STATEMENT OF THE G-77 AND CHINA AT THE 46th SESSION OF THE INDUSTRIAL DEVELOPMENT BOARD, 26-28 NOVEMBER 2018, DELIVERED BY MS. VERONICA GOMEZ, CHARGE D’AFFAIRES A.I., PERMANENT MISSION OF ECUADOR
Madam President, [H.E. Ms. Faouzia MEBARKI, Permanent Representative of Algeria]
1. On behalf of the Group of 77 and China, I would like to congratulate you, H.E. Ms. Faouzia MEBARKI, Permanent Representative of Algeria, on your election as the President and other members for their elections to the bureau of this session. I would like to thank the outgoing President, Her Excellency Ms. Paulina Franceschi Navarro, former Ambassador and Permanent Representative of Panama and her bureau members for their outstanding work and contributions at the previous session, as well as you Madam President, for residing as the acting President of the 45th session. The Group welcomes the State of Palestine as the newest member of UNIDO.
2. The Group would also like to take this opportunity to express its deepest condolences to the Permanent Mission of Austria on the recent demise of H.E. Ms. Christine Stix-Hackl, Ambassador and Permanent Representative. Her dedication and diligence will be fondly remembered and missed.
3. The Group attaches great importance to the role of UNIDO towards the achievement of 2030 Sustainable Development Goals particularly on Sustainable Development Goal 9 (promotion of inclusive and sustainable industrial development). UNIDO’s role and contributions are increasingly visible, with its implementation of various initiatives and programs aimed at implementing sustainable development goals in three dimensions namely economic, social and environmental.
4. The Group is pleased with the continuous efforts of UNIDO to promote and accelerate the implementation of ISID through its four core functions including technical cooperation, policy advice, research and statistics, normative functions and standards as well as partnership buildings.
5. The Group appreciates that UNIDO, within its mandate and four strategic priorities, continues to align its work and priorities to the Medium-Term Programme Framework 2018-2021 and the implementation of SDGs. The Group highly appreciates the benefits and positive impacts of programs by UNIDO through technical assistance and the Programme for Country Partnership (PCP). As the lead agency of the implementation of Third Industrial Development Decade for Africa (IDDA III), UNIDO plays a vital role in addressing the root causes of poverty in developing countries through industrial development. These initiatives of UNIDO have achieved impactful results through the creation of employment opportunity, increased economic competitiveness and productive capacity.
6. The Group underscores that resource mobilization is an important driver to sustainable development. Therefore, the Group welcomes UNIDO’s tireless efforts, through existing platforms such as G20, BRICS and organization of regional and international conferences, to strengthen partnership, cooperation and knowledge sharing among Member States and with the relevant stakeholders as well as private sectors.
7. The Group remains committed to support the work of the UNIDO under the able leadership of Director General LI Yong.
Agenda item 3: Annual Report of the Director General for 2017
Madam President,
1. The Group expresses its appreciation to the Director General for his introductory remarks and takes note of the 2017 Director General’s Annual Report as contained in document IDB.46/2, which presents an overview of the activities of UNIDO including the progress, on-going initiatives and the outlook of the Organization.
2. The Group highly appreciates various initiatives, activities and programs implemented by UNIDO during the year of 2017. In the face of the Fourth Industrial Revolution, the Group appreciates the engagement of UNIDO through organization of regional and international conferences such as the First Global Manufacturing and Industrialization Summit, Least Developed Countries Ministerial Conference and the biennial Vienna Energy Forum. This engagement of UNIDO further contribute towards:
2.1 Knowledge sharing and building networks in overcoming domestic and regional challenges;
2.2 Reiterating the focus on inclusive and sustainable industrial development (ISID) and reaffirming the commitment to continue strengthening public-private, multi-stakeholder partnerships; and
2.3 Building awareness and understanding of new concepts of industrial revolution such as circular economy, industry 4.0, green industries, resource-efficient and cleaner production, energy efficiency, and the management and financing of clean technologies;
2.4 Identifying ways to narrow the gap between the nations industrializing the slowest and the fastest, with the view to improve conditions and facilitate the industrial development of the least developed countries; and
2.5 Promoting the role of UNIDO in facilitating the use of new technologies and adaption to emerging industrial development concepts.
