Lima Declaration for inclusive and sustainable industrial development

DRAFT

Lima Declaration for inclusive and sustainable industrial development

INTRODUCTION

1.        We, the Heads of State and Government, or our representatives, gathered at the fifteenth session of the General Conference of the United Nations Industrial Development Organization in Lima, Peru, reaffirm and deepen our commitment towards achieving inclusive and sustainable industrial development.
2. The underlying principles of the first Lima Declaration adopted in 1975 have stood the test of  time:  industrialization is an indispensable route  to  development. Industry increases productivity and generates income, thereby reducing poverty and providing opportunities for social inclusion. As countries further develop their industries, the motivation to increase value added drives an increased application of science, technology and innovation, encourages greater investment in skills and education, and provides the resources to meet broader development outcomes.
3. Since 1975 economic, political, social and technological developments, along with structural changes in global trade, have revolutionized the lives and livelihoods of many. Yet serious challenges remain for countries at all stages of development, including poverty, inequalities within and between countries, unemployment and lack of access to economic resources and opportunities, de-industrialization and the intensifying threats of environmental degradation and climate change. At the same time, the world is facing the prospect of continued  strong population growth with a marked “youth bulge”, burgeoning urbanization, depletion of natural resources, decreases in official development assistance, and the growing threat of inadequate rates of economic development  leading to political and social vulnerabilities.
4. The Millennium Development Goals (MDGs) have formed the global benchmarks for development progress since their adoption in 2000. As they approach their scheduled expiry in 2015, the international development agenda beyond that year. In this context, the importance of incorporating appropriate goals and targets related to economic growth and productivity, and in particular to inclusive and sustainable industrial development as a primary driver of economic growth, has gained increasing recognition.
5. New partnerships between all relevant actors to promote inclusive and sustainable industrial development are fundamental for overcoming the prevailing development challenges and achieving prosperity. These partnerships should include representatives of the public and private sectors, financial institutions, academia and civil society. They should also encompass South-South as well as triangular cooperation.

INCLUSIVE AND SUSTAINABLE INDUSRIAL DEVELOPMENT

6. This Declaration affirms our common understanding of inclusive and sustainable industrial development and outlines the principles under which global, regional, and national action should be taken, and the role we ascribe to the United Nations Industrial Development Organization in promoting these principles.
7. We share the view that inclusive and sustainable industrial development means enhancing productive capacities and promoting responsible value addition in a way that addresses the need to raise the thresholds for job creation and income generation, as well as environmental protection and resource efficiency. We believe that it should do so by supporting the structural transformation of the economy and encouraging economic growth, enhanced productivity, and the development of technology, innovation, infrastructure and trade.
8. We agree that an inherent aspect of inclusive and sustainable industrial development is that it progresses in harmony with the environment and uses resources efficiently.
9. We affirm that inclusive and sustainable industrial development should lead to positive development outcomes for all, especially in terms of decent jobs and equitable economic growth.
10. We are resolute that inclusive and sustainable industrial development must reduce inequalities between people, including between people in different income quintiles, between men and women, and between generations. It must also reduce inequalities between countries and regions, including urban-rural inequalities.
11. We recognize the differentiated needs for industrial development services of  countries at different stages of development and pursuing different approaches to industrialization, and the need to provide appropriate responses.
12. International industrial cooperation remains a key means of achieving the benefits of industrial development. The first Lima Declaration paved the way for a structured global system of consultations between and among industries and nations. We believe that now is the time to strengthen international industrial cooperation and new partnerships on a broad  multi- stakeholder basis.
13. We support the establishment of a universal goal on socially inclusive and environmentally sustainable industrial development as the basis for sustained economic growth. The goal should be relevant to all countries. It should be supported by agreed common targets and indicators, the levels of which will be set by each country according to its specific needs and circumstances.
14. We define the goal as follows: by 2030, all countries will have achieved an enhanced level of inclusive and sustainable industrial development according to their differentiated needs. Three targets and their corresponding indicators, based on the economic, social and environmental dimensions of sustainable development, are to be associated with this goal.

Target 1: Expansion and diversification of manufacturing value added (MVA) Indicators should include:

1. Percentage of annual MVA growth
2. Percentage share of value added generated from new products and new activities in total
3. Percentage change in level of industrial productivity

   Target 2:  Measurable improvements in social inclusion

   Indicators should include:

1.   Change in the number of persons employed in industrial activities by gender
2. Reduction in the ratio of  the gender wage gap
3. Reduction in the geographic inequality in industrial production

             Target 3: Reductions in the environmental footprint of  their industries

              Indicators should include:

1. Percentage increase in energy efficiency of industry (including subsectors)
2. Decrease in the use of material input per unit of output
3. Reduction in CO₂ emissions per unit of output in industry

15. Given the need for a holistic global framework on sustainable                       development, this goal be integrated into the post-2015 development agenda and the related Sustainable Development Goals. The baseline and target years for monitoring of progress will be harmonized accordingly. Data should be made available at regional, national and global levels and disaggregated as far as possible by sector, gender and any other relevant level of disaggregation. In order to enable the effective and accurate measurement of the benefits of inclusive and sustainable industrial development, data should reflect both industry and industry-related services.

