WIFO-contribution to Industrial Development Report 2018

This project contributes to the UNIDO Industrial Development Report 2018, specifically to Chapter 4. The IDR 2018 will look at the effects of manufacturing from the demand side, focussing on the role of manufacturing consumption in lifting up living standards and assessing the specific conditions needed to assure the social inclusiveness and environmental sustainability of global manufacturing consumption. The chapter will examine the conditions under which globalisation can be inclusive. It shows that inclusive integration into world markets has been achieved by those countries that managed to diversify their export structures and avoid falling into commodity-traps (broadly defined so as to include both primary commodities and commodified manufactures), and to exploit their domestic and regional markets in a smart way, so as to balance the opportunities provided by internal and external demand. The chapter develops policy recommendations on how countries can define measures to meet these conditions.