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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.

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global regional value chains

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
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 canSVEs be empowered to seize opportunities presented by the increased globalization of production and fragmentation of tasks?
three key elements
Three Key Elements
  • Strategies for integrating/upgrading in GVC’s
  • Shaping factors and entry barriers in GVC’slocation
  • The Importance of Innovation & Policy implications for MTS, particularly A4T
strategies for integrating upgrading in gvcs
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
Shaping factors/ entry barriers (I)
  • Many factors determine and shape entry: Ennablingmaroeconomic 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
      • 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
Shaping factors/ entry barriers (II)
  • Capacity-building and financial support
  • Aid For Trade, an ideal vehicle
shaping factors entry barriers iii
Shaping factors/ entry barriers (III)
  • Promoting regional integration
  • Enhancing regional value chains
from raw sugar to sugar care cluster industries

Raw Material

VALUE-ADDED

From Raw Sugar to Sugar Care Cluster Industries

REFINING

WhiteSuger

SUGAR-CANE

RAW SUGAR

Special Sugars

BASIC

UPGRADING

DISTILLING

Quality Rum

Inputs

Ethanol

Bagasse by product

Co-generation

Knowledge-base

Services exports

Crucial Elements: - Industry Alliance: Lead Firm Sud Sucker

- Aid-for-Trade: EDF support for Sugar Sector Reform

- Technology Transfer: Brazil