KMFAP CARICOM MANUFACTURING (KCSDG 9C)
KMFAP CARICOM SDG 9 MANUFACTURING INITIATIVE FOR CARICOM
(KCSDG 9C)
aims to build resilient infrastructure, promote sustainable industrialization, and foster innovation throughout the CARICOM COMMUNITY,
Industrialization in Latin America, Central South America, and the Caribbean:
Challenges and opportunities
The LAC countries’ ability to capitalize on opportunities will depend on their government’s policy responses based on reliable data,
By Sir Samuel J Stafford
Knight of Malta, & Knight commander of Cyprus
KMFAP CARICOM (KCSDG 9C
CARIBBEAN MANUFACTURING Action plan for the CARICOM
Sustainable industrialization remains a major avenue for developing countries to achieve economic growth while realizing many of the socioeconomic and environmental objectives identified in the 2030 Agenda for Sustainable Development, specifically Sustainable Development Goal (SDG) 9, which calls for inclusive and sustainable industrial development (ISID).
The significance of sustainable and inclusive industrialization has further increased as part of the solution to the COVID-19 pandemic and the climate change impacts. where Manufacturing in Asia during the pandemic sent the world backwards in an economic crisis where a lot of individuals shy away from using Asian manufacturing plants to manufacture, this left a huge gap in Central South America and the Caribbean for goods and services, this observation was taken severe notice by the Knight commander who is pioneering the KMFAP CARICOM (KCSDG 9C Manufacturing program for the CARICOM
‘Growing back better and green’ has become the objective of many CARICOM nations and sustainable and inclusive industrialization is paramount to achieve this. Moreover, digitalization is emerging as a requirement for a green transition, as the majority of new technologies are based on or use digital systems.
In this context, there is evidence of a renewed consensus that governments within CARICOM should play a decisive role in shaping the pattern of industrialization. Over 100 countries worldwide have introduced formal industrial policies in recent years.1 The objectives of most of these industrial policies are in line with SDG-9, which continues to serve as a guide for evaluating progress made by countries in terms of industrialization.
Nevertheless, industrialization has not progressed uniformly across the world. The manufacturing sector in Latin America and the Caribbean (LAC) has witnessed a decrease in relative economic importance in recent decades, and its added value is currently at a historic low (figure below). Although the fragmentation of value chains—characterized by the relocation of certain production activities to developing countries—is a natural consequence of globalization, LAC has remained on the periphery of these developments. Not only has the region failed to participate in productive international value chains as opposed to Asia, but it has also been unsuccessful in defending its consumer markets against emerging international competitors. Consequently, the integration of LAC countries in production activities has been especially low, further manifesting dependence on manufacturing imports from outside the region. After these careful observations, the Knight Commander formed and founded Caribbean Manufacturing whose sole objective was to allow Central South America and Caribbean manufacturing to be done within Central South America and the Caribbean if you look at the economies of scale this region alone has accounted for 520 million people which is more than some parts of Europe and more than the United States and Canada put together, We account for a huge import bill but a very low export bill, I believe using this plan pioneered by KMFAP CARICOM (KCSDG 9C along with Caribbean Manufacturing and the night Commander vision we can increase Manufacturing in this region
Manufacturing value added per capita (constant 2015 US $)
MVA per capita (constant 2015 US$)
Source: IAP with data from UNIDO MVA 2021 Database.
The region’s inability to take advantage of global value chains (GVCs) reflects a premature abandonment of industrial policies during the 1990s and 2000s in favour of the neo-liberal economic policies associated with the Washington Consensus. Instead of internationalizing their production, LAC countries experienced premature deindustrialization and the internationalization of domestic consumption markets. The relative importance of LAC’s industrial sector has further declined in the wake of the COVID-19 crisis (figure above), with an estimated contraction of annual MVA growth of 12 per cent in 2020. This is the largest decline in any region in the world. this is mainly due to multi-con glamorising companies within the United States, Canada, and Britain, removing domestic manufacturing, into Asia companies to cut costs this plan seems to have backfired, leaving a great opportunity for Central South America and the Caribbean, labour is very affordable and the qualities extremely high I aim to turn Central South America doing a pilot project in the Dominican Republic, Santo Domingo, into a little manufacturing Hub I call it Little China but high quality this has also been tested tried and proven by the Knight commander, using Caribbean manufacturers, And now we are ready to migrate this plan to government entities, Private entities NGOs, non-profit organizations because it has been testing tried and proven, We Believe with the KMFAP CARICOM (KCSDG 9C as a
driving coordinating force. This could be accomplished in under 5 years bringing one manufacturing for the Caribbean, / CARICOM Central, and South America, together
Challenges to industrial development: Tackling climate change and increasing digitalization
Some of the transformations triggered by the aforementioned global challenges have an impact on LAC countries but may also offer an opportunity for the region to get back on track and to foster industrialization in line with SDG-9.