3. The Group strongly acknowledges the need to deepen and upscale the South-South, North-South as well as triangular cooperation through a more institutionalized partnership and development cooperation that will positively impact the implementation process of ISID. Such partnerships and development cooperation pave ways towards:
3.1 Improved technology and infrastructure development,
3.2 Increased access to the transfer of technology and clean energy;
3.3 Create momentum for economic growth and employment opportunities through training and capacity-building;
3.4 Support for creative entrepreneurship;
3.5 Inclusiveness for the LDCs, LLDCs, SIDS, and equal opportunities for society at all levels, groups of people with disabilities, women and youth.
4. The Group takes note of the paper by the Secretariat on UNIDO’s support in fostering the local pharmaceutical industry in developing countries as contained in document IDB.46/CRP 9. The Group welcomes UNIDO’s role to support the development of pharmaceutical industry within the 2030 Sustainable Development Agenda. Building on the positive contribution of this project towards the implementation of the Third Industrial Development Decade for Africa (IDDAIII), the Group welcomes UNIDO’s efforts in mobilizing further resources and putting in place a programmatic approach, which aimed at maximizing benefits of this project towards accelerating the implementation of Inclusive and Sustainable Industrial Development (ISID).
5. The Group takes note of the paper by the Secretariat on Integrated results and performance framework: definition of indicators and setting targets as contained in document PBC.34/CRP.2. The Group welcomes UNIDO’s continuous efforts to promote transparency and accountability of its work through the integrated results and performance framework (IRPF). Such monitoring and reporting tool better aligns the organization’s performance and results in line with the mandate of UNIDO towards the implementation of ISID and SDGs.
Thank you, Madam President.
Agenda item 4: Report of the Programme and Budget Committee
4(a) Report of the External Auditor for 2017
Madam President,
1. The Group takes note of the Report of the External Auditor as contained in document IDB.46/3. The Group appreciates the valuable contribution of the External Auditor towards increasing accountability and transparency of UNIDO’s financial accounts.
2. The Group is deeply concerned that the level of 2017 assessed contributions receivable decreased by 3.2 million euros to 90.0 million euros. The decreased assessed contributions receivable continued to impose substantial additional strains on the UNIDO regular budget. Therefore, it is crucial for Member States to fulfill their financial obligations in full and on time for the Organization to deliver its operations to its full capacity, according to the needs and priorities of Member States.
3. The Group remains concerned over the negative consequences for the Organization, which result from decrease of fully disposable and predictable funding. The Group is fully aware that such lack of sufficient funds was a serious impediment for the Organization to undertake its core activities through structural developments. In ensuring UNIDO’s role remains in line with its core mandate, it is crucial for UNIDO to continue increasing the efficiency of its operations.
4. The Group notes that the voluntary contributions in 2017, amount to Euro 214.1 million compared to Euro 217.9 million in 2016. The Group also notes the significant imbalance between the regular budget funded by assessed contributions and the voluntary financed operational budget. The Group further notes the Secretariat’s ongoing efforts to reduce such imbalances through the establishment of Special Account for Voluntary Contributions for Core Activities. The Group urges the Secretariat to continue exploring possible measures to address this imbalance.
5. The Group supports the External Auditor’s recommendations on the various measures to improve the efficiency, increase transparency and accountability of the Organization. The Group encourages the Secretariat to continue implementing these recommendations as appropriate and in close consultations with Member States.
Thank you, Madam President.
4 (b) Financial situation of UNIDO
Madam President,
1. The Group of 77 and China takes note of the report on the Financial Situation of the UNIDO as contained in document IDB.46/4. The Group notes that the collection rate of 2017 assessed contributions as of March 2018 was 30.3 percent compared to the 2017 and 2016 rates of 26.1 and 32.6 percent respectively.
2. The Group continues to urge all Member States to pay their contributions in full and on time in order to secure a healthy and stable financial outlook for the Organization.
3. The Group fully appreciates the exchanges of views undertaken at the informal working group on Programme and Budget Committee on various proposals aimed at increasing financial resources to support the Organization’s operations especially technical cooperation activities. Building on our efforts to increase mobilization resources, the Group takes note of the guidelines on the withdrawal of working capital fund as contained in document PBC. 34/CRP.6 and look forward to discussing this proposal in the context of unutilized balance.
