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Future Fragmentation Processes

Effectively Engaging with the Ascendancy of Global Value Chains

image of Future Fragmentation Processes

Leveraging the power of trade to expand formal employment opportunities, generate greater value addition, assist diversification processes and develop productive capabilities is an aspiration of all Commonwealth governments. These objectives were conveyed clearly at the Commonwealth Trade Ministers Meeting convened in March 2017.

There are areas of mutual interest and where enhanced co-ordination between member countries could enhance trade gains. Because the ability to transmit tacit knowledge through Commonwealth trade, finance and investment networks is inherent in the trade cost advantage shared by members - which exists without formal collaboration – it suggests the sharing of already known best practice could further enhance the gains from more concerted action.

In order to engage effectively with contemporary trade, which manifests as global value chains (GVCs), it is incumbent on governments to better understand corporate strategies. In this publication, as well as taking stock of past performance, we reflect on potential dynamics and future fragmentation processes.

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Clothing Value Chains and Sub-Saharan Africa: Global Exports, Regional Dynamics and Industrial Development Outcomes

This rise of textiles and clothing global value chains (GVCs) in sub-Saharan Africa (SSA) is generally perceived as a successful process of beginning the industrial development process through leveraging preferential market access (PMA) and attracting foreign direct investment (FDI). However, simply using an aggregated analysis of SSA clothing exports masks some crucial differences: end-market shifts, the emergence of regional value chains (RVCs), the variety of firm types inserted in different value-chain channels, the political-economy dynamics driving this, and related sustainability and development implications. Within this chapter, different types of firms in the textiles and clothing industry – transnational, regional, diaspora and indigenous – are identified in SSA and their implications for upgrading are described.

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