Volume I, Competitive Industrial Performance Report 2016 (Report)
The CIP Index, edition 2016 draws a picture of a global manufacturing sector recovering in strength in context of a macro environment that has been shaking by economic and political insecurity and reduced trust in the benefits of globalization. Across countries, changes in industrial competitiveness are indicative of new leaderships, potentials and pitfalls as the world sees a renewed role for manufacturing—particularly, manufacturing driven by the new innovation and technology race of Industry 4.0—as key to securing inclusive and sustainable development.
The CIP Index, edition 2016 ranks 144 countries and economies according to their performance across three dimensions, comprising eight indicators, which together benchmarks the ability of countries to produce and export manufactured goods competitively. The most recent reference year is 2014.
The Report elaborates on the industrial competitiveness of the Index’ countries in context of a number of current and rising challenges: the global financial and economic crisis, as well as the end of the commodity boom and lower energy prices, which have led to the loss of growth momentum in many countries across all development stages; changing demographics, especially the rise of a very large young workforce; and, the pressure to innovate and adopt, and make use of the technologies associated with Industry 4.0 to enable integration of countries into global value chains.
Increasing a country’s technological deepening and upgrading is at the heart of the structural change process needed for emerging and developing countries to stay clear of the middle-income trap and en route towards inclusive and sustainable industrial development (ISID). Yet, many countries in the emerging world have seen their share of medium-high tech production and exports decline since 2013. Efforts in developing economies are yet to pay off, with the exception of South and South East Asia, the new rising factory of the world. Here, as well as in the Middle East and North Africa, the role of industrialization is also on the rise. Sub-Saharan Africa is seeing careful progress. On the other hand, both Europe and North America—counting many of the world’s most industrially competitive nations—have seen their competitive edge wither. The same is the case, and more so, in Latin America, where many economies struggle to surpass the middle-income trap. As this Report will argue, Industry 4.0 may either exacerbate the challenges in the regions or provide a golden opportunity to move faster towards inclusive and sustainable industrial development.
Volume I of this Report consists of three parts: Besides describing the composition of the CIP Index and the relevance of its indicators, Section 1 elaborates on the importance of industrial competitiveness to achieving ISID, and on its relationship to each of the six indicators of the Sustainable Development Goals monitored by UNIDO. The section also offers insights as how to use the Index when evaluating a country’s industrial competitive performance. Section 2 presents the results of the 2016 edition of the CIP Index by development stage, geographical region, and indicator. Finally, Section 3 provides a detailed account of the methodology behind the Index, as well as classifications used throughout the Report and comprehensive tables presenting country-specific performances in the CIP Index, edition 2016.
For each of the countries included in the CIP Index, edition 2016, Volume II gives a graphical summary capturing their competitive industrial performance relative to their performance in previous years and compared to that of the rest of the world. A Reader’s Guide describes the elements of the country profiles in depth.