Trade and Value Chains

Trade and Value Chains

Trade and productive capacities underpin the economic dimension of sustainable development and play central role in poverty reduction. Productive capacities and value chains play a major role in all 17 goals – as enablers and inhibitors. Nearly all SDGs will be impacted (positively and negatively) by the development of global value chains and productive capacity. On the other hand, the SDGs represent a huge opportunity for the growth of new markets and a nascent labour force.

Mrs Sanobar Tojibaeva started with 2 sewing machines 3 yrs ago. Today, she exports 15,000 t-shirts every month and has hired over 30 staff.

Optimal value chains produce high value-add and differentiated products, creating decent jobs that allow for upward mobility as well as sustainable and circular production patterns. These value chains tend to focus either on high-quality, niche products in smaller volumes, or platform-based products. UNDP supports value chains that are employment-rich, green and future-proof, as well as policies and regulations that favour shifting value chains towards sustainable and differentiated products with high employment potential and low environmental impact. The three main areas of intervention include the following:

Sustainability, resilience and regeneration: UNDP ensures that policies and regulations support value chains that are: (i) employment rich (decent jobs), allowing for upward mobility; and (ii) competitive, with a shift from vertically specialized value chains towards value chains with greater added value.

Skills and the knowledge for the future: UNDP supports government policies targeting better skillset matching and knowledge that meets the current and future needs of target value chains. The focus is on skills for future technologies and methodologies for ensuring that young women and men are equipped with skills that match job opportunities, including technical capacities.

Embracing future opportunities: UNDP supports governments and businesses in preparing for and anticipating changes in value chains. The emphasis is on identifying future directions, new economic sectors and circular approaches using trade intelligence and forecasting. In addition, UNDP supports the implementation of approaches to building productive capacities and facilitating foreign direct investment in new technologies (including automation and digitization).