 Okay, folks, I think we're going to get started. I'm Dan Rundy. I hold the Shrier Chair here at CSIS. I also run the Project on Prosperity and Development, and I want to welcome our audience, both here in Washington on a rainy, wet, snowy day here in Washington, but also the larger internet audience, both in Europe as well as around the world that's going to be watching this event. We're very fortunate to have Director General Lee Yong of the United Nations Industrial Development Organization, better known as UNIDO. UNIDO is one of the largest specialized UN agencies. It has over 50 offices and is really going to, it's a big part of the future of development, and I think that we're going to learn quite a lot today from Director General Lee Yong. Director General Lee Yong is the first Chinese mainlander to take the leadership of a large UN agency. There have been other notable folks such as Margaret Chan, who is from Hong Kong, as well as also we have the gentleman who's running the International Finance Corporation, but Director General Lee Yong is the former Vice Minister of Finance of China and comes directly from being Vice Minister of Finance, as well as also holding formal roles such as formerly the Executive Director for China, for representing China at the World Bank as well as being the former alternate governor at the World Bank. And so Director General Lee Yong is somebody who brings a very interesting and important perspective to his work as the new direct, relatively new Director General of UNIDO. And UNIDO is I think is at a critical moment and brings a critical contribution to the conversation around development. Many countries have become middle income countries. There's a growing and increasing recognition about the power of industrialization, the power of technology and what it means for development, the need for clean technology, the use of trade and standards around trade for industrial activity to happen around the world for the participation in global supply chains, as well as a number of other trends that are going to impact development that UNIDO's at front and center of, whether it's around trade or clean technology, but also around the shale gas revolution and the growth of global supply chains around the world have serious implications for development and UNIDO's right at the center of that. So without further ado, I'm gonna hand the floor over to my good friend, Director General Lee Yong. Director General, the floor is yours. Thank you. Pleasure. This one's, oh, much better. So it is my great pleasure to be here in CSIS, particularly meeting all of you at this new building, which means a very prosperous future of this center, this important institution. Thank you also very much for choosing this very important topic. I really would like to share with you my vision and my view about the how to develop industry, which is closely related to the supply chain of the global community and also trade and other related issues of this. We are witnessing interesting time. Never has the world been more interdependent, never has it been more shaped by technological, economic and social progress, and never has it been more vulnerable to the shocks. It is more important than ever that we work on the establishment of effective and functional global institutions and systems as the world's best hope for progress, prosperity and peace. Over the past 30 years, I have witnessed tremendous changes in trade and the technology, and equally our global political economy world order has changed dramatically. So not least because of enormous changes in my own country, China. So I would like to start with a Chinese saying, friends, colleagues. We say that if you give a man the fish, you feed him for a day. But if you teach him how to fish, you can feed him for his lifetime. And however, we believe that not to really eradicate poverty which is now the international goal, you also have to give him the capacity, capability to build the boats and nets with which to catch the fish. And you need to give him the possibility to trade the fish for other goods and services. It's a very good story or a kind of saying educate me a lot that we should provide the people, provide the country with the capability to develop themselves. So a world of free of poverty is our target. Technology and trade are two integral building blocks of industrial development. And indeed, I believe the industrial development is a critical foundation we need for creating the world we all want and a world with shared prosperity. My own experience tells me, particularly regarding my own country, watching how hundreds of millions of people were lifted out of poverty through the industrial development over the past decades, three decades, almost three decades. I have the firm conviction that an accelerated drive towards more inclusive and sustainable pattern of the industrial development will be a key for achieving higher levels of prosperity in all countries. Here the trade and technology are essential the driving forces, which can speed up and advance this progress in our current area of globalization. So the key will be the, one of the key actually is driving force for development actually which is closely related with, related to the trade and the technology. So member states of UNIDO all agree with a new goal that is inclusive and sustainable development, industrial development and contains in our declaration, just passed during the general conference held in Lima last week. That will be our new goal, the inclusive and sustainable industrial development. And we, our member states discussed at this conference what matters most to them, what matters to their countries. They discuss our world's industrial future and they pass a major global declaration as I mentioned. This declaration makes it clear in order to eradicate poverty and to allow better life and prosperity for billions of people, they're still being excluded from the dignified human existence. The world needs to grow its industry, manufacturing activities in an inclusive, sustainable manner. This is very clear mandate to me as a direct general from the peoples of the other world. I believe that this new impetus will shape the global framework under which we will create industrial future for generations to come. The area of inclusive and sustainable industrial development now starts. And area in which we will have increased our shared prosperity and the area in which we will have end poverty. Friends, colleagues, the story of globalization over the past decade and even centuries is the one that had been shaped by technological, economic, social achievements. Many countries have reaped rewards of a global success story. How was this success possible? What drives those successful stories? And whether we look at early advancement in European countries or the United States over 200 years ago, followed by Japan and later, such countries like Republic of Korea and very well known, the Tigers, Dragons in Asia and also followed by China and some other countries. So it was industrial development that shaped their success. And let me tell you that over the past 30 years I have witnessed a tremendous change in the world, especially in my own country. I joined the Ministry of Finance, my government in 1977. I had the opportunity, I've had this great opportunity to see with my own eyes, join with my own views and my own thinking in this process of the opening up. I saw how industrialization and the related structural change in our economies happened greatly including millions of people out of poverty. And when China opened up to the world in 1980, I just tell you a figure. You will understand how big the change is. It was a very, very poor country with a big population. You cannot imagine that in 1978, GDP per capita in real-term, or now real-term at the current prices was 228 US dollars. And now after more than 30 years of