What are the key knowledge gaps which need to be filled if developing economies are to successfully leverage global value chains (GVCs) to meet the Sustainable Development Goals (SDGs)? An increasing number of people in an increasing number of economies are producing for global export markets. But the growth of exports in itself may not deliver widespread development and assist in the attainment of the Sustainable Development Goals (SDGs). The issue is thus not whether to participate in global markets but how to do so in ways which foster development. More than two-thirds of global trade now occurs within global value chains (GVCs), that is, producing, importing, and exporting intermediate (semi-finished products) which are then incorporated into final products. Much of this GVC trade occurs within what are termed “governed GVCs,” that is GVCs where key lead firms and other actors (such as civil society organisations) determine who does what in the chain. The structure and functioning of these chains affects who gains and who loses in these global production systems. So, the key policy challenge is to ensure that the nature of these chains is such that they assist in meeting the SDGs. Whilst some positive development spillovers from...
Written by Raphael Kaplinsky