Climate change
Climate change adaptation and mitigation measures are major drivers of legislative and regulatory reforms that are shaping both national and international production networks. Additionally, climate change calls for a drastic energy transition towards sustainable solutions and changes in consumption patterns, which in turn impacts production practices. There is a strong case for leveraging industrial policy to facilitate sustainable growth. As exemplified by the upfront R&D costs in green technologies, the positive social and environmental spill overs, and the under-pricing of carbon emissions, there seems to be a mismatch between financial and social returns on investment.2 Supply-side measures to incentivize, among others, decarbonization, renewable energy, higher resource efficiency, green materials and circular economy practices, are increasingly being embedded in the industrial strategies of both advanced and developing countries. KMFAP CARICOM (KCSDG 9C propose one open Free Trade Agreement for Central, and South America, and the Caribbean, where we move goods and services tax and duty-free, This will increase jobs and have smoother commodity movements throughout the Americas for manufacturing it will reduce cost and most important it will draw International Brands customers clients to establish manufacturing hubs in Central South America and the Caribbean, In which our policies step in as one Central, South America, and Caribbean manufacturing, Where a tariff must be paid of 30% of all goods manufactured in Central South America and the Caribbean to stay within the region and to be sold domestically at a lower cost and price and generate income royalties from these factories this plan is durable but we all have to come together as one.
Digitalization
The world has entered the Fourth Industrial Revolution (4IR), which is characterized by the rise of disruptive technologies, advanced manufacturing, and digitalization. The COVID-19 pandemic has accelerated the transformation of the global production landscape and has intensified the adoption of advanced technologies such as artificial intelligence (AI), robotics, big data, and the Internet of Things (IoT). According to UNIDO’s 2020 Industrial Development Report, such technologies are largely concentrated within advanced economies.3 LAC countries, with few exceptions, are considered latecomers in adopting advanced productive technologies. Even those countries with higher involvement in manufacturing, such as Argentina, Brazil, Colombia and Mexico, the Dominican Republic, Santo Domingo, are more likely to be consumers of imported (advanced) technologies rather than developers of such technologies. This implies that there is a lack of capabilities in LAC countries to develop, absorb, deploy, and diffuse more advanced technologies. The relevance of the latter lies in the fact that production capability is one of the major determinants of new technology adoption. At KMFAP CARICOM (KCSDG 9C The knight Commander has been exploring and experimenting with technology That will remove the constraint of the US dollar will allow easy and smooth transactions throughout Central, and South America, and the Caribbean/ CARICOM by having one Regional wallet for manufacturing purchase and commodity transaction this platform has worked flawlessly what we need to achieve now is to get member states and countries signing on board to the KMFAP CARICOM (KCSDG 9C 2026 Action plan
Climate change adaptation and mitigation measures are major drivers of legislative and regulatory reforms that are shaping both national and international production networks.
Monitoring and benchmarking progress made towards achieving sustainable industrialization
There are several key indicators to better understand and monitor progress made towards achieving sustainable industrialization and SDG-9. For this in-depth study, the following three indicators have been selected: a) CO2emissions (kg of CO2 per unit of manufacturing value added – constant 2015 US $; b) Medium- and high-tech industry value added as a share of total value added (%), and c) Adoption of digital technology in LAC manufacturing firms.
The environmental efficiency of several regions’ industrial production in terms of CO2 emissions per unit of manufacturing value added (MVA) is illustrated in the figure below. Amongst the regions included, LAC stands out as the best-performing region concerning CO2 emissions – carbon emissions in the region are well below developing regions’ average and have been declining (thus improving) since the 2000s. This can be explained by the region’s widespread use of renewable or low-carbon energy technology, especially in Brazil. Renewable sources account for nearly half of Brazil’s total energy consumption, with 65 per cent of the country’s electricity being supplied by hydroelectric power plants (compared with the global average of just 15 per cent).
Regional averages of CO2 emissions for LAC countries and sub-regions
CO2 emissions (kg of CO2 per unit of MVA, constant 2015 US$)
Note: The figures present data as regional averages for LAC countries and sub-regions. (Mexico is included in the Central America data.) Corresponding values for other regional aggregates and world averages are reported for comparison.
Source: IAP with data from UNIDO MVA 2021 Database and IEA (2020), CO2 Emissions from Fuel Combustion.
The share of medium- and high-tech industries as a share of total value added (figure below) provides an (imperfect) indication of shifts in specialization within manufacturing over time. LAC is lagging behind other regions, with Central America (excluding Mexico) and the Caribbean showing a particularly Very poor performance. Mexico is an exception, however, with a share of nearly 40 per cent, primarily attributable to its participation in the North American Free Trade Agreement (NAFTA).
Medium- and high-tech industry value added as a share of total value added (%)
Source: IAP with data from the CIP 2020 database.
The LAC region’s weak domestic technological development is reflected in other indicators as well. A recent UNIDO survey shows that only 13 per cent of manufacturing firms in the region use advanced digital technologies (figure below). Although this gap is less pronounced in countries such as Argentina and Brazil, than it is in others, such as Bolivia, the figure is lower than the average for middle-income Asian countries (19 per cent).