opening up reforms and last year GDP per capita was over 6,000 US dollars. For the country with a population of one part, barely, that is a very big thing, very big thing. And what was the driving force, friends? What was the driving force? It was industry, it was trade, it was technology. So, and we can see that industrialization proceeds, the quality of jobs improves even more beside the high level of salary, more advanced manufacturing job, advance your need of particular vocational training, educations, and provide the bad benefits and the security for the workers. I believe that on this basis prosperity can be shared throughout society and providing a new backbone and a stabilizer for our global economy. The great African leaders, Madiba Nelson-Madana was said, money won't create success, the freedom to make it well. And we cannot and must not deny such progress to those who are still struggling, who have so far been left behind, nobody should be left behind. We need to create more shared prosperity in and among all our countries and the societies. And we all need to work on this together, strong partnership, government, the private sector, civil society, and United Nations families, et cetera. To find the right solutions, we particularly need to work on the constructive inclusion of women and the youth through their economic empowerment, through the entrepreneurship development in all countries, industrial development must become inclusive. I will come back to the issue of inclusive later in my speech, later on. History teaches us that industrial development needs to happen within an environmentally sustainable framework. That is why we put a word sustainable industrial development that was in front of the industrial development. We cannot deny that our industry caused major emissions in the past and maybe somewhere now and have an important environment to footprint. Indeed, there's no country in the world that is not struggling with the issue of waste management, water purification, and emission reduction. It remains a major learning process for all of us. And we therefore need to realize that there's no alternative to rapid reform of our industrial process towards sustainability. We must increase our energy efficiency. We must reduce our emissions. We must use our scarce resources more efficiently and effectively. And we must advance our cleaner production ability, capability. I just would like to emphasize that we do not need to choose between industrial growth and sustainability. We don't need to choose because we must go hand in hand with the right choice of technologies. We could combine those two together. Industry and sustainability development. They should go together. There are many good examples building on the success stories to share. Many countries have achieved high levels of sustainable development in all its dimensions, economic, social, environmental. For the benefits of their people, we should learn from those who succeeded. Study their ideas, policies, strategies, and intensify our efforts to fully eradicate extreme poverty within the next generation. That is a target set up. Now, maybe hopefully in our next new development agenda. And we must create to share the prosperity. Within our Lima declaration, we are entering a new area of globalization, based on the ISID, which means the Inclusive Sustainable Industry of Lima. In short terms, we are ICID, ISID. This new area requires a new thinking as to global solutions and the governance. We need to think boldly about what is required to improve and sustain shared prosperity. In recent times, several new forces in global governance have been pushing for re-shipping in institutional building of the international community. The first change is increasing importance of middle-income countries. This is, I think, a very well-known, this emerging market economies and the middle-income countries. This group, they become more and more important for the international development. They are higher degrees of relative development and ability to link themselves in the global market and into various knowledge and technology networks. So early this year, we facilitated a high-level conference of middle-income countries and the ones. Outcome was very, very clear. This group of countries wants to have a voice in shaping globalization. And I believe that global institution will need to be ready to listen and to adjust to this new change. This conference, middle-income country conference held in Costa Rica, 75 countries attended that conference a declaration being reached. So the second issue is the driver of transformation as the private sector. Private sector as a powerful global business sector and a growing number of civil society organizations are not only influencing policy-making process, they are also increasingly changing the traditional state-centered policy norms at all levels. Local, national, international, and arguing for rethinking many of our traditional approaches to development. So this is second. A third issue, a third force of innovation is networks. You know, in other words, a partnership. UNIDO has extensively published about the role of networking in achieving development goals. We have also demonstrated through a global connectedness index that there is a close link between the country's connectedness, national, and global, and its development success. They have linkages. And the world people's, I think now we all agreed with one concept, industrialization is important. Industrialization means a lot when we want to bring back the growth. We need a new and open dialogue on the future of our international development system. I'm planning to arrange a series of forums next year with my UNIDO member states and all relevant stakeholders to discuss one important issue, the global best practices on industrialization. I think the member countries need to exchange knowledge on the most effective policies, effective practices, and they need to establish strong partnership to advance and implement these best practices and bring the growth, bring the trade, bring the technology into their country, for their people. It will be my pleasure if one track of these forums will be organized in partnership with American Institute, the companies. Then, invitation now. I know one. I know one that's available. Yeah, invitation issued. It's effective, you can use it anytime, cash it. Friends, of course UNIDO is not alone in arranging the necessary dialogues in advancing the global development agenda. We are not alone. The member states of the UN have started with a debate on the development after MDGs. At the real, the global community decided to establish sustainable development goals. Ascent General Assembly has put a process in motion to discuss future post-2015 development agenda. At the same time, we could observe a new partnership for development effectiveness emerged from the OECD-led process in Busan some two years ago that is very well known now. After hundreds of consultation and discussions on this subject, one essential aspect has become increasingly clear. That is, we need to bring the growth agenda back into development. In the logic of the MDGs, developing countries are being asked to achieve what no other country could do to develop their societies rapidly without industrialization. This logic needs to be revised. So it's very contradictory. And we would like to provide assistance to these developing countries in particular, let them have an eradication of poverty. And we should let them know what's effective and a useful tool to generate growth, generate development, and help themselves to be out of this trap of poverty. But we need to let them know industrialization is useful. But now, if we do not push it, we do not have them to understand the importance of industrialization. That's just a kind of contradictory issue. And we should let them build a capacity but what