David O’Connor, DESA, introduced the panel discussion, which focused on aspects of a new UN-published book entitled “Industrial Development for the 21st Century: Sustainable Development Perspectives.”

José Antonio Ocampo, DESA, stated that industrialization is a necessary element of development. He said that governments should set industrial policy to achieve four main aims: structuring the evolution of labor activities to avoid social disruption as more productive practices are introduced; encouraging innovation, including in opening new markets; promoting linkages within domestic economies; and ensuring that industrial development reduces unemployment and underemployment.

Jomo Kwame Sundaram, DESA, also emphasized the importance of industrialization, and warned developing countries not to only focus on their traditional economic activities such as agriculture. He noted the ability of industry to employ labor and to innovate, and pointed out the need to selectively favor certain industries based on each country’s circumstances.

Vivek Chibber, New York University, said that rates of growth, employment and poverty reduction in the developing world had been disappointing over the last 25 years. He called for state intervention in industrial policy to ensure that increased income from development is redistributed across regions and social groups, and to strengthen labor and social organizations.

Mónica Kjöllerström, DESA, discussed the misconception that natural-resource-based economic activities are necessarily inflexible, low in innovation, and lacking in significant multiplier effects. She highlighted examples of innovative and value-added agricultural industries, such as fresh fruit exports from Chile, beef exports from Namibia, and fresh-cut flowers and vegetables from Kenya, which she said resulted from improvements in post-harvest production, transportation, logistics and marketing.

David Tommy, UNIDO, underlined that developing countries need to develop value-added industries, become domestically and internationally competitive, and achieve improvements in quality and marketing. He used the example of Nigeria to explain that lucrative exports of a commodity such as oil will only succeed in addressing poverty in the exporting country if the industry is linked to other sectors, ensuring that the overall economy is boosted.

Participants discussed: addressing uncertain employment and child labor in developing countries; avoiding policies that pursue economic growth at the cost of social wellbeing; WTO non-agricultural market access issues; and links between industrial development, demographic pressures and climate change.

Natascha Beinker, BMZ, introduced the presentation, noting that a Sustainable Management of Industrial Areas (SMIA) approach was tested in a pilot project in three industrial zones in Tunisia.

Guido Sonnemann, UNEP, explained the methodological approach of the pilot project, noting that SMIA helps managers of industrial areas to enhance economic, environmental, organizational and social sustainability by applying a mix of management tools, including eco-mapping and an integrated training and consultancy programme. He described the sequencing of the pilot project from its preliminary study through to its final evaluation, and highlighted ways to improve SMIA’s methodology, including providing more external support to local consultants and allowing more time for diagnostic visits to the industrial areas.

Jean-François Vallés, e-parc, described lessons learned through the pilot project’s three case studies on: preventing flooding through maintenance of rainwater drainage systems; improving public lighting and saving energy; and improving communication with companies through an information bulletin. He said that general results included the commencement of a process of organizational learning for managers of industrial areas, while results specific to the case studies included reduced pollution and better risk management. He also identified the challenge of sustaining the results and integrating them into a system of continued improvement.

Harald Lossack, GTZ, noted that replication of the project would require, inter alia: involvement of relevant actors such as local institutions and consultants; and participation of managers of industrial areas from the same region in the training and follow-up process.

Participants discussed, inter alia, ways in which to incorporate renewable energy, labor rights, water conservation and water pollution prevention into SMIA.