Trading for Development in the Age of Global Value Chains - Word Development Report 2020 from edX

Global value chains (GVCs) powered the surge of international trade after 1990 and now account for almost half of all trade. This shift enabled an unprecedented economic convergence, the age of GVCs, wherein low-income countries grew rapidly and began to catch up with high-income countries.

Since the 2008 global financial crisis, however, the growth of trade has stagnated and the expansion of GVCs has stalled. These trends have only been amplified by the COVID-19 pandemic. Meanwhile, threats to the model of trade-led growth have emerged. Technological change could draw production closer to the consumer and reduce the demand for labor. And trade conflicts among large countries—exacerbated by conflict around COVID-19—could lead to a retrenchment or a segmentation of GVCs.

How can GVCs power sustainable and inclusive economic growth and development? How can countries work together to create deeper reforms and predictable policies that encourage shared and sustained GVC participation? How can the development of GVCs continue amid the COVID-19 crisis?

This MOOC gives participants an opportunity to explore trading for development- how GVCs can further boost inclusive and sustainable economic growth, creating better jobs and reducing poverty. Economists from across the World Bank Group will discuss how GVCs impact a range of development issues. Participants will also benefit from using a global online platform, by networking with peers across the world, experimenting with digital visualizations about GVCs, and experiencing the interconnectedness of global development demands.

What's inside

Learning objectives

• evaluates the degree to which gvcs have contributed to economic growth, jobs, and reduced poverty—as well as inequality and environmental degradation.
• examines how national policies can create deeper reforms and predictable policies, advancing gvcs as a force for development rather than divergence, and reviving economic growth and world trade.

• identifies inadequacies in the international trade system that have fomented disagreements among nations and provides a road map to resolving them through greater international cooperation.

• evaluates the degree to which gvcs have contributed to economic growth, jobs, and reduced poverty—as well as inequality and environmental degradation.
• examines how national policies can create deeper reforms and predictable policies, advancing gvcs as a force for development rather than divergence, and reviving economic growth and world trade.
• identifies inadequacies in the international trade system that have fomented disagreements among nations and provides a road map to resolving them through greater international cooperation.

Syllabus

Week 1 - GVCs— What are they and what drives country participation?

This module will focus on understanding GVCs and how they work. A GVC breaks up the production process across countries, with firms specializing in a specific task and stages of production rather than producing the whole product. GVC trade offers two features that distinguish it from traditional trade: hyper-specialization and durable firm-to-firm relationships. These features increase technology and knowledge transfer as well as access to capital, which allows firms to raise productivity and income and renders GVC trade more powerful than traditional trade in supporting growth and poverty reduction. GVCs expanded in the 1990s and 2000s, driven by technological advances in transportation, information and communications, and trade liberalization, but that expansion has slowed since the financial crisis of 2008. One reason for the stagnation is lower global economic growth and investment. Another is the lack of major liberalization initiatives in recent years. Factor endowments (labor, capital, and natural resources), geography, market size, and institutions drive a country’s participation in GVCs, and policies play an important role.

Traffic lights

Read about what's good

what should give you pause

and possible dealbreakers

Teaches the fundamentals of global value chains, which is standard in trade policy and economics

Content is current, relevant, and up-to-date with current events

Taught by economists from the World Bank, a widely recognized source for macroeconomic analysis

Delves into several topics beyond economics, giving learners a strong understanding of the implications of GVCs for several scholarly disciplines and their role in the global political economy

Provides a comprehensive overview of multiple factors that contribute to inequality and environmental degradation, while also investigating potential solutions

Offers global networking opportunities for learners to connect with peers working in trade and development, providing the chance to exchange ideas

Reviews summary

Global value chains: development & policy insights

According to learners, this course offers largely positive and authoritative insights from World Bank Group economists on Global Value Chains (GVCs). Students praise its comprehensive coverage of how GVCs impact economic growth, jobs, and poverty reduction, as well as their relevance to current global economic issues and policy implications. The course is noted for its well-structured lectures and informative readings. However, some learners find the delivery can be theoretical and lacks extensive practical case studies, making it feel less interactive for some. It assumes a certain level of prior economic knowledge. While the core principles remain relevant, a few reviewers note that the content is based on the 2020 World Development Report, suggesting some data might be slightly dated.

Material is based on the 2020 World Development Report, leading to some potentially dated data.

