MIPF 2024

The integration of AI-powered technologies has revolutionized manufacturing by enhancing efficiency, quality and sustainability, while optimizing energy use and reducing waste. However, these technologies also pose challenges, including high costs, complexity, and potential job displacement. As countries with high absorptive capacity are poised to benefit the most, global collaboration is essential to accelerate technology adoption, especially in developing countries and smaller firms. The Fourth Industrial Revolution (4IR) is also driving greater integration between manufacturing and services, offering opportunities for economic diversification and technological advancement. To leverage these benefits, bold policies, public-private collaboration, infrastructure investment, and skills development are needed.

As climate change and environmental degradation intensify, a sustainable approach to industrialization becomes crucial. Transitioning to green energy not only benefits the environment but also enhances competitiveness, particularly for energy-intensive industries such as steel, chemicals, cement and agro-food. With rising green trade regulations and changing global consumption patterns, a shift towards exporting green goods and services is inevitable. Developing countries, especially those reliant on fossil fuels, are facing challenges such as potential market access losses and the need for economic diversification. Public-private partnerships are essential for overcoming infrastructure barriers, advancing sustainable innovations, and improving energy efficiency. Key public sector priorities include data standardization, harmonizing environmental regulations, mitigating transition risks, enhancing resource efficiency, and fostering innovation.

The COVID-19 pandemic highlighted the vulnerabiltiies of global supply chains, emphasizing the need for increased resilience and sustainability. Resilient supply chains are diversified, flexible, and quick to recover from shocks while minimizing environmental and social impacts. The regionalization of value chains, such as nearshoring, offers opportunities for developing countries to upscale industries, use resources effectively, and benefit from regional trade agreements that boost local production. Enhancing supply chain resilience, which is key in global rebalancing, can be achieved through public-private collaboration. Policymakers can enhance supply chain resilience by fostering innovation, diversifying sources, promoting restructuring and sustainability and encouraging global and regional collaboration. The private sector can accelerate the adoption of new technologies and introduce profit models that reward collective resilience efforts.