Udenrigsudvalget 2015-16
URU Alm.del Bilag 33
Offentligt
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The added value of UNIDO membership
Denmark
Summary
The draft Finance act for 2016 proposes a reduction of DKK 2.3 billion on spending for development
cooperation, and entails the full withdrawal of membership from the United Nations Industrial
Development Organization (UNIDO) effective 1 January 2017.
Should this proposal be accepted, it would be the first time in the history of Denmark that this
founding member and historically strong supporter of the UN system would leave an organization of
the UN family. This would come shortly after world leaders have adopted the 2030 Sustainable
Development Agenda in a historic summit of the UN General Assembly chaired by Denmark.
The Danish 2016 contribution to UNIDO regular budget amounts to DKK 6.1 million or approximately
0.04% of the total proposed Danish development cooperation budget in 2016 (DKK 14.8 billion).
The work that UNIDO has been undertaking since its inception is fully in line with the new priorities
of the government of Denmark to “work
towards meeting the developing countries demand for trade,
investments, and technology so as to promote economic growth […] further the conditions of
developing countries and a sustainable business community that creates jobs and economic
prosperity”
as outlined in the 2016 development cooperation budget proposition (p.6).
The same budget proposal also foresees “setting
aside resources to international organizations
working in the area of trade and development in order to strengthen the capacity of developing
countries to benefit from access to existing and new markets”,
an area where UNIDO was particularly
praised by the Norwegian Agency for Development Coopration (NORAD) in 2015 for its contributions
in the area of trade capacity-building as “centre
of excellence,
[…]
playing a special and somewhat
unique role in this field”.
Following a formal invitation by the Danish Government in May 2015, UNIDO is currently in the
process of establishing a UNIDO Nordic Office in the UN City Copenhagen by the end of 2015.
 URU, Alm.del - 2015-16 - Bilag 33: Henvendelse af 11. november 2015 fra UNIDO om materiale forud for foretræde den 18. november 2015
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MANDATE OF UNIDO
UNIDO is the
only
UN specialized agency mandated to promote inclusive and sustainable
industrial development (ISID). UNIDO takes a holistic approach in this regard: it provides
technical cooperation and policy advisory services that are based on its own in-house expertise,
analysis and research.
Poverty remains the central challenge of our world, and is closely related to issues such as
migration, peace and security.
Historical evidence and comprehensive analysis demonstrate that sustainable industrialization is
indispensable to address these issues.
UNIDO’s approach is about “teaching how to use a fishing rod” rather than “handing out fish”
(example of the UNIDO programme for the local pharmaceutical manufacturing of essential
drugs in Africa vis-à-vis the humanitarian approach of distributing medication)
Inclusive and sustainable industrial development is an unparalleled driver of economic growth,
transformative change and social progress, through the provision of stable employment, decent
jobs and increased incomes.
UNIDO’s role in international development has never been more relevant than today. UNIDO’s
goal of achieving
inclusive and sustainable industrial development
(ISID) is explicitly recognized in
the 2030 Agenda for Sustainable Development, adopted by all world leaders on 25 September
2015, specifically in SDG goal 9 “Build resilient infrastructure, promote sustainable
industrialization and foster innovation”.
UNIDO’s work is targeted at poverty reduction through job and wealth creation, trade capacity-
building, food security, gender equality, and energy and environment.
Example
agri-business to address food security and reduce poverty: a large share of agricultural
produce in developing countries does not undergo local processing, thus implying substantial
post-harvest loss and food waste. UNIDO provides a variety of services to assist developing
countries in adding value to agricultural produce, while generating employment opportunities
for rural communities. UNIDO also helps establish value chains and links between resources and
markets.
Example
renewable energy and energy efficiency: UNIDO’s energy-related programme portfolio
includes the promotion of energy efficiency policies, technologies and practices, as well as
renewable sources of energy for the facilitation of productive activities. UNIDO also has an
established convening role in this area, it is the founder of the Vienna Energy Forum, a leading
global event on climate change issues organized every second year since 2009.
Example
climate change: UNIDO responds to the increasing demand for innovative partnerships
and integrated solutions to address climate change, energy and development challenges
simultaneously. UNIDO harnesses the potential of SMEs, start-ups and entrepreneurs for the
promotion of climate policies while also strengthening the comparative advantage and
competitiveness of the industrial sector. Concrete examples include the sustainable transport
and sustainable cities programme, the gender-energy nexus programme, the small islands
energy nexus programme, carbon capture, storage solutions, smart grids, etc.
UNIDO also has a strong record of post-crisis interventions aiming at the restoration of
livelihoods and productive capacities devastated by armed conflicts and natural disasters, as well
as at building resilience by creating economic opportunities and fostering self-reliance of the
affected people.
