Building Sustainable and Stable Global Value Chains
Keywords:
global value chains, morocco, public and private governance, global and local stakeholders, SMEs rise, innovation
Abstract
Global value chains GVCs are intended to fragment global production among several countries and companies In this context national economies have begun processes of insertion and specialization with both social and green objectives because multinationals MNEs create significant negative externalities As country relies on a long-term political vision and some modern infrastructures even if Morocco has chosen to develop an integrated economy in global businesses However the GVCs face a tremendous change because the Covid-19 pandemic war in Ukraine and shortages in value chains In addition to these external shocks MVCs face two internal mechanisms First the temptation of multinationals to reorganize their operations in a more regional manner Second the claim of many countries to produce and capture greater value added through their efforts to train people and develop ESG-based solutions It is interesting to compare and analyze different types and levels of insertion of activities in GVCs This paper examines four different cases in Morocco phosphate automotive textile and agribusiness We identify three trends First the government s strategic ambition to solve all problems sometimes in a hurry sometimes through a consistent policy of infrastructure provision We identify a constant effort to prefer subsidizing local production to the emergence of strong and innovative local SMEs and locomotives Second we assess the ambition of some powerful multinationals in substituting even partially the role of government in key territories and by deciding to achieve their short-term integration into the global economy Third all actors must address the challenges of ESG and sustainability investment
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Published
2023-02-06
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