Global value chains and nonprofits

Global Value Chains and
Nonprofits: Partners in
Progress
A digital artifact by Mary Claire Dorothy Caoile

This digital artifact is realized as a final
project for the course
Trading for Development in the Age of Global
Value Chains - WDR 2020
20 September 2020
Global Value
Chains and
Nonprofits:
Partners in
Progress

Hello, my name is
Plan and Act to Make
Benevolence Extend
Everywhere,
call me PAMBEE, for short.

Today, I would like to talk
about something
important that I have
learned during this
course that examines
GVCs in the context of
my work or community
setting.

I am very much involved
in the nonprofit sector.
Paradoxical as it may
seem, I was able to
perceive through the
course that Global Value
Chains and nonprofits do
blend very well together.

I believe that for GVCs to thrive further into the
future, a partnership of symbiotic relationship
must exist between GVCs and nonprofits.

If GVCs would consider
the nonprofit sector as a
potential partner in
progress, then
involvement in their
various missions would be
consequential. There are
many ways to be
involved.

GVCs and Nonprofits:
Consequences for
Development and Their
Macroeconomic Impact
1

GVCs and Nonprofits: Consequences for Development and Their Macroeconomic
Impact
We have learned that the gains
from GVC participation are not
always distributed equally across
and within countries, and this is
one of the drawbacks of GVCs.

Impact
Because of this, the gaps between
the rich and the poor remains, if not,
widened. Then there is inequality
between skilled and unskilled
workers, male and female labourers,
urban and rural residents, etc., etc.

Impact
Many nonprofits are precisely
addressing these issues.

Impact
Partnering with them would
provide GVCs with the
instruments to resolve this
flaw.

Impact
Even the challenge of
international taxation will gain
better solutions if every GVC
participant practices
responsible citizenship.

Impact
However, this is not just a one-
way-track.
Involvement of nonprofits can
expedite the reforms with
policymakers.

GVCs and Nonprofits
for the Environment
2

GVCs that support
nonprofits for the
environment would lessen
their scale effects while
increasing their
technique effects
because of more
awareness and ethical
commitment.
GVCs and Nonprofits for the Environment

There would be more
emphasis on social capital and
responsible consumption, from
the grassroots level to top-tier
management.

Thus, they will be able to
obtain faster environmental
innovation and achieve higher
standards.

Walking Together in the
Era of Technological
Change
3

GVCs and Nonprofits: Walking Together in
the Era of Technological Change
Day by day, we travel along the road of
technological change (the pandemic is already
a full proof of this inevitable change).

GVCs and Nonprofits: Walking Together in the
Era of Technological Change
We need preparedness
to face the reality that
AI is lessening the
demand for low-skilled
labour while increasing
demand for the skilled.

To stop this trend
is not the answer.

Instead, policy adjustments
and support for disrupted
workers are necessary.
Nonprofits would be a helping hand.

Inclusion and
Sustainability
4

GVCs and Nonprofits: Inclusion and
Sustainability
There is a lot
to be handled
in this area:

Inclusion and Sustainability
• equitable distribution of
GVC gains;
• minimization of
potential costs;
• compensation of losers;

Sustainability
• responsibility of lead firms and
governments to address these issues;
• GVC alignment with the
competencies of a country's workers,
specifically, the poor and
discriminated workers;
• labour market regulations and well-
targeted labour market programs;

Sustainability
• and most of all,
that there would be
no trade-offs with
workers and the
environment.

GVCs and Nonprofits: Inclusion and Sustainability
In this regard, we cannot undermine
the role that nonprofits can
play as mediators between
GVCs and governments to
reach these goals.

Cooperation Beyond
Trade
5

There is a point
where we need to
do more.
GVCs and Nonprofits: Cooperation Beyond
Trade

We need to go
beyond the
mechanics of
trade and
economy and
to summon our
inner self.
Cooperation Beyond Trade

Because achieving cooperation beyond trade
means to put ourself at stake.

But the gain is incomparable.
It's a win-win situation.

If we need openness in trade and GVCs
• without running the risks of tax evasions,
• or trading-off rights of workers to a
dignified life, especially the vulnerable
members of society,
• or allowing environmental destruction,
like climate change effects,

Then we need to invest in ourself. Doing this alone will be
a task too great to achieve, but with others, it
is not so.

