THE need for both developed and developing countries to leverage Global value chains (GVCs) to power their economies was brought to the front burner at the just concluded IMF/World Bank annual meetings by panellists in a seminar on the issue.
Penny Goldberg, World Bank Group Chief Economist, together with Arturo Herrera Gutierrez, Mexico’s Finance Minister, and Ville Skinnari, Finland’s Minister for Development Cooperation and Foreign Trade, discussed how countries can use GVCs to grow in an inclusive and sustainable manner.
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Goldberg summarized the latest World Development Report, Trading for Development in the Age of Global Value Chains while the two ministers reflected on experiences of their countries. According to Goldberg, GVCs make it easier for developing countries to join global trade and use it to develop. “Their biggest benefit is that they facilitate the transfer of knowledge, she added.
Reflecting on Mexico’s experience with GVCs, Herrera, the country’s Finance Minister said micro-specialities have their opportunity to develop to their fullest under GVCs. Skinnari, Finland’s Minister for Development Cooperation and Foreign Trade stressed the importance of respecting intellectual property within GVCs and the importance of the human capital.
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Global value chains (GVCs) powered an economic revolution over the past three decades: growth accelerated, incomes rose, and poverty rates plunged. Almost 50% of global trade involves GVCs, but rising trade tensions and uncertainties over market access threaten their future.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.