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Trends that can be harnessed for economic growth

Tuesday, June 4th, 2024 08:00 | By
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In today’s world, rapid technological advances and global trends are transforming our societies and economies, creating unprecedented opportunities for sustainable development.

The 2024 UNIDO Industrial Development Report highlights four key trends that have the potential to drive positive change: the shift to cleaner energy, the rise of digital technologies, changes in global economic power, and demographic shifts.

The challenge for governments and the private sector is to harness these trends through effective industrial policies and strong partnerships.

The first trend, the energy transition, presents a chance for countries to develop new industries and jobs focused on renewable energy and environmentally friendly products.

By prioritising clean energy production and technology, nations can create resilient economies that generate sustainable growth and innovation.

The second, digitalisation and the Fourth Industrial Revolution, is transforming industries through advances in areas like artificial intelligence, robotics and the Internet of Things.

By adopting these technologies, countries can boost their industrial competitiveness, access new markets and drive future innovation. Governments must develop policies that support research, technology adoption, digital skills development and the creation of advanced manufacturing solutions.

The third, global rebalancing, involves shifts in economic power and trade relationships. While challenging, this shift also offers opportunities for countries to attract foreign investment and tap into emerging regional markets.

Agile and outward-looking industrial policies can help nations benefit from these changes and strengthen their participation in global value chains.

The fourth trend is global demographic change. It is characterised by rapid population growth in some regions and aging populations in others.

This presents opportunities to develop labour-intensive industries in younger nations and innovate in health and food sectors in aging societies.

Countries can leverage their human capital and meet growing demand by developing new industries or expanding existing ones. Education and skills development policies are crucial to prepare the workforce for future industries.

To capitalise on these opportunities, public-private partnerships are essential.

These collaborations can bridge the gap between government vision and industry innovation, pooling resources and expertise to tackle infrastructure challenges, accelerate technology adoption and drive sustainable innovations.

Examples from from Africa, Asia, Eastern Europe, Latin America, and the Caribbean demonstrate the power of such partnerships in realising the potential of these global trends.

These global trends and technological innovations of our time offer a remarkable opportunity to reshape industrial policy for the benefit of society and the planet.

Governments can unlock the full potential of industrial development for sustainable progress by embracing these changes, fostering public-private partnerships and crafting policies that are both visionary and grounded in reality.

The journey ahead is complex, but the path is clear on how to reimagine industrial policy and turn these global challenges into our greatest opportunities for a sustainable future.

— The writer is an Industrial Policy, Governance and Private Sector Development Expert and currently Senior Advisor (Global Lead) for Industry and Commerce at the Tony Blair Institute for Global Change

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