Global value chains have driven economic growth, job creation and poverty reduction across Asia and the Pacific over the past 25 years, although many lower-income economies remain left behind, according to a new Asian Development Bank (ADB) report.
The report, titled “Global Value Chains and Inclusive Development,” was launched on Tuesday at ADB’s 59th Annual Meeting in Samarkand, Uzbekistan.
ADB said the region now accounts for one-third of global value chain trade, while developing economies in Asia and the Pacific doubled their share from 9 per cent in 2000 to 18 per cent in 2023.
Economies in East and Southeast Asia have become deeply integrated into global production networks, helping them capture higher value addition, the report said.
However, many smaller and lower-income economies still have limited participation in global supply chains.
ADB Chief Economist Albert Park warned that growing geoeconomic fragmentation could reduce industrialisation and growth opportunities for economies stuck in low-value production roles.
He said less-developed economies need stronger infrastructure, logistics, technology adoption and business environments to improve competitiveness.
The report said large firms have benefited most from global value chains, while small and medium-sized enterprises continue to face barriers including high compliance costs and limited capabilities.
ADB identified resilience, environmental sustainability and inclusion as the key priorities for future global value chain integration.
It recommended improving infrastructure, reducing trade costs, strengthening worker skills and expanding access to finance and digital platforms for smaller businesses.
Founded in 1966, ADB is owned by 69 members, including 50 from Asia and the Pacific.