4. The Group would like to address the financial situation of UNIDO including the issue of unutilized balances. The Group firmly believes that the Director General should nevertheless make efforts to explore other proposals to conclusively address the unutilized balances. The Group calls on all Member States and other partners to reach an agreement on the unutilized balances so as to facilitate the implementation of a decision to be adopted by the next Programme and Budget Committee in 2019.
5. The Group takes note of the cost-savings, synergies and efficiencies created through the use of the United Nations Coordinator system as contained in the document IDB.46/CRP.3. The Group further underlines the need to ensure that these identified measures through UN Coordinator system should not hamper the implementation of on-going technical cooperation activities.
6. With these comments, the Group takes note of the draft decision 2018/4 on as contained in the report of the Director General IDB.46/4.
Thank you, Madam President.
4 (c): Report of the informal working group on Programme and Budget Committee – related issues
Madam President,
1. The Group recognizes the important efforts undertaken by the informal working group on Programme and Budget Committee. The informal working group serves as an important platform for both Secretariat and Member States to exchange views on possible measures to address issues on unutilized balance of appropriations, programme cost recovery, scale of assessments and collection of late payments.
2. On the issue of the withdrawal of Member States from the Organization, the Group views this issue as one of the major concerns, which constitute a high impact to the financial constraints of the Organization. As this issue is a matter of concern and priority to the Organization, the Group would like to request the Secretariat as part of its countries’ engagement strategy, to address this issue in the context of its inputs to the ECOSOC and the High-Level Political Forum on sustainable development.
3. The Group firmly believes that it is crucial for both Member States and Secretariat to continue addressing the financial constraints of this Organization as a matter of priority. In securing a timely solution and consensus on these issues, the Group fully supports the Co-Chairs of the informal working group in organizing continuous dialogue and consultations between the Secretariat and Member States.
4. With these remarks, the Group takes note of the draft decision 2018/3 on this agenda item as contained in the report IDB.46/6.
Thank you, Madam President.
4 (d): Mobilization of financial resources
Madam President,
1. The Group also takes note of the Director-General’s report on mobilization of financial resources as contained in IDB.46/6.
2. The Group attaches great importance for the Organization to have a sufficient, assured and predictable funding to enable UNIDO to fully and effectively deliver its core mandate and activities. The Group is fully cognizant of the financial situation of the Organization and fully recognizes the importance to mobilize extrabudgetary resources for the delivery of UNIDO services.
3. The Group notes that the performance for mobilizing new resources remains robust in 2017. The strong performance in resource mobilization truly attests the increasing recognition of UNIDO’s work towards implementing sustainable development goals in particular promoting inclusive and sustainable industrial development.
4. In the implementation of industry-related sustainable development goals and targets, the Group commends the Secretariat for its efforts in pursuing innovative sources of financing, including through additional contributions from traditional and emerging multilateral and bilateral sources.
5. With these remarks, the Group adopts the draft decision 2018/5 in the report of the Programme and Budget Committee on its work of the 34th session.
Thank you, Madam President.
4 (e) General risk management
Madam President,
1. The Group takes note of the report of the Director General as contained in the document IDB.46/7. The Group notes the on-going risk mapping exercise within the Organization, which aims to address the impact of financial constraints in UNIDO. The Group further notes that withdrawal of Member States from the Organization remains one of the risks with high impact on the financial situation of UNIDO.
2. The Group looks forward to receiving Secretariat’s briefings and further consultations on the additional progress on UNIDO’s general risk management activities particularly the main perceived risks identified in the area of operations of the Organization.
Thank you, Madam President.
4(f): Updated medium-term investment plan
Madam President,
1. The Group welcomes the progress made in the enhancement of ERP system through the utilization of internal resources.
2. In line with the updated medium-term investment plan for 2018-2021, the enhancement of ERP and ICT infrastructure is essential to secure a timely and effective delivery of UNIDO’s management priorities. The Group welcomes further investments in the ERP, which aimed at further improving internal operations and transparency of the work of the Organization, especially in the reporting on the Sustainable Development Goals and in the technical cooperation delivery process.
3. With these remarks, the Group takes note of the report on this agenda item as contained in document IDB.46/8.
Thank you, Madam President.
