Global Value Chain Development Report 2021: Beyond Production

Global value chains (GVCs) are the cross-border networks that bring a product or service from conception to market. The tasks that add most value in these chains usually occur before or after production, such as product design or marketing. Intangible assets and intellectual property—including brands, patented technologies, and supply chain management know-how—increasingly determine the ability of firms to lead and benefit from GVCs.

Meanwhile, digital platforms are changing who participates in GVCs, increasing opportunities for developing economies and micro, small, and medium-sized enterprises. These platforms can also bring challenges, including uneven access to digital infrastructure and a tendency toward consolidation that reduces competition.

Participation in services GVCs can help generate well-paying jobs and boost inclusive growth. To support such participation, policy makers need to tackle obstacles to increasing educational attainment.

Reducing risks to GVCs, including geopolitical, environmental, and pandemic risks, requires outward-oriented strategies.

The report is co-published by ADB, the Research Institute for Global Value Chains at the University of International Business and Economics, the World Trade Organization, the Institute of Developing Economies – Japan External Trade Organization, and the China Development Research Foundation. It is the third in a biennial series; see the 2017 and 2019 reports on the WTO website.