1. UNDERSTANDING GLOBAL VALUE CHAINS: INSIGHTS FROM RECENT OECD WORK Javier Lopez Gonzalez, OECD Trade and Agriculture Directorate Paris 17 th of February 2014

2. Global value chains (GVCs) are re-shaping global economic activity.  In the early 1990’s G7 countries held 67% of global GDP, by 2010 this fell to around 50%. Countries are increasingly relying on foreign value added in order to produce goods. 2 Background

3. 3 What does this mean? Smaller shares of bigger pies…

4. Sourcing foreign intermediates—the backward linkages: – Increases in productivity – Increases product sophistication of export bundle – Increases diversification of export bundle New opportunities: – Scale effects. – Joining value chains rather than having to start your own. – Complementarity rather than substitution? 4 Why should we care about it?

5. 5 How has participation evolved in Iraq?

6. 6 What role for policy?

7. 7 Investment openness

8. 8 Other policies?

9. For more information about OECD work on trade: Visit our website: www.oecd.org/trade Contact us: Przemyslaw.Kowalski@oecd.org; Javier.Lopez-Gonzalez@oecd.orgPrzemyslaw.Kowalski@oecd.org Javier.Lopez-Gonzalez@oecd.org Follow us on Twitter: @OECDtrade 9 Trade and Agriculture Directorate