Item 5: UNIDO and the 2030 Agenda for Sustainable Development
Madam President,
1. The Group takes note of the report of the Director General as contained in document IDB.46/10. This report enhances the visibility of UNIDO’s contributions towards the 2030 Agenda for Sustainable Development. Building on the implementation of LIMA Declaration, the Group is pleased with the action plan and initiatives implemented by UNIDO to support and monitor the progress towards achieving inclusive and sustainable industrial development.
2. The Group is pleased that UNIDO’s positive progress on SDG 9 could be reflected in the first in depth review on sustainable development by the High-level Political Forum on sustainable development. UNIDO’s progress in the implementation of SDG 9 further profiles the role of manufacturing as the key driver of economic development, employment and social stability. While this serves as an important tool to support and monitor the progress towards the achievement of sustainable development goals, the Group calls on the Secretariat to keep Member States fully informed on the follow-up mechanism and steps taken to implement the suggested actions and recommendations by UNIDO to the High-level Panel Forum on sustainable development.
3. The Group fully recognizes that industrial development is a source of economic growth, economic diversification and value addition for developing countries. The Group highly commends UNIDO’s various activities in support of the Least Developed Countries and the implementation of the Third Industrial Development Decade for Africa (IDDA III). UNIDO’s activities through organization of high-level meetings, advocacy and outreach programmes as well as provision of advisory services will greatly enhance the visibility of UNIDO’s work within its four strategic priorities. The Group firmly believes that the enhanced visibility of UNIDO could pave ways for securing more partnerships and resources for supporting activities related to industrial development cooperation for the collective benefits of the Organisation and Member States.
Thank you, Madam President.
Item 6: United Nations Development System reform
Madam President,
1. The Group strongly emphasizes the need to promote inclusiveness and transparency within the UN Development System (UNDS), where national governments should have the prerogative to decide and shape as well as be consulted on the reform of the UNDS system.
2. As various elements under the UNDS reform, such as the establishment of new generation of UN Country Teams (UNCT), empowerment of the role of Resident Coordinator and UN funding compact underlined in the positioning of UN Development system have a major impact on the mandate, finances and functioning of non-resident agencies like UNIDO, the Group firmly believes that a smooth and successful implementation of the UNDS could only be realized with due importance on the following:
2.1 The implementation of the reform should continuously be subjected to an intergovernmental process, which is to be held in an open, transparent and inclusive manner. This would facilitate timely information sharing and effective coordination among UN agencies on their contributions towards the implementation of SDGs;
2.2 The UNDS reform should take into account the contributions of UNIDO in SDG 9 (Inclusive and Sustainable Industrial Development) through structural transformation, which addresses three (3) dimensions of sustainable development namely social equity (poverty eradication), economic growth and environmental protection;
2.3 The new Resident Coordinator should reach out to the UN Specialized Agencies like UNIDO in order to fully tap their existing expertise and experience in the relevant fields. This will safeguard institutional memory and retain qualified expertise to advance the goals and performance of the Organization and accelerate the implementation of SDGs;
2.4 UNIDO’s participation in both UNCT and UNSDG must NOT be neglected and therefore, its important role in promoting SDG 9 must be given the due importance;
2.5 The potential effects of the new UN funding compact which requires doubling of existing contributions from UN Agencies such as UNIDO requires further consideration and consultations, in term of its benefits, incentives and impact towards the work of the Agencies.
3. The Group recognizes that UNIDO plays a vital role in promoting inclusive and sustainable industrialization development for economic growth whilst safeguarding the environment. Its contribution towards the achievement of the SDGs deserves recognition and should be prominently featured at various UN platforms.
4. Given the foreseeable impact of UNDS reform on the mandate, finances and functioning of UNIDO, the Group would like to request the Secretariat to address the following issues, through its reporting and regular formal briefings in the context of the upcoming biennium Programme and budgets 2020-2021 proposal:
4.1 Highlights of outcome and performance effected from the positioning of UNIDO within the UNDS, and the system-wide strategic document through the use of its Integrated Results and Performance Framework (IRPF);
4.2 Assess the impact on the new country team and field offices within the UNDAF;
4.3 Reiterating the focus of the mandate and functioning of UNIDO through UNIDO’s existing UN-system wide engagement platform, namely the Chief Executive Board (CEB) and its associated High-Level Committee on Management (HLCM), High-Level Committee on Programmes (HLCP) and the UN Sustainable Development Group (UNSDG);
4.4 Identifying means of implementation and follow-up actions to the recommendations provided to the ECOSOC and the High-Level Political Forum on sustainable development; and
4.5 Reflecting the mandate and functioning of UNIDO within the UNDS reform in the upcoming biennial report on Industrial Development Cooperation;
4.6 UNIDO’s contributions to SDGs, in particular its core mandate SDG 9, as well as other SDGs, namely 7, 12, 13, 14 and 15 and to exert efforts to fill any potential gaps in implementing and funding these goals.
