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2019 Forum on Globalization and Industrialization

‘The Future of Global Value Chains: How the Fourth Industrial

Revolution Is Changing Global Production Networks’

United Nations Industrial Development Organization Kiel Centre for Globalization

Kiel Institute for the World Economy

19 November 2019 Vienna International Center, Austria

C-Building, 7th floor, Conference Room C3 Background The expansion of global value chains (GVCs) in the past several decades has transformed the world economy. For many countries, especially in the developing world, integration into GVCs drove economic growth and job creation. Such potential is being challenged by technological transformations happening at the frontier, although it is early to claim that we are in a new revolution. Oft-cited arguments include the notion that robots will replace workers in the factories so that manufacturing may not any longer be the job creation engine it used to be. At the same time, skills and capabilities needed in newly emerging jobs connected to these productivity-enhancing new technologies are expected to be considerably more complex and scarce, particularly so in developing countries. Yet, the new technological advancements in the production do not necessarily spell doom for the developing countries which until now largely depended on the outsourcing of labour by multinational companies from advanced economies. In fact, in the age of smart factories, new technology-enabled business models are emerging that may present developing countries with opportunities for learning and leapfrogging. These issues are the core of future policymaking on GVCs and their contribution towards achieving inclusive and sustainable industrial development. Purpose The 2019 Forum on Globalization and Industrialization (FGI) aims to bring together policymakers, representatives from international organizations, academia and business to discuss the challenges and opportunities of technological shifts for GVCs to drive inclusive and sustainable development. It is the fourth edition in a series of annual forums jointly organized by UNIDO and the Kiel Institute for the World Economy (IfW Kiel) since 2016 to focus specifically on issues related to global production, trade and investment. The 2019 FGI aims to support evidence-based policymaking at the international level and is expected to enrich discussions and exchange of ideas, leading to better policies, development practices and research in the subject area.

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Programme

09:30 - 09:50 Welcoming Remarks

Hiroshi Kuniyoshi, Deputy to the Director General, UNIDO

Gabriel Felbermayr, President, IfW Kiel

09:50 - 11:20 Session 1

The Future of GVCs: The Fourth Industrial Revolution and Its Implications for the International Division of Labour

The first plenary considers the possible impact of technological change (commonly referred to as Industry 4.0) on the configuration of global investment and trade flows in the context of GVCs. The introduction of advanced production technologies and increased digitalization may lead to a slowdown in ‘offshoring’ and possible increase in ‘backshoring’ of production towards industrialized economies. The session seeks to discuss broad implications for the extent and nature of GVCs.

Moderator: Rosa Lyon, ORF

Presentation: “Industrializing in the Digital Age – Findings and implications from the Industrial Development Report 2020”

Alejandro Lavopa, IDR Coordinator, Policy Research and Statistics Department, UNIDO

Planned Speakers:

Gabriel Felbermayr, President, IfW Kiel

Svenja Falk, Managing Director, Accenture Research

Werner Raza, Director, Austrian Foundation for Development Research (ÖFSE)

Bernardo Calzadilla-Sarmiento, Director of Trade, Investment and Innovation Department, UNIDO

11:20 - 11:30 Break

11:30 - 12:30 Session 2

Should We Talk About a Revolution? Insights from Frontier Industries

The second plenary provides industry-specific insights on the adoption and feasibility of new technologies, from the perspectives of business practitioners. The session examines how factors such as industry dynamics and production characteristics potentially explain the use and spread of new technologies for different types of GVCs at present and in the future.

Moderator: Rosa Lyon, ORF

Planned Speakers:

José Antonio Parra, Vice-President Global Logistics, Grupo Bimbo

Gökhan Büyükdığan, Manager - Investment Management, Arçelik

Nasir Kabir Deshmukh, Head Manufacturing Operations, Mahindra

Ivanka Janssen, Senior Vice President Global Integrated Supply Chain, Philips

12:30 - 14:00 Lunch Break

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14:00 - 15:00 Session 3

Is There a Need for an Industrial Policy 4.0? Examining the Future of Policymaking

The third plenary discusses the extent to which GVCs will continue to serve as a driver of industrial development in view of rapid technological shifts. In relation to this, the session will explore old and new industrial policy options that are required for countries to reap the benefits of GVCs.

Moderator: Rosa Lyon, ORF

Planned Speakers:

Cristina Oyón, Head of Strategic Initiatives, SPRI

Fiona Tregenna, Professor, University of Johannesburg

Kris Broekaert, Government Engagement Lead, World Economic Forum

Tilman Altenburg, Head of Programme, German Development Institute

15:00 - 15:15 Coffee Break

15:15 - 16:15 Special Session

Infrastructure Development for GVC Integration: Looking Across and Looking Ahead

This special session builds on findings from a recent report published by the National Development and Reform Commission of China in cooperation with UNIDO, on the role of infrastructure development in facilitating international trade and production. The session explores the extent to which infrastructure requirements may change in response to reconfigured GVCs as a result of technological shifts.

