United Nations Industrial Development Organization, UNIDO

The UN Industrial Development Organization (UNIDO)

The United Nations Industrial Development Organization (UNIDO) is a multilateral technical assistance agency of the United Nations General Assembly. It was established in 1966 and officially changed into a specialized agency of the United Nations in June 1985. Headquartered in Vienna, Austria. The task is "to help promote and accelerate the industrialization of developing countries and coordinate the activities of the United Nations system in industrial development". The aim is to promote the economic development and industrialization of developing countries and countries with economies in transition through technical assistance and industrial cooperation. 

In addition to being a global intergovernmental forum on industrial issues, its main activity is to help a large number of developing countries and countries with economies in transition improve their economic competitiveness through a series of integrated services at the three levels of policy, institution and enterprise To improve the environment and increase productive employment.

The organization has the General Assembly as the highest authority, which is convened every 4 years. 
The Council is composed of 53 members elected from member countries and holds an annual meeting. There is also the Program and Budget Committee and the Secretariat. 

As of September 1996, UNIDO had established investment service offices in 12 countries. These offices mainly provided services in project coordination, establishment of joint ventures, financial assistance, technology transfer and marketing. (The branches are located in: Athens, Manama (Bahrain), Beijing, Istanbul, Milan, Moscow, Paris, Seoul, Tokyo, Warsaw, Zurich and Vienna).

UN Organization Name:    United Nations Industrial Development Organization

Formation date:    In 1966

Sexuality:    Specialized agencies in the United Nations system

Member States:    170

    What is the Organization Structure of UNIDO?

    UNIDO’s organizational structure includes the General Assembly, the Industrial Development Council, the Programme and Budget Committee and the Secretariat. 

    The UNIDO is the highest decision-making body of the organization. It holds a plenary session every two years. It is attended by all member countries and is responsible for discussing guidelines and policies and making decisions. 

    Two regular meetings were held to consider major issues such as administration, operations, personnel and financial budgets and submit them to the General Assembly for approval. 

    The Program and Budget Committee is a subsidiary body of the Council and holds an annual meeting to assist the Council in preparing and reviewing work plans, budgets and other Financial matters. 

    The main functions and tasks of the secretariat are to handle the daily affairs of the organization. The Secretariat is composed of the Director General and three Executive Directors and other staff.

    UNIDO employs more than 600 staff at headquarters and other field offices. UNIDO has 170 member countries, has regional or country representative offices in 35 countries, and is pursuing decentralized reforms. 
    Through cooperation with the United Nations Development Programme, the organization covers more than 80 countries.
    In addition, the organization has investment promotion offices in nine countries to form a unique global investment and technology promotion network. 
    The current Director General Li Yong (Vice Minister of the Ministry of Finance of China) was elected as the new Director General on the 41st UNIDO Council on June 24, 2013 for a term of four years.

    Who is the Director General of UNIDO?

    Li Yong (former Deputy Minister of Finance of China) if the current Director General of UNIDO.

    On June 24, 2013, the 41st Council of the United Nations Industrial Development Organization voted for the new Director-General. 

    The candidate recommended by the Chinese government and Vice Minister of Finance Li Yong won the election with an absolute advantage of 37 votes in the first round of voting. 

    He was officially appointed as the seventh director-general of the organization at the special conference held on June 28. 

    On June 25, the Ministry of Commerce spokesman Shen Danyang congratulated Li Yong on winning the election, and at the same time made a statement that China’s nomination of candidates for the UNIDO Director-General exemplified China’s commitment to international development, especially its promotion Firm support for sustainable industrial development.

    China and UNIDO have maintained good cooperative relations for 40 years. 
    Through technical cooperation projects, UNIDO has not only introduced advanced technology, management experience and some key equipment for China, but also trained a large number of professional technicians for China, which has effectively promoted the improvement of China's industrial technology and economic and social development.

    China has been actively participating in UNIDO’s activities and has provided assistance within its capacity.

    Shen Danyang emphasized that in the future, China will further strengthen cooperation with UNIDO and promote UNIDO to make greater contributions to the sustainable development of global industry.

    Development Path of United Nations Industrial Development Organization

    During the Cold War, the western industrial countries proceeded from their own political and economic interests and hoped to win the cooperation of the vast number of developing countries, so they had to support UNIDO with the purpose of helping the industrial progress of the developing countries. 

    During this period, the amount of technical assistance provided by the United Nations to developing countries through UNIDO increased rapidly. 
    By 1990, this number reached US $ 160 million, a 12-fold increase over the early 1970s. 
    However, with the end of the Cold War in the early 1990s, the situation of confrontation between East and West ceased to exist, and Western industrial countries gradually lost interest in UNIDO’s activities. 
    In addition, UNIDO itself also has many defects and problems. For example, business overlaps with other UN agencies and the efficiency is not high, so they are constantly criticized and accused by Western countries. 

