Industry, Innovation, And Infrastructure
Investments in infrastructure – transport, irrigation, energy and information and communication technology – are crucial to achieving sustainable development and empowering communities in many countries. It has long been recognized that growth in productivity and incomes, and improvements in health and education outcomes require investment in infrastructure
Manufacturing is an important driver of economic development and employment. At the current time, however, manufacturing value added per capita is only US$100 in the least developed countries compared to over US$4,500 in Europe and Northern America. Another important factor to consider is the emission of Carbon Dioxide during manufacturing processes. Emissions have decreased over the past decade in many countries but the pace of decline has not been even around the world.
Technological progress is the foundation of efforts to achieve environmental objectives, such as increased resource and energy-efficiency. Without technology and innovation, industrialization will not happen, and without industrialization, development will not happen. There needs to be more investments in high-tech products that dominate the manufacturing productions to increase efficiency and a focus on mobile cellular services that increase connections between people.
Facts and figures
Basic infrastructure like roads, information and communication technologies, sanitation, electrical power and water remains scarce in many developing countries
16% of the global population does not have access to mobile broadband networks.
For many African countries, particularly the lower-income countries, the existent constraints regarding infrastructure affect firm productivity by around 40 per cent.
The global share of manufacturing value added in GDP increased from 15.2% in 2005 to 16.3% in 2017, driven by the fast growth of manufacturing in Asia.
Industrialization’s job multiplication effect has a positive impact on society. Every job in manufacturing creates 2.2 jobs in other sectors.
Small and medium-sized enterprises that engage in industrial processing and manufacturing are the most critical for the early stages of industrialization and are typically the largest job creators. They make up over 90 per cent of business worldwide and account for between 50-60 per cent of employment.
Least developed countries have immense potential for industrialization in food and beverages (agro-industry), and textiles and garments, with good prospects for sustained employment generation and higher productivity
Middle-income countries can benefit from entering the basic and fabricated metals industries, which offer a range of products facing rapidly growing international demand
In developing countries, barely 30 per cent of agricultural production undergoes industrial processing. In high-income countries, 98 per cent is processed. This suggests that there are great opportunities for developing countries in agribusiness.