Global Value Chains
concepts and tools
The
value chain describes the full range of activities that firms and workers do to
bring a product from its conception to its end use and beyond. This includes
activities such as design, production, marketing, distribution and support to
the final consumer. The activities that comprise a value chain can be contained
within a single firm or divided among different firms. Value chain activities
can produce goods or services, and can be contained within a single geographical
location or spread over wider areas. The GVC Initiative is particularly
interested in understanding value chains that are divided among multiple firms
and spread across wide swaths of geographic space, hence the term "global value
chain."
Why are we interested in global value
chains? Studies from a range of disciplines show that global value
chains have become much more prevalent and elaborate in the past 10 to 15
years. While many firms have had international operations and trading
relationships for decades and a few for more than a century, global value chains
now contain activities that are tightly integrated and often managed on a
day-to-day basis. This means that firms and workers in widely separated
locations affect one another more than they have in the past. Some of these
effects are quite straightforward, as when a firm from one country establishes a
new factory or engineering center in another country, and some are more complex,
as when a firm in one country contracts with a firm in another country to
coordinate production in plants owned by yet another firm in a third country,
and so on...
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Changing governance patterns in European food chains: the rise of a new
divide between global players and regional producers
F. Palpacuer and S. Tozanli - 2003
This article traces general trends in European food markets and the
strategies of leading firms in selected European food chains (milk, sugar,
cereals, meat). The analysis highlights the emergence of a growing divide
between the largest downstream firms on the one hand and specialty and
upstream producers on the other. The former have adopted globalization
and financialization strategies over the past decade and promoted global
sourcing under the deregulated conditions of European primary food
and agricultural markets while the latter remain anchored in national or
regional markets and production systems. Implications of these findings
for both Global Value Chain (GVC) analysis and European policy are
discussed.
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O.
Sunkel, 1985
The transnational corporate system
There are some crucial questions relating to the TNC which one
cannot begin to understand, much less to answer, if one does not
have a more realistic picture of contemporary capitalism. The
so-called market has in fact been superseded to a significant degree
by public and private planning. To a very large extent, the visible
hands of the State and the TNC have long replaced the mythical
invisible hand of laissez-faire capitalism, if it ever existed. It
is not really the individual institution of the TNC as such that is
the object of so much attention. There have been individual instances
of large world-wide business organizations in the past which have not
aroused such great concern. The focus is rather on the emergence of a
transnational business system with such a great potential for socially
uncontrolled power and influence that international society finds
itself forced into a profound reorganization in order to accommodate it.
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Papers and Presentation on Global Value Chains
published by UNCTAD
Report of the expert meeting on increasing the
participation of developing countries’ SMEs in global value chains ,
TD/B/COM.3/EM.31/3 - , 06/11/07
Enhancing the role of SMEs in Global Value
Chains
[Presentation] by Prof. Paul H. Dembinski, University of Fribourg ,
- , 18/10/07
Export Diversification and Global Value Chains,
based on OECD Business for Development 2007
[Presentation] by Mr. Federico
Bonaglia, OECD Development Centre ,
- , 18/10/07
Getting Minority-Owned & Women-Owned SMEs
into the Global Value Chain
[Presentation] by Ms. Virginia Littlejohn,
Co-founder and CEO, Quantum Leaps, Inc. ,
- , 18/10/07
Integrating Developing Countries SMEs into
Global Value Chains
[Presentation] by UNCTAD/DITE, Enterprise Development
