Africa Industrialization Day

  Current trends* Integration into GVCs has long been understood as a potential pathway for industrial upgrading . By tapping into international production and trade networks, developing countries have been able to enhance their industrial capabilities , generate jobs and boost economic growth. However, successful integration has always relied on a range of factors, including domestic conditions and the broader International Trade System . As global supply chains rapidly evolve, driven by geopolitical, economic and environmental dynamics, developing countries now face new challenges and opportunities in securing their place in GVCs . A series of shocks to international trade flows in recent years has prompted many countries and firms to reassess their trade and production practices. The COVID-19 pandemic was a major catalyst, causing widespread disruptions in production, transportation and labour markets. Even as economies began to recover, supply chains continued to face ch...

  As international trade conditions are reshaping patterns of global production, developing countries may face challenges in accessing new markets and moving into higher-value segments of production. Smaller developing countries, in particular, often lack the domestic market size necessary to justify large-scale investments in industrial production and upgrading without  integration into global markets . Even larger economies such as India and Brazil are likely to be affected by the shortening and fragmentation of GVCs, especially given their reliance on imported industrial inputs and export markets for certain industries . To address these challenges, industry can establish more regionalized supply chains that use shorter, more cost-effective and less polluting transport routes while incorporating SMEs in developing countries . Legal frameworks must support the development of more localized supplychains, extending beyond mere reductions in CO2emissions or the adoption of r...