CAPTURING
THE
GAINS

economic and social upgrading
in global production networks



Capturing the Gains Briefing Notes 01

Trade crisis and recovery: restructuring of Global Value Chains

William Milberg and Deborah Winkler

Abstract

Global value chains (GVCs) are international systems of production, typically governed by lead firms who coordinate elaborate networks of suppliers. The economic crisis has had a magnified effect on trade because of the prominence of GVC-based trade. This paper explores the role of GVCs in the 2009 global trade collapse and the prospects for world trade and its geographic distribution in light of the dynamics of GVCs. It outlines some policy conclusions for recovery strategies for developing countries

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