooperatives, helping them to increase yields, establish quality infrastructure and optimize post-harvest processes. in Zambia, UNIDO has partnered with Sweden and the Volvo Group to establish a vocational training academy for the operation and maintenance of heavy equipment used in the mining industry and related growing industries such as construction and transport.
Many LLDCs are rich in natural resources, which are in high demand globally. UNIDO also works on promoting a green and responsible mining sector, as well as more local value addition in the area of critical minerals where there are great opportunities for economic growth.
UNIDO's priorities are exactly what LLDCs need to drive sustainable industrial development, economic resilience, and growth decoupled from emissions. With innovative industrial development solutions, with private sector investments, and with knowledge and technology transfer, LLDCs can unlock great new opportunities for prosperity that benefit all.
Gerd Müller, since December 2021, Director General of the United Nations Industrial Development Organization (UNIDO), has had various leadership positions from an early stage in his career. He has many years of experience as a leader in multilateral cooperation, sustainability and innovative agriculture. He was from 2013-2021 German Minister for Economic Cooperation and Development and has long been an advocate of fair trade, initiating legislation in Germany on enforcing social and environmental standards along supply chains.
