Global value chains (GVCs) now account for almost half of all international trade. In this age of global value chains, learn how GVCs can become more sustainable and inclusive. Explore the ways in which countries can work together to create deeper reforms and predictable policies that encourage shared and sustained GVC participation. Based on the World Bank Group 2020 World Development Report (WDR), participants will learn from Bank economists about trading for development. Especially at a time when the world economy and supply chains are challenged by the COVID-19 crisis, GVCs and their significance in international trade and economic growth across the world are more important than ever.
Global value chains (GVCs) powered the surge of international trade after 1990 and now account for almost half of all trade. This shift enabled an unprecedented economic convergence, the age of GVCs, wherein low-income countries grew rapidly and began to catch up with high-income countries.
Since the 2008 global financial crisis, however, the growth of trade has stagnated and the expansion of GVCs has stalled. These trends have only been amplified by the COVID-19 pandemic. Meanwhile, threats to the model of trade-led growth have emerged. Technological change could draw production closer to the consumer and reduce the demand for labor. And trade conflicts among large countries—exacerbated by conflict around COVID-19—could lead to a retrenchment or a segmentation of GVCs.
How can GVCs power sustainable and inclusive economic growth and development? How can countries work together to create deeper reforms and predictable policies that encourage shared and sustained GVC participation? How can the development of GVCs continue amid the COVID-19 crisis?
This MOOC gives participants an opportunity to explore trading for development- how GVCs can further boost inclusive and sustainable economic growth, creating better jobs and reducing poverty. Economists from across the World Bank Group will discuss how GVCs impact a range of development issues. Participants will also benefit from using a global online platform, by networking with peers across the world, experimenting with digital visualizations about GVCs, and experiencing the interconnectedness of global development demands.
• Evaluates the degree to which GVCs have contributed to economic growth, jobs, and reduced poverty—as well as inequality and environmental degradation.
• Examines how national policies can create deeper reforms and predictable policies, advancing GVCs as a force for development rather than divergence, and reviving economic growth and world trade.
• Identifies inadequacies in the international trade system that have fomented disagreements among nations and provides a road map to resolving them through greater international cooperation.
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