"My main suggestion would be to update some of the data references, as the 'Word Development Report 2020' basis means some statistics might be a few years old now."

"My main criticism is that it's based on a report from 2020, and the world has changed significantly since then... An updated version or supplementary materials would greatly enhance its value."

"Frankly, this course felt like reading the 2020 World Development Report itself, just broken into chunks. There wasn't much added value in terms of engaging instruction..."

May require prior knowledge in economics or international relations for optimal comprehension.

"I felt it assumed a higher level of prior economic knowledge than I possessed. While I managed to follow along, a dedicated primer... would have been beneficial."

"It's definitely for those with a background in economics or international relations, perhaps less so for complete beginners."

"The content is dense but manageable. It requires a good level of concentration, but the effort is rewarded with a deeper understanding of the subject matter."

Offers highly relevant insights into GVCs' impact on global development and policy.

"It addresses crucial questions about GVCs, sustainability, and inclusive growth, which are highly pertinent for my work in economic policy."

"Very informative course on a critical topic. I especially valued the insights on how GVCs affect trade imbalances and the costs of protectionism."

"The focus on 'Trading for Development' is precisely what I needed for my research."

Provides authoritative and comprehensive insights from World Bank economists.

"This course is incredibly timely and relevant, especially given current global economic shifts. The insights from World Bank economists are invaluable..."

"Absolutely brilliant! The course distills complex economic concepts into digestible modules. The World Bank Group's expertise shines through."

"Excellent course for anyone trying to grasp the nuances of global value chains. The instructors (World Bank economists) clearly know their stuff..."

Emphasizes theoretical understanding, sometimes at the expense of practical application.

"I found the delivery quite dry at times, relying heavily on theoretical explanations without enough real-world application."

"I enrolled hoping for more practical strategies for developing countries to leverage GVCs. While it discusses policies, much of it felt conceptual rather than actionable."

"The course delivers on its promise... but could benefit from more engaging assignments or discussion prompts. It's a good reference for policy, but perhaps less engaging."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Trading for Development in the Age of Global Value Chains - Word Development Report 2020 with these activities:

Review other works on GVCs

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This book provides a comprehensive overview of GVCs and their impact on world trade. As a reference text, it includes up-to-date information that can help solidify and extend your understanding of what is covered in the course.

View Melania on Amazon

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Read the book in its entirety.
Take notes on the key concepts and arguments.
Consider writing a summary or review of the book to reinforce its content.

Compile Trade Policy Resources

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Compiling trade policy resources will help you access and review resources in the future

Browse courses on Trade Policy

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Gather links to websites of international organizations such as the WTO and UNCTAD
Collect articles from reputable sources on trade policy issues
Organize the resources into a folder or bookmark list

Follow tutorials on VCs

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There are various online resources and tutorials that can provide you with additional insights and practical examples of VCs. Exploring these can supplement your understanding of the course material.

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Identify online tutorials, blogs, or articles about VCs.
Complete the tutorials and take notes on the key concepts discussed.
Consider using the concepts you learn in the tutorials to analyze real-world examples of VCs.

Eight other activities

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Practice questions

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There are many resources available online and in the course that provide practice questions related to the material covered in the course. Practicing these questions can improve your understanding of the material and your ability to apply it.

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Identify practice questions related to the topic you are studying.
Attempt to answer the questions on your own.
Check your answers and identify areas where you need further study.

Data Visualization for Trade Analysis

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Trade data analysis and understanding global trade trends is critical to grasp the GVC concept

Browse courses on Data Visualization

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Find tutorials on data visualization tools such as Tableau or Power BI
Learn how to clean and prepare data for visualization
Practice creating charts and graphs to represent trade data

Discussion on Trade and Development

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Discussing with peers on the impacts of trade and development will broaden your knowledge

Browse courses on Economic Growth

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Join a study group or online forum to connect with other students
Prepare talking points on the relationship between trade and development
Participate in discussions and share your perspectives

Create flashcards

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Learners can use flashcards to review and drill the key terminology and concepts covered in the course.

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Identify the key terminology and concepts from each week's materials.
For each key term and concept, create a flashcard with the term on one side and the definition or explanation on the other.
Review the flashcards regularly to strengthen your understanding of the course material.

Volunteer in a global development or trade organization

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Volunteering in this type of organization allows you to put your understanding of GVCs into practice while simultaneously gaining hands-on experience in the field.

