APEC Global Value Chain Initiative: Concept and Proposal - Presentation
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1 2009/SOM1/ECSG/004 Agenda Item: V.2.c. APEC Global Value Chain Initiative: Concept and Proposal - Presentation Purpose: Information Submitted by: Canada 19 th Electronic Commerce Steering Group Meeting Singapore 26 February 2009
2 APEC Global Value Chains Initiative: Concept and Proposal APEC ECSG Plenary Meeting February 26, 2009 Singapore Eric Futin The World is changing Fragmentation of the production process Manufacturing and Services sectors have changed Technical advances: lower costs and globalisation Key role of trade liberalization Increasing outsourcing Increasing partnering Increasing participation of emerging countries Increasing participation of smaller firms... giving rise to a new business model: Global Value Chains 2 1
3 Global Value Chains: Definition Growth of global production networks Sequence of value-adding activities Inter-firm relationships linking firms together Physical fragmentation of production Global Value Chains (GVCs) include the full range of activities that are required to bring a product from its conception to its end use and beyond (e.g. design, production, distribution). Value chain activities can be contained within a single firm or divided among different firms, and can be contained within a single geographical location or spread over wider areas. - Gereffi, Humphrey, Sturgeon (2006) 3 Global Value Chains become more internationally linked Source: OECD (2007) 4 2
4 Global Value Chains: an example Design: California, USA Moulds, paint pigments: USA Assembly: Indonesia and Malaysia Marketing: USA Nylon hair: Japan Body material: Chinese Taipei Clothing: China Quality testing: USA Source: Grossman and Rossi-Hansberg (2006) Global Process for Marketing: Producing USAa Barbie doll 5 APEC and Global Value Chain: Objectives Promotes cooperation between APEC economies Promotes networks Promotes participation of SMEs to the Global Economy Facilitates trade Stimulates economic growth 6 3
5 An APEC Global Value Chain Initiative: Why Economic development Economic growth Trade expansion Further to the APEC Digital Prosperity Checklist: Some actions of the checklist are strongly linked to the GVC. Acceptance of electronic documents Promoting adapted standards 7 An APEC Global Value Chain Initiative: How Best Platform for launching the AGVCI A Workshop on Global Value Chains 8 4
6 Workshop on Global Value Chain Objectives This workshop aims at examining the growth of global supply chains, their use by firms, and their implications for policy development. Its objectives are to inform policymakers and other stakeholders on the concept of global supply chains. It will facilitate a better understanding of its implications for policy development. 9 Workshop on Global Value Chain Setting the stage Presentations by representatives from governments, academia, think tanks and the private sector. Economic impacts of the GVCs on APEC economies Steps for integrating the GVCs in APEC economies Case studies from 2 or 3 countries Examination of best practices from these countries Examination of how these countries integrated GVCs Sharing their policy incentives to develop GVCs 10 5
7 Workshop on Global Value Chain Milestones Submission of the project to ECSG members, intersessionally: April 2009 Submission of the project to BMC: May 2009 Presentation to ECSG: July 2009 Organisation of thel workshop: August 2009 to January 2010 Date for the Workshop: February 2010 at SOM1 in Japan 11 Key Messages APEC countries need to determine how to take advantage of global value chains Relevance of an AGVCI Targeted date for the Workshop on GVCs: February
8 Thank you for your attention For further information, please contact Eric Futin at 13 7
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