"Learn why Global Value Chains are quintessential for boosting employment and reducing global poverty."
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, with poor countries growing rapidly and beginning to catch up with richer countries. Since the 2008 global financial crisis, however, the growth of trade has remained sluggish and the expansion of GVCs has stalled. This overview of the World Bank's 2020 World Development Report examines whether there is still a path to development through GVCs and trade. It concludes that technological change is, at this stage, more of a boon than a curse. GVCs can continue to boost growth, create better jobs, and reduce poverty provided that developing countries implement deeper reforms to promote GVC participation.
This document is an Overview of the World Bank Group's World Development Report 2020: Trading for Development in the Age of Global Value Chains. To read the entire World Development Report, please click here.