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The Post COVID-19 Future for Global Value Chains

Twenty-first Century industrialized economies moved away from domes­tic supply chains toward global value chains (GVCs). However, internationalized production can have adverse effects on domes­tic economies and societies, exemplified when GVCs failed to rise to the unprecedented demands of the early days of the COVID-19 pandemic. In the future, GVCs must be better implemented, espe­cially within developing countries. This brief explains GVC activity across the world, including GVCs’ economic and social impacts. The brief also discusses trade policy, particularly how large econ­omies dictate GVC development. Additionally, the brief discusses how policy implications must address several issues in the GVC model, including the need to respond to technological change, in­vest in human capital, ensure trade and investment flows, develop­ing social safety nets, and make GVCs resilient to future shocks.