Structural Change for Inclusive and Sustainable Industrial Development Pre-TICAD event in Vienna 4 July 2019 UNIDO Nobuya Haraguchi
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 2
Structural transformation in the manufacturing sector Employment changes in manufacturing industries 0.006 15 Electrical machinery Food and beverage 16 0.005 17 Wearing apparel Motor vehicles E-P 18 Ratio 20 Machinery and 0.004 21 equipment 22 Textile 23 0.003 24 25 Chemicals 26 0.002 27 Basic metals 28 29 0.001 31 Coke and refined 33 petroleum 34 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 GDP per capita (in 1,000 US$) Source: UNIDO 3 3
Africa is the least industrialized region 4
Source: UNIDO
Source: UNIDO
Cost to export 2018 Time to export: Time to export: Cost to export: Cost to export: Documentary Border Documentary Border Economy Income group compliance compliance compliance compliance (hours) (hours) (USD) (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
Future of industrialization • Basic and digital infrastructure • Increase in the importance of productivity • International collaboration 8
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