While political instability and war may be one reason for large numbers of refugees making their
way to Europe, the lack of job opportunities and income as well as extreme poverty is
recognized as the other main cause for migration. Through the above-mentioned projects and
ROLE OF UNIDO AND THE SDGs
WHAT WE DO
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programmes, UNIDO addresses the root causes of social instability, with targeted local
interventions to improve food security, job and wealth creation and energy access as those
issues that contribute to social stability and peace.
UNIDO fully recognizes that gender equality and the empowerment of women have significant
positive impacts on sustained economic growth and sustainable industrial development, which
are drivers of poverty reduction and social integration, and therefore uses gender
mainstreaming as a key strategy in all of its projects for achieving gender equality and the
empowerment of women.
According to the vision of inclusive and sustainable industrial development (ISID) “no one should
be left behind” and “prosperity should be shared with all” — particularly with youth and women.
UNIDO is convinced that employment and entrepreneurship will help bringing women out of
isolation and foster social inclusion, while at the same time improving their livelihoods.
With is presence in the field UNIDO covers 116 countries and manages technical cooperation
projects in all regions of the world, with specific emphasis on Africa and the Least Developed
Countries (LDCs).
UNIDO is one of the most effective and efficient UN organizations. The Organization’s increased
efficiency is highlighted by a 240% increase in its technical cooperation delivery over the past ten
years. At the same time, UNIDO has also substantially increased its mobilization of voluntary
financial resources, testifying to the growing international recognition of the Organization as an
effective provider of development services. This increase has been accomplished with virtually
stable staff levels and a reduced regular budget over the past 15 years.
The assessed contribution of Denmark to the UNIDO regular budget for 2016 amounts to DKK
6.1 million. The approximate annual expenditure for core staff members with Danish citizenship
amounts to DKK 3.8 million (figure of 2014, excluding experts and consultants). Moreover,
procurement returns to Danish industry and consulting companies averaged an annual DKK 6.7
million over the past five years.
UNIDO is already showing presence in Copenhagen with an office of the Climate Technology
Centre and Network (CTCN) in the UN City in Copenhagen.
Based on an offer by the Government of Denmark in May 2015, UNIDO’s management has taken
the decision to expand its local representation by establishing a UNIDO Nordic office in the UN
City Copenhagen. Based on initial exploratory talks in June 2014 and further to the visits of the
UNIDO Director General in October 2014 and March 2015, UNIDO is currently finalizing
preparations for the establishment of such an office, which is planned to be opened at the end
of 2015.
UNIDO also promotes investments and technologies of advanced industrialized countries to
developing countries and aims at enhancing trade between the “North” and the “South”. The
UNIDO Nordic Office is also planned to contribute to promoting the interests of Danish
industries and consulting companies in the developing world.
UNIDO takes a lead role within the UN system for cooperation with the private sector. In
October 2012, for example, UNIDO entered into a partnership with the Carlsberg Group, the
world’s third largest brewing company, and its subsidiary Baltika Breweries for a project to
reduce natural resource and water consumption, pollution and greenhouse gas emissions.
BUDGET
UNIDO IN COPENHAGEN
INVESTMENT PROMOTION AND PRIVATE PUBLIC PARTNERSHIPS
TRADE CAPACITY-BUILDING
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UNIDO is one of the largest providers of trade-related development services, offering customer-
focused advice and integrated technical assistance in the areas of competitiveness, trade policies,
industrial modernization and upgrading, compliance with trade standards, testing methods and
metrology.
The Norwegian development agency Norad recently reviewed UNIDO’s trade capacity-building
programme and called UNIDO a leading implementing agency within the Aid-for-Trade family
“playing a special and somewhat unique role” and “widely recognized as a centre of excellence
in this area”.
UNIDO’s competencies have also repeatedly been recognized by the European Commission,
which is funding several large scale regional and national programmes, notably in West and
Central Africa, and has become one of the largest donors towards UNIDO’s programmes of
technical cooperation. Overall, voluntary contributions towards trade capacity-building
programmes of UNIDO exceeded USD 42 million in 2014 alone.
The European Commission commended UNIDO in its 2015 Pillar Assessment as an efficient and
effective Organization in line with EC standards.
The Japanese government came to a similar conclusion after a review of 64 entities in August
2015, ranking UNIDO as one of only four Organizations with the highest ranking.
UNIDO is an implementing agency of the Multilateral Fund for the Implementation of the
Montreal Protocol on Substances that Deplete the Ozone Layer: out of 13 evaluations since
2001, UNIDO was ranked 11 times as the top implementing agency, and second only twice (in
2002 and 2007).
OTHER RECENT EVALUATIONS