Branch ,
- , 18/10/07
Links between Local Clusters and Global Value
Chains
[Presentation] by Dr. Olga Memedovic, UNIDO Private Sector
Development Branch ,
- , 18/10/07
World Investment Report 2007, Transnational
Corporations, Extractive Industries and development
UNCTAD/WIR/2007 - E.07.II.D.9, 16/10/07
Globalization and inclusive development ,
TD/B/54/7 - , 27/08/07
Also available in: French
Spanish
ENHANCING THE PARTICIPATION OF SMALL- AND
MEDIUM-SIZED ENTERPRISES IN GLOBAL VALUE CHAINS ,
TD/B/COM.3/EM.31/2 - , 09/08/07
Also available in: French
Spanish
PROVISIONAL AGENDA , Expert meeting on
increasing the participation of developing countries’ SMEs in global
value chains Geneva
, 18–19 October 2007
TD/B/COM.3/EM.31/1 - , 09/08/07
Also available in: French
Spanish
Report on the pre-UNCTAD XII event, the
conference - Global initiative on commodities: Re-launching the
commodities agenda
, Brasilia, Brazil, 7–11 May 2007
TD(XII)/BP/1 - , 20/07/07
Global Value Chains and Clusters in LDCs: What
Prospects for Upgrading and Technological Capabilities by Carlo
Pietrobelli, Centre for Research on the Economics of Institutions,
Background Paper No. 1 - , 19/07/07
Rethinking industrial policy, UNCTAD
Discussion Paper 183, April 2007, by Irfan ul Haque
UNCTAD/OSG/DP/2007/2 - , 01/06/07
REPORT OF THE COMMISSION ON ENTERPRISE,
BUSINESS FACILITATION AND DEVELOPMENT ON ITS ELEVENTH SESSION ,
TD/B/COM.3/82 - , 27/03/07
Also available in: French
Spanish
Global Value Chains and Technological
Capacities: A Framework to Study Industrial Innovation in Developing,
Meeting of Experts on FDI, Technology and Competitiveness, Geneva, 8-9
March 2007
- , 28/02/07
UNCTAD´s News published on the Home page from
January to June 2007,
- , 10/01/07
Also available in: French
Spanish
GLOBAL VALUE CHAINS FOR BUILDING NATIONAL
PRODUCTIVE CAPACITIES ,
Note by the UNCTAD secretariat
TD/B/COM.3/79 - , 20/12/06
Also available in: French
Spanish
Enhancing the role of SMEs in Global Value
Chains
[Presentation] by Mr. Alain Schoenenberger, Eco’Diagnostic /
University of Fribourg, Global Value Chain Research Group,
- , 06/11/06
IMPROVING THE COMPETITIVENESS OF SMEs THROUGH
ENHANCING PRODUCTIVE CAPACITY
, Agreed recommendations
TD/B/COM.3/L.29 - , 01/03/05
Also available in: French
Spanish
LINKAGES, VALUE CHAINS AND OUTWARD INVESTMENT:
INTERNATIONALIZATION PATTERNS OF DEVELOPING COUNTRIES` SMEs,
TD/B/COM.3/69 - , 04/01/05
Also available in: French
Spanish
COMMODITY ATLAS,
UNCTAD/DITC/COM/2004/1 - E.04.II.D.23, 01/08/04
FROM MINOR TO MAJOR: POLICY CHALLENGES FOR
DEVELOPING COUNTRIES IN THE GLOBAL MUSIC INDUSTRY ,
TD/401 - , 03/06/04
Also available in: French
Spanish
Strengthening The Capacity Of Academic
Institutions In The Area Of International Commodity Trade (RAF0T5AL -
Africa (regional projects))
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From the Asian Development Outlook 2003
: III. Competitiveness in Developing Asia
Global Value Chains
"However, firms also face many challenges and risks in taking part in GVCs. Under many GVC arrangements,
the latecomer partner is often subordinated to the decisions of the buyer in the initial stages
of the relationship, and often depends on the MNC for technology and components as well as
market access. The MNC sometimes imposes restrictions on the activities of the latecomer
firm by, for instance, preventing it from selling in other markets or to other customers.
Profits tend to be severely squeezed and, without its own distribution outlets,
the latecomer is limited in its post-manufacturing valued added.
The heavy dependence on assembly can prevent firms from spreading
the risks of production to other parts of the GVC.
Also, the arrangement makes it difficult for latecomers to build up the internationa
brand image needed to sell high-quality goods directly.
This situation is often overcome, though, when the latecomer firm grows, finds new customers, and builds its capacity. "
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From UNCTAD:
Papers
and Presentations
from the Expert Meeting on Increasing the Participation of Developing
Countries’ SMEs into Global Value Chains
(18–19 October 2007)
These
presentations are made available in the language and form
in which they were received. The views expressed therein
are those of the authors/organizations and do not
necessarily reflect the views of the UNCTAD secretariat.
GVCs
and Local Suppliers from Developing Countries.