    Although UNIDO took the lead in carrying out large-scale reforms in the United Nations system since 1993 to solve the above-mentioned problems, it still failed to change the fundamental attitude of the Western countries towards it. 

    In 1993, Canada announced its withdrawal from UNIDO, and the United States officially withdrew at the end of 1995.

     Since the United States’ membership accounted for a quarter of the organization, its withdrawal caused a serious crisis in the survival and development of UNIDO. Therefore, some Western countries advocated the abolition of UNIDO or the merger with other organizations, but they were strongly opposed by developing countries led by the Group of 77. 

    The two sides conducted many arduous consultations on the status and role of UNIDO, and finally retained UNIDO’s status as an independent specialized agency. UNIDO has also reduced its original six divisions to three divisions on the basis of adjusting its work priorities and reducing the scope of activities. 

    Its biennial budget has also been reduced by 20%. Its work focuses on promoting investment and trade growth, Technology transfer, clean and sustainable industrial development and other areas, and focus on the least developed countries.

    After continuous reforms in recent years, UNIDO’s finances and institutions have been relatively stable.
    Logo and Seal of United Nations Industrial Development Organization UNIDO

    What is UNIDO doing in the field of Investment and Technology Promotion?

    In the field of investment and technology promotion, after 33 years of development, UNIDO has become an important part of the global multilateral investment and technology and project financing system. 
    The "Project Feasibility Study Report Preparation Manual", "Project Evaluation Guide", "BOT Guide" and other specifications formulated by the United Nations Industrial Development Organization are the assessments of investment and financing activities carried out by most national and regional governments and international business and financial circles. Guidelines and basis.

    The third-generation expert system model developed and used by UNIDO for project feasibility analysis and reporting is an authoritative software system for the international investment and financing community as a standardized project analysis and evaluation. 

    The United Nations Industrial Development Organization has formed a relatively complete multilateral investment and technology promotion system around the world and established a huge network of investment and technology promotion systems and databases, which can quickly identify and timely and accurately transmit international investment and technology market information.

    Budget of UNIDO

    UNIDO’s budget is divided into three parts: regular budget, operating budget and voluntary contributions. 
    The regular budget comes from Member States’ contributions. 
    The total regular budget for the 2006-2007 biennium is approximately 140 million euros. 
    Most of this budget is used for UNIDO’s staff salaries and administrative expenses, and only 6% is used for technical cooperation activities. 

    The operating budget is derived from project management fee income, and the operating budget for the 2006-2007 biennium is approximately 21 million Euro. 
    Voluntary contributions include contributions from member states and international institutions, reaching US $ 62.8 million in 2004.

    Relations with China

    In December 1972, China sent observers to the first UNIDO Standing Committee for the first time. Since officially joining UNIDO in 1973, China has been a member of the UNIDO Council.

    Since joining UNIDO, I have gradually established a good cooperative relationship with the organization. China has always paid its dues on time, and at the same time provides a certain amount of foreign exchange and RMB voluntary contributions to the Industrial Development Fund (IDF) of the organization for various activities to promote China's industrial and technological progress, and technical exchange activities between China and other developing countries.

    So far, the UNIDO Fund (including convertible and non-convertible contributions) pledged by China to UNIDO has accumulated to 10 million US dollars.

    In 2007, I paid 2.23 million euros to UNIDO, accounting for 2.987%, ranking seventh. All the directors-generals of the organization have visited China upon invitation, and some have visited China many times, and were received by our country's leaders.
    China has four staff members in UNIDO, the highest position is Liang Dan (female), director of the investment department, D1 level.

    According to statistics, the total amount of cooperation projects between UNIDO and China under implementation is about US $ 50 million, and its implementation accounts for about 1/5 of the organization ’s global implementation and more than half of the implementation in the Asia-Pacific region. 

    The content of the project involves the fields of environmental protection, industrial management, investment and technology promotion, the development of small and medium-sized enterprises, supply chain management and comprehensive solutions. At the same time, UNIDO will also establish a South-South Industrial Cooperation Center in China to promote cooperation with developing countries such as Africa. 

    Through these projects, UNIDO not only introduced advanced technology, experience and some equipment for our country, but also invited a large number of international experts to serve me, and at the same time provided various forms of training for a large number of technical personnel in China and abroad. 
    China's industrial development and progress have played an effective role in promoting.

    As the executing agency of UNDP, Montreal Protocol, Global Environment Facility and persistent organic pollutant projects, UNIDO has made great contributions to the implementation of China ’s aid projects and the promotion of China’s environmental protection. 

