Greater specialization in the stages of global production has helped Asia and the Pacific achieve economic growth, create jobs, and reduce poverty over the past quarter century, according to a press release by the Asian Development Bank (ADB). The findings were published in the Asian Development Policy Report 2026, launched on 6 May 2026 in Samarkand, Uzbekistan, during ADB’s 59th Annual Meeting. Titled Global Value Chains and Inclusive Development, the report highlights how specialization has reshaped trade and production across the region. It also warns that the benefits of global value chains remain unevenly distributed. The publication outlines priorities to support broader participation and inclusive gains.
The report finds that Asia and the Pacific accounts for a third of global value chain trade. Developing economies in the region doubled their share from 9% to 18% between 2000 and 2023. Some economies, particularly in East and Southeast Asia, have become deeply embedded in regional and global production networks. These economies occupy central positions that allow them to capture significant value addition. Others, including many smaller, lower-income, or geographically remote economies, have participated less and remain largely excluded from these networks.
While specialization in narrow segments of the production process has enabled rapid integration into global markets, the benefits remain uneven. Large productive firms have been the main beneficiaries, while small and medium-sized enterprises face barriers due to high compliance costs and limited capabilities. Geopolitical tensions, supply chain disruptions, and rapid technological changes are reshaping how economies participate in global value chains. The report identifies three policy priorities: resilience, environmental sustainability, and inclusion. Each requires coordinated action across infrastructure, firm capabilities, and policy frameworks.
“Greater geoeconomic fragmentation reduces the opportunities for firms to benefit from global value chains, which risks stifling industrialization and growth in economies stuck in low-value roles,” said ADB Chief Economist Albert Park. He added that bridging the gap requires support for less-developed economies to help them take advantage of emerging technologies. Park emphasized the need to strengthen infrastructure, logistics, and the business environment to enhance productivity and competitiveness. Compliance with evolving environmental and sustainability standards is becoming a general requirement across global value chains. Strengthening standards, certification, and traceability can help firms adopt cleaner technologies.
Achieving inclusive outcomes requires reducing trade costs through infrastructure investment, open trade policies, and trade facilitation. The report also calls for developing worker skills and firm capabilities. Access to finance, digital platforms, and export opportunities for small and medium-sized enterprises is identified as essential. ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Founded in 1966, ADB is owned by 69 members, 50 of which are from the region.