kind of capacity? Development, creating jobs, creating wealth, creating capacity, revenues to deal with education, health, all the challenges. So this is logically a kind of issue still be facing by many developing countries. They still go ahead with agriculture, go ahead with exporting the resources, raw materials, or go ahead with the manufacturing industry, which is so useful for them. And the countries already reaped such a great success advancing their country to a high level. So I think that the ODA investments into a social sector alone will not lift the country out of poverty. Development cannot be achieved only through charity. This is a strong belief from me. And the new vision of UNIDO's member states as encapsulated in the Lima Declaration makes one direction very clear, one direction. Development path based on inclusive and sustainable industrial development. We must make sure that it is reflected in the new development agenda. I don't want to see that when we talk about the challenges, goals, which is very clear, long list of those, when we talk about how to reach the capability to deal with those with the empathy paragraph. I really would like to see something there, how to generate income, how to have a sustainable development. Then we can meet with challenges. I don't want to see that we're just talking the challenges without mentioning how to build a capacity to deal with that. So we must make sure this is reflected in the new development agenda that will follow after MDG. The growth agenda, the inclusive sustainable industrial development needs to be reflected in the sustainable development goals and the post-2015 development agenda. No, we are continue working on that with international community. So friends and colleagues, let me come back to the issue of inclusiveness. I mentioned that before, many countries have experienced robust economic growth over the past decades. However, income inequality as well as the unequal access to assets, resources, plus particular the opportunity for development remain the persistent challenges in their development. We know that high level of the inequality are detrimental to the social fabric of the countries. They impede the economic growth or certain periods of growth. And it goes without saying that the persistent inequalities and unjust in their own right and harmful to future generations. Today, the world is marked by a new geography of poverty where 65% of the world's poor live in the middle income countries. And that is a kind of shocking information. Any poverty reduction policy worthy of its name has to take this new reality into account. At the same time aid and the support to least developed countries or LDCs need to be rethought. We must think about a radical shift in development strategy and partnership which is to allow LDCs to make a significant leap forward at all levels and to enable them to meet all the graduation criteria by 2020. To achieve this ambitious goal, the commodity sector of LDCs need to become a productive lever for the development and the structural transformation of LDC economies. With the 12% of the global population in real number, some 900 million people, LDC still collectively produce how much only 1% of the world export and receive less than 2% of global investment. It is another shocking information. This shows the imperative urgency for a path of inclusive and sustainable industrial development for LDCs. It is more crucial than ever to give these countries which have been leased favor by our global markets a chance to grow their industries, to lift their people out of poverty through productive activities and trade and to reduce their dependence on external aid only. One of your great leaders in the state, Mr. Martin Luther King once said, all over that uplift humanity has dignity and importance and should be undertaken with the painstaking excellence. It is time to give the human dignity back to all the peoples of the world. I just would like to point it out, the international community needs to understand that in order to meet the social development objectives, such as health, education, et cetera, we need to develop economic potential and generate fiscal income tax revenue in LDCs. This in turn will require the development of the industrial capabilities of these countries. Industry will provide the necessary jobs opportunities that will allow the development of stable societies and the economic empowerment of women, or dignity in life, just to mention some of the development goals that we all aspire. In this context, we need to recognize the international development cooperation is not a zero sound game. The achievements and the examples of middle income countries, their efforts to achieve asset will also lead to significant benefits in other countries. Confucius once said that it is obvious that the goal cannot be reached adjusted action steps. That you need to do something to reach your goal. To achieve this challenging agenda, international development cooperation itself has to change. It has to appreciate a new area of network development in which multiple actors are able to leverage development outcomes through knowledge and other assets. These actors, including governments, international organizations and private sector civil society and academia, foundations, et cetera. The issue of the connectedness through the network partnership is one of the core points of my agenda of UNIDO. We would like to develop a stronger partnership for UNIDO to provide more services, better services for member states. So it also need to be incorporated into the post-2015 development agenda. No single organization, entity, country, international organization can accomplish our bold goal eradication of poverty within next generation. So we need to work together, build up a strong partnership with concerted efforts towards our final goal. In this new area of globalization, we need new approaches that harness globally available knowledge and innovation. We need to build a strong linkages with exchange of knowledge based on North-South and plus the South-South annexes. And through the triangular cooperation, can positively influence success in reaching this goal. So this kind of strong cooperation, North-South is fundamental. And now we develop a South-South triangular cooperation to work towards this goal. UNIDO has done a lot for convening the right partners and the governments to exchange knowledge in all fields of industrialization, be it for the development of agribusiness with a better energy future and green industries and specifically industrial agenda of the country with similar interests and needs. We develop so many services for member countries to move towards this end. And all these conference platforms we developed have resulted in important programs, partnerships. I just give you one of the example, the Clean Production Center being supported by Switzerland more than 10 years ago. After 10 years, we re-haviced and it had been spread all over the world with 47 Clean Production Center, which helped the country to develop their industry while saving energy, saving water resources, reduce the pollution, generate more income, more jobs for people. It is still booming. We had such a kind of celebration during the General Conference in Lima. It's really amazing. These kind of partnerships, multi-sector partnerships should be expanded. They are critical for promoting industrial development. I really would like to share with you that industrialization is not about building one or two factories. Not just stand-alone assembly lines for making shoes, shirts. That's not industrialization. Industrialization means a historical structural transformation from a low level of the development to a high level. That is, now we are very clear. We need to create networks for partnership. You need to not only go along ourselves, we need strong partnership. So over the past