Moderator: Holger Görg, Director, Kiel Centre for Globalization

Presentation: “Promoting development of GVCs through the Belt and Road Initiative”

Adnan Seric, Report Co-Editor, Policy Research and Statistics Department, UNIDO

Planned Speakers:

Mario Holzner, Director, Vienna Institute for International Economic Studies

Yang Jun, Professor, University of International Business and Economics Beijing

Wiebke Schloemer, Regional Director for Europe and Central Asia, International Finance Corporation

Weixi Gong, Chief of the Investment Promotion Division, UNIDO

16:15 - 16:30 Summary and Closing

Subject to change

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Speakers’ Bios

Welcoming Remarks

Hiroshi Kuniyoshi

2017: UNIDO Deputy to the Director General and Managing Director, Directorate of

External Relations and Policy Research (EPR).

2016: Head, UNIDO Investment and Technology Promotion Office, Tokyo (ITPO

Tokyo).

2012: Executive Director of the New Energy and Industrial Technology

Development Organization (NEDO), where he was in charge of global collaborative

projects for the development of low carbon technologies.

Gabriel Felbermayr

President of the Kiel Institute for the World Economy.

He concurrently holds a chair in Economics and Economic Policy at Kiel University.

His research and advisory activities focus on questions of economic global

governance, European economic integration, and German economic policy.

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Session 1

The Future of GVCs: The Fourth Industrial Revolution and

Its Implications for the International Division of Labour

Alejandro Lavopa

Research and Industrial Policy Officer at the Department of Policy Research and Statistics of UNIDO

He is responsible for research and industrial policy advice with particular emphasis on issues related to economic growth, structural change and industrialization

Coordinates UNIDO’s flagship publication, the Industrial Development Report

Holds a PhD in Economics and Policy Studies of Technical Change at UNU-MERIT

Gabriel Felbermayr

President of the Kiel Institute for the World Economy.

He concurrently holds a chair in Economics and Economic Policy at Kiel University.

His research and advisory activities focus on questions of economic global governance,

European economic integration, and German economic policy.

Svenja Falk

Managing Director in Accenture Research, responsible for Health & Public Services and oversees the theme “Future Workforce” globally.

Leads the workgroup on digital business models under the umbrella of the Platform Industrie 4.0 to develop actionable policy recommendations for Governments.

She has spoken and published widely on digital business models, the future of work with partners such as the World Economic Forum.

Honorary professor at the Justus-Liebig Universität Giessen and a fellow at the Hertie School of Governance in Berlin.

Werner Raza

Director of ÖFSE – Austrian Research Foundation for International Development

Holds a PhD in economics from the Vienna University of Economics and Business, with a specialisation in international economics and development

He served as advisor the Austrian government on development finance and has been a member of the Austrian Delegation to WTO and UN conferences

His areas of work include international trade, development economics and development policy.

Bernardo Calzadilla Sarmiento

Director, Department of Trade, Investment and Innovation, UNIDO, leading the work on quality policy and its guiding documents together with quality infrastructure partner, the International Network of Quality Infrastructure (INetQI).

Former Director for the Technical Assistance and Training Services at the International Organization for Standardization (ISO) as well as the Secretary of the ISO Policy Committee on Developing countries matters

Holds a PhD in Economics from the Vienna University of Economics and Business in Austria. He has followed IRCA certified auditor’s courses on ISO management systems standards, specialized quality management courses at AOTS Japan and specialized training on trade policies at the Harvard Kennedy School of Government.

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Session 2

Should We Talk About a Revolution? Insights from Frontier Industries

José Antonio Parra

Vice President for Global Logistics, Grupo Bimbo.

Also serves in other companies and industry boards as Grupo Devlyn, Chía Mía and O’Fruit as external expert advisor on Supply Chain matters.

He has played significant roles in other global leading companies as The Coca-Cola Company, Procter & Gamble and Royal Bank of Canada, in areas that include supply chain management, general management and finance.

He is a Chemical Engineer from La Salle University, where he graduated top of his class, and holds an MBA in Finance from Monterrey Tec, along with diverse postgraduate certifications in supply chain management, food processing and agricultural management, general management, innovation, and lean six sigma as a master black belt.

Gökhan Büyükdığan

Manager – Investment Management, Arçelik

From 2017 to 2019, he worked as an Industrial Engineering Team Leader and from 2010 to 2017 as Senior Specialist in Production Technologies Directorate.

From 2007 to 2010, he worked as a Team Leader for Production Technologies and Automation in Washing Plant and Team Leader -Assembly Lines / Maintenance. Previously, he held positions as Senior Industrial Engineer, team engineer and methods engineer.

Nasir Kabir Deshmukh

Head Manufacturing Operations (MHEL & Igatpuri Plants), Mahindra & Mahindra Ltd. Also leading Industry 4.0 across all 8 plants of Automotive Division.

