 |
 |
View this email in your browser <https://mailchi.mp/law/perspective-343?e=dd153d6a25> 哥伦比亚大学国际直接投资展望中文版都可以在我们的网站查看: https://ccsi.columbia.edu/content/columbia-fdi-perspectives <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=4b0f7f3c8a&e=dd153d6a25> . *Columbia FDI Perspectives* Perspectives on topical foreign direct investment issues Editor-in-Chief: Karl P. Sauvant ([log in to unmask]) Managing Editor: Abigail Greene ([log in to unmask]) *The Columbia FDI Perspectives are a forum for public debate. The views expressed by the authors do not reflect the opinions of CCSI or our partners and supporters.* No. 343 October 31, 2022 *How are global value chains altering policy narratives?* <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=79f6b4b2a9&e=dd153d6a25> by Carlo Pietrobelli, Roberta Rabellotti and Ari Van Assche[*] <#m_4839317198963200529__edn1> Global value chains (GVCs) have taken the policy world by storm, with many policymakers viewing them as a potent tool to boost economic development through industrial upgrading. Yet, despite the huge interest in GVCs, there remains substantial ambiguity about the policies that governments should adopt to generate such GVC upgrading, and how these differ from international business policies of the past. In this *Perspective*, we argue that zooming in on the roles of *tasks*, *linkages* and *firms *in GVCs helps clarify the novelty of GVC-oriented policies.[1] <#m_4839317198963200529__edn2> A first originality of GVC theories is the disaggregation of industries into a set of highly heterogeneous *tasks*. It is now widely acknowledged that GVCs allow countries, and firms, to functionally specialize in fine-grained value-chain stages instead of entire industries. This functional specialization is beneficial for many developing countries as it allows them to fast-track industrialization even if they lack the capabilities to support entire industries. It also helps developed countries to more efficiently allocate their domestic resources to those tasks in which they have a comparative advantage. At the same time, the disproportionately large and growing value-added that is generated in the extremities of the “smile curve of value creation <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=53b0b421b2&e=dd153d6a25>”—intangible tasks such as headquarters services, R&D and marketing—has created an international competition for dominance in these activities. In developed countries, many policymakers have reacted to the externalities related to the production of intangibles by adopting a mix of *task-based industrial policies*, including information and communications technology (ICT) infrastructure investments and R&D tax credits, to attract and retain the most promising intangible-intensive tasks.[2] <#m_4839317198963200529__edn3> In developing countries, governments have generated their own set of task-based industrial policies to attempt to address market and coordination failures and move their local industrial activities up the smile curve. For example, the Malaysian government has invested heavily in technology centers like the National Applied R&D Centre <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=298807cabf&e=dd153d6a25> that houses labs offering a wide range of instruments and infrastructures for advanced ICT testing services, accessible to GVC suppliers at subsidized rates. Second, GVC theories emphasize the role of *linkages *between tasks. GVCs link domestic and foreign tasks, and there is a wide recognition that these linkages influence GVC upgrading. On the positive side, foreign linkages can act as a powerful conduit for accessing foreign knowledge and resources that can be leveraged to improve local technological and operational capabilities. For this reason, governments around the globe have developed policies to improve the knowledge spillovers related to GVC linkages. For example, the Chilean government has for many years promoted networks of suppliers <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=ef8ffc057a&e=dd153d6a25> to enhance inter-firm collaborations and to reduce the knowledge gap between lead firms and their input providers. On the negative side, foreign linkages increase domestic activities’ dependence on foreign resources, raising questions about economic resiliency. A focal concern of policymakers is thus how to develop *global connectedness policies* that properly regulate and strengthen GVC linkages so that they can promote local value capture while guaranteeing economic