Let me introduce
the paradigm of
the Economy of
Communion.

The Economy of Communion (EdC) is
an economic model
• for the promotion of
commercial practice and
culture founded on
• communion,
• free-will, and
• reciprocity
(see: https://www.edc-online.org/en/).

Companies who adhere to the project, divide their
profits into three parts:
1. capital investment for business
sustainability
2. direct aid to help the needy to
nurture the 'culture of giving'
(http://www.edc-online.org)
3. training formation for new
entrepreneurs who would like to join
and promote the project.

The Story of
the Sacks of
Two Flour
(South Korea)

Running a business in
Coronavirus times
Firms going under, thousands of jobs lost
lockdown has hit the European economy
hard. But many entrepreneurs are trying
equally hard to keep going. Andrea
Cruciani in Italy asked himself what he
could do to protect his workers.
How have businesspeople coped in
the emergency lockdown phase
caused by Covid-19? We spoke with
Andrea Cruciani, CEO of TeamDev
software consultancy and Agricolus
start-up, linked to the Economy of
Communion project.
(Read more
https://www.focolare.org/en/news/
2020/07/31/running-a-business-in-
coronavirus-times/)

When business puts
people at heart
A gathering entitled “Back to
the future for a more humane
economy” was held March 4 at
the Italian embassy to the Holy
See. Entrepreneurs, scholars
and economists came together
for a more just, inclusive and
sustainable economy, in line
with the upcoming “The
Economy of Francis” event.
(Read more
https://www.focolare.org/en/news/202
0/03/11/when-business-puts-people-at-
heart/?highlight=economia%20di%20com
unione)

Special
thanks for
the photos to
the following
 Photo by <a href="/photographer/Redfort-79284">Redfort</a> from
<ahref="https://freeimages.com/">FreeImages</a>
 Image by <a href="https://pixabay.com/users/mary1826-3583171/?utm_source=link-
attribution&utm_medium=referral&utm_campaign=image&utm_content=1964822">Mariana
Anatoneag</a> from <a href="https://pixabay.com/?utm_source=link-
attribution&utm_medium=referral&utm_campaign=image&utm_content=1964822">Pixabay
</a>
 Image by <a href="https://pixabay.com/users/OpenClipart-Vectors-30363/?utm_source=link-
attribution&utm_medium=referral&utm_campaign=image&utm_content=1296273">OpenCli
part-Vectors</a> from <a href="https://pixabay.com/?utm_source=link-
</a>
 Image by <a href="https://pixabay.com/users/Clker-Free-Vector-Images-3736/?utm_source=link-
attribution&utm_medium=referral&utm_campaign=image&utm_content=311047">Clker-
Free-Vector-Images</a> from <a href="https://pixabay.com/?utm_source=link-
attribution&utm_medium=referral&utm_campaign=image&utm_content=311047">Pixabay</
a>
 Image by <a href="https://pixabay.com/users/katja-8442/?utm_source=link-
attribution&utm_medium=referral&utm_campaign=image&utm_content=170551">katja</a>
from <a href="https://pixabay.com/?utm_source=link-
a>
 Image by <a href="https://pixabay.com/users/hansbenn-194001/?utm_source=link-
attribution&utm_medium=referral&utm_campaign=image&utm_content=1948684">Hans
Benn</a> from <a href="https://pixabay.com/?utm_source=link-
</a>
 Image by <a href="https://pixabay.com/users/LeoArno-478197/?utm_source=link-
attribution&utm_medium=referral&utm_campaign=image&utm_content=469560">Arno
Hartmann</a> from <a href="https://pixabay.com/?utm_source=link-
a>
 Paperpeople Photo by <a href="/photographer/brokenarts-31507">Davide Guglielmo</a> from <a
href="https://freeimages.com/">FreeImages</a>
 Lightwheel Photo by <a href="/photographer/bjearwicke-46112">Benjamin Earwicker</a> from <a
 Togetherwewalk Photo by <a href="/photographer/Fish_breth-43404">Chris Lane</a> from <a
 Photo by <a href="/photographer/clt3jxm-48600">Jonathan M</a> from <a

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