THE GLOBAL MANUFACTURING & INDUSTRIALISATION SUMMIT
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Global Panorama

Global Panorama

Glocalisation: Localising production and capacity building for survival and success

More than two thirds of world trade occur through Global Value Chains (GVCs) where production crosses borders before making it to final assembly lines. Digital developments are transforming these GVCs by creating a new digital thread across the chain, allowing for advanced systems of traceability and improved logistics and planning. Moreover, the fourth industrial revolution (4IR) and its technological advancements have the potential to permeate the physical and virtual borders created by a pandemic and give residents the digital freedom to break out and restore their economic and social activities. SMEs account for the largest segment of firms in any given country, and the largest percentage of global employment. While SMEs are
usually under-represented in GVCs, the digital economy provides new opportunities for SMEs to play a more active role as propagators and instigators of 4IR. This would contribute to the goal of inclusive industrial
development (SDG9) but also poverty reduction (SDG1) and reduced inequalities (SDG 10). With the recent outbreak of COVID-19, we will undoubtedly see countries shift towards more domestic production and
capacity building programmes for the local workforce.

This session will evaluate the questions of:

  • With closed borders, and the disruption of the supply chain, will this trend push countries to source more locally? And if it becomes a long-term trend, will it reduce the potential of developing countries to industrialise through linking into GVCs?
  • How can 4IR technologies be used to include and integrate marginalised communities and SMEs in global value chains?
  • What policy measures need to be developed to ensure accelerated uptake of technology through developing country SMEs and their integration in value chains?
  • How can skilled labour be nurtured in developing countries and be involved in local production that becomes integrated in global value chains?
  • Are we entering a new era of ‘hunger games’ whereby big corporations will come out as survivors during the recession?

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