© 2014 Duke CGGC
Global Value Chains and Duke CGGC’s
Collaboration in Kazakhstan
November 18, 2015
Gary Gereffi
Duke University, Center on Globalization,
Governance & Competitiveness

© 2014 Duke CGGC
AGENDA
1. Historical Background: Duke CGGC and Kazakhstan
2. Global Value Chains and Economic Diversification
3. Duke CGGC and International Clients
4. RCGC Research and Capacity Building Program

© 2014 Duke CGGC
DUKE UNIVERSITY, CENTER ON GLOBALIZATION,
GOVERNANCE & COMPETITIVENESS (DUKE CGGC)
Source: http://cggc.duke.edu/
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© 2014 Duke CGGC
HISTORICAL BACKGROUND IN KAZAKHSTAN
• World Bank Mission on “Economic Diversification, with
Special Emphasis on Oil & Gas Value Chain” (Gereffi &
Rodriquez, Sept. 2003)
• Global Value Chain training course (Gereffi & Jahan,
2003-2004)  Led to the creation of the Center for
Marketing and Analytic Research (CMAR) in 2004
• World Bank Mission on “Kazakhstan: Expanding
Opportunities for Enterprise Development in Global
Value Chains – The Railway Equipment Industry” (Gereffi
& Salinas, June 2011)
• Strategic Partners Group report by Sturgeon &
Zylberberg (Jan. 2014), “Industrial Development
Strategy for Kazakhstan: Global Value Chains”
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© 2014 Duke CGGC
GVCs AND GLOBAL ECONOMIC TRENDS
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© 2014 Duke CGGC
GLOBALIZATION & DEVELOPMENT TRENDS
• Post-Washington Consensus world – Global
economic recession of 2008-09 and the rise of
“emerging economies” have changed export-oriented
model
• Geographic consolidation – Emerging economies
playing larger role in global supply chains
• Organizational concentration – Lead firms in GVCs
are streamlining their sourcing and production
networks
• South-South trade and FDI – New growth trajectories
• GVC-oriented industrial policies – Productive
development policies are back, but not a return to ISI
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© 2014 Duke CGGC
GVCs: GOVERNACE & UPGRADING
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Global value chain analysis provides a holistic
approach for examining the global economy
• Top-down: a focus on lead firms and inter-firm
networks, using varied typologies of industrial
“governance”
• Bottom-up: a focus on countries and regions, which
are analyzed in terms of various trajectories of
economic and social “upgrading”

© 2014 Duke CGGC
DIVERSIFIED, INCLUSIVE AND SUSTAINABLE GROWTH
Economic
Upgrading
Social
Upgrading
Environmental
Upgrading
Sustainable Growth
Development Outcomes:
• Job creation
• Exports
• Income generation
• Added value
• Better use of resources
• Backward linkages
Development
Outcomes:
• Inclusion of
vulnerable groups
• Job creation
• Improve working
conditions
• Higher wages
• Skills acquisition
Development
Outcomes:
• Soil preservation
and improvement
• Water conservation
• Wildlife
conservation
• Pollution and waste
reduction

© 2014 Duke CGGC
DUKE CGGC CLIENT-CENTERED RESEARCH
AND ADVISORY SERVICES

© 2014 Duke CGGC
DUKE CGGC CLIENTS
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© 2014 Duke CGGC
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• Costa Rican Foreign Trade
Ministry
• Carry out GVC analysis to
identify upgrading
trajectories and provide
recommendations for
competitive export
growth
• SECTORS: medical
devices, aerospace,
electronics, and offshore
services

© 2014 Duke CGGC
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• MINERVA Initiative
• Use GVC framework to
analyze food security in
the MENA region
• Provide recommendations
to design more resilient
food security strategies
• SECTORS: wheat and corn

© 2014 Duke CGGC
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• U.S. Agency for International
Development
• Apply GVC framework to
evaluate public-private
partnerships for inclusive
development
• Provide recommendations to
identify, engage and partner
with appropriate firms for
local needs
• SECTORS: cocoa (Indonesia),
coffee (Rwanda), and fruit &
vegetables (Kenya)

© 2014 Duke CGGC
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•RTI International
•Use GVC framework to design
national workforce development
models responsive to global
competition
Model Characteristics:
•Demand-driven
•Globally oriented
•International standards
•Dynamic (retraining; continual
improvement)
• SECTORS: fruit & vegetables,
apparel, offshore services, and
tourism

© 2014 Duke CGGC
REGIONAL COMPETITIVENESS AND GROWTH
CENTER (RCGC) IN KAZAKHSTAN

© 2014 Duke CGGC
EMERGENCE OF NEW GVC RESEARCH CENTERS
• Global Production Network (GPN) Center – National
University of Singapore; launched Jan. 2015
(http://gpn.nus.edu.sg/)
• Regional Growth and Competitiveness Center (RCGC) –
Nazarbayev University, Astana, KZ; launched Nov. 2015
• Research Center for Global Value Chains (RCGVC) –
Beijing, China (UIBE, MOFCOM et al.); March 2016
• GVC in Europe Network – Birmingham Business School
(UK)
• GVC Workshop Series – Rossi Doria Research Centre,
Rome, Italy
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© 2014 Duke CGGC
INTEGRATED RESEARCH AND CAPACITY BUILDING
PROGRAM FOR RCGC
Program focuses on three complementary components:
1) Establish Research Competiveness and Growth Center
(RCGC) and support its human and institutional capacity
building
2) Develop and collaborate on implementation of a research
agenda focused on economic diversification and regional
competitiveness for Kazakhstan
3) Facilitate visibility and relationship development between the
RCGC and leading international organizations and research
institutions

© 2014 Duke CGGC
PROPOSED RESEARCH AGENDA
1) Wheat value chain in Kazakhstan and the Black Sea
region (including Russia and Ukraine)
2) High-value services linked with extractive value chains
3) Kazakhstan’s role in competitive regional value chains
(Black Sea, Eurasia)
4) Transport and ICT infrastructure linking Kazakhstan
infrastructure iniriatives to GVCs
5) Public-private partnerships in Kazakhstan and inclusive
GVCs
6) GVCs and innovation systems -- builds on work done by
innovation scholars like Richard Nelson, Sidney Winters,
& B.A. Lundvall

© 2014 Duke CGGC
http://www.cggc.duke.edu
ggere@soc.duke.edu
Gary Gereffi