Transcript Global Value Chains (GVC):

Global/Regional Value Chains
Integration of Developing Countries Through
Innovation
WTO Public Forum 1-3 Oct 2013
CUTS/OIF
By Ambassador Shree B.C. Servansing
ACP-EU TBT Progamme
Brussels
Introduction
• GVCs: Not a new phenomenon but a new analytical
perspective to understand globalisation & shifts in
the pattern of world trade
• SVEs: open and export-oriented economies
• Major Challenge: how can SVEs be empowered
to seize opportunities presented by the
increased globalization of production and
fragmentation of tasks?
Three Key Elements
• Strategies for integrating/upgrading in GVC’s
• Shaping factors and entry barriers in GVC’s
location
• The Importance of Innovation & Policy
implications for MTS, particularly A4T
Strategies for
integrating/upgrading in GVCs
• Functional upgrading: improvement in the position of
firms would result from increasing the range of functions
performed or a change in the mix of activities performed
towards higher value tasks
• Process upgrading: efficiency gains by reorganizing the
production system or introducing new technologies
• Product upgrading: moving into more sophisticated
product lines
• Inter-chain upgrading: using the capabilities acquired
in one chain to be capitalized in another more
technologically advanced chain.
Shaping factors/ entry barriers (I)
• Many factors determine and shape entry: Ennabling maroeconomic
environment, Good governance, Supply side constraints,
Infrastucture, Investment, etc
• All countries doing these things. What makes the difference?
Improving Competitiveness.
• Foster Innovation as a horizontal concept in Quality improvement
and management
• Permeates policy-making, processes in production/supply chains,
products and services
– OECD recommendations to its members applicable to SVEs also
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Innovation policies
Policies to upgrade the human resource base of the economy
Policies to foster entrepreneurship and new areas of economic activity
Cluster policies and efforts at the local/regional level
Policies to enhance attractiveness
Governance
Intellectual property rights (IPR)-related policies
Shaping factors/ entry barriers (II)
• Capacity-building and financial support
• Aid For Trade, an ideal vehicle
Shaping factors/ entry barriers (III)
• Promoting regional integration
• Enhancing regional value chains
From Raw Sugar to Sugar Care
Cluster Industries
Raw Material
White Suger
RAW SUGAR
REFINING
BASIC
Inputs
UPGRADING
SUGAR-CANE
VALUE-ADDED
DISTILLING
Bagasse by
product
Special Sugars
Quality Rum
Ethanol
Co-generation
Knowledge-base
Crucial Elements: - Industry Alliance: Lead Firm Sud Sucker
- Aid-for-Trade: EDF support for Sugar Sector Reform
- Technology Transfer: Brazil
Services exports