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Industrial Development Report 2018

Demand for Manufacturing - Driving Inclusive and Sustainable Industrial Development

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Too often, demand is not considered when discussing industrial development. But the fact that manufacturing consumption is the most visible result of industrial development, and one of its most important drivers, calls for attention. This report argues that under the right set of conditions the consumption of manufacturing goods can set in motion a virtuous circle of income creation, demand diversification and long-run development. How? By providing new and better goods that become cheaper through time, industrial development creates real incomes for all which in turn lead to changes in consumption patterns that stimulate further creation of new and better goods restarting the circle. This circle, however, is not necessarily socially inclusive or environmentally sustainable, thus calling for specific policies to achieve these important goals. This report examines identifies the main challenges and opportunities that arise from them taking into account the sustainable development agenda.

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Acknowledgements

Industrial Development Report 2018 has been prepared by a team of researchers under the overall guidance of Li Yong, Director-General of the United Nations Industrial Development Organization (UNIDO). The in-house team, led by Shyam Upadhyaya, Officer-in-charge for the Department of Policy, Research and Statistics, comprised Adot Killmeyer-Oleche, Nobuya Haraguchi, Nicola Cantore, Petra Kynclova and Fernando Santiago Rodríguez. The work of the team was coordinated by Alejandro Lavopa, who played an instrumental role in the drafting, reviewing and successful completion of the report. A substantial contribution was also made by Andreas Reinstaller, from the Austrian Institute of Economic Research, who drafted a chapter of the report and provided significant insights on the overall storyline.

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