resilience. Third, GVC theories put the spotlight on *firms *that orchestrate GVCs. Lead firms in GVCs have the power to select where, when and by whom tasks are performed and to determine which type of knowledge is transferred through linkages. Policymakers recognize that properly harnessing these lead firms’ orchestration choices through *firm-centric policies* can help boost local companies’ participation and upgrading in GVCs. In 2016, for example, Export Development Canada <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=a18b464218&e=dd153d6a25> adopted a pull financing strategy where it strategically provides large loans to lead firms abroad with the aim of incentivizing their procurement from suppliers located in Canada. Each of these GVC-oriented policy responses are carefully crafted to address market or coordination failures that are present in GVCs. The task-based industrial policies aim to promote functional specialization in intangible-intensive activities whose production is non-rival and only partially excludable. Global connectedness policies intend to optimize the positive externalities related to foreign linkages. Firm-centric policies aim to put non-market pressures on lead firms to increase their value creation domestically. Overall, they all call for a mix of interventionist measures that go beyond traditional trade and foreign investment policies built around the Washington Consensus <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=b3090dd6b7&e=dd153d6a25> . Taken together, GVC theories have on the one hand, reinforced several traditional international business policy elements. On the other hand, their accentuation of the role of tasks, linkages and firms have in other areas forced a fundamental redesign in policy thinking. The interventionist flavor of this new policy thinking is profoundly different from the traditional neoliberal stance on international business policy—so different that the set of GVC-oriented policies focusing on the task-linkage-firm trifecta is becoming a different policy narrative. The ubiquity of GVCs in current policy debates may help explain the emergence of significantly more interventionist international business policy stances across the globe. ------------------------------ [*] <#m_4839317198963200529__ednref1>Ari Van Assche ([log in to unmask]) is Full Professor of International at HEC Montréal; Carlo Pietrobelli ( [log in to unmask]) is Professor and Dean of Economics at the University Roma Tre and UNESCO Chair at United Nations University UNU-MERIT in Maastricht; Roberta Rabellotti ([log in to unmask]) is Full Professor of Economics at the Università di Pavia. The authors wish to thank Alvaro Cuervo-Cazurra, Stephen J. Kobrin and Markus Thill for their helpful peer reviews. [1] <#m_4839317198963200529__ednref2> Carlo Pietrobelli, Roberta Rabellotti and Ari Van Assche, “Making sense of global value chain-oriented policies: the trifecta of tasks, linkages, and firms,” JIBS, vol. 4 (2021), pp. 327-346. [2] <#m_4839317198963200529__ednref3> Ari Van Assche, “Trade, investment and intangibles: The ABCs of global value chain-oriented policies”, OECD Trade Policy Papers (Paris: OECD, 2020). *The material in this Perspective may be reprinted if accompanied by the following acknowledgment: “Carlo Pietrobelli, Roberta Rabellotti and Ari Van Assche**, ‘**How are global value chains altering policy narratives?**’ *Columbia FDI Perspectives* No. 343, October 31, 2022. Reprinted with permission from the Columbia Center on Sustainable **Investment (* *http://ccsi.columbia.edu* <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=93cdd95984&e=dd153d6a25>*).” A copy should kindly be sent to the Columbia Center on Sustainable Investment at **[log in to unmask]* <[log in to unmask]>*.* For further information, including information regarding submission to the *Perspectives*, please contact: Columbia Center on Sustainable Investment, Abigail Greene, [log in to unmask] *Most recent Columbia FDI Perspectives* <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=2deddfca8b&e=dd153d6a25> - No. 342, Wolfgang Alschner, “Why omitting general public policy exceptions from investment treaties is a setback for the right to regulate,” *Columbia FDI Perspectives*, October 17, 2022 - No. 341, Vanessa Tsang, “Strengthening international negotiation assistance for developing host countries,” *Columbia FDI Perspectives*, October 3, 2022 - No. 340, Brian Chang and Daniel Kang, “Advancing alternatives: Promoting mediation and conciliation in investor-state