Kirsten Sayler, Public Engagement, +41 22 869 1476, Email: ksal@weforum.org
· The World Economic Forum partners with the United Nations Development Programme (UNDP) to develop and implement a new Strategic Value Framework on global value chains
· The Framework analyses the effects of potential disruptions on global value chains and its implication for the manufacturing sector
· Bangladesh will be the first country to leverage the Strategic Value Framework in the field
· Learn more in the Reshaping Global Value white paper and discover an interactive tool here
New York, USA, 20 September 2019 – The World Economic Forum, in partnership with the United Nations Development Programme (UNDP), announces today a new Strategic Value Framework to help stakeholders in global value chains, understand and respond to the impacts of disruptions, brought on by emerging technologies, the climate emergency and trade tensions.
The paper explores three global value chains: the cotton industry; the electronics industry; and the automotive industry. It explains that by measuring and effectively responding to disruptions in these three global value chains, the total value could increase about 65% over three years. No response could result in a loss of up to 28% in those global value chains.
“Global Value Chains are undergoing profound changes”, said Borge Brende, President, World Economic Forum. “Stakeholders should no longer stand alone in this complex environment, but rather form new partnerships and take a multistakeholder approach to more efficiently use, transform and trade resources. The World Economic Forum and United Nations Development Programme provide a pioneering platform, where public and private sectors, including international organizations, come together for collaborative action and gain access to advanced tools, such as the Strategic Value Framework.”
Businesses and governments can respond to potential disruptions by reorienting business models in three key ways:
· From upstream to downstream: The importance of tailoring supply to customer needs is growing
· From economies of scale to economies of skills: Innovation and a talented and specialist workforce are becoming increasingly important
· From focusing on the costs of focusing on products: Generating value will depend on a wider view across global value chains
“Global value chains have helped fuel significant global economic development and GDP growth, but the current global system of production will evolve radically in the next decade,” said UNDP Administrator Achim Steiner. “This reports highlights some of the disruptive trends and how new forms of public-private partnership can help mitigate these threats and secure more inclusive and sustainable development.”
An interactive tool created as part of the Strategic Value Framework allows users to explore how disruptions, such as emerging technologies, the climate emergency and trade tensions, could impact their existing global value chains. The outcomes of the framework serve to inform and guide stakeholders in the transition to the future of production and global value chains.
The Government of Bangladesh will be a pioneer, using this tool to facilitate dialogues and actions on the textile industry, the country’s most important export business.
“The manufacturing textile sector represents 80% of Bangladesh total export,” said Mohammed Shahriar Alam, State Minister for Foreign Affairs of Bangladesh. “We need new partnerships and proactive approaches, with tools such as the Strategic Value Framework, to be better prepared for the future of production and global value chains.”
The Strategic Value Framework was created in collaboration with A.T. Kearney.
A session on preparing for value chain disruptions will be discussed at the Sustainable Development Impact Summit, which will take place in New York on 23-24 September. This year’s meeting will convene more than 700 regional and global leaders from government, business, civil society, and academia. The meeting will explore four themes:
transforming markets; accelerating climate action; financing sustainable development; and mobilizing action for inclusive societies.
The Co-Chairs are Jesper Brodin, CEO, and President, Ingka Group (IKEA Retail, Ingka Centres, Ingka Investments); Sebastián Piñera Echenique, President of Chile; Mark Rutte, Prime Minister of the Netherlands; Gillian Tans, Chairwoman, Booking.com; and Melati Wijsen, Co-Founder, Bye Bye Plastic Bags.
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