This joint OECD and World Bank Group report, presented to G20 Trade Ministers in October 2015, focuses on the challenge of making GVCs more “inclusive” by overcoming participation constraints for SMEs and facilitating access for LIDCs.
Ch. 1. Poverty in India and value chains -- ch. 2. Retail winners and losers - the impact of organised retailing -- ch. 3. Inclusive value chains in fresh fruit and vegetables. Case study 1 : Namdhari Fresh Limited / BN Dhananjaya and A. Umesh Rao. Case study 2 : ITC Choupal Fresh / Rewa Shankar Misra. Case study 3 : INFAM in Wayanad, Kerala / Jacob D. Vakkayil. Case study 4 : Spencer's Retail / Sukhpal Singh -- ch. 4. Inclusive value chains in commodity crops. Case study 5 : Contract farming of potatoes : an attempt to include poor farmers in the value chain / Braja S. Mishra. Case study 6 : Basmati Rice and Kohinoor Foods Limited / Anup Kumar Singh. Case study 7 : Agrocel Industries / Anamika Purohit. Case study 8 : bioRe Organic Cotton / Rajeev Baruah -- ch. 5. Inclusive value chains in fisheries, honey, coffee and poultry. Case study 9 : Falcon Marine Exports / Rajeev Roy. Case study 10 : Honey in Muzaffarpur / Ashok Kumar. Case study 11 : Fairtrade and organic coffee / Priti Rao. Case study 12 : Small-holder broiler farming in Kesla / Anish Kumar -- ch. 6. Inclusive value chains in non-food artisan products. Case study 13 : ITC Limited and the Agarbatti Industry / Nagendra Nath Sharma. Case study 14 : Operation Mojari / Vipin Sharma and Mallika Ahluwalia -- ch. 7. What do the case studies tell us? Lessons for the future.
Global value chains (GVCs) have driven dramatic expansions in trade, productivity, and economic growth in developing countries. This book examines the impact of the COVID-19 pandemic on GVCs and explores whether they can continue to be a driver of trade and development. The report reviews previous crises and what these tell us about the resilience of GVC firms to shocks. It examines the observed impact of COVID-19 on trade during the sharp global recession of 2020. It summarizes discussions with GVC firms on the impacts of, and their responses to, the COVID shock. GVCs showed surprising resilience, but the rapid recovery raised new issues with supply chains. The book then explores simulations from a global economic model of the potential longer-term impacts of COVID-19 on developing countries and other key factors shaping the global economy, including the evolving role of China, increasing trade restrictions and policy responses to global warming. The analysis shows that while there are risks associated with GVCs, especially those concentrated around key nodes and where opportunities to find alternative suppliers or buyers are limited, there are mechanisms by which GVCs maintain trade relationships during a crisis, paving the way for a strong trade-led recovery. Measures are identified that can enhance the resilience of GVCs in low-income countries. This report finds that policies that maintain and enhance trade can contribute toward crisis management and recovery. Attempts to reshore production would make all countries worse off, including those that implement them, and could drive 52 million people, mainly in Africa, into extreme poverty. Measures to meet climate change commitments will have more profound impacts, leading to a shift away from carbon-intensive GVCs, while new opportunities for trade will arise in GVCs that are less carbon intensive.
Global value chains (GVCs) powered the surge of international trade after 1990 and now account for almost half of all trade. This shift enabled an unprecedented economic convergence: poor countries grew rapidly and began to catch up with richer countries. Since the 2008 global financial crisis, however, the growth of trade has been sluggish and the expansion of GVCs has stalled. Meanwhile, serious threats have emerged to the model of trade-led growth. New technologies could draw production closer to the consumer and reduce the demand for labor. And trade conflicts among large countries could lead to a retrenchment or a segmentation of GVCs. World Development Report 2020: Trading for Development in the Age of Global Value Chains examines whether there is still a path to development through GVCs and trade. It concludes that technological change is, at this stage, more a boon than a curse. GVCs can continue to boost growth, create better jobs, and reduce poverty provided that developing countries implement deeper reforms to promote GVC participation; industrial countries pursue open, predictable policies; and all countries revive multilateral cooperation.
