Working Paper No. 28 - Upgrading in global value chains

The Global value chain consists of the global trade in parts and components often involved in manufacturing and agriculture. The question asked is does global production systems increase or hinder the development of developing countries with regard to sustainable increases in income, employment, technological diffusion, and already existent development strategies? Overall the paper argues for global value chains and suggests policies that could stimulate and support the efforts of firms and groups of firms on this issue. Such policies include upgrading policies irrespective of the specific nature of global value chains, facilitating the participation of firms in globally dispersed production systems, and supporting firm level upgrading in the context of specific challenges. It also advocates policies that would integrate and coordinate activities that cross national boundaries so developing countries form more than just one part of an international division of labour.