The United Nations Industrial Development Organisation (UNIDO) is the specialized agency of the United Nations that promotes industrial development for poverty reduction, inclusive globalization and environmental sustainability. The mandate of UNIDO is to promote and accelerate sustainable industrial development in developing countries and economies in transition. The organization draws on four mutually reinforcing categories of services: technical cooperation, analytical and policy advisory services, standard setting and compliance, and a convening function for knowledge transfer and networking.
Private sector development (PSD) policy and strategy
UNIDO acknowledges that as the primary driver of economic growth and employment creation, the private sector has a central role in poverty reduction and the achievement of the MDGs; private sector led industrial development plays a significant role in bringing about the much needed structural changes that can set the economies of poor countries on a path of sustained economic growth. UNIDO states that industry provides a seedbed for entrepreneurship, promotes business investment, fosters technological upgrading and dynamism, improves human skills and creates skilled jobs, and through intersectoral linkages establishes the foundation for both agriculture and services to expand. All these factors contribute to sustained productivity improvements that can ensure pro-poor outcomes and contribute to increased living standards in poor countries. To increase the impact of the development of the private sector on the reduction of poverty, UNIDO supports the efforts of developing countries to improve the business environment and lay the policy and institutional foundations for the development of a vibrant private sector.
Partnership mechanisms for the private sector
UNIDO and the private sector are natural partners for prosperity. UNIDO aims to boost the development of a competitive private sector and contribute to poverty reduction by building sustainable linkages between small-size enterprises, their larger scale business partners and support institutions. UNIDO’s Business Partnership Programme harnesses the expertise, know-how and resources of the private sector to tackle important global industrial development issues. There are several strategic areas UNIDO engages with business to build local productive capacity, enhance social inclusion and promote environmental sustainability.
Transparency, effectiveness and results in PSD
UNIDO recognizes the importance of having an efficient and comprehensive evaluation system to assess the impact of its work on poverty eradication, economic growth and sustainable development worldwide. To this end, UNIDO has produced an evaluation policy in line with international policies, standards and practices, which systematically measures the impact of its work at the field level. Its tools, guidelines, and methodologies comply with the evaluation requisites of the UN system, and are updated as appropriate. Evaluation serves three main purposes; it assures accountability, supports management and drives learning and innovation.