There has been no generalised reshoring of production in response to the pandemic, the report states, and GVCs have shown resilience, after initial disruptions, in addressing the needs for food and essential medical goods.
The report details recent trends in GVCs, looking in particular at the increasing role of services and intellectual property, and sheds light on their importance for global economic recovery.
Among the recent trends in GVCs highlighted by the report is the growing contribution of developing countries, particularly Asian economies, which have dramatically increased their share of GVC trade.
The three other institutions behind the ‘Global Value Chain Development Report 2021: Beyond Production’ are China’s Research Institute for Global Value Chains at the University of International Business and Economics, Japan’s Institute of Developing Economies and the China Development Research Foundation.
“As COVID-19 recedes, GVCs will no doubt be a major influence in the recovery to come. This recovery must be used to reinvigorate a trading system that serves and improves the lives of everyone,” WTO director general Ngozi Okonjo-Iweala and ADB president Masatsugu Asakawa note in the foreword of the publication.
“Understanding where, in these chains, value is created and how it is shared among its actors is central to ensure that everyone obtains a fair share in the gains from trade,” they write.
The rise of services GVCs offers a new opportunity for developing countries to play a more active role in world trade and to boost economic growth, the report notes. It also explores the role of GVCs in spurring technological innovation.
ALCHEMPro News Desk (DS)
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