Rising Concentration in Asia-Latin American Value Chains

Can Small Firms Turn the Tide?

image of Rising Concentration in Asia-Latin American Value Chains

Dynamic Asia has overtaken the European Union as Latin America and the Caribbean's second largest export market, after the United States. However, the region's exports to Asia remain concentrated in few commodities involved a small number of large firms. This book explores the present and future scope for the participation of small- and medium-sized enterprises (SMEs) in biregional trade and value chains and the measures that can be taken to make those chains more inclusive and sustainable. It encourages governments in Latin America to improve the business environment in order to encourage multinational firms to invest, upgrade and innovate in the region.



Promoting business linkages between large and small firms: The experience of the United Nations conference on trade and development

This chapter outlines the importance for small and medium-sized enterprises (SMEs) of participating in global value chains (GVCs) in developing countries as a vehicle to improve productivity and create employment. In practice, however, GVC participation is constrained by major challenges in terms of accessing finance, obtaining quality standard certifications and upgrading technology. The United Nations Conference on Trade and Development (UNCTAD) has developed business linkage programmes that are designed to upgrade and increase the capacity of SMEs by generating linkages between transnational corporations (TNCs) and SMEs. This chapter presents the characteristics of these programmes and those implemented in Argentina and Brazil, while also reflecting on the Mexican experience. The case studies show that such programmes can assist SMEs in upgrading production and increasing capacity, and can help TNCs establish a local supplier network, which leads to a win-win situation for all participants. However, programmes are only successful when policies designed to attract foreign direct investment (FDI) encourage TNCs to transfer technology and knowledge to domestic SMEs. Also, a critical mass of both TNCs and SMEs is required, along with a longterm commitment from all participants, as benefits are neither instant nor automatic.


This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error