5. The Group takes note of the report of the Director General as contained in document IDB.46/11.
1. The Group notes that the Independent Audit Advisory Committee’s role is to improve the visibility and transparency of the work of UNIDO by building a good knowledge of the mandate and existing business focus of UNIDO.
2. The Group takes note of draft work plan outlined in the report of Independent Audit Advisory Committee, which focuses on three priority areas, including accelerating the recommendations of internal and external oversight bodies, increasing the alignment of internal audit work programme with UNIDO’s business objectives, strategies and risks as well as strengthening the internal audit functions.
3. The Group takes note of report of the Audit Advisory Committee as contained in document IDB. 46/16.
Thank you, Madam President.
Item 12: Internal Oversight activities
Madam President,
1. The Group takes note of the activities undertaken by oversight bodies in strengthening the management efficiency and accountability of the UNIDO.
2. The Group welcomes the on-going coordination and consultations undertaken by Internal Oversight Division of UNIDO with other external and internal oversight bodies in implementing its oversight recommendations. The Group is confident that such cooperation will lead to improved coordination, better prioritize resources, development of closer synergies and avoidance of work duplication.
3. The Group supports the role of Internal Oversight to fulfill its mandate and continuously improve its ability to provide internal audit, investigative and advisory services that enhance UNIDO’s governance, oversight, management decision-making and accountability.
4. The Group takes note of the Director General’s report as contained in document IDB.46/17.
Thank you, Madam President.
Item 7: UNIDO activities in energy and the environment
Madam President,
1. The Group notes the benefits of adopting sustainable industrial policies, which emphasize building institutional capacities for promoting environmentally sound and sustainable production, including through circular economy principles of improved eco-design in production, implementation of industrial energy efficiency and the utilization of efficient, modern and affordable forms of energy for productive use.
2. In advancing inclusive and sustainable industrial development, the Group recognizes the importance to improve UNIDO’s delivery of services co-financed by the Global Environmental Facility. The Group appreciates UNIDO’s support towards the development of sustainable industrial policies, through its four core functions including technical cooperation, policy advice and support, as well as partnership building for knowledge and technology transfer, networking and industrial cooperation.
3. In the face of Fourth Industrial Revolution, the Group recognizes the rights of each country to determine its own development paths and appropriate strategies in meeting their respective international rules and commitments. The Group continues to underscore the importance for the development of sustainable industrial policies to respect national policies and priorities of respective country.
4. The Group reaffirms the crucial role of UNIDO in fostering partnerships, cooperation and coordination with various stakeholders to create an enabling environment for renewable energy, energy efficiency and energy services. Therefore, the Group would like to request the Secretariat to keep Member States fully informed and aware of the following:
4.1 Available opportunities in the clean energy sector including existing and potential initiatives within UNIDO and other partners;
4.2 Existing criteria, procedures and mechanisms for Member States’ access to the financing for global clean energy.
5. With these remarks, the Group takes note of the Director General’s report as contained in document IDB. 46/12.
Thank you, Madam President.
Item 8: Sustainable industrial development in middle-income countries
Madam President,
1. The Group appreciates the Secretariat’s effort in developing a strategic framework for partnering with middle-income countries.
2. The Group believes that the scope and prospect of programmatic cooperation as outlined in the strategic framework intended to build a solid foundation for strengthening partnership between UNIDO and middle-income countries in promoting inclusive and sustainable industrial development cooperation.
3. The Group notes the benefits of the strategic framework in providing an improved coordination, more focused and targeted actions towards realizing ISID.
