Making Global Value Chains Work for Development

Economic,  technological,  and  political  shifts  as  well  as  changing  business strategies have driven firms to unbundle production processes and disperse them  across  countries.  Thanks  to  these  changes,  developing  countries can now increase their participation in global value chains (GVCs) and thus become more competitive in agriculture, manufacturing and services. This is a paradigm shift from the 20th century when countries had to build the entire supply chain domestically to become competitive internationally. For policymakers, the focus is on boosting domestic value added and improving access  to  resources  and  technology  while  advancing  development  goals.However, participating in global value chains does not automatically improve living  standards  and  social  conditions  in  a  country.  This  requires  not  only improving  the  quality  and  quantity  of  production  factors  and  redressing market failures, but also engineering equitable distributions of opportunities and  outcomes  -  including  employment,  wages,  work  conditions,  economic rights, gender equality, economic security, and protecting the environment. The internationalization of production processes helps with very few of these development  challenges.  Following  this  perspective,  Making  Global  Value Chains Work for Development offers a strategic framework, analytical tools, and policy options to address this challenge. The book conceptualizes GVCs and makes it easier for policymakers and practitioners to discuss them and their implications for development. It shows why GVCs require fresh thinking; it  serves  as  a  repository  of  analytical  tools;  and  it  proposes  a  strategic framework  to  guide  policymakers  in  identifying  the  key  objectives  of  GVC participation and in selecting suitable economic strategies to achieve them.…