World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search

 


Opportunities for SMEs to play larger role in global chains

Opportunities for SMEs to play larger role in global value chains

Issued by the APEC Policy Support Unit


Qingdao, China, 11 May 2014 - Policies to increase opportunities for SMEs to play an important role in global value chains were presented at the APEC Committee on Trade and Investment Meeting by the APEC Policy Support Unit on Saturday in Qingdao, China.

Global value chains play an important role in the international trading system. Today, around 80 percent of world trade is conducted through networks of global value chains. These value chains are comprised of a multitude of small and medium-sized enterprises (SMEs) dispersed across a large geographical area.

“In recent years, we have seen the simultaneous ‘integration of trade’ and ‘disintegration of production’ as multinationals increasingly rely on a variety of SME suppliers throughout the region during their production process,” said Dr Alan Bollard, Executive Director of the APEC Secretariat.

In global value chains, SMEs are often suppliers providing intermediate inputs such as components and parts, and act as subcontractors several levels down from the ultimate buyer.


“Since the Global Financial Crisis, global value chains have been undergoing structural changes, including consolidation by multinationals into a few large suppliers as well as the rise of e-commerce enabling further expansion of global value chains,” explained John Larkin, Chair of the Committee on Trade and Investment.

These changes offer both opportunities and challenges for SMEs to increase their participation in global value chains. Under the direction of the APEC SME Working Group, the APEC Policy Support Unit conducted an analysis on the prospects for SMEs to engage in global value chains in five main sectors, including agriculture, food processing, automobiles, electronics and handicraft sectors.

“For example, the analysis shows that SMEs in developed and newly industrialized economies have a higher potential to participate more fully in global value chains in the agriculture and electronics sectors,” said Zhang Yuhua, Analyst at the APEC Policy Support Unit.

“For SMEs in developing economies, the electronics and handicraft sectors offer better opportunities for capturing a larger role in global value chains,” added Ms Zhang. In addition, she recommended that APEC member economies could conduct similar analyses on an industry or product level to identify potential opportunities to integrate domestic SMEs into global value chains.

The report offers some policy principles and best practices for APEC member economies to help SMEs in these sectors expand their presence in global value chains.

“To help SMEs meet standards and obtain certificates, APEC member economies could harmonize standards and conformance procedures, set up public certification systems to reduce the burden on SMEs to obtain certificates; and provide training and technical assistance on qualification and certification processes,” explained Dr Denis Hew, Director of the APEC Policy Support Unit.

Other policy recommendations include strengthening the financial soundness of SMEs by promoting supply chain financing and providing financial skills training as well as enhancing production capacity through fostering collaboration and clustering of SMEs.

For more information see “Integrating SMEs into Global Value Chains: Policy Principles and Best Practices Issues Paper No. 6” by the APEC Policy Support Unit.

Ends

© Scoop Media

 
 
 
 
 
World Headlines

 

Release Of 200 Nigerian Girls Held Captive By Boko Haram

UN envoy Gordon Brown welcomes release of 200 Nigerian girls held captive by Boko Haram More>>

Ban Calls For Immediate End To Hostilities In Northern Mali

Chadian UN peacekeepers heading to their base in Tessalit, northern Mali. Photo MINUSMA/Marco Dormino More>>

New UN Special Envoy On Ebola Response Visit To Sierra Leone

29 April 2015 – The United Nations World Health Organization ( WHO ) today said that surveillance and community engagement still require improvement in some areas of Guinea and Sierra Leone where new cases continued to surface, a day after the ... More>>

Somalia Registers Record Export Of Livestock In 2014

Somalia registers record export of livestock in 2014 due to trade boost with Gulf States More>>


United States: Riots In Baltimore – National Guard Sent In [graphic Images]

Riots have broken out in Baltimore following the funeral of Freddie Gray, a 25 year old black man who died from injuries sustained while in police custody. More>>

West Papua: “Lest We Forget”

AS Anzac approaches and Australians and New Zealanders remember those who fought and lost their lives on Anzac Day, it is hoped we will also remember the unfree people of the Pacific region and in particular those who are still suffering from human ... More>>

Iran: 81 Executions In One Week

Coincident with mass executions in the prisons of Ghezel-Hessar, Karaj and other cities, the anti-human regime of mullahs sent 16 other prisoners to the gallows in Mashhad and Birjand (northeastern Iran). Twelve of them were hanged collectively ... More>>

Al-Shabaab: Four Unicef Staff Killed In Somalia

Four UNICEF staff members have been killed in an attack on their vehicle in Garowe, Somalia. Four other UNICEF colleagues are in a serious condition. The IED (improvised explosive device) attack occurred when the staff were travelling from their guest ... More>>

UN: Suicide Attack In Jalalabad Condemned

NEW YORK/KABUL/GENEVA (18April 2015) – “I strongly condemn the brutal suicide attack that coincided with my visit to Jalalabad today,” said United Nations Assistant Secretary-General for Human Rights Ivan Šimonović during his visit to Afghanistan. ... More>>

Save The Children: STC Urges EU Leaders To Act To Prevent More Mass Drownings

Save the Children Urges EU Leaders to Act to Prevent More Mass Drownings at Sea. More>>

ALSO:

Japan: Independent Experts Slam Japan’s New Whaling Plan

Independent experts slam Japan’s new whaling plan and declare no more whales need to be killed for Antarctic research More>>

Gaza Strip: Attacks In The Border Areas

Following disengagement from the Gaza Strip in September 2005, Israel unilaterally and illegally established a so-called “buffer zone”, an area prohibited to Palestinians along the land and sea borders of the Gaza Strip. The precise area designated by ... More>>

Get More From Scoop

 
 
 
 
 
World
Search Scoop  
 
 
Powered by Vodafone
NZ independent news