Global value chains provide new opportunities to developing countries
Thursday, July 20, 2017
Global value chains provide opportunities for developing countries to diversify their exports and intensify their integration into the global economy. This is one of the key findings of the “Global Value Chain Development Report” recently published by the World Trade Organization (WTO), World Bank, and other partners. Developing countries traditionally exported unprocessed raw materials. The leap to exporting manufacture products was complicated because it required a full suite of complementary industries. Today, the rise of global value chains (GVCs) enables developing countries to slot themselves into a part of the production chain without having to produce a complete, final good. As a result, developing countries now mostly export manufacturing value-added. Developing countries deeply involved in GVCs have been able to leverage this involvement to achieve rapid productivity growth, gains in modern sector employment, and impressive rises in living standards and declines in poverty.