What is VC (Value Chain)

[chris macrae]

Value Chain is one of the 5 most most critical building blocks of economics

 

Health and Wealth Warnings

Unfortunately ever since (1930s) Keynes demonstrated why the world would increasingly be ruled by economics - every critical construct has become a bun fight with vested interests paying for their own interpretaion to be propagated. Imagine trying to understand trignometry where different self-interests were sponsoring educators to teach different ideas of what a circle is.

 

It may be safest to go back to how Keynes mentored people to deal with this problem. For example, it was obvious to him that economics (the faster markets went global) would either design or destroy the futures peoples want most. For peoples energies to be productively valued over lifetimes and across generations of knowledge-transfering, the :designing" and "Exponentials Impact Valuation" of economics  would need to be mediated in bi-partisan ways- ie economists should not hire themselves out to rival political parties nor vested interests so as to be wholly responsible for sustaining peoples and places growth

 

Value chain is an incredibly simple idea but one whose hi-trust maps needs extraordinary collaboration to update diversity of local detail (as all maps need to do if they are to be uptodate in connecting -the world may be global but people travel through it locally at least when they are impacting the people communities they live in)

 

Purposeful gravity of a value chain depends first on you scoping your choice of a vital market - healthcare, banking, nutritious foods , eduaction, the use of machines and types of energy ,  ,,, - which you may do locally or globally - or you may zoom out (nutritious foods depend on world agriculture policies and natures capital) or zoom in to what does do families in your community have affordable access to supported by true information stimuli.

 

Once you have gravitated your scope start listing/mapping ever different type of producer as well as every different human demand (customer, owner, worker, future guardian societal resources including natural ones) that is being interconnected. Get comfy with this never being a perfect process- a map can always zoom in to more local viewpoints as well as zoom out to try and gain some overall understanding of what changes are spinning.

 

The Innovators Joy of Being Vaguely Right not Perfectly Wrong

In the curious human state needed for entrepreneurial self-confidence, probably the most important thing to know is that anyone who says they can offer a perfect overall understanding of a value chain can only be perfectly wrong. It was the mathematician einstein that proved that any system/science view of the world always has a more innovative/valuable view to be searched by modelling more micro levels of interactions. When you listen to expert economists on the nightly news - do they behave as if they value vaguely right? Unless you trust that they do, it is now urgent to assume with investments you influence that such sound-biting and analyticaly-transitory gurus are not designing the future value chains peoples most want. This also seems to be why investment banks for the poorest have over the years since The Economist started the quest for entrepreneurial revolution in 1976 attracted the most exciting designers of futures families life critically need most.

 

When considering the future , we recommend valuing this idea first:  the net generation can be defined as the first to action a million times more collaboration technology than any previous generation. Entrepreneurial Revolutionaries who started networking around The Economist in 1976 have argued since my father's 1984 book on the net generation that the purpose peoples should most value from the worldwide web is a 10 times more produtive worldwide youth than ever before.

 

As 36 yerars of Entrepreneurial Revoution dialogues -including birthday wish parties of the worldwide's most famous entrepreneurs :  the older generations can now be investing in the most exciting millennium goals that worldwide youth can be co-producing. If you are interested in mapping how to free such value multiplying chains we suggest you explore the futures berners lee most wanted to help the net generation linkin and value networking with those openly trusted by berners lee to be closest to his life mission. For example finds some links with MIT where Berners Lee works and which has already been audited to be the number 1 job creating alumni network the world has ever celebrated.

 

Another core question is : whose peer to peer circles are openly sharing the constructs of value chain that keynes or adam smith or whomever you trust the responsibility of ruling the world to most

 

Unfortunately Harvard's Porter issued a very top-down framework of value chain as part of his strategic books of the old industrial age in the 1980s - 30 years later some of the people (eg 1) who have left his monitor organiation now help produce the most exciting bottom up maps of value chains, but only where they have adopted some developing world community as one they love the future of.

 

It has taken USAID the whole of the new millennium to date to completely reassess bottom-up value chain perspectives. The DC's Newseum was hired to spead this total change of perspective through 500 opinion leaders in early 2012.  There is hope that the first program the american people will innovatively help the world  -including even the G8 and worldwide youth -  understand bottom up valuation is www.feedthefuture.gov  The scope mapped tries to share views with nations around the world so as to improve food security so that no child dies of famine or has her growh stulted by lack of nutrients. There is a wiki of what bottom-up usaidis inviting worldwide correspondents to map round value chains here and some commentary on how usable these information networks are to anyone visiting or linking in DC . This is work can be joyfully accelerated by anyone who can help interact as a bottom up -local - observer of a life critical value chain

 

According to my father's life work including hsi 40 years editing what Economist readers found most innovative to debate as entrepreneurial revolutuiinbarues, japan and the grassroots networking investment banks for the poorest innovated out of bangladesh offer many if the most grounded views of value chains that worldwide youth can enjoy action networking now

 

 

[chris macrae]

Research Network on Global Value Chains, Trade and Development

The production of most goods is  increasingly  organized  along  global  value  chains,  in  which  different stages  of  the  production  process  are  fragmented  across  countries. CEPR has established the Research Network on Global Value Chains, Trade and Development, with the goal of stimulating research on the important and timely questions raised be the emergence of global value chains. This research network, led by Paola Conconi (ULB and CEPR) will gather together economists working on international production from theoretical, empirical and policy angles. 

CEPR is collaborating closely on this initiative with the World Bank, which has also identified as a key priority to help developing countries to connect to, and develop through global value chains. CEPR and the World Bank have join forces to foster debate and collaborations in this area among researchers in both academic and policy institutions. The World Bank's GVC page can be found here.

Europe is an optimal ground for this network, given that many scholars working in this area are based in Europe and that some of the most important datasets on GVCs are developed and maintained here.

The core supporters of the network are the World Bank, CEPR, the Graduate Institute’s Centre for Trade and Economic Integration (CTEI) and other government agencies. The network meets twice a year for research and policy outreach seminars and liaises with the Trade Policy Research Network when suitable.

Conferences and Workshops

• First Conference on Global Value Chains, Trade and Development, Washington, 30-31 March 2016.

The event was held at the World Bank Headquarters and broadcast globally online. The Q&A with Paola Conconi and Daria Taglioni can be found here. All further conference materials can be found here.

• Second Conference on Global Value Chains, Trade and Development, Geneva, 22-23 September 2016.

The event was held at the Graduate Institute's Centre for Trade and Economc Integration (CTEI). The programme can be found here.

• Third Conference on Global Value Chains, Trade and Development, Singapore, 19-20 May 2017.

The programme can be found here.

• Fourth Conference on Global Value Chains, Trade and Development, Santiago de Chile, 12-13 January 2018.