NEWSLETTER ISSUE #2/2016
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GEGAfrica dialogue on GVCs and SMEs
On 24 May, Ms Ali Parry (an extraordinary research scientist in the TRADE research entity) attended a dialogue in Pretoria organised by the GEGAfrica group (Global Economic Governance) on the theme: ‘Global Value Chains and SMEs – what role for the G20?’. The main speaker at the event, Mr Peter Draper of Tutwa Consulting, spoke about the dynamics and policy implications of Global Value Chains (GVCs) and why SMEs find it difficult to supply competitively to large multinational corporations (MNCs) and participate in MNC-dominated GVCs.
During the open discussion that followed Peter’s presentation, it was agreed that most South African SMEs lack the technical and entrepreneurial skills needed for GVC success, while also having to contend with an erratic power supply and a difficult regulatory environment (especially in the face of limited financial resources and operational capacity). It was suggested that the G20 could be a useful platform for encouraging more SME-friendly policies in member countries, but that the latter’s varying economic and political agendas were likely to be an obstacle to South Africa extracting any meaningful concessions.
Related news:
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Global Value Chains (GVCs) under the spotlight
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