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.



Making Global Value Chains Work for Development in the Age of Automation and Globalisation Scepticism

How countries engage with global value chains (GVCs) determines how much they benefit from them. For an effective and sustainable strategy of GVC participation, governments must identify key binding constraints and design the necessary policy and regulatory interventions, including investing in infrastructure and capacity building. Countries that understand the opportunities that GVCs offer and adopt the appropriate policies to mitigate the risks associated with them have the opportunity – through GVCs – to boost employment and productivity in agriculture, manufacturing and services.


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