United Nations Industrial Development Organization

The United Nations Industrial Development Organization (UNIDO), known in French and Spanish as ONUDI, is a specialised agency of the United Nations dedicated to supporting countries in their economic and industrial development. Headquartered at the United Nations Office at Vienna in Austria, UNIDO maintains a permanent operational presence in more than sixty countries. As of 4 October 2024, the organisation comprises 173 member states, which together set its policies and programme directions through the biannual General Conference.
Established in 1966 in response to rapid decolonisation and the need for industrial capacity in newly independent states, UNIDO became a full specialised agency of the UN system in 1979, with its constitution entering into force in 1985. Over decades it has undergone several reforms to align its work with international development priorities, the most significant being the 2013 Lima Declaration, which expanded its mission to encompass inclusive and sustainable industrial development (ISID). This concept integrates economic growth with environmental stewardship and broad social benefit.
UNIDO is part of the United Nations Development Group, contributing directly to progress towards the Sustainable Development Goals—particularly SDG 9, which calls for resilient infrastructure, inclusive and sustainable industrialisation and innovation.

Origins and institutional evolution

The origins of UNIDO lie in post-war UN studies advocating rapid industrialisation in developing countries as a foundation for economic independence and structural transformation. The United Nations General Assembly responded in 1966 by establishing UNIDO as an autonomous programme with the mandate to promote industrial development, especially among the many states newly emerging from colonial rule.
In 1979 the General Assembly elevated UNIDO to specialised agency status, enabling it to operate with its own constitution and governance structure. The constitution came into force in 1985, marking a new phase in the organisation’s institutional autonomy. From that period onward, UNIDO focused increasingly on providing technical assistance, supporting industrial policy, promoting technology transfer and coordinating international industrial development initiatives.
By the early 2000s, the global development agenda had shifted towards sustainability. The Lima Declaration (2013) reaffirmed industrial development as central to inclusive growth while embedding environmental responsibility and social equity into the organisation’s mandate. This laid the foundation for ISID to become UNIDO’s overarching vision.

Strategic priorities and programme framework

UNIDO’s Medium-Term Programme Framework (2018–2021) outlines four strategic priorities aligned with ISID and the 2030 Agenda for Sustainable Development:

• Creating shared prosperity
• Advancing economic competitiveness
• Safeguarding the environment
• Strengthening knowledge and institutions

Each of these priorities is implemented through a holistic combination of technical cooperation, policy advice, analytical work, standard-setting and partnership-building.
UNIDO employs around 670 staff members and engages more than 2,800 experts annually, many from developing countries, to support project work globally. Over the past decade it has expanded its technical services and increased mobilisation of financial resources, reflecting its growing recognition as a provider of catalytic industrial development support.

Creating shared prosperity

In pursuit of shared prosperity, UNIDO focuses on strengthening agro-industries, supporting women and youth in productive activities, and enhancing human security in post-crisis contexts. Its approach emphasises:

• value addition in agricultural supply chains through stronger linkages between agriculture, industry and markets
• supporting the transition of enterprises from the informal to the formal sector
• improving access to business registration and administrative services
• enhancing the entrepreneurial participation of women
• integrating industrial development into post-crisis reconstruction and community stabilisation efforts

UNIDO’s experience in fragile and conflict-affected environments underpins its broader contributions to socioeconomic resilience at local and national levels.

Advancing economic competitiveness

UNIDO assists developing countries in improving their industrial competitiveness by fostering investment, technology transfer and enterprise development. Key components include:

• advisory services to strengthen the business environment, industrial policy frameworks and productive capacities
• support for small and medium-sized enterprises (SMEs) to increase productivity, innovation and market integration
• global networks that build partnerships for investment and technology collaboration
• trade capacity-building programmes that help countries meet international standards and technical regulations
• development of trade-related databases, including inventories of technical barriers to trade
• support for quality infrastructure systems to enhance export capabilities and compliance with global market requirements

UNIDO’s trade programmes strengthen both public and private institutions to create sustainable industrial ecosystems.

Safeguarding the environment

UNIDO plays a central role in promoting environmentally sound industrial development. Its environmental programmes support countries in:

• implementing multilateral environmental agreements
• transitioning to clean technologies and sustainable energy systems
• developing green industrial policies, including national road maps for cleaner production
• establishing benchmarks for environmental performance and disseminating best practices
• improving enterprise-level environmental management and resource efficiency
• adopting innovative business models such as chemical leasing
• promoting circular economy approaches and low-carbon industrial processes

These activities aim to reduce the environmental footprint of industrialisation while strengthening climate resilience and sustainable production.

Strengthening knowledge and institutions

Knowledge-building and institutional strengthening underpin all of UNIDO’s work. This priority focuses on improving:

• the knowledge base for inclusive and sustainable industrial development at the project, programme and country levels
• institutional capacities for policy design, regulatory frameworks and technical implementation
• data collection, analysis and dissemination to support evidence-based policymaking
• international cooperation, networks and platforms for industrial knowledge-sharing

UNIDO’s normative work contributes to global standard-setting, quality infrastructure development and the coordination of multilateral industrial initiatives.

Global initiatives and partnerships

On 25 July 2016 the United Nations General Assembly proclaimed 2016–2025 as the Third Industrial Development Decade for Africa (IDDA III). UNIDO was mandated to lead the initiative in partnership with organisations such as the African Union Commission, the New Partnership for Africa’s Development and the United Nations Economic Commission for Africa. IDDA III aims to accelerate structural transformation, boost productivity, expand manufacturing and promote sustainable industrial growth across the continent.
UNIDO also works with governments, development banks, research institutions, businesses and civil society organisations to support industrial development projects worldwide. These partnerships enable knowledge transfer, capacity building, financing and cross-border industrial cooperation.

UNIDO headquarters and global presence

UNIDO’s headquarters are located at the Vienna International Centre, which it shares with other major UN bodies such as the International Atomic Energy Agency, the United Nations Office on Drugs and Crime and the Preparatory Commission for the Comprehensive Nuclear-Test-Ban Treaty Organization. Its country offices and regional hubs ensure that technical assistance is delivered in close cooperation with national stakeholders.

Contemporary relevance

Today, UNIDO’s mission is closely intertwined with global efforts to achieve sustainable development. Industrialisation remains a critical driver of economic growth, job creation and technological progress, but it must be pursued in ways that protect the environment and expand opportunities equitably. UNIDO plays a key role in shaping industrial transformation through:

• support for green technologies and low-carbon manufacturing
• policies to foster innovation and digital industrial solutions
• efforts to boost SME competitiveness
• programmes that advance gender equality and inclusive opportunities
• capacity-building to improve national industrial strategies and institutions