Productive development policies in face of the new imperatives of global value chains

The current global landscape calls for increased resilience and sustainability of production, thus demanding changes in the operating models of Global Value Chains (GVCs). This backdrop presents the countries of Latin America and the Caribbean (LAC) with great opportunities as well as complex challenges. This paper presents a conceptual framework for the design of Productive Development Policies (PDP) aimed at improving the integration of the LAC region's companies in GVCs. To this end, after presenting the main dimensions of analysis for mapping GVCs and the new environmental conditions in which they operate, this paper analyzes the main public policy challenges that the countries of the LAC region are facing in order to achieve productivity gains that will enable them to not only improve their insertion in GVCs, but to also take full advantage of those dynamic productivity gains derived from participating in them. Taking into consideration this context and based on a systematization of the lessons learned from the IDB's experience throughout more than twenty years of operations related to value chain development in the LAC region, the paper presents the main guidelines that should be considered when defining a PDP intervention framework focused on this purpose