Li Yong, Director-General, UN Industrial Development Organisation (UNIDO): Interview

Interview:  Li Yong

What perspectives and expertise can Bahrain and other Gulf nations offer to the international community in supporting development?

LI YONG: Under the banner of south-south cooperation the governments of Bahrain and India, with UNIDO, established the Arab Regional Centre for Entrepreneurship and Investment Training (ARCEIT) in 2001. ARCEIT, in cooperation with the Bahrain Ministry of Industry and Commerce and the Bahrain Development Bank, founded what is today known as the UNIDO Entrepreneurship Development and Investment Promotion (EDIP) Programme. The EDIP Programme has provided support to 6000 potential Bahraini entrepreneurs and led to the establishment of 1350 new enterprises with an investment of $1.5bn and the creation of some 14,500 jobs.

Building on this success in Bahrain, the programme has been replicated in 42 countries in Africa, Asia, Latin America and the Middle East. In 2008, a UNIDO independent evaluation of ARCEIT activities concluded that ARCEIT has played an important role in economically empowering youth and recommended institutionalising it as the Arab International Centre for Entrepreneurship and Investment.

In line with Sheikh Hamad bin Isa Al Khalifa’s vision of future youth programmes, the kingdom can share its best practices in women’s economic empowerment, youth employment, job creation, facilitating joint investments and trade between entrepreneurs. Bahrain has already started sharing its expertise; in early 2015 UNIDO coordinated with our partners and organised the First International Entrepreneurs Investment Forum in Manama with 800 entrepreneurs from 80 countries. As a result, the 2015 Manama Declaration on Entrepreneurship and Development was issued in six languages as a document of the UN General Assembly.

As the financial hub for the region and for Islamic finance in particular, Bahrain can play a stronger role in developing new financing schemes and position itself as a financial centre, not only for mega-projects but also for micro, small and medium enterprises (MSMEs). Experience in the area of MSME development through encouraging entrepreneurship and innovation plays a vital role in positioning Bahrain as a gateway between Asia and Europe.

To what extent will the phasing out of subsidies help make industry more feasible in Bahrain?

LI: The government’s vision has always been that economic growth hinges on building capacity, productivity growth and the development of competitive production structures. Developing productive capacity through the promotion of domestic entrepreneurship and enterprises is the key to success. A diversified, productive, profitable and responsible private sector drives economic growth, with entrepreneurs assuming a vital role as key producers, employers, innovators and creators of wealth. Bahrain has phased out subsidies and developed a number of support services which facilitate and stimulate the creation and growth of enterprises that are primarily export oriented and innovation driven.

What is UNIDO’s strategy to encourage environmental sustainability in the GCC?

LI: UNIDO’s mandate focuses on promoting inclusive and sustainable industrial development. In the coming years the GCC countries will move toward promoting investments in renewable energy technologies and green industries as an effective way to ensure a cleaner and more environmentally friendly world. We are also implementing a number of specialised regional and international capacity-building programmes with the University of Bahrain. Adopting and enforcing environmental regulatory frameworks can also provide an impetus for change and help to create a wide range of jobs.