decades, the world has continued to grow in almost single global marketplace. And the increasing number of large transnational corporations have emerged both for traditional industrialized countries like US, like this country, as well increasingly from emerging market economies such as India, Brazil, China. And many of these companies consider the national boundaries market as a mere legal or technical hurdle rather than a real hindrance to the market access. At the same time, even small media enterprises from developing countries increasingly enter international or global market. Unthinkable in the past. It was unthinkable in the past. They are becoming a real backbone to the global economy, stabilizing the markets with larger industrialized nations struggle. Of course, this is the only possible due to the technological globalization. Technology has globalized at an ever rapid speed, benefiting millions of people in developing countries to access not only information through the internet and other ITC innovations, but also improve the solutions particularly they have the access to solutions for common development problems such as water purification, immunization or public mass transport, all those kind of issues. One of our great leader, of your great leader and President John F. Kennedy once said, the water is very different now for man holds in his mortal hand the power to abolish all forms of human poverty and all forms of human life. And this is precisely where I see you need to make a great difference. Our experience in advancing trade stands for industry, in advancing industrial technologies, including green industrial technologies. Here we are doing lots of capacity building for trade, to promote trade. We need some standards, the list of African trade, middle income trade development. If they want to access to the market, global market nationally, they need to meet certain standards. And we, you need to provide the laboratories to help them to set up standards for access into the market. And the green industrial platform, that is we jointly organize a kind of platform led member countries to discuss how to develop their green industry, led green being embedded in the industrialization and the green economies to be achieved. So this is a very important job for UNIDO and we will continue this process. And our experience in providing policy advice that favors the small media enterprises, the backbone of our economy will be at the core of UNIDO's development strategy. That is also one part of our services. Very correctly, let me give you two fields I see the strategy leading us. First, I would like to give a specific attention to the importance of trade and the global supply chains in the current setting of our global industries. In the absence of my further global regulation and with a patching network of bilateral or regional agreements and the private standards, many of these industrial value chains exist in the legal vacuum. That is particularly true for the increasing South-South trade. And the UNIDO does not have mandate to look into the trade regulations. I think WTO and all ministers of trade they are show during very, very heavy responsibility for concluding a trade negotiation. They are working very hard on that. So we, the UNIDO does have extensive experience in building trade capacity of developing countries as I mentioned. We create a necessary infrastructure for standardization and the conformity assessment, the system that are very imperative for engaging in global trade or working supporting countries to adjust their industries to international and private norms will certainly intensify in this new area of globalization. And closely linked to this is the importance of technology for achieving sustainable, inclusive and sustainable of industrialization. I just would like to emphasize in this context the importance of technology transfer and knowledge sharing also on the South-South space. Now we have different channels to share those technologies. The North-South is being normal, standardized and the South-South is creating new momentum among the countries of that group to share the technologies. This will be an important complementary to the international sharing of knowledges among the international community. And here UNIDO will play an important role, I believe in facilitating critical approaches to technology research and the transfer through networks of knowledge partners around the globe. Private sector will make a particularly important contribution to this effort, but so will financial institutions like multilateral development institutions. Through their ability to support necessary technology and the infrastructure investment, UNIDO will partner with those who can provide finance such infrastructure. And I link it to the industrialization plans and policies that our member states decide their countries, decide for their countries. Of course we will continue to offer our policy advice on the holistic industrial strategies we're never requested. I visited 16 countries and twice at the U.M. I met with leaders of African Union and ministers of those countries, particularly working on the industrialization, commerce and trade. They all give me very clear signal that they would like to work with UNIDO. For what? Not just technical cooperation projects, not just piecemeal of the projects. They would like to have the suggestion and on the strategy how to develop industry, particularly in this situation at the current situation. So we are very happy that we will continue to offer our policy advice on the holistic industrial strategy. UNIDO's policy advice services are very strong being built up for years. And when we provide those kind of policy advices, we're not pushing them to accept that. It's just to present on the table different courses of the meal and let them make selection themselves suitable to their own situation. We could mention the experience best practices in Japan, Korea, Southeast Asia, China, and maybe in Africa. Because some of those countries like Ethiopia, like South Africa and they move ahead with their own industrial development strategy. They develop part of that, but they still would like to share. This time we had a General Conference in Lima, Peru. Their president participate into the opening ceremony twice and then twice. And in the evening party, he invited some head of delegations and he made it very clear Peru, start from now on we would like to have the new industrialization strategy. They will move towards that direction. He also, not two countries know developing the policy, refocusing on the industrialization. I fully support that, supporting industry, supporting manufacturing, supporting export, supporting SMEs and the European Union. When I visit them and they give me very clear indication industrialization is their strategy for whole European Union. And when I visit African Union, the chairperson Dr. Zuma told me that industrialization is agenda for Africa for next 50 years by 2063. And I'm very happy to hear that. Now it's time for refocusing on industrialization. It's time for UNIDO to do more. It's time for us to work together to promote industrialization, to get back the goals on track. So friends, colleagues, I really think that our world is more interdependent than ever in history. It is more important than ever that we work together to eradicate poverty within the next generation. To achieve this, we need a new strategy for all countries to have an overarching goal of ISID. To achieve this, we will need a stronger UNIDO, more strong financially, more strong in implementing the programs, more strong in partnership with the international community. So, and the work of the CSIC in transition assistance of the United States to low and middle income countries, allowing them to grow their sustainable industry and the prosperity and tax base to be able to determine their own