Opportunities, Threats, Policy Options
[Presentation] by Prof. Carlo Pietrobelli,
Professor of Economics, Director of CREI,
University of Rome 3, Italy , 18/10/07 , 27
pages, 146KB
Downloads: .pdf
Augurix
at a Glance [Presentation] by Dr. Cecile Besson
Duvanel, Augurix Medical Diagnostic, Geneva ,
18/10/07 , 17 pages, 385KB
Downloads: .pdf
Benefits
of participating in the business linkages
program & the requirements to be met by
SME’S to be suppliers of KSGL [Presentation]
by Mr. Moris Nagabitho, Kinyara Sugarcane
Growers Ltd., Uganda , 18/10/07 , 27 pages,
1571KB
Downloads: .pdf
Integrating
Developing Countries SMEs into Global Value
Chains [Presentation] by UNCTAD/DITE, Enterprise
Development Branch , 18/10/07 , 30 pages, 364KB
Downloads: .pdf
Export
Diversification and Global Value Chains, based
on OECD Business for Development 2007
[Presentation] by Mr. Federico Bonaglia, OECD
Development Centre , 18/10/07 , 26 pages, 504KB
Downloads: .pdf
Are
the Business Environment Reforms Sufficient to
Increase the Participation of SMEs in GVCs?
[Presentation] by Mr. Bede Lyimo, Better
Regulation Unit, Ministry of Planning, Economy
& Empowerment, United Republic of Tanzania ,
18/10/07 , 17 pages, 54KB
Downloads: .pdf
Reforming
of Business Environment: Uganda’s Experience
[Presentation] by Mr. Charles Ocici, Entreprise
Uganda , 18/10/07 , 3 pages, 34KB
Downloads: .pdf
Environnement
des affaires et compétitivité: l’exemple du
Sénégal [Presentation] by Mme. Natou O. Thiam,
Expert en Développement des entreprises ,
18/10/07 , 22 pages, 67KB
Downloads: .pdf
Characteristics
of the most successful supplier development and
linkages programmes The case of Mozambique
[Presentation] by Mr. Antonio Luis Macamo,
Linkages Division Manager , 18/10/07 , 19 pages,
1087KB
Downloads: .pdf
What
Makes a Successful Linkage Programme?
[Presentation] by Mr. David Lovegrove, Senior
Industrial Advisor, Ireland , 18/10/07 , 16
pages, 78KB
Downloads: .pdf
What
are the characteristics of the most successful
supplier development and linkages programs
worldwide? The SEBRAE Experience in Brazil
[Presentation] by Ms. Eliane Borges, Portfolio
Manager, SEBRAE, Brazil , 18/10/07 , 29 pages,
888KB
Downloads: .pdf
Business
Linkage Centre (TPM) Total Productive
Maintenance [Presentation] By Mr. Roberto
Castillo, Unilever, Vietnam, 18/10/07 , 38
pages, 766KB
Downloads: .pdf
Getting
Minority-Owned & Women-Owned SMEs into the
Global Value Chain [Presentation] by Ms.
Virginia Littlejohn, Co-founder and CEO, Quantum
Leaps, Inc. , 18/10/07 , 16 pages, 113KB
Downloads: .pdf
Linkages
and supplier development in a local cluster
Experiences from organizing automotive firms in
KwaZulu-Natal Province, South Africa
[Presentation] by Mr. Glen Robbins, School of
Development Studies, University of KwaZulu-Natal,
Durban, South Africa , 18/10/07 , 16 pages,
304KB
Downloads: .pdf
Links
between Local Clusters and Global Value Chains
[Presentation] by Dr. Olga Memedovic, UNIDO
Private Sector Development Branch , 18/10/07 ,
24 pages, 330KB
Downloads: .pdf
Enhancing
the role of SMEs in Global Value Chains
[Presentation] by Prof. Paul H. Dembinski,
University of Fribourg , 18/10/07 , 7 pages,
85KB
Downloads: .pdf
A
Perspective on Domestic SMEs in the Television
International Production Chain in Colombia: the
case of 3D-Animation [Presentation] by Mr.
Sascha Furst, Department Head International
Business, Universidad EAFIT, Medellin, Colombia
, 18/10/07 , 15 pages, 311KB
Downloads: .pdf
A
Global Software Player: The Egypt Case
[Presentation] by Mr. Tarek Assaad, General
Manager, CID , 18/10/07 , 26 pages, 661KB
Downloads: .pdf
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