16. We affirm that each country has the right to determine its own development strategies and we task the United Nations Industrial Development Organization to assist countries in ascertaining suitable levels of these indicators that they may seek to achieve in accordance with their specific needs.

THE ROLE OF THE UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION

17. We reaffirm our commitment to UNIDO as a unique Organization established to provide global public goods the benefit of global community, and recognize the critical contribution it has made to to industrial development through its three thematic priorities of reducing poverty through productive activities, trade capacity-building, and environment and energy. Nevertheless, we do not regard these thematic priorities as immutable, but rather as a description of needs in inclusive and sustainable industrial development at a given point in time.
18. We believe that the Organization’s support for inclusive and sustainable industurial development should continue to include industry-related services so that the Organization ay fully engage in all steps of the value chain.
19. We believe that the approaches adopted by the Organization must be periodically reviewed to ensure that it is able to respond effectively to emerging new development challenges.
20. The central mandate of the Organization remains the promotion and acceleration of industrial development and international industrial cooperation. This should be implemented in an inclusive and sustainable manner, and in the framework of the new partnerships between all relevant actors as started in this Declaration. The core activities to be implemented by UNIDO in this context can be expressed in terms of building industrial capacities and qualitatively improving industrial capacities.
21. Strategies on building industrial capacities should include fostering entrepreneurship in industry for industrialization and re-industrialization; linking small and medium-sized enterprises with regional and global value chains; promoting agribusiness; encouraging compliance infrastructure; supporting the creation of industries delivering environmental goods, services and technologies; strengthening capabilities for the formulation and implementation of effective policies and strategies to promote industrial development; supporting post-crisis rehabilitation to strengthen productive capacities and promote sustainable production; and facilitating technology and knowledge transfer, including on a South-South and triangular basis.
22. Strategies on qualitatively improving industrial capacities should include social and economic inclusion policies; meeting market standards; supporting industrial export promotion; promoting corporate social responsibility; facilitating access to clean and renewable energy for productive use; increasing raw material and industrial energy efficiency; integrating women and youth into industry; supporting industrial upgrading and methods of resource-efficient cleaner production; supporting investment promotion; global promotion of green industry; and building national capabilities for the industry-related implementation of multilateral environmental agreements.
23. In order to address the current challenges faced by its member states UNIDO should prioritize capacity-building, policy planning, and the sharing of knowledge and best practices.
24. We see the Organization’s particular value as the central coordinator of international industrial cooperation on the United Nations system. This entails strengthening all of its functions in the fields of technical cooperation, action-oriented research and policy advisory services, standards and compliance, and its convening role.
25. The Organization should serve as a global facilitator of knowledge and advice on policies and strategies to promote inclusive and sustainable industrial development. It should ensure that statistics on manufacturing industry are collected and disseminated, and that industrial statistics guidelines and methodologies for measuring MVA are kept up to date.
26. The Organization should provide the full range of its development services according to the differentiated needs of all its member states, in support of their national industrial priorities and strategies.
27. We recognize that the Organization has a special role in ensuring progress towards the achievement of the global goal on inclusive and sustainable industrial development. The Organization should therefore promote a system of international dialogue in order to monitor and foster progress on the achievement of the global goal on inclusive and sustainable industrial development. This dialogue should be built on the basis of multi-stakeholder partnerships including representatives from government, private sector, academia and civil society.
28. We confirm the universality of the Organization and its mandate, and call upon all countries to engage actively with it. In this connection, we call on Member States to ensure adequate funding for the Organization, inter alia through full and timely payment of assessed contributions and through voluntary contributions.
29. We also call upon Member States to support earmarking voluntary contributions increasingly at programmatic instead of project levels to enhance efficiency and effectiveness in the use of the Organization’s financial resources and to provide it with the flexibility needed to address the challenges it faces in supporting inclusive and sustainable industrial development within its established planning cycles.
30. We further encourage the Organization to seek the mobilization of increased financial resources through new and innovative sources of finance, including domestic resource mobilization and voluntary contributions from Member States, international financial institutions, foundations, the private sector and core and operational activities.
31. We call upon UNIDO to enhance its support for the efforts of countries to achieve the goal of inclusive and sustainable industrial development and to report regularly to the General Conference on the assistance provided by the Organization and on its development impact.

Adopted at the fifteenth session

of the General Conference

of the United Nations Industrial Development Organization,

Lima, Peru, x December 2013