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The world is in the midst of a sporadic
and painful recovery from the most severe economic crisis
since the 1930s Great Depression. The unprecedented scale
of the crisis and the speed of its transmission have
revealed the interdependence of the global economy and the
increasing reliance by businesses on global value chains
(GVCs). These chains represent the process of ever-finer
specialization and geographic fragmentation of production,
with the more labor-intensive portions transferred to
developing countries. As the recovery unfolds, it is time to
take stock of the aftereffects and to draw lessons for the
future. Have we experienced the first global crisis of the
21st century or a more structural crisis of globalization?
Will global trade, demand, and production look the same as
before, or have fundamental changes occurred? How have lead
firms responded to the crisis? Have they changed their
supply chain strategies? Who are the winners and losers of
the crisis? Where are the engines of recovery? After
reviewing the mechanisms underpinning the transmission of
economic shocks in a world economy where trade and GVCs play
increasing roles, the book assesses the impact of the crisis
on global trade, production, and demand in a variety of
sectors, including apparel, automobiles, electronics,
commodities, and off-shore services. The book offers
insights on the challenges and opportunities for developing
countries, with a particular focus on entry and upgrading
possibilities in GVCs postcrisis. Business strategies and
related changes in GVCs are also examined, and the book
offers concrete policy recommendations and suggests a number
of interventions that would allow developing countries to
better harness the benefits of the recovery. |
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