The Road to the SDGs

PURPOSE X Most IsDB MCs are raw material exporters. This is primarily due to bottlenecks, capacity gaps and untapped product potentials that are holding them back from achieving sustainable growth. If unlocked, these potentials can drive comprehensive industrial transformation. X The GVC analysis process considers the entire value chain of a country, from the initial phase of production up to export and distribution to design a blueprint for industrial transformation. X The interventions derived from this process are then used to address GVC issues of individual countries’ leading products/industries. X The MCPS can then help countries expand and upgrade the industries that IsDB has identified as having the highest potential. METHOD X To align markets with development programmes, it is important to focus on areas that are both promising and competitive and that offer inclusive development solutions. X This approach, which can be described as inclusive competitiveness, leverages markets and/or the private sector so that countries can: – Participate actively in development programmes that boost market competitiveness – Foster development by creating more inclusive development goals such as the creation of high-quality jobs and the promotion of sustainable export competitiveness. X To identify and subsequently develop the sectors with the most potential that each country needs to focus on to achieve its high value-add increase and job creation targets, IsDB uses an analytical model that helps uncover the industries in which a country has an intrinsic competitive advantage through GVCs. X The model uses a filtering tool to identify champion sectors and products of a country based on three criteria: – Natural potential, which takes into account the existing comparative advantage of a country at the industry level – Dynamic potential, which identifies and quantifies the competitive advantage of products or goods according to future market conditions I sDB’s GVC analysis methodology uses a filtering tool to identify champion sectors and products, helping countries determine and develop the sectors with the most potential Global value chains analysis methodology Maximising value-added potential and interlinkages driven by forward and backward linkages Forward-looking approach using projections and indicators for future potential of products Natural potential Surplus and spillover potential Dynamic potential Triangle of IsDB value chain approach Based on comparative advantage of industry IsDB’s GVC analysis can help countries identify champion products that can yield improved returns across the entire value chain [ 170 ] SDGs