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

 

Amnesty/Human Rights Watch: Appalling Abuse, Neglect Of Refugees On Nauru

Refugees and asylum seekers on Nauru, most of whom have been held there for three years, routinely face neglect by health workers and other service providers who have been hired by the Australian government, as well as frequent unpunished assaults by local Nauruans. More>>

ALSO:

Other Australian Detention

Gordon Campbell: On The Censorship Havoc In South Africa’s State Broadcaster

Demands have included an order to staff that there should be no further negative news about the country’s President Jacob Zuma, and SABC camera operators responsible for choosing camera angles that have allegedly made the President ‘look shorter’ were to be retrained... More>>

ALSO:

Gordon Campbell: On A Bad Week For Malcolm Turnbull, And The Queen

Malcolm Turnbull’s immediate goal – mere survival – is still within his grasp... In every other respect though, this election has been a total disaster for the Liberals. More>>

ALSO:


Gordon Campbell: On Bidding Bye Bye To Boris

Boris Johnson’s exit from the contest for Conservative Party leadership supports the conspiracy theory that he never really expected the “Leave” option to win the referendum – and he has no intention now of picking up the poisoned chalice that managing the outcome will entail... More>>

ALSO:

Mexico: Violence And Repression Of Teachers

The member organizations of Network for Peace express our indignation over the acts of repression that the Mexican State has carried out, through the police forces... In Chiapas, Guerrero and Oaxaca, the conflict has resulted in murders of teachers and civilians as well as hundreds of wounded and dozens of people arrested. More>>

ALSO:

Gordon Campbell: On Britain's Pleas For Mercy

So… Boris Johnson is promising that he won't be holding a snap general election, if he's chosen as the next UK Conservative Party leader. Reportedly, he is even making that promise a feature of his leadership campaign, since a vote for Boris would therefore mean (wink wink) that his colleagues wouldn't have to risk their jobs and face the wrath of the British public until 2020. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
World
Search Scoop  
 
 
Powered by Vodafone
NZ independent news