    In recent years, with the joint efforts of the Chinese government and UNIDO, the two sides have in recent years opened up the Trust Fund (TRUST FUND) project, which mainly involves sustainable energy, investment promotion, supply chain management, and helping small and medium-sized enterprises to improve their competitiveness.

    According to data provided by UNIDO, since 1979, UNIDO has carried out a total of 435 projects in China, totaling approximately US $ 264 million.

    The UNIDO China Representative Office was established in 1979 and was promoted to a regional representative office in 2006. 
    Its jurisdiction includes China, Mongolia, North Korea and South Korea. It is also responsible for maintaining industrial development with the United Nations in China, Japan and South Korea. Organize the liaison of the Investment and Technology Promotion Office. 
    The representative office is a diplomatic institution.

    Relationship with Technology Promotion Office

    The China Investment and Technology Promotion Office of the United Nations Industrial Development Organization is the resident business organization of the United Nations Industrial Development Organization with diplomatic status in China.

     It provides comprehensive professional services for multilateral investment, trade and technology promotion. It is not only committed to the research, consulting and implementation support of national, industrial and corporate globalization overall solutions.
    It also undertakes government policy and decision-making consultancy, international project coordination organizers, international resource integration providers, project or task implementation supporters, organizers of extensive and forward-looking international forums and cooperation platforms, and many other roles.

    Combining the characteristics of neutrality, multilateralism, extensiveness and professionalism of the United Nations Industrial Development Organization, the United Nations Industrial Development Organization’s global investment and technology promotion network is used to provide government funds, enterprises and non-governmental organizations with project funds, expert teams, solutions and international Assistance and support for platforms and other aspects.

    The United Nations Industrial Development Organization's China Investment and Technology Promotion Office, as the resident business organization of the United Nations Industrial Development Organization in China, enjoys diplomatic status. 

    According to the purposes of the United Nations Industrial Development Organization, it serves as a Technical supporters, providers of professional knowledge, management skills, human resources and financing channels will be committed to promoting China and other member countries of the United Nations Industrial Development Organization to achieve high-quality, efficient and constructive results in the above fields.

    UNIDO Development Conference

    The United Nations Industrial Development Organization initiated and hosted the Global CEO Development Conference in 2011.

     In 2012, former Deputy Minister of Foreign Trade and Economic Cooperation Long Yongtu, Chief Industrial Mark of the United Nations Industrial Development Organization in the Asia-Pacific Region Covens, and Lenovo Chairman Liu Chuanzhi served as joint Chairman.

    In 2014, with the support of the Ministry of Industry and Information Technology and the Shanghai Municipal Government, the "Global CEO Development Conference" established a long-term mechanism for the opening of the three meetings with the "Global City Informatization Forum" and "China International Industry Fair". 

    In 2015, the 5th Global CEO Development Conference will be held on November 3 at the Shanghai International Convention Center.

    On November 3, 2019, the 18th Congress of the United Nations Industrial Development Organization (UNIDO) opened in Abu Dhabi, the capital of the United Arab Emirates. 

    The theme of this conference is "Industry 2030-Innovation, Unicom, and Reshape the Future". This conference, co-hosted by the United Nations Industrial Development Organization and the UAE government, will focus on the key role played by inclusive and sustainable industrial development in achieving the 2030 Agenda for Sustainable Development in the context of the Fourth Industrial Revolution. According to the UAE News Agency, more than 800 officials or representatives from 170 UNIDO member countries participated in the meeting.

    Problems that UNIDO is facing

    The main problem facing UNIDO is financial difficulties. 
    The shortage of funds severely restricted its role in promoting industrialization in developing countries. 

    The long-term arrears of some Member States have caused the organization’s cash flow to be severely insufficient, and it has had to repeatedly revise its programme of activities. 

    As of March 2000, of the 168 member countries, 67 countries had lost their voting rights due to arrears of contributions, with a total of USD 141 million in arrears (including USD 61.8 million owed by the US).

    UNIDO’s funds for technical cooperation are insignificant, accounting for only about 6% of its regular budget. The budget for the 2000-2001 biennium was $ 132.9 million, and the funds for technical cooperation were only $ 7.974 million. 

    The source of funds for technical cooperation mainly depends on voluntary contributions. However, due to the indifference of Western countries towards UNIDO, except for a few countries, the amount of voluntary contributions provided by other donor countries has been declining year by year. 

    Some countries such as Germany have already Voluntary contributions were stopped two years ago. This situation severely restricts the development of UNIDO.

    UNIDO ’s ability to self-finance is limited. The comprehensive programme for developing countries requires a total of US $ 224 million and only raised US $ 42 million. The assistance provided is far from meeting the needs of developing countries.

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