World governments should avoid the risk of unfairly placing the burden of the economic downturn on the poor and vulnerable, who did nothing to cause the crisis in the first place, South Africa's Trade and Industry Minister Dr Rob Davies said on Monday.
Speaking at the 13th General Conference of the United Nations Industrial Development (Unido), held in Vienna, Davies added that, while counter-cyclical stimulus packages were needed, developed countries should avoid the temptation of supporting their own industrial activities at the expense of those in the developing world.
"Rather, the focus should be on coordinated programmes aimed at strengthening capacity of both the developed and developing countries to continue to develop industrial capacity and create decent jobs," Davies said.
Davies added that governments needed to intervene to arrest the declining demand through adopting appropriate macroeconomic and monetary policies capable of supporting firms to avoid, or minimize, massive job losses.
"Governments should also assist firms to improve their productive capacity and competitiveness to assist them to access global markets and therefore maintain their manufacturing capabilities," he said.
South Africa would soon be adopting the Industrial Policy Action Plan. This would focus on stimulating industrial activities capable of producing inputs to support infrastructure programmes, energy savings, green jobs and agro industries.
The country would also take forward programmes in the automotives sector, clothing and textiles and chemicals sectors, among others. Davies also said that while the country pursues its own national programme, government is also conscious of the need to support initiatives at the regional and continental level.
"In this regard, we are working to build industrial standards and norms including institutions to enforce these standards, build industrial innovation systems, invest in energy security especially renewable energy, and build responsive human capital development systems in our region and across the continent. Our efforts in these areas are at an initial stage, but with the help of our development partners, we are beginning to see some signs of progress," he added.
Davies said he hoped that the Unido conference would lead to a strengthening of the organisation as a critical agency for the promotion of industrial development in general, and of greener industrial development in particular.
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