Global value chains and development

The adoption of the Global Value Chains framework by Multilateral Economic Institutions has led to the introduction of broader and more heterodox views of development into official discourses. When it comes to policy implications, however, the reports revert to an agenda that departs little from the Washington Consensus. Trade and investment liberalization are discussed in detail; 'complementary policies' required to promote upgrading receive scant mention. In particular, the reports neglect the role that institutions can play in overcoming coordination problems and how enhanced state capacity is required for enforcement of competition policies and for effective participation in trade negotiations.