future as a phenomenal thinking piece. I see a lot of the parallels between this important work and the development partnership that I will try to facilitate and forge through the global services of UNIDO. We would like to have more interaction, more exchange of views and best practices among us. On this basis, I discussed this morning with CSIS president, Henry, the possibility of forge and close partnership between the institutions and how to advance our mutual ideas in this new area of globalization, the areas of inclusive and sustainable industrial development, how to have stronger partnership with all the international communities and including the United States and the people of the United States. And UNIDO member states have requested me in the Lima Declaration to launch a new multi-stayholder system of consultation on inclusive and sustainable industrial development to achieve prosperity for all. Determined to do this through the series of forums I mentioned before, working with CSIS in some of them is of course most welcome. And I just would like to refer to a few quotations really supports me and encourage me to do a good job as a position of DG of UNIDO. Asian wisdom says thousands of candles can be lighted from a single candle. And the life of the candle will not be shortened. And it will be a pleasure if I could welcome any American stakeholders to this initiative to actively engage with UNIDO in this context to re-engage in the dialogue on our common future. UNIDO strives to be a stronger partner for prosperity and friends, colleagues. This is a whole presentation I just would like to present today. I appreciate so much for your coming to this presentation. I just hope that UNIDO may have certain thoughts which is very important for the future development, for the future goal of the poverty eradication. Thank you for your attention. Thank you for coming with such a heavy snow. And thank you so much. Thank you so much, Director General. Thank you very much. I couldn't agree with you more. I think we're at a critical juncture in the future of the world. I think that UNIDO has an important and critical role to play. I share your view that we are more interdependent than ever. I was in London last week and I was describing at Chatham House that in some ways we are economy, the global economy is sort of similar to my favorite American film, It's a Wonderful Life. It's a wonderful life economy that we're all interdependent as a society. And I think that what UNIDO is doing is helping to build and strengthen those linkages that we need for our shared prosperity. We did a report at CSIS called Our Shared Prosperity which is exactly in line with that. I think you referenced that and thank you for your very kind remarks. I had a couple of questions for you in light of your remarks that I think would give us a chance to kick off a conversation because I think your comments were really in line with I think where I think development is going and I think we're very welcome, your comments. I'm hoping you could talk about a couple of things. One is, could you talk about China has so much to share with the world in terms of the changes that have happened in the last 30 years. Can you talk about how China is looking at development and when you started talking to your peers about making a run for being the head of the UNIDO, what are some of your former colleagues in China? What were they thinking about when you said, I wanna run for the director general of UNIDO because I know on the one hand, they thought about what they could contribute because of the history, but also how they're seeing development in China. How are they seeing the direction of the future development of the world based on their experience in China? Really for this world, for any organization, any country, any individuals, if they do not want to learn, there's no progress. There's no progress, there's no advancement. So talking about the what kind of things China could share with the international community, I think at first I should refer to how China learned from the international community. Very fortunately, I have gone through the whole reform process, start from 1978. And I was very lucky in 1979 I joined a Texas study group to Philippines. We stay in Manila for three weeks, whole three weeks and worked so hard learning what the tax law introducing encouraging FDI, encouraging foreign investors come to the export processing zone. We brought a whole set of the tax codes they were implemented at that time. And that was the first set of the tax preferential treatment for foreign investors. We develop our own based on that. So I was very lucky, and the UNIDO, when the President Xi met with me 10th of November. That was a busy day for President Xi, if I recall correctly. The three plenary got between 9th and 12th until he run from the meeting venue to great hall of people to meet with us. I report to him a few issues that UNIDO contributed to China's opening up. In 1980, UNIDO helped the Chinese government state council to send out a study group to Ireland, to Malaysia, to Singapore, to Indonesia learning how to opening up, how to introducing foreign investors, and how to build an industrial park. Industrial park now is a very hot topic around the world. And in 1989, UNIDO set up international cooperation center in Beijing. That is an ITPO, now we call ITPO office in promoting the international cooperation. Actually it's introducing the FDI in the country, how to let foreign investors coming. That's not easy process, if you call them coming, they do not come, if policy is not there, if regulation, if institution is not there. So we learned that President Xi appreciate very much the contribution UNIDO has done to China's opening up in the reform process in terms of manufacturing, industrial development. And he mentioned that he will continuously support UNIDO, support inclusive and sustainable industrial development code. That is part of that. So we open up, we introduce the foreign investor, we build the first export processing zone in another name as maybe industrial park, in Shenzhen. Then after that we build 15 more and then spread all over the country. So I think that is not kind of the practice China developed, we learn from others. And we continue to bring the best practices and incorporate it with our own practice. That is really something amazing to China. So we would like to share what we've done, we build up a South-South cooperation center UNIDO contributed. And through those center, we organize a number of workshops every year. For what? For sharing best practices among the South-South cooperation and ministers from Africa, ministers from Asia, United to workshop to share their best practices to see the field, how it runs and come back to summing up what they need to do. I think this is a kind of process. So if there's anything else I can emphasize that from my own perspective, I think a caste theory is one of them. Deng Xiaoping mentioned a caste. It's very well known. White cast, black cast, it doesn't matter. Only if you catch the mice, catch the rats. So no, UNIDO, I really would like to push UNIDO ahead with that just doing services, policy advices, promoting the inclusive sustainable industrial development and benefit people, benefit country, generate income capacity to meet the challenge then to have the poverty reduction in reality. That is a thing I should deliver. I should implement. I should let member countries feel certified with services. My colleagues in China have a big question on me that why you've done a great terrific job at home. You will feel quite pleasant and also feel proud of what you've done in terms of financial sector, rural financing and lots of things, you know. And I enjoy my profession as an accountant. At the international accounting stand board, if first foundation, the trustees and et cetera. But I told them that I like the