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Global Value Chains and World Trade

Prospects and Challenges for Latin America

image of Global Value Chains and World Trade

The analysis of how Latin American and Caribbean economies participate in different segments of GVCs is at the heart of the current work agenda of the Economic Commission for Latin America and the Caribbean, which focuses on how structural change and productivity gains can promote economic development with equality. This volume builds on the relevant literature and suggests that the movement of firms to higher value added activities in GVCs requires them to step up their innovation efforts and develop new products and processes. Success in improving market shares and value added will depend, however, on which firms innovate most. Hence, innovation is a necessary but insufficient for increasing value added and market shares. Evidence suggests that since the 2008 economic crisis, the participation of Latin America and the Caribbean in global production networks has increased.

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Value chain development for cocoa smallholders in Ecuador

The sustainable utilization of natural resources is a priority area of bilateral development cooperation between Ecuador and Germany. One important cooperation programme in this area is “Gestión Sostenible de los Recursos Naturales” —Sustainable Natural Resources Management (GESOREN) a 10-year programme started in 2004 and scheduled to come to a close at the end of 2013.

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