GVC or Global Value Chains is like the world wide web of trade flows. Interconnections between countries and regions, their roles and repertoire in global trade can be explained using GVCs as a map. And by viewing shifts in GVC interconnections over the past three decades in the light of current global, regional, national narratives of growth and development, trade agreements and disagreements, emergence of strategic initiatives and supply chain predicaments we are able to develop scenarios which could predict which way the trade winds will blow and what could preparations look like.
Global Value Chains (GVCs) underpins global trade and supply chain decisions and dilemmas. The concepts of ‘globalization’ and ‘industrialization’ as a pivot of economic growth and shared prosperity for all formed the basis of re-organizing trade and development under global institutions like the World Trade Organization (1995), the International Monetary Fund (1944-45), the World Bank (1944-45), and in particular UNIDO (1966) which focuses on turning industrialization into a ‘force for achieving greatness’ by developing nations emerging from decolonization.
Reconstructing a conflict-free post-war world on the tenets of dialogue, diplomacy and good faith held us in good stead. But the global development agenda, goals, frameworks and commitments are called to question from time to time, as it was between 1996-2000, leading to the Millennium Development Goals (MDGs) and subsequently once again in 2016 -18 (Post-2015 Development Agenda) which birthed the United Nations Sustainable Development Goals (UNSDGs). However, COVID-19 pinched the GVC map in way which made the interconnections surface unlike ever before, accelerated certain resets in the global, regional and national view on the role and participation of countries impacting the supply chain challenges during the crisis.
How the GVC shapes up in the future would directly and indirectly impact trade winds and therefore supply chain prerogatives throughout the world.