"Global Value Chains, Development and Competitiveness - Sharing policy practices"
Session 1: Opening of the meeting
Opening speech: Ambassador Kyung Wook Hur, Korea’s Ambassador to the OECD
-- Dirk Pilat, Deputy Director, Directorate for Science, Technology and Industry, OECD
-- Carlos Alvarez, Deputy Director, Development Centre, OECD
Session 2: The rise of Global Value Chains – what are they and how is value distributed within them?
The emergence of GVCs had significantly altered the global economy through greater connectivity and fragmentation, but also by increasing complexity and uncertainty. To better understand what the implications of these changes, it is important to map and explore the dynamics of these value chains. Furthermore, new tools and measurements are needed to assess the distribution of value along these chains, and better understand the opportunities and challenges these fragmented production networks present. Regional dynamics also play an important role. For instance, many countries in Asia and on the peripheries of the EU have managed to attract multinationals and join their supply chains. Yet despite the ‘global’ in their name, GVCs are often characterised by regional concentration. This session will explore the evidence on GVCs, how they affect patterns of trade, investment and production, where GVC activity is concentrated, and what tools can help policy makers better understand where their countries are positioned.
Chair: Anabel Gonzalez, Minister of Foreign Trade, Costa Rica
Setting the scene: Koen De Backer, Senior Economist, Directorate for Science, Technology and Industry, OECD | The Rise of Global Value Chains: What Are They And How is Value Distributed Within Them
-- Rajat Kathuria, Director, Indian Council for Research on International Economic Relations | Global Value Chains in the Indian Context
-- Graham Slack, Chief Economist, Maersk
Session 3: Integrating into Global Value Chains – Challenges and Benefits
Many developing economies as well as several OECD economies have shifted their development strategies from simple export-oriented models to an insertion into value chains. This trend has led to a rich and diverse set of experiences of GVCs. First, there is a set of low-income countries that are in effect excluded from access to GVC due to a wide array of binding constraints (e.g., geographical location away from existing trade networks, lack of natural resources to facilitate a basic insertion in GVCs, lack of the necessary infrastructure, etc.). Other developing countries have, on the other hand, been effective linking into GVCs but this participation often takes place through low value-added activities. Thus far, only some countries have been able to move up the value chain. This session will explore what benefits integration in GVCs can bring and what policies can help to integrate into GVCs, including trade and investment policies, trade facilitating measures, reforms to the business environment, as well as the use of export processing zones.
Chair: Raed Safadi, Deputy Director, Trade and Agriculture Directorate, OECD
Setting the scene: Sébastien Miroudot, Senior Trade Policy Analyst, Trade and Agriculture Directorate, OECD | Integrating Into Global Value Chains – Challenges and Benefits
-- Anabel Gonzalez, Minister of Foreign Trade, Costa Rica | Integrating into global value chains challenges and benefits - The case of Costa Rica
-- Umut Gür, Head of the Department of Industry, Ministry of Development, Turkey | Integration Into GVCs: Opportunities For Learning
-- Ibrahima Wade, Permanent Secretary, Stratégie de Croissance Accélérée, Senegal | Chaînes de valeur mondiales, développement et compétitivité (available in French only)
Angel Gurría, Secretary-General, OECD | Capturing the benefits of Global Value Chains
Session 4: Upgrading in Global Value Chains – what policies and reforms are needed?
The distribution of value and benefits within GVCs varies significantly. The high degree of specialisation of production stages and the related accumulation of firm-specific knowledge rather than industry-specific or broadly applicable knowledge may lead to the formation of isolated production pockets in the country and limit positive spill-overs to the domestic economy. This session will provide the opportunity to discuss policy experiences that seek to increase positive spillovers from GVC integration to the domestic economy, including discussion of the political economy of reform. It will focus specifically on policies that can support the upgrading of engagement in value chains, including improvements in the business environment, investments in infrastructure and skills, innovation policies, etc.
Chair: Sanghoon Ahn, Managing Director, Korea Development Institute
Setting the scene: Anna Jankowska, Policy Analyst, and Jose Ramon Perea, Economist, Development Centre, OECD | Global Value Chains, Development and Competitiveness - Session 4: Upgrading in Global Value Chains – what policies and reforms are needed?
-- Soumia Iraqui, Director for Innovation, Ministry of Trade and Industry, Morocco
-- Ivan Jukl, Director General, Economic Section, Ministry of Foreign Affairs, Czech Republic | GVC and Competitiveness
-- Khoo Boo Seng, Senior Director, Strategic Planning Division, Ministry of International Trade and Industry, Malaysia | Presentation
-- Joonghae Suh, Senior Economist, OECD Development Centre / Research Fellow, Korea Development Institute | Changes in Export Commodity Profile
Session 5: The Changing Dynamics of Global Value Chains – what's next?
Global value chains change as costs increase and firms reconsider their operations across countries. For example, in recent years, some US firms have brought certain activities back to the US market, due to increases in costs in emerging and developing economies, changing perceptions about the stability of value chains, and new technologies that are enabling more tailored production closer to the home market. At the same time, new value chains are emerging that are strengthening networks between emerging and developing economies, sometimes with only a limited role for advanced economies. This may also offer new opportunities for countries that have thus far not been integrated in GVCs. This session will explore the changing dynamics of GVCs and what this may imply for future policy making to benefit from GVCs.
Chair: Dirk Pilat, Deputy Director, Directorate for Science, Technology and Industry, OECD
-- Dermot Curran, Assistant Secretary General, Science, Technology, Innovation and Inward Investment Division, Department of Jobs, Enterprise and Innovation, Ireland | Moving up the Value Chain’ Policies Supporting Competitiveness in the Global Economy Ireland’s Experience
-- Alejandro Faya, Director General for Foreign Investment, Ministry of Economy, Mexico
-- Hironobu Kitagawa, Director of Service Industry Division, Creative Industries Promotion Department, Japan External Trade Organization (JETRO) | New tide for globalization of Japanese companies
Session 6: Conclusions and next steps
This session will outline next steps for the OECD's work on Global Value Chains and the policy dialogue on Global Value Chains.
Chair: Carlos Alvarez, Deputy Director, Development Centre, OECD
-- Richard Snabel, Chair of Committee for Industry, Innovation and Entrepreneurship
-- Jon Lomøy, Director, Development Co-operation Directorate, OECD
-- Pawel Wojciechowski, Chair of the Development Centre’s Governing Board