dispute settlement,” *Columbia FDI Perspectives*, September 20, 2022 *All previous FDI Perspectives are available at https://ccsi.columbia.edu/content/columbia-fdi-perspectives <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=5c5ee5553a&e=dd153d6a25>* . *Other relevant CCSI news and announcements* - *On November 10*, CCSI, Tax Justice Network Africa (TJN-A), and SEATINI-Uganda will host a webinar, "*The Nexus between Tax Justice and Investment Governance in Africa*." *Visit our website <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=06509fd880&e=dd153d6a25> for more details and to register*. - *On November 16*, CCSI's annual International Investment Law and Policy Speaker Series continues with a panel on “*Interpretation of Treaties*.” *Visit our website <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=dae09f7da7&e=dd153d6a25> for more details and to register*. - *Apply now* for our 2023 virtual *Executive Training Program on Sustainable Investments in Agriculture* from May 2-12, 2023. This interdisciplinary program explores challenges and solutions for advancing sustainable investments in agriculture. It includes asynchronous and synchronous components, including short and interactive live sessions dedicated to engagement with course lecturers and participants from around the world. Applications will be considered on a rolling basis until March 15, 2023. *For more information, and to apply, visit our website <https://columbia.us6.list-manage.com/track/click?u=ab15cc1d53&id=6a363766b8&e=dd153d6a25>* . Karl P. Sauvant, Ph.D. Senior Fellow Columbia Center on Sustainable Investment Columbia Law School - Earth Institute *Copyright © 2022 Columbia Center on Sustainable Investment (CCSI), All rights reserved.* [log in to unmask] *Our mailing address is:* Columbia Center on Sustainable Investment (CCSI) Columbia Law School - Earth Institute, Columbia University 435 West 116th Street New York, NY 10027 Add us to your address book <https://columbia.us6.list-manage.com/vcard?u=ab15cc1d53&id=a61bf1d34a> unsubscribe from this list <https://columbia.us6.list-manage.com/unsubscribe?u=ab15cc1d53&id=a61bf1d34a&e=dd153d6a25&c=3e52403a68> update subscription preferences <https://columbia.us6.list-manage.com/profile?u=ab15cc1d53&id=a61bf1d34a&e=dd153d6a25&c=3e52403a68> [image: Email Marketing Powered by Mailchimp] <http://www.mailchimp.com/email-referral/?utm_source=freemium_newsletter&utm_medium=email&utm_campaign=referral_marketing&aid=ab15cc1d53&afl=1> -- *Karl P. Sauvant, PhD* *Senior Fellow* *Columbia Center on Sustainable Investment* Columbia Law School - The Earth Institute, Columbia University 435 West 116th St., Rm. JGH 825, New York, NY 10027 | p: (212) 854 0689 | cell: (646) 724 5600 e: [log in to unmask] | w: www.ccsi.columbia.edu | t: @CCSI_Columbia <https://twitter.com/CCSI_Columbia> "Six Reasons for Emphasizing Responsible Business Conduct in the Nascent WTO Agreement on Investment Facilitation for Development", "The WTO Investment Facilitation for Development Agreement Needs a Strong Provision on Responsible Business Conduct", *Investment Facilitation for Development: A Toolkit for Policy Makers. Second Edition,* "Agenda for Practice-oriented Research", "How Would a Future WTO Agreement on Investment Facilitation for Development Encourage Sustainable FDI Flows, and How Could it be Further Strengthened?”, "Incentivising Sustainable FDI", "Green FDI: Encouraging Carbon-neutral Investment", "Extending International Legal Aid from Trade to Investment: An Advisory Centre on International Investment Law", "More Attention to Policies! Improving the Distribution of FDI Benefits", "Facilitating Sustainable FDI in a WTO Investment Facilitation Framework: Four Concrete Proposals", "An Inventory of Concrete Measures to Facilitate the Flow of Sustainable FDI: What? Why? How?", are available at https://ssrn.com/author=2461782 . ____ AIB-L is brought to you by the Academy of International Business. For information: http://aib.msu.edu/community/aib-l.asp To post message: [log in to unmask] For assistance: [log in to unmask] --- You must be an active AIB member to post to AIB-L . AIB-L has a moderator which checks messages for basic relevance. However, AIB does not edit or screen messages for accuracy or reliability of content. All subscribers are recommended to perform their own due-diligence before responding to any requests or calls. AIB accepts no liability for the content of this email, or for the consequences of any actions taken on the basis of the information provided.