"Selection of original papers presented at the international conference 'Latin America's Prospects for Upgrading in Global Value Chains,' held on 14-15 March 2012, at Colegio de Mexico, Mexico City"--Title page vers
This first report deals with some of the major development issues confronting the developing countries and explores the relationship of the major trends in the international economy to them. It is designed to help clarify some of the linkages between the international economy and domestic strategies in the developing countries against the background of growing interdependence and increasing complexity in the world economy. It assesses the prospects for progress in accelerating growth and alleviating poverty, and identifies some of the major policy issues which will affect these prospects.
Lead firms, development organisations, donors and governments view value chains and voluntary standards as vital instruments for achieving millennium development goals through trade and market-related interventions. The precise foundations for these development strategies, which suggest positive development outcomes from integration of poor actors into value chains, are as yet underdeveloped. The interdisciplinary work in this volume shows how trade is managed and asks theory-driven questions about how value chains relate to locally-rooted development processes. Policy makers and development practitioners are increasingly using value chain analysis to frame pro-poor development interventions. This book offers multiple conceptualizations of development outcomes of inclusion of small producers, firms and workers in value chains. Processes of inclusion at different scales are unpacked in order to identify the terms of participation of small producers, firms and workers. As value chains are embedded, the book further argues that inclusion can be conceptualized as the degree of alignment between value chain logics and the institutions and capacities in the local business system. The combination of inclusive governance and endogenous development informs a grounded debate on roles of development-oriented partnerships. Chapters in this volume draw on multiple strands of economics, sociology, political science, geography and management studies; and for empirical grounding engage in comparative analysis of cases from Latin America, SubSaharan Africa and East and South East Asia. These are combined with processes taking place at a global level, such as the proliferation of standards and the growth of roundtables and multi-stakeholder partnerships. The contributions explore contrasts – between contexts, between industries or commodities/products, and between conceptual frameworks; and the context dependency of development impact necessitates cross-case investigations. This collection will be of interest to scholars in development studies, economics, business studies, as well as to development policy makers.
A radical shift is underway in global value chains as they increasingly move beyond traditional manufacturing processes to services and other intangible assets. Digitization is a leading factor in this transformation, which is being accelerated by the coronavirus disease (COVID-19) pandemic. The Global Value Chain Development Report, the third of a biennial series, explores this shift beyond production. The report shows how the rise of services value chains offers a new path to development and how protectionism and geopolitical tensions, environmental risks, and pandemics are undermining the stability of global value chains and forcing their reorganization geographically. It is co-published by the WTO, the Asian Development Bank, the Research Institute for Global Value Chains at the University of International Business and Economics, the Institute of Developing Economies, and the China Development Research Foundation.
A collection of papers by some of the world's leading specialists on global value chains (GVCs). It examines how GVCs have evolved and the challenges they face in a rapidly changing world. The approach is multi-disciplinary, with contributions from economists, political scientists, supply chain management specialists, practitioners and policy-makers. Co-published with the Fung Global Institute and the Temasek
South Asia is in the midst of a demographic transition. For the next three decades, the growth of the region’s working age population will far outpace the growth of dependents. Close to one million individuals will enter the workforce every month. This large, economically active population can increase the region’s capacity to save and make crucial investments in physical capital, job training, and technological advancement. But for South Asia to realize these dividends, it must ensure that its working-age population is productively employed. As one of the most prominent labor-intensive industries in developing countries, apparel manufacturing is a prime contender. With around 4.7 million workers in the formal sector and another estimated 20.3 million informally employed (combined with textiles), apparel already constitutes close to 40 percent of manufacturing employment. And given that much of apparel production continues to be labor-intensive, the potential to create more and better jobs is immense. There is a huge window of opportunity now for South Asia, given that China, the dominant producer for the last ten years, has started to cede some ground due to higher wages. But the region faces strong competition from East Asia—with Cambodia, Indonesia, and Vietnam already pulling ahead. Plus the sector suffers from production inefficiencies and policy bottlenecks that have prevented it from achieving its potential. Against this backdrop, this report hopes to inform the debate by measuring the employment gains that the four most populous countries in South Asia—Bangladesh, India, Pakistan and Sri Lanka (hereafter `SAR countries’)—can expect in this new environment of increased competition and scrutiny. Its main message is that it is important for South Asian economies to remove existing impediments and facilitate growth in apparel to capture more production and create more employment as wages rise in China. The successful manufacturers will be those who can supply a wide range of quality products to buyers rapidly and reliably—not just offer low costs.
