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G20 India 2023
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TF-1: Macroeconomics, Trade, and Livelihoods: Policy Coherence and International Coordination

GVCs, Resilience, and Efficiency Considerations: Improving Trade and Industrial Policy Design and Coordination

Otaviano Canuto (Policy Center for the New South), Mahmoud Arbouch (Policy Center for the New South), Pepe Zhang (Adrienne Arsht Latin America Center), Abdelaaziz Ait Ali (Policy Center for the New South)
This Policy Brief was first published in https://t20ind.org

Abstract

The COVID-19 pandemic and the war in Ukraine have reignited the debate on efficiency versus resilience in international trade and global value chains (GVCs). This policy briefa (i) explains the contrasting perspectives of the private sector (primarily seeking efficiency) and the public sector (aiming for resilience); (ii) demonstrates that GVCs are still flourishing, despite some mounting signals of a geo-fragmentation leading to greater reallocation of the GVCs; and (iii) provides recommendations to help the G20 navigate the balancing act between efficiency and resilience considerations. Domestic policy design in the G20 countries and international coordination among these countries is essential.

G20 India 2023
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Authors

Otaviano Canuto (Policy Center for the New South), Mahmoud Arbouch (Policy Center for the New South), Pepe Zhang (Adrienne Arsht Latin America Center), Abdelaaziz Ait Ali (Policy Center for the New South)

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