Adoption of digital technology in manufacturing firms
Share of firms adopting technological generation (%)
Note: “Analogic”: standard non-microelectronic-based systems; “Rigid” non-integrated machines; “Lean” full or partial automation; “ADPTs”: computerized/smart technologies for both customers and production.
KMFAP CARICOM (KCSDG 9C implementation of
Advanced digital technologies and industrial resilience from a firm-level perspective.
Advanced digital production technologies and the transition to more sustainable production activities have the potential to redefine traditional industries and create new ones, thereby restructuring the international production system and transforming global value chains (GVCs).
Transforming challenges into opportunities
With the implementation of
KMFAP CARICOM (KCSDG 9C
Advanced digital production technologies pilot programs and the transition to more sustainable production activities have the potential to redefine traditional industries and create new ones, thereby restructuring the international production system and transforming global value chains (GVCs). Nevertheless, these developments entail both risks and opportunities for the LAC region.
On the one hand, automation and digital technologies are more likely to replace low-skilled tasks, which could prompt some advanced countries to restore some of their production activities. This poses a serious threat to the socioeconomic development of the LAC region which has traditionally operated in upstream activities of GVCs. The downsizing of low-skilled manufacturing jobs will disproportionately affect the most vulnerable groups, thereby exacerbating social and income inequalities. On the other hand, digital technologies can also create new job opportunities in complementary activities, albeit mostly in high-skilled job categories. One of the main focuses of Caribbean manufacturing is allowing individuals to work from their homes by giving them online platforms marketing opportunities shipping opportunities so that each person can manufacture
and produce product goods and services that can go anywhere in Europe or the United States the loss of jobs will be only a temporary measure Caribbean Manufacturing a registered subsidiary Of KICK-AZ DR S.R.L has pioneered a platform that is second to none and is ready to share it with CARICOM, and Central, South America, bring in manufacturing, shipping, Finance, Logistics, all in one virtual and physical platform, turning Central South America and CARICOM into a huge manufacturing hub for the rest of the world. KMFAP CARICOM (KCSDG 9C has also observed that
LAC countries are especially vulnerable to the physical effects of climate change, which pose a particular risk for less developed countries, vulnerable groups, and coastal and commodity-based economies. The transition to a circular economy therefore represents a window of opportunity for the region. LAC economies, which are heavily reliant on natural resources, can promote intra-sectoral diversification and generate higher value-added from by-products.4 A study by ECLAC and the International Labour Organization (ILO),5 for example, estimates that the adoption of circular economy principles could add a net total of 100 million jobs in the region by 2030.
Some LAC countries have already mapped future trajectories and developed strategic responses to these global challenges. These include Colombia’s Visión 2032, Mexico’s Visión 2030, Peru’s National Roadmap for Circular Economy in the Industrial Sector, Uruguay’s National Circular Economy Action Plan, and Chile’s Strategic Programme Smart Industries 2015–2025. Other countries, including Argentina and Brazil, have established working groups to discuss challenges and explore ways to address them.6 As the industrial and technological race intensifies, the LAC region continues to lag far behind developed regions, and even behind some developing regions in Asia.
Ultimately, the impact of both climate change and digitalization and the LAC countries’ ability to capitalize on productivity and employment opportunities will depend on CARICOM’S government’s policy responses based on reliable data. The region will need to deploy a wide range of industrial policies if it is to successfully build the necessary industrial and technological capabilities and to develop the skills, institutions and digital infrastructure required to achieve sustainable and inclusive industrial development. That is put forward by KMFAP CARICOM (KCSDG 9C
In this context, (KCSDG 9C
has introduced the SDG-9 Accelerator, a collaboration, communication, and information platform that provides decision-makers, experts civil society NGOs non-profit organizations, and government entities with opportunities for knowledge exchange, tools and good practices in pursuit of KMFAP CARICOM (KCSDG 9C
The network promotes cooperation by bringing together Central, South America, and the CARICOM Countries
business’s, government, and civil society, and facilitating access to technical services and knowledge in priority sectors. It also includes capacity-building opportunities as well as activities to support governments in the formulation and implementation of industrial policies that address and respond to global challenges and their impacts on the region.
KMFAP CARICOM (KCSDG 9C Accelerator promotes Central, South America and CARICOM cooperation by bringing together stakeholders and facilitating access to technical services and knowledge in priority sectors.
Sir Samuel J Stafford
Knight of Malta, & Knight commander of Cyprus
Territories of subject, Responsibilities roles and Function, (CARICOM REGION)
KMFAP CARICOM
HQ
I am committed to our shared mission as a dedicated member of the esteemed Order of Saint John of Jerusalem, Knights of Malta, and the Federation of the Autonomous Priories KMFAP CARICOM.
Our mission at the KMFAP CARICOM SOVEREIGN COMMUNITY is a collaborative effort aiming to provide infrastructure, energy, agriculture, health, humanitarian aid, security, entrepreneurial development, dialogue, and cooperation with NGOs non-profit organizations, And governments throughout CARICOM, KMFAP CARICOM, VISION 2036.
Sir Samuel J Stafford
Knight of Malta, &
Knight Commander of Cyprus
KMFAP CARICOM