Making Global Value Chains Work for Development
Global value chains (GVCs) are playing an increasingly important role in business strategies, which has profoundly changed international trade and development paradigms. GVCs now represent a new path for development by helping developing countries...
| Main Authors: | , |
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| Format: | Brief |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2014/05/19517206/making-global-value-chains-work-development http://hdl.handle.net/10986/18421 |
| Summary: | Global value chains (GVCs) are playing
an increasingly important role in business strategies, which
has profoundly changed international trade and development
paradigms. GVCs now represent a new path for development by
helping developing countries accelerate industrialization
and the servicification of the economy. From a firm
perspective, production in the context of GVCs highlights
the importance of being able to seamlessly connect factories
across borders, as well as protect assets such as
intellectual property. From the policy maker perspective,
the focus is on shifting and improving access to resources
while also advancing development goals, and also on the
question of whether entry into GVCs delivers
labor-market-enhancing outcomes for workers at home, as well
as social upgrading. GVCs can lead to development, but, at
the country level, constraints such as the supply of various
types of labor and skills and inadequate absorptive capacity
remain. GVCs can create new opportunities on the labor
demand side, but supply and demand cannot meet if the supply
is missing. This potential gap illustrates the importance of
embedding national GVC policies into a broader portfolio of
policies aimed at upgrading skills, physical and regulatory
infrastructure, and enhancing social cohesion. |
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