challenge and because UNIDO six months ago was in a different situation. And every people in UNIDO, when they talk to me, I talk to some managers and they said in a very low mood and they even talk about maybe someday we'll be closed. And then they said, you selected this job, it's terrible. And I believe myself, I believe my confidence. I believe my studies. I think now it's time for international community to refocusing on industrialization manufacturing. And I know the financial issues, financial market are being involved in the financial sector for more than a decade. And I'm not, I had to leave the financial stability board, FSB, because I was the first member of representing China in that group. I participated four G20 summits focusing on how to resolve the financial crisis. And we discussed how to strengthen supervision, how to change the international monetary structure or other related issues. But finally, I think a shortcut to bring the growth is manufacturing industry. And we could discuss lots of things for a long time to find out what's the problem in the financial sector. And it takes much, much long time. So if we really would like to do something real, please come back doing real things, not just discussing and not to wait. And we cannot wait until tomorrow. The longer we wait, the big, last will be. So I'm very happy to take this job as a DJ of UNIDO. I really enjoy this work and I strongly believe and very quickly those countries, two thirds of the LDC in Africa. And lots of middle income countries and the world up level, the industrial level, these developed countries will start to the initial stage of manufacturing. And those technology transfer, those new and renewable energies, those clean production technologies will be used and other people have the opportunity to develop a business. That is a very important part of the declaration of human rights or something. Rights to development, rights to work, to enjoy the education health, et cetera. It started here, started on the ISID. Thank you. So thank you very much, Director General. Two other questions for you. One is, for those countries, I think there has been a shift in how countries and various stakeholders perceive UNIDO because of your leadership and because of your arrival and because of the very strong vote of confidence that China has given to UNIDO, both by your presence there, but also by a variety of other actions to support UNIDO. What arguments would you make for those countries that have left UNIDO over the last 15 or 20 years? I'm thinking of many countries, the United States exited in 1996, Canada, the United Kingdom and others. I know that the Netherlands was thinking about it, but I think in the last six months it's had a change of heart directly because of your leadership and because of the direction that you're taking the organization. What would you say to, say, a member of the United States Congress or a member of the British Parliament or the Canadian Parliament or to a minister there? Certainly you've made a very articulate case here, but for those folks to come back, what would be your argument for them? Because I do think there's, my view is there is an argument as to why they should return, but I'd be curious about what your view is of that. And for reasons, I think there's a number of reasons I don't want to mention that in great detail because I think those members they left either clearly indicate or not indicate anything. One major concern was that the industry, it's a matter of market, not a government. Government should keep hands off. Not only the industry, also some other issues. Smaller government, smaller the better, but not diminished, should be there. For industrial development, government should not touch upon that issue. And you need all because United Nations Industrial Development Organization it should focus on the constitution, enshrined the institution to do the business, to do the industry. So they think, okay, you are doing industry, we left, we leave, we let all market developers. Maybe some other issues, some other reasons, but this is one of them when I learned. Of course, situation change. The stay or not staying is a sovereign decision. You need all respect that decision by the government. However, now the situation really change. I do not want to repeat that again because the industry become important to every country, support re-industrialization, industrializing manufacturing. So UNIDO is open, all vision, all policies open. Welcome any member states left or never being participating join us. And strong partnership is our strategy I mentioned already. We welcome any. Talking about the Netherlands, Netherlands now the parliament debate and the final conclusion was that they would remain in the membership in UNIDO. That is very, very good news for UNIDO. We welcome, we will, when the ambassador called me, inform the decision of their government to me and I welcome that their decision. And we will continue the partnership, continue the work together with their government, their people, their companies, private sector. No, one thing I just would like to emphasize is that everything we should move ahead with changing environment, changing situation. If we do not go with a changing environment, the result is very depressing. Thank you. One last question for you, Director General. Then I'll ask my colleagues to, and then we'll have other questions for you. But we're reviewing the Millennium Development Goals. There's a future, there's been a whole process. There was something called the High-Level Panel for the Sustainable Development Goals that were issued a report in May of 2013. The United States had my friend John Podesta as a representative, but also there were representatives from China, from Russia, from Jordan, from Yemen. There were three co-chairs. One was Ellen Johnson-Serly from Liberia. The other one was the President of Indonesia, and the other was the Prime Minister of the United Kingdom, David Cameron. And there was a very thoughtful report issued that I think has sort of set the stage for sort of this ongoing debate that you referenced in your remarks or the ongoing conversation about developing a consensus for this next generation of Millennium Development Goals that will begin January the 1st of 2016, post-2015, if you will. And obviously there's probably a real, and I think you make the case for inclusion of some language around industrial development. And when I look at the report, it talks about merging sustainability and development. It talks about livelihoods. It talks about the changed world in which we operate. Could you talk a little bit about the mechanics of what will happen going forward? How would you, how will you make the case and through what processes will you make the case for an industrial development goal or industrial development targets? Talk a little bit about what's the process that you'll be, will you be, will you work through the G77 on that? How will you, what will your process to make that happen? That is a very wide range of the issue, quite a topic, but I would like to focus on two points. One is that UNIDO for more than 40 years has created lots of new operations. And start from the simple industrial activities and develop policy advices. And now we, UNIDO have more than 50 country represented office around the world. We have so many centers, South-South Corporate Centers, two of them, one in India, one in China. And clean production centers, as I mentioned, some more than 47 of them, it's booming, it's growing. And the green industrial development, green industrial conference, third of them just completed in Guangzhou, first one in Manila, second one in Tokyo, Japan, third one in China. We discussed what kind of issue, the green, how to green our industry, how to green our economy. And that is very, very useful. That's just a new initiative, trade capacity building and