The Global Apparel Value Chain, Trade and the Crisis : Challenges and Opportunities for Developing Countries
This paper examines the impact of two crises on the global apparel value chain: the World Trade Organization phase-out of the quota system for textiles and apparel in 2005, which provided access for many poor and small export-oriented economies to...
| Main Authors: | , |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
|
| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100427111841 http://hdl.handle.net/10986/3769 |
| Summary: | This paper examines the impact of two
crises on the global apparel value chain: the World Trade
Organization phase-out of the quota system for textiles and
apparel in 2005, which provided access for many poor and
small export-oriented economies to the markets of
industrialized countries, and the current economic recession
that has lowered demand for apparel exports and led to
massive unemployment across the industry s supply chain. An
overarching trend has been the process of global
consolidation, whereby leading apparel suppliers (countries
and firms alike) have strengthened their positions in the
industry. On the country side, China has been the big
winner, although Bangladesh, India, and Vietnam have also
continued to expand their roles in the industry. On the firm
side, the quota phase-out and economic recession have
accelerated the ongoing shift to more streamlined global
supply chains, in which lead firms desire to work with
fewer, larger, and more capable suppliers that are
strategically located around the world. The paper concludes
with recommendations for how developing countries as well as
textile and apparel suppliers can adjust to the crisis. |
|---|