The Director-General of the World Trade Organisation, Mrs Ngozi Okonjo-Iweala has explained that global value chains are relevant players in job creation and inclusion and thus, need to be enhanced to strengthen the global economy.
Okonjo-Iweala was speaking at the World Bank/International Monetary Fund Spring meetings in Washington DC.
She said the coronavirus pandemic taught the world how important global value chains have become in the drive to create more jobs and financial inclusion across the world.
At a moderated discussion with the Managing Director of the @IFC_org, @Diop_IFC on the importance of Global Value Chains for job creation, inclusion and sustainability. Thanks @Diop_IFC for the strong collaboration with @WTO to deliver for SME’s, for women and for poor countries. pic.twitter.com/JEwKEhx357
— Ngozi Okonjo-Iweala (@NOIweala) April 15, 2023
The WTO DG said the COVID-19 vaccine supply chain gave a lot of insight as to how the redistribution of the global supply chain can be structured for more inclusive jobs across the developing world.
According to her global value chains are the backbone of trade. They make up 45 to 55 per cent of world trade. They are forces for inclusion, the creation of jobs and also help to increase incomes.
“Actually, studies have shown that when you have global value chains spreading, per capita incomes go up.
“During the pandemic, when we had to deal with vaccines, we had these meetings with the CEOs of the vaccine manufacturers, Pfizer, Moderna, and so on. And what they said; the mRNA vaccine, the Pfizer one is spread over 19 countries.
She revealed that the supply chain has spread over 19 countries and manufacturing in 86 sites adding that they are a powerful force in creating jobs and employment
Furthermore, Okonjo-Iweala said the world needs to look beyond China and India/Indonesia for the expansion of global value chains.
She declared that at this time when global supply chains are trying to build resilience by not being concentrated in one country or the other, “we need to see this as an opportunity to encourage them to spread to more developing countries as a force to bring even SMEs and women into the value chains.
“Let’s not just talk about China plus one when we’re thinking of diversification of supply chains, when they say plus one, it means Indonesia or India. Let’s talk about China plus Morocco, China plus India, China plus Nigeria, China plus Senegal, China plus Bangladesh, China plus Brazil, Costa Rica.
“With this kind of approach global value chains can really be a force for inclusion.”
Punch/Hauwa Abu
