The proliferation of Global Value Chains (GVCs) has led to increasing fragmentation of production processes across countries. Trade in intermediates has now surpassed trade in final goods and services, and global trade is increasingly conducted in the form of tasks instead of final products. These shifts require a paradigm shift in policy-making.
Like many other nations, Indonesia aspires to improve its position in GVCs by moving towards higher value-adding activities. A number of measures have recently been introduced, including some that some critics view as "protectionist" and self-defeating. At the same time, there is a growing recognition that GVC participation will not automatically confer benefits, and that conscious policy choices are required.
This paper argues that there is scope for policy intervention, but the approach must be holistic and coherent. With the aim of facilitating the development of an informed strategy for Indonesia's participation in GVCs, the paper discusses key areas affecting potential outcomes of that participation. Read more...
“TKN's mission is to ensure that social development and environmental goals are equitably addressed in trade and investment policies.”
The Trade Knowledge Network (TKN) is a global collaboration of research institutions across Africa, Asia, Europe and the Americas working on issues of trade, investment and sustainable development. Coordinated by the International Institute for Sustainable Development (IISD), the TKN links network members, strengthens capacity for effective research and generates new understanding on the impacts of trade and investment policies on sustainable development.
The overarching aim of the TKN is to help ensure trade and investment contribute to sustainable development, with developmental and environmental concerns equitably addressed in policy-making. The TKN has four inter-related objectives to achieve this goal:
1. To produce objective, high quality, country and region specific policy and thematic research on issues related to trade and investment policies and practices that present challenges or opportunities for achieving sustainable development in developing countries;
2. To inform and engage policy-makers and promote dialogue among stakeholders to incorporate sustainable development into trade and investment negotiations, policy formulation and trade and investment practice;
3. To build the capacity of TKN partner organizations to integrate sustainable development priorities into trade and investment policy and practice through; demand-driven training, South-South and North-South joint and cooperative research and policy engagement activities, and the exchange and placement of young researchers and interns at TKN Partner organizations; and
4. To facilitate through the TKN, its partners and among broader audiences globally, exchange of information, best policy and practice on trade, investment and sustainable development.