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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.

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Global/Regional Value Chains

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  1. 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

  2. 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?

  3. 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

  4. 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.

  5. 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

  6. Shaping factors/ entry barriers (II) • Capacity-building and financial support • Aid For Trade, an ideal vehicle

  7. Shaping factors/ entry barriers (III) • Promoting regional integration • Enhancing regional value chains

  8. 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

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