Trading for Development in the Age of Global Value Chains
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, wherein poor countries grew rapidly and began to catch up with richer 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. New technologies 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 development? How can countries work together to ensure the benefits of GVCs are shared and sustained? How can the development of GVCs continue amid the COVID-19 crisis? This MOOC gives participants an opportunity to explore how GVCs can further boost inclusive and sustainable 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.