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Identify a global development or trade organization that you are interested in volunteering for.
Contact the organization and inquire about volunteer opportunities.
Participate in volunteer activities and learn from experienced professionals in the field.

Attend a Trade Policy Workshop

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Trade policy workshops are crucial for a deeper understanding and networking with professionals

Browse courses on Trade Policy

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Identify relevant workshops organized by universities, think tanks, or government agencies
Register for the workshop and prepare for active participation
Attend the workshop and engage in discussions with experts and practitioners

Create a blog or website about GVCs

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Creating a blog on GVCs will advance your learning by challenging you to research and explain different aspects of the topic in your own words. You could also use it as an opportunity to share your thoughts on current events related to GVCs.

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Choose a topic related to GVCs that you are passionate about or that you want to learn more about.
Research your topic and gather information from credible sources.
Create high-quality content that is informative, engaging, and well-written.
Publish your blog or website and promote it through social media or other channels.
Monitor the performance of your blog or website and make adjustments as needed.

Contribute to the world bank's data visualization platform

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This platform provides learners with an opportunity to engage with real-world challenges and contribute to the development of new tools and resources. This will greatly extend the knowledge learned in the course.

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Explore the platform and identify an area where you can contribute.
Join an existing project or start your own.
Contribute to the project using your skills in data visualization, programming or data analytics.

Career center

Learners who complete Trading for Development in the Age of Global Value Chains - Word Development Report 2020 will develop knowledge and skills that may be useful to these careers:

Trade Policy Analyst

Trade policy analysts research, analyze, and advise on trade policies. This course may be useful in building a foundation for understanding GVCs and their effects on trade, economic growth, and development.

See salaries and explore the career path for Trade Policy Analyst

Economic Development Specialist

Economic development specialists work to improve the economic well-being of communities. This course may be useful in developing skills needed to design and implement strategies for inclusive and sustainable economic growth through GVC participation.

See salaries and explore the career path for Economic Development Specialist

Trade Finance Specialist

Trade finance specialists provide financial services to support international trade transactions. This course may be useful in understanding the financial aspects of GVCs and how to manage risks associated with international trade.

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Logistics Manager

Logistics managers plan and execute the movement of goods and services. This course may be useful in understanding how GVCs operate and how to manage the transportation and logistics of goods.

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Supply Chain Manager

Supply chain managers oversee the flow of goods and services from suppliers to consumers. This course may be useful in understanding how GVCs operate and how to manage them effectively.

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Policy Analyst

Policy analysts research, analyze, and make recommendations on public policy issues. This course may be useful in gaining knowledge on how national and international policies can shape GVC participation and economic development.

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Customs Broker

Customs brokers help businesses navigate customs regulations and procedures. This course may be useful for gaining knowledge on the rules and regulations governing GVCs and how to comply with them.

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Sustainability Consultant

Sustainability consultants help organizations reduce their environmental impact and improve their social and economic performance. This course may be useful in gaining knowledge on how GVCs interact with the environment and how to mitigate their negative consequences.

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Business Development Manager

Business development managers identify and pursue new business opportunities. This course may be useful in gaining insights on how to leverage GVCs for business growth and expansion.

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International Trade Specialist

International trade specialists help companies and organizations understand international trade regulations and laws. This course may be useful in developing skills needed to navigate trade agreements, policies, and regulations that govern GVCs.

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International Relations Specialist

International relations specialists work to build and maintain relationships between countries. This course may be useful in gaining knowledge on the international cooperation needed to sustain beneficial trade openness and GVCs.

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Project Manager

Project managers plan, execute, and close projects to achieve specific goals. This course may be useful in building skills for managing complex projects related to GVC development and implementation.

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Data Analyst

Data analysts collect, analyze, and interpret data to solve business problems. This course may be useful for developing skills needed to analyze data on GVCs and identify trends and patterns that can inform decision-making.

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Market Research Analyst

Market research analysts study market conditions, analyze data, and monitor trends to assess potential sales of a product or service. This course may be useful in building a foundation for understanding global value chains (GVCs) and their impact on trade, jobs, and economic growth.

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Economist

Economists conduct research, collect, and analyze data to forecast economic trends or predict consumer behaviors. This course may be useful for developing skills needed to analyze the impact of trading for development initiatives and their effects on economic growth, income, and poverty reduction.

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