the services we created, convening those forums, disseminating best practice knowledge of the clean production technology or something. We created small hydro, international small hydro centers in Hongzhou, it has three subcommittees internationally. Doing what? Doing this small hydro power station, not to just start now, more than decades ago, 20, more than 20 years ago, the small hydro power, and help those rural areas, villages to develop, to complete the small hydro power station with how much money? One million, could supply the electricity for a village of the 100,000, 15,000 villages for daily use of the electricity and the light manufacturing for the processing, et cetera. So those are very, very powerful. Like in China, 40% of the electricity generated by the hydro, and out of 40, the small hydro accounts, maybe my memory is correct, 13% of that. So you could, thousands of the small hydros in the rural areas play an important part supporting daily life of the poor people. And now it's being spread all over the world. And I think the villages in Africa, in those countryside, rural areas, they need such kind of small hydro. Second is the solar power technology center being established. It disseminated those kind of knowledge, biofuels also created. So during the manufacturing, during the production activities, those are trader-competitive building I mentioned. So many services developed by UNIDO. We will continue this process. So very happily the second point I would just like to say that, now we learned more and more government focusing on industrial development strategy. They ask more for support. So why next year we would like to establish a forum to let those countries exchange best practices and then we try to identify a few countries with relatively strong policy, relatively strong stronger institution and the basic infrastructure there. We would like to provide a cluster of the programs for those countries to move ahead to play a kind of role as a flying geese. One, a few flying for lots of good geese will follow. We worked with the World Bank, IFC, Regional Development Banks, AFDB, IFED, which is a UN family, FAO, UNEP, IAL, so particularly private sectors. And when we create a momentum, private sector will come. The work with private sector, promoting the private sector development is one of the useful tool for UNIDO. That is I just like to push ahead strongly on that. So UNIDO will play a kind of more important role, more visible, but at the same time the partnership with member states and with the member states left is our goal. And so this is a kind of strategy or policy for UNIDO, but I think this is a part of our job. We will develop our business based on the situation change, based on the requirements of the member states, based on the suggestions of the international community. Thank you. Okay, let's open up for a few questions. My friend, Thelma Aske, who used to be the head of the trade and development agency here at the United States, but also was on the hill for a long time, but also had a distinguished career at the OECD as well, and Thelma. Just speaking of the microphone. I'll also add that my very first trip to China, representing the House Ways and Means Committee, was in 1982, and been probably two years, every year since then. So I've certainly witnessed China's emergence over these years. I wanna ask a question that you've alluded to, but perhaps not addressed directly, it focuses on technology. And one part of that is dealing with good governance and anti-corruption by the use of technology, means in tax system, as I think you need to, is perfectly placed to develop those best practices with respect to good governance and technology really helps with that and helps with anti-corruption efforts. And the other part of that question is kind of the security element, creating a secure environment for investment and for industrial development is very important and technology plays a big role in that. But particularly now the discussion also centers on the use of technology for perhaps government intervention, government suppression, viewing things that we perhaps wouldn't want to have to view. And do you see UNEDO is addressing some of these issues from the technology perspective, creating an environment for good governance and standards for good governance, while making sure governments don't pick winners and losers too aggressively and allow industry to develop in a more competitive environment. Thank you. I appreciate your frequent visit to China. You could tell us more stories about what happened in China. And talking about technology, I think of course when we develop industry, and the first stage is a minimum agri-processing, a food processing, agribusiness, it doesn't need that high advanced technologies. So one I talked to is middle income countries, emerging market economies, like Poland, like Romania, like countries in Mexico, Brazil, and even Asian countries, some Asian countries, they told me they really would like to upgrade their industrial level. How to upgrade? That is not a simple issue. Technology, we need the technology up level. So where can we have a technologies? This world, we've done it, those technologies are available. And some new technology developed by some country like Brazil, they told me that biofuel, they have very strong technologies then. Korea, they have very strong technology to generate the fuels, the mass gas from water treatment factory. Landfuel can create electricity. So all those kind of technologies can be shared. So you need to as ready to provide those kind of services for those group of countries who like to up level their industrial level, industrial standard. So this is an important issue that we should not pay less attention to the technology, function of the technology. Issue is that the cost will be increased when we're doing that, but we have to do it. For instance, like a less emission and a clean production technologies. We need to use that, we pay the cost now and it will save much more money in the future. We cannot create an old fashioned industry, just production manufacturing things, then come back with heavy pollution. So we need a technologies to develop a new form of the industrialization. So I think that we will, you need a role or play a kind of role promoting dissemination of the technologies. Of course, there's issue you mentioned, maybe some standards or so. Now, what kind of, what are the standards? Standards are kind of norms from practices and generally accepted by the international. Then become standards. So you need to now accumulate lots of information regarding the efficient use of energy and clean production technologies being used and manufacturing capacity and lots of information we created, we collected. In the future, we are discussing how to develop additional information apart from our flagship publication, Industrial Development Report. Gradually, those kind of information will become norm if they check how efficient to save the energy or go to UNIDO and they have some information there. And how the clean production technology that are useful or not so useful and where to go, UNIDO, our home. And we would like to build up this momentum in the future, not only just promoting manufacturing. We would like to do more and supporting technology transfer, supporting for something for international community to use. Thank you. Yes, sir. Is there working? Yes, sir. Thank you, Mr. Director General for your presentation and the questions and answers. I'm a reporter from China Daily. My name is Tom. And my question is more concerned about China that given your experience of working with the Chinese government and being yourself being a Chinese and you're the first one to serve as a chief of UN organization from China, Minglan, you mentioned the miraculous development achievement in China and the increasing importance of emerging economies