Not only is EADI celebrating its 40th birthday in 2014, it is also honoring the 25th birthday of its European Journal of Development Research with a Jubilee Lecture. Raphael Kaplinsky will talk about “Not Whether , But How to Participate in the Global Economy”.
Please RSVP by filling out the registration form: Registration Form for EJDR at 25: Jubilee Lecture. If you are a participant of the EADI General Conference, you will not have to inform us about your attendance.
Not Whether, But How to Participate in the Global Economy
By providing the scope for increasing scale, specialisation and learning, participation in the global economy offers low and middle income economies the opportunity of achieving sustainable income growth. But at the same time, participation in competitive global markets threatens a race to the bottom and an outcome of immiserising growth. The challenge, therefore, is not so much whether to, but how to participate gainfully in the global economy.
Achieving a positive outcome requires economies to take advantage of their natural resource rents and to recognise, appropriate and (in time) to generate innovation rents. It is widely (re-)accepted that markets alone will not deliver optimal outcomes, and that policy support is a necessary requirement for maximising the opportunities opened up by globalisation.
Appropriate and effective policy responses need to be attuned to the structure and functioning of global value chains (GVCs). Two families of GVCs can be identified – vertical specialisation GVCs (for example, in electronics and apparel assembly) and additive GVCs (for example, in the commodities sectors). They are of differential significance in low-middle income and high income economies, and call for different packages of policy support. Although context varies, it is likely that effective policy responses for GVC insertion will require running on two policy tracks simultaneously. Moreover, achieving a developmental outcome will require that these policies will necessarily need to focus on the nature and dynamics of inclusion in both families of GVCs.