Structural Change for Inclusive and Sustainable Industrial - - PowerPoint PPT Presentation

Structural Change for Inclusive and Sustainable Industrial Development

Pre-TICAD event in Vienna 4 July 2019 UNIDO

Nobuya Haraguchi

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Why is structural change towards industrialization important for Africa’s sustained growth and shared prosperity?

• Growth-enhancing structural change
• Unconditional convergence
• Rapid and inclusive growth especially for low

and lower-middle income countries

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3 Employment changes in manufacturing industries

Structural transformation in the manufacturing sector

GDP per capita (in 1,000 US$)

Source: UNIDO

0.001 0.002 0.003 0.004 0.005 0.006 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 15 16 17 18 20 21 22 23 24 25 26 27 28 29 31 33 34

E-P Ratio

Food and beverage Wearing apparel Textile Coke and refined petroleum Machinery and equipment Motor vehicles Electrical machinery Chemicals Basic metals

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Africa is the least industrialized region

Source: UNIDO

Source: UNIDO

Cost to export 2018

Economy Income group Time to export: Documentary compliance (hours) Time to export: Border compliance (hours) Cost to export: Documentary compliance (USD) Cost to export: Border compliance (USD) Tanzania Low income 96 96 275 1160 Senegal Low income 26 61 96 547 Ethiopia Low income 76 51 175 172 Egypt Lower middle income 88 48 100 258 Nigeria Lower middle income 131 135 250 786 Morocco Lower middle income 26 19 107 156 South Africa Upper middle income 68 100 170 428 Sri Lanka Lower middle income 48 43 58 366 Vietnam Lower middle income 50 55 139 290 Indonesia Lower middle income 61 53 139 254 China Upper middle income 21 26 85 484 Thailand Upper middle income 11 51 97 223 Malaysia Upper middle income 10 45 45 321

Source: World Development Indicators

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Future of industrialization

• Basic and digital infrastructure
• Increase in the importance of productivity
• International collaboration