Yesterday, world leaders convened on the 20th General Conference of the United Nations Industrial Development Organization (UNIDO) being held from 27 November to 1 December 2023, in Vienna, Austria. Speaking at the conference as special guest, Prime Minister Abiy Ahmed (PhD) stressed the role of industrialization in improving the livelihoods of hundreds of millions of people and then ultimately lifting them out of poverty.
Indeed, industrialization plays vital roles by involving the structural transformation of a traditional economy. Oftentimes, the traditional economy is controlled by primary activities into a modern economy where high-productivity activities in manufacturing assume an important role. Hence, economic growth and development necessitate transferring production factors from less-profitable to high-profitable activities.
As this shift is a process, nations cannot achieve it instantaneously. They ought to realize that this structural change which is one of the main drivers and outcomes of development takes huge investment of time and energy. Here, the contributions of the private sector in an economic development process ought to be valued since it serves as an engine of investment, innovation, and growth besides creating employment and prosperity.
Moreover, the manufacturing sector even in the industrialized nations has played crucial roles in transforming their economy; henceforth, the developing countries should realize this and pay attention to the manufacturing sector in their journey of economic growth. Indisputably, the progressive changes of growth of a nation are based on the extent to which the manufacturing sector is cultivated.
Cognizant of this, Ethiopia has been undertaking several measures to reinforce the transition to industrialization. A case in point, it has recently established huge industrial parks in different states and invited international investments. Essentially, international investors ought to explore the comparative advantages available along with these industrial parks. There are highly-productive human resources and adequate lands and other natural resources.
More importantly, Ethiopia encourages green-oriented industry that supports in a straight line the protection and preservation of quality of the environment. For instance, besides incorporating green resilient strategy in its national development, it has been implementing several mega projects that support green industrialization. Among these, its Grand Renaissance Dam is an environment-friendly hydropower dam that accelerates the shift to industrialization and it simultaneously plays a big role in minimizing the effect of gas emissions. Also the green legacy initiatives, the series of tree planting campaigns that even encouraged the participation of the neighboring nations, made Ethiopia a leading nation in green development which reinforces green industrialization.
Hence, developed nations that are responsible for carbon emissions ought to take accountable steps and act to reduce climate change through supporting the endeavors of the green campaign. As they consume the highest rates of energy in their industrial activities, they are the major cause of global greenhouse gases; while developing nations like Ethiopia are experiencing the consequences of climate change without contributing.
In sum, world leaders attending the UNIDO conference ought to carefully realize the current circumstances of the world. They are meeting as the world is struggling with recurrent tension and turmoil. Social inequalities, conflicts, climate hazards and the like are very pervasive. Essentially, in order to reverse these circumstances, the industrialized nations must act responsibly to promote an inclusive and sustainable industrial development.
THE ETHIOPIAN HERALD TUESDAY 28 NOVEMBER 2023
