Deborah Winkler

Daria Taglioni

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.

Making Global Value Chains Work for Development

Claire H. Hollweg

Tanya Smith

This volume supports Vietnam's path to economic prosperity by identifying policies and targeted interventions that will drive development through leveraging GVC participation that take major shifts in trade policy and rapid technological advances in ICT into account

Engaging in the Next Generation of Global Value Chains

Vietnam at a Crossroads

Claire Hollweg

Vietnam is at a crossroads. It can grow as an export platform for GVCs, specializing in low value-added assembly functions with industrialization occurring in enclaves with little connection to the broader economy or society; or it can leverage the current wave of growth, enabled and accelerated by its successful participation in GVCs, to diversify and move up the chain into higher value-added functions. Success will require Vietnam’s policymakers to view the processes of development differently, and to take new realities of the global economy more fully into account. The purpose of this volume is to support Vietnam’s path to economic prosperity by identifying policies and targeted interventions that will drive development through leveraging GVC participation that take major shifts in trade policy and rapid technological advances in ICT into account. The volume is based on a compilation of studies completed by World Bank staff and external consultants in 2015 supporting the “Enabling Economic Modernization and Private Sector Development†? chapter of the Vietnam 2035 report. The objective of these studies was to diagnose Vietnam’s current participation in GVCs, visualize where Vietnam could be by 2035 in the context of a changing global environment, and identify the policy actions needed to get there. The studies also supported topics related more broadly to export competitiveness, including firm-level productivity, services, and connectivity. It then identifies targeted strategies and policy interventions that will help overcome challenges, minimize risks, and maximize opportunities. Readers will gain a strong understanding of Vietnam’s current and potential engagement with GVCs—and will learn about strategic GVC policy tools that can help developing countries achieve economic prosperity in the context of compressed development.

Ana Paula Cusolito

Raed Safadi

This report is the first comprehensive framework on how to facilitate SMEs and LIDCs access to and upgrading within global value chains. It identifies policy interventions at the global level needed to support domestic reforms.

Daria Taglioni

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