Challenges

Many developing countries struggle with insufficient infrastructure and low integration into global and regional markets. Premature de-industrialization has been increasingly noticeable in developing countries, in which the manufacturing sector shows a decreasing share of gross domestic product (GDP).

Establishing competitive industries and increasing the productivity of the industrial sector is crucial for tackling socio-economic challenges in these countries. Industrial parks help developing countries overcome constraints that hinder industrialization, such as limited access to information, technology, finance, infrastructure, as well as weak regulatory institutions and high production and transaction costs. Industrial parks can be important tools for inclusive and sustainable industrialization, and therefore help achieve national progress on the Sustainable Development Goals, in particular Goals 6, 8, 9 11, 12 and 13.

Despite the potential of industrial parks to advance industrialization and the goals, developing countries may have limited capacities to plan and implement them. The creation and administration of industrial parks requires a collaborative multi-stakeholder approach based on strong stakeholder engagement and solid partnerships, which is missing in many countries.

Toward a Solution

Through its projects, assisted by a cross-disciplinary team of experts, United Nations Industrial Development Organization (UNIDO) assists Member States to tackle various aspects related to industrial parks. As a foundational support to Member States, UNIDO, with technical and financial support from the Government of China, prepared international guidelines for industrial parks and conducted in-depth country specific studies on industrial park development in China, Ethiopia and Peru. The guidelines for industrial parks were prepared based on international best practices and serve as a guide and reference tool for stakeholders. The publication was validated by partner institutions, including the Food and Agriculture Organization of the United Nations (FAO), the European Investment Bank, the Export-Import Bank of China (Exim Bank), the private sector and academia.

The project Establishing a UNIDO Guiding Framework for Industrial Parks is also supporting the development of specialized guidelines for agro-food parks, prepared in collaboration with the African Development Bank, FAO, Exim Bank, the African Union Development Agency (AUDA-NEPAD), the African Export-Import Bank and Mahindra Consulting Engineers Limited, among others. The main objective of these guidelines is to provide stakeholders, such as governments, enterprises, donors and financial institutions, with appropriate guidance and practical tools and to enhance the contribution of agro-food parks and sustainable food systems towards the SDGs.

In the same spirit, UNIDO worked with the Chinese Academy of International Trade and Economic Cooperation (CAITEC) to consolidate experiences and best practices of industrial park development in the country, which resulted in a comprehensive study titled “The Experiences and Best Practices of Industrial Park Development in the People’s Republic of China.” The study serves as a reference for developing countries and economies in transition to develop their own industrial parks based on the successful model of industrial parks in China.

UNIDO organized several international events through which it provided a unique global platform for knowledge exchange and enhanced dialogue on the industrial park development agenda in the United Nations Decade of Action. For example, UNIDO, jointly with the Ministry of Production of Peru and the National Association of Industries of Peru, organized the International Conference on “Industrial Parks for Inclusive and Sustainable Industrial Development,” during which participants shared best practices and lessons learned on the management and development of industrial parks and presented successful models to be replicated worldwide. Another event, titled “Promoting Sustainable Industrial Parks and Low-Carbon Urban-Industrial Development for Inclusive and Sustainable Industrialization” brought together stakeholders who exchanged knowledge on various aspects of industrial parks and showcased their contributions to the SDGs and the 2030 Agenda. Similarly, two international industrial park workshops and study visits were organized in China in partnership with the Ministry of Commerce and CAITEC.

As part of supporting Member States with industrial park initiatives, UNIDO has created an innovative, integrated global knowledge platform, the Sustainable Industrial Park Platform (sipp.unido.org). This platform is creating and disseminating knowledge and best practices and strengthening networking among institutions and experts. The platform hosts e-learning training courses for government officials and other stakeholders to enhance industrialization and strengthen economies in target countries through developing industrial parks.

UNIDO plans to further deepen cooperation with Member States and various partners to effectively utilize the potential of industrial parks to drive new sustainable pathways towards industrialization and for a better and faster Covid-19 recovery for the international community.