ADB outlines 3 priorities for integration into global supply chains

Sustainability, environmental responsibility, and inclusiveness are becoming key conditions for the effective integration of countries into global value chains amid increasing geopolitical fragmentation and the transformation of the global economy, Albert Park, chief spokesperson for the Asian Development Bank (ADB) on economic issues, said at the 59th Annual Meeting of the Bank's Board of Governors, Report informs.

According to him, geopolitical tensions, supply chain disruptions, and rapid technological change are changing the format of countries' participation in global value chains (GVCs).

"The first priority is resilience. It is becoming an increasingly important factor in competitiveness. Rising uncertainty and fragmentation have increased the importance of reliability, adaptability, and risk management. Strengthening resilience requires the coordinated development of connecting infrastructure, increased corporate flexibility, and the creation of a regulatory framework that allows for the diversification of markets, resources, and partnerships," Park noted.

He emphasized that the second key area is environmental sustainability, which increasingly influences the conditions for participation in GVCs.

"Compliance with evolving environmental standards is becoming a mandatory requirement for all participants in global value chains. Strengthening policies in areas such as standardization, certification, and traceability will enable companies to implement cleaner technologies and production processes," the economist said.

Inclusiveness remains the third priority, he noted. "Achieving inclusive outcomes requires comprehensive measures: reducing trade costs through infrastructure investment, pursuing open trade policies and simplifying procedures, developing workforce skills and company capacity, and expanding access for small and medium-sized enterprises to finance, digital platforms, and export opportunities," the ADB representative added.

According to him, it is the combination of these three areas that will allow countries not only to strengthen their positions in global value chains but also to enhance the resilience of economic growth in the face of global uncertainty.