UN calls for new industrial deal for world’s poorest as wealth gap widens

“First, we need to end the war. Then, we have to restart the factories,” says Basher Abdullah, advisor to Sudan’s Minister of Industry and Trade. 

Like many of the world’s poorest countries, Sudan’s attempts to develop its economy have been severely hampered by conflict. Yet, even in the midst of a brutal civil war, the United Nations Industrial Development Organization (UNIDO) continues to offer economic development support and a path to recovery.

First, we need to end the war. Then, we have to restart the factories.

The fighting seems a world away from the vast King Abdul Aziz Conference Centre in the Saudi capital, where government ministers assembled on Saturday for a family photo to mark the occasion of the Eleventh Ministerial Meeting of Least Developed Countries.

Arriving from Asia, Africa and the Caribbean, the ministers have one thing in common: they each represent one of the poorest, most vulnerable nations in the world, officially designated by the UN as least developed countries (LDCs).

‘Yes to global solidarity’

“We need a decisive change of direction,” declared Gerd Müller, the Director-General of UNIDO, in his opening remarks to the assembled ministers, reminding them that industrialization is “essential for achieving the Sustainable Development Goals (the 17 global goals adopted by all UN Member States in 2015 as part of the 2030 Agenda for Sustainable Development).and building resilience against crises. 

“We need to say yes to global solidarity, to say yes to multilateralism, to say yes to keeping the gap between rich and poor from growing even wider,” added  Müller.

He noted that 500 Nobel Laureates and economists are calling on the world’s leading economies (the G20, currently meeting in South Africa) to act: these leading experts have highlighted the fact that, between 2000 and 2024, the richest one per cent of the world’s population increased their wealth by 41 per cent, whilst the poorest half of the world’s population increased theirs by only one per cent. 

Müller pointed out that the world’s least developed countries are particularly vulnerable to all manner of economic shocks, ranging from the climate crisis to trade tariffs and the major cuts to overseas aid and development support from the wealthiest nations.

“The losses,” he warned, “will be devastating in sectors such as textile, leather, agribusiness and equipment – all vital to livelihoods and local economies.”

Building resilience through industry 

UNIDO’s mission is to help countries to weather these shocks and, by industrialising, become more resilient and improve lives: In Bangladesh, UNIDO training programmes have helped garment factories meet international standards, creating millions of jobs for women; and in Nepal, young people are being equipped with coding and digital skills, closing the digital divide.

Meanwhile, in Sudan, the agency is supporting agribusiness, targeting smallholders and entrepreneurs, and helping young people and women to access finance, readying the private sector for a time of peace and stability.

On Saturday, two major outcomes were achieved: guidelines for scaling up UNIDO support – focusing on transferring technology and knowhow – were agreed, and the ministers committed to modernising industry, finding the money to make it happen, and working more closely together in line with the UN’s global goals. 

The commitments made in Riyadh mark a decisive step toward ensuring that millions of people in the world’s most vulnerable nations can thrive in an interconnected global economy.