8. Industry

• United Nations Industrial Development Organization

  Specialized agency of the United Nations with a unique mandate to promote and accelerate sustainable industrial development
• UNIDO

  • Plays a crucial role in accelerating the achievement of Sustainable Development Goal 9 (out of 17)
  • 'Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation'
• UNIDO established

  1966
• UNIDO transformed into specialized UN agency

  1985
• UNIDO's 4 mandated functions

  • Technical cooperation
  • Action-oriented research and policy-advisory services
  • Normative standards-related activities
  • Fostering partnerships for knowledge and technology transfer
• UNIDO has 172 member states
• Priorities

  • Sustainable supply chain
  • Climate action
  • Ending hunger
• Industry/ Industries:

  ·       refers to a specific cluster of companies with similar characteristics.

  ·       production of different types of goods and services

  ·       economic activities carried out by companies, people and organizations involved in the production of goods and services for particular field.

  ·       categorized by produced products and services.
• Where the company is producing and distributing the products:

  • domestic company producing in the country.
  • foreign company which is producing abroad.
  • durable industry produces goods which last long, for a signific amount of time.
  • non-durable they are perishable.
• Industrial production:

  ·       measure of output of the industrial sector of the economy

  ·       industrial sector (manufacturing, mining and utilities)

  ·       refers to the output of industrial establishments and covers sectors such as mining, manufacturing, electricity, gas and steam and air-conditioning.

  ·       the indicator is measured in an index based on a reference period that expresses change in the volume of production output.
• • heavy industry require capital investments in industry (mining,…)
  • light industry demanding more labour (restaurants offering food, hotels offering accommodation)
• Manufacturing

  transformation of raw materials
• Mining

  extracting valuable resources from the earth
• Utilities

  production and distrubution of services (electricity, gas, water)
• Industry


  establishment of similiar companies
• International Standard Industrial Classification of All Economic Activities (ISIC)


  • Elaborated by the United Nations
  • International reference classification of productive activities (classification according to kind of productive activity and not classification of goods and services)
• According to the System of National Accounts (SNA), economic production is an activity, carried out under the responsibility, control and management of an institutional unit, that uses inputs of labor, capital, goods and services to produce outputs of goods and services
• The system of National Accounts (SNA) is the internationally agreed standard set of recommendations on how to compile measures of economic activity (activity which results in the production of goods and services)
• Original version of the ISIC was adopted

  1948
• ISIC


  • Important tool for comparing statistical data on economic activities at the international level
  • The structure of the fourth revision of ISIC is more detailed than the previous version, responding to the need to identify many new industries separately
  • Used when publishing and analysing statistical data
• Organisations that use ISIC

  • The United Nations
  • The United Nations Industrial Organization (UNIDO)
  • The International Labour Organization (ILO)
  • The Food and Agriculture Organization of the United Nations (FAO)
  • The United Nations Educational Scientific and Cultural Organization (UNESCO)
• ISIC


  • Classification of production
  • Important for comparing data on international levels
  • Economic production is an activity which results in the production of goods and services
• Structure of ISIC


  • Sections denoted by 1-letter codes
  • Divisions denoted by 2-digit codes
  • Groups denoted by 3-digit codes
  • Classes denoted by 4-digit codes
• Statistical classification of economic activities in the EU Community


  • European standard classification of productive economic activities
  • An economic activity takes place when resources such as capital goods, labor, manufacturing techniques or intermediary products are combined to produce specific goods and services
• Central Product Classification


  • Complete product classification covering all goods and services
  • Goods and services (products) are the result of production, they are exchanged and used for various purposes, such as for inputs in the production of other goods and services, or as final consumption or for investment
  • Developed and maintained by the United Nations Statistics Division (UNSD)
  • Follows the definition of products within SNA
  • Revised version enhances the relevance of the classification reflecting the current structure of the world economy and new products
• Standard international trade classification (SITC)

  • Product classification (goods) used for external trade statistics (export, import)
  • Allows for international comparisons of commodities and manufactured goods