4. The Group wishes to bear in mind the importance of ensuring that the scope, identified priorities and reporting mechanism of the said strategic framework are closely aligned with Medium Term Programme Framework 2018-2021 and tailored accordingly to the national capacities, needs and levels of development of each country.
5. With these remarks, the Group takes note of the Director General’s report as contained in the document IDB.46/13.
Thank you, Madam President.
Item 9: Activities of the Joint Inspection Unit
Madam President,
1. The Group takes note of the Director General’s report as contained in the document IDB.46/14. The Group appreciates the recommendations provided by JIU in support of our continued efforts to improve the efficiency, accountability and transparency of UNIDO’s activities.
2. The Group takes notes of the 2018 Work programme for JIU, which comprises nine (9) new projects, whereby seven (7) projects are of system-wide coverage and two related to management and administrative reviews.
Thank you, Madam President.
Item 10: Addressing recommendations of the JIU review of management and administration in UNIDO
Madam President,
1. The Group recognizes that the JIU plays a vital oversight function in enhancing transparency and management efficiency of the Organization.
2. The Group appreciates the efforts of the JIU in identifying concrete managerial, administrative and oriented recommendations, which can be considered and implemented as appropriate, in order to improve and strengthen the governance of the UNIDO.
3. With these remarks, the Group takes notes of the Director General’s report as contained in document IDB.46/15.
Thank you, Madam President.
Item 13: Evaluation activities
Madam President,
1. The Group commends the Secretariat’s report on UNIDO’s evaluation activities, which underlines the performance of UNIDO’s interventions, findings, challenges and lessons draw from relevant UNIDO’s projects and programmes.
2. The Group appreciates both general and thematic findings as underlined in the report. The Group believes that these findings when provided with appropriate reflections and consideration can enhance UNIDO’s development effectiveness and relevance through closer alignment of national policies with UNIDO’s mandate, greater sense of national ownership, increased sustainability of partnership and resource mobilization as well as inclusive participation of stakeholders.
3. With these remarks, the Group supports the draft decision included in the report of the Director General as contained in document IDB.46/18.
Thank you, Madam President.
Item 14: Personnel matters
Madam President,
1. The Group takes note of progress undertaken by UNIDO on the developments of common system including conditions of service applicable to the Professional and higher category other matters related to staff rules.
2. The Group takes note of the Director General’s report as contained in document IDB. 46/19.
3. The Group reiterates its position with regard to the need to enhance the geographical distribution across all positions of the Secretariat.
Thank you, Madam President.
Item 15: UNIDO, gender equality and the empowerment of women
Madam President,
1. The Group recognizes that realizing gender equality and the empowerment of women and girls at all levels, including in decision-making processes, will make a crucial contribution to progress all Sustainable Development Goals, including achieving inclusive and sustainable industrial development.
2. The Group welcomes the progress made by the Secretariat in the implementation of UNIDO gender parity action plan. The Group also commends various suggested recommendations to strengthen delivery of the UNIDO policy on Gender Equality and Empowerment of Women strategy. These recommendations include strengthening responsibilities for gender mainstreaming, building staff and leadership, strengthening data collection and analysis as well as development of a robust communication strategy.
3. The Group remains committed to support the Secretariat’s continued efforts to achieve gender parity in the staffing of the Organization, including through drawing on best practices and lessons learned for gender balanced recruitment and measures to create an enabling environment as described in the United Nations System-wide Strategy on Gender Parity.
4. The Group notes that the current report of the Director General has not provided all information as requested by GC.17/Res.3. The Group therefore requests the Director General to provide the remaining information on the implementation of the said resolution.
5. The Group takes note of the Director General’s report as contained in document IDB.46/20.
Thank you, Madam President.
Item 16: Matters related intergovernmental, non-governmental, governmental and other organization
Madam President,
1. The Group takes note of the list of the questionnaires circulated by the Secretariat to all NGOs’ which currently have consultative status with UNIDO. The Group notes that the intent of the Secretariat is to review the status of these NGOs cooperation with UNIDO over the last three years (2015-2018), particularly to gather the interest of these NGOs in continuing their cooperation with UNIDO.
2. The Group notes that should these NGOs did not respond within a stipulated deadline, it is recommended that the consultative status of a total of 47 NGOs as listed in Annex I of the report of the Secretariat as contained in document IDB.46/21 be terminated.