He has worked in various functions like Manufacturing, Quality, Product Development. He has been awarded with the prestigious "Star Operation Head Award“ by Manufacturing Today in year 2013.

Core member of the Smart Manufacturing Council for CII (Confederation of Indian Industry).

He holds degree in Mechanical Engineering from Mumbai University and Post-Graduation from Michigan University & Welingkar Institute Mumbai.

Ivanka Janssen

Senior Vice President Global Integrated Supply Chain, Philips

Former Vice President of the Supply Chain in the beverage division of PepsiCo Europe and Sub-Saharan Africa.

Former Director Global Sales Operational Excellence, Diageo

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Session 3

Is There a Need for an Industrial Policy 4.0? Examining the Future of Policymaking

Cristina Oyón

Head of Strategic Initiatives at SPRI, the Business Development Agency in the Basque Country.

She has broad experience in business development, research and innovation at managerial and strategic level and is currently responsible for the design and implementation of the agenda for the Basque industrial transformation, which fosters resource efficient manufacturing concepts that take advantage of digitalisation in order to add value to processes, products and services.

Member of the High Level Industrial Roundtable Industry 2030 of the European Commission, which gives advice on the implementation of the European Industrial Strategy.

Fiona Tregenna

Holds the South African Research Chair in Industrial Development and is a Professor of Economics at the University of Johannesburg.

She has a Ph.D. in Economics from the University of Cambridge, a Master’s degree in Economics from the University of Massachusetts, and earlier degrees from the Universities of the Witwatersrand and Natal in South Africa.

Serves of the Presidential Economic Advisory Council of South Africa, and on a number of other boards, advisory panels and councils. She is a part-time Member of the Competition Tribunal where she adjudicates competition (anti-trust) cases.

Elected member of the Academy of Science of South Africa (ASSAf). Most recently, she has been Principal Investigator in a two-year project on Innovation and Inclusive Industrialisation.

Kris Broekaert

Government engagement Lead for the World Economic Forum Centre for the Fourth Industrial Revolution Network

Co-author of the Forum’s white paper on Agile governance: reimagining policymaking in the Fourth Industrial Revolution.

Manager of the World Economic Forum’s Global Future Council on Agile Governance.

Tilman Altenburg

Leads the research programme “Transformation of Economic and Social Systems” at German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE), the government-funded think tank for development policy in Germany.

Former research fellow at the Free University Berlin and the Philipps University Marburg.

He has conducted empirical research on economic development in Latin America, Asia and Africa, with a focus on competitiveness, industrial and innovation policy. Currently, he is coordinating research projects on green industrial policy in developing countries.

Published about 100 papers and he is regularly advising the German government and international agencies. He received his doctorate in Economic Geography in 1991.

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Special Session

Infrastructure Development for GVC Integration: Looking Across and Looking Ahead

Adnan Seric

Research and Industrial Policy Officer at the Department of Policy Research and

Statistics, UNIDO

Organizational lead on research initiatives related to global value chains and foreign direct investment.

Former Economist at the Organisation for Economic Co-operation and Development (OECD).

Holds a Ph.D. in Economics from the University of St Andrews (UK).

Mario Holzner

Director, Vienna Institute for International Economic Studies, responsible for general management, finances and personnel. He is also coordinating economic policy development and communication with a focus on European economic policy.

He has recently worked on issues of infrastructure investment in greater Europe, proposing a European Silk Road.

Lecturer in applied econometrics at the University of Vienna, Department of Economics. He obtained his PhD in economics at the Vienna University of Economics and Business in 2005.

Yang Jun

Professor in the School of International Trade and Economics, University of International Business and Economics (UIBE).

Director of the Center of Economic, Trade and Policy Analysis (CETPA) jointly constructed by UIBE and the Center of Policy Studies (CoPS) in Australia.

Holds a Ph.D degree from the Chinese Academy of Sciences (CAS), and worked as Post-doctor in the Australian National University (ANU).

More than 160 academic papers have been published in domestic and international journals.

Wiebke Schloemer

Director for Europe and Central Asia at International Finance Corporation, a member of the World Bank Group and the largest global development institution focused on the private sector in emerging markets.

She worked for the European Investment Bank in Luxembourg, and DEG, the German Investment Corporation, working on infrastructure debt and equity transactions in Africa, Asia and Eastern Europe.

She holds a Master degree in Economics and Finance from the University of Goettingen in Germany and holds a Postgraduate degree in Development Policy from the German Development Institute.

Weixi Gong

Chief of Investment Promotion Division and Coordinator of Investment and Technology Promotion Offices Network, UNIDO

Former Senior Coordinator for South-South and Triangular Industrial Cooperation, UNIDO and former UNIDO representative in Iran and as the chairperson of the Operations Management Team of the United Nations in Iran.

He holds a Bachelor of Technology from the Beijing University of Aeronautics and Astronautics, a Master of Advanced International Studies from the Diplomatic Academy of Vienna and a PhD in numerical analysis from the Vienna University of Technology.

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