in UNIDO and the international industrial cooperation. So what do you think in terms of China's contribution to UNIDO and China's role in promoting this kind of international industrial cooperation? So it's kind of like more from a Chinese perspective. Thank you. As I mentioned a moment ago, the cooperation between China and UNIDO already over 40 years, 41 years or so, during the 40 years of cooperation, lots of programs being implemented in China centers being created and the advices being provided for the government to the industrial development. And a very strong center conclusion being made by our president is this cooperation is very, very effective, very useful to China. We will continue this cooperation with Chinese government because Chinese government committed the continuous support to UNIDO. So now this side of the issue is very clear and how to implement that? Two ways, one is we disseminate the best practices in China for other countries to pick up as a reference and next step is we would like to provide more policy advices for China to pick up, to implement if situation is adequate or appropriate. For instance, clean production technologies and less emission and the effective use resources I think a Chinese government will welcome those kind of suggestions and best practice if we provide for them to use. So this is both ways. Now after 350 programs be implemented in China, Chinese side benefit a lot from this and there's a number of the programs still under implementation and now the Chinese government contribute more and more to UNIDO in terms of financial support. China's assessment for regular budget increased dramatically because it's assessment in alignment with UN assessment. So being closely related and now be moving up China will contribute more to its voluntary contribution. Now government committed four years, 20 million US dollars voluntary contribution which can be used for TC program for other member countries. So I appreciate government of China made such a strong support to UNIDO. Support particularly from the president, from the government and recently we held the general conference during the general conference there's a first day plenary opening. We received a video tape with a message from the Prime Minister Li Keqiang. Mashing two things there. One is industrialization is important and China supports inclusive and sustainable industrial development. China will implement the new form of the industrialization and second point is that Prime Minister Li Keqiang repeat what President Xi mentioned. The Chinese government will continue to support UNIDO's mandate and support UNIDO's goal. Those are two clear message. So I think this kind of cooperation is mutual and a compliment to each other. We really hope that other countries just follow the China's case. I'm very happy to hear that Russia committed a 2.6 million every year. They didn't mention which year to stop that and India also would like to contribute more and Poland would like to contribute their voluntary contribution to UNIDO and more countries from Arabic. They express the intention to contribute instead of receiving services, TC programs, which means neither financing. They will like to contribute. So this is great news and they will work together, Chinese government I believe will work together with other members supporting UNIDO's mandate. So I'm very happy that this created good momentum for UNIDO to move ahead. Thank you. I just want to make a clear, clear it. When was the General Conference you mentioned that Li Keqiang sent you the tape? When was the General Conference? General Conference held on the 2nd of December. Okay. Last week. The Xinhua News Agency already broadcast nationwide. And particularly I think one of the signal the Prime Minister Li Keqiang set up a tone for the new form of industrialization in China. That is most important. We are very happy. UNIDO very, very happy about that. Thank you. Last comment, question. I'm most interested in UNIDO's role in protecting intellectual property as with industrial development. I proceeded Thelma by several years going to China first in 1980 bringing with me a major American film that had never been shown in China. And part of this was an attempt to begin to protect intellectual property. I think I can say frankly we failed. But to grow, to industrialize in many parts of the world is going to take the relationship with major companies that are very concerned about protecting intellectual property. What's the UNIDO perception of intellectual property? So just a little bit of context about my friend Michael. Michael was a White House fellow and as a child prodigy in the 1970s, 1492. But Michael worked for George Lucas and was the original producer of the original Star Wars films and the original Indiana Jones films. So these are not trivial films that we're discussing. He then had another career in international development where he worked on global supply chains all over the world. The organization is now called Pixar Global. He was the CEO and he was the original founder of the business for social responsibility in between being in the film industry and in international development. We're very fortunate to have him along with Thelma as two affiliates here at CSIS. So it brings a private sector perspective to development. So this issue of intellectual property, I think is not a trivial one. I just have to paint the picture for you. We showed up with the cans of film with handcuffs on our delivery guy. Was this the Empire Strikes Back? No, this is Raiders of the Lost Ark. Oh, Raiders of the Lost Ark. And took it to the documentary film studio. I was in six cities in 1980, only two of which had hotels. But we took it to the documentary film studio which has a thousand seat studio. And out of concern, Lucas said we couldn't show anybody the film until we showed it to everyone. And three young women had to serve as live simultaneous translators standing on the stage trying to translate Indiana Jones into Chinese. And fortunately, it was a strong visual film because only about half of the language was ever translated. But again, it was, and I will tell you, when I walked into the hotel, I think just by coincidence in Beijing, the theme song from Star Wars, which we had not legally released in China was playing along with the film. Yeah, of course, it's an issue for a Chinese official to respond to you. I have no authority to respond. It's UNIDO's vision of IP. For UNIDO, I'm very clear that intellectual property rights should be very well protected. With our operation, any practice in violation of the intellectual property rights protection, we will stop it. That is one of the important discipline, policy, UNIDO should apply strictly. My personal view is very clear. Without the protection of intellectual property rights, this world will not move ahead because no one would like to spare their energy, their resources, their life for creating for innovation of new things, that. So UNIDO will very clearly protect the intellectual property rights. So my friends, rest assured, please clearly monitor our operation and give your advice to us and also how to protect intellectual property rights in our operation. Welcome, thank you. Well, thank you. I should point out that Lucasfilm suffered terribly from it and when George sold the company last year it was for $4.1 billion, so. Well, thank you all very much for being here. Obviously, I think it speaks to the fact that this is an important agenda that people would come in the snow for you. But I also think, Director General, I think you're a great ambassador for your country, China. And I think I'm very excited to be, we're very excited and privileged to be working with you here at CSIS. And we look forward to a very prosperous and productive working relationship in the years ahead. Thank you very much for coming, Director General. Thank you. Thank you.