As we discussed in our previous post, Global Value Chains can lead to the creation of more, inclusive and better jobs. . However, there is a potential trade-off between increasing competitiveness and job creation, and the exact nature of positive labor market outcomes depends on several parameters. Given the cross-border (and, therefore, multiple jurisdictive) nature of GVCs, national policy choices to strengthen positive labor outcomes are limited. However, national .
It is not often that I get to reflect on my own early childhood experience: Some 40 years ago, I attended a public kindergarten in a small town in Germany. My mother would take me there on her blue bike at 7 a.m., I would spend the morning with eight other children my age, and at around 1 p.m., she would pick me up. Many of my friends and colleagues had similar early childhood experiences.
Considering that the potential benefits from supporting early childhood development range from healthy development to greater capacity to learn while in school and increased productivity in adulthood, I consider myself very lucky. Across the world, nearly half of all three- to six-year-olds (159 million children) are deprived of access to pre-primary education (UIS, 2012). Evidence from both developed and developing countries suggests that an additional dollar invested in high-quality preschool programs will yield a return of anywhere between US$6 and US$17.
More broadly speaking, a new study by ITUC shows that investment in the care economy of 2 percent of GDP in just seven developed countries would create more than 21 million jobs and help countries overcome the twin challenges of aging populations and economic stagnation. So the development case for investing in childcare is clear. What about the business case?
Consumers around the world increasingly demand products and services that are simultaneously good for the economy, for the environment, and for society—the triple bottom line of sustainable growth. This rising demand is creating new pathways for businesses and governments to drive change for global good.
Global value chains represent one of the key ways the World Bank Group approaches these new opportunities. By better understanding GVCs, low-income countries can become participants in increasingly fragmented international production processes. GVCs thus offer tremendous potential to better connect the poor to the global economy and its benefits—more and better jobs, higher wages, improved labor conditions, and lower environmental impact.
That’s why we have been developing a new approach that brings the best of the Bank Group together to help low income countries connect to and upgrade within GVCs. Helping firms in developing countries meet the standards of global buyers and lead firms is a part of this effort, because in today’s sophisticated and highly mobile economy, meeting global standards is no longer optional—it’s a necessary condition for being competitive.