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Global/Regional Value Chains Integration of Developing Countries Through Innovation
WTO Public Forum 1-3 Oct 2013CUTS/OIF
By Ambassador Shree B.C. Servansing ACP-EU TBT ProgammeBrussels
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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 can SVEs be empowered to seize opportunities presented by the increased globalization of production and fragmentation of tasks?
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Three Key Elements
• Strategies for integrating/upgrading in GVC’s
• Shaping factors and entry barriers in GVC’s location
• The Importance of Innovation & Policy implications for MTS, particularly A4T
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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.
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Shaping factors/ entry barriers (I)• Many factors determine and shape entry: Ennabling maroeconomic
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
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Shaping factors/ entry barriers (II)
• Capacity-building and financial support
• Aid For Trade, an ideal vehicle
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Shaping factors/ entry barriers (III)
• Promoting regional integration
• Enhancing regional value chains
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From Raw Sugar to Sugar Care Cluster Industries
SUGAR-CANE RAW SUGAR REFINING
DISTILLING
Bagasse by product
Special Sugars
White Suger
Quality Rum
Ethanol
Co-generation
Knowledge-base Services exports
Inputs
BASIC
UPG
RAD
ING
Crucial Elements: - Industry Alliance: Lead Firm Sud Sucker- Aid-for-Trade: EDF support for Sugar Sector Reform- Technology Transfer: Brazil
Raw Material VALUE-ADDED