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MICRO, Small, and Medium Enterprises (MSMEs) will stand to benefit by entering the global value chain, according to Cooperatives and Small and Medium Enterprises (SMEs) Minister Teten Masduki.
This was based on the OECD Working Party on SMEs Entrepreneurship study results, he stated during the 4th G20 Side Event “Stakeholders Consultation: SMEs Opportunity on Global Value Chain and Logistic Solution” observed virtually, recently.
G20 is an international forum comprising 19 countries and the European Union that work together to handle major issues. Indonesia is holding the presidency of the grouping this year.
Masduki expects that the stakeholders’ consultation forum can help MSMEs to identify the competitive advantage in the global value chain.
It also helps MSMEs to gain an understanding that this identification is immensely beneficial in optimizing their participation in the global value chain, he explained.
The minister also expects the forum to be able to provide recommendations that can be followed up multilaterally, bilaterally, or regionally in the form of trade policies.
These trade policies should facilitate MSEs to enter the global value chain and provide solutions to MSEs’ logistical demand. Moreover, he urged G20 member countries to cooperate to recover the world’s economy.
‘The impact of the COVID-19 pandemic and Russia’s invasion of Ukraine has exacerbated the stagnation of global economic growth,” he stated.
It was also estimated that low economic growth and rise of inflation will occur for longer periods of time than the previous projection.
Economic cooperation between G20 countries to recover the world’s economy is deemed crucial although most countries’ reaction amid this economic turbulence is to protect their respective economies, he affirmed.
According to Masduki, G20 countries cannot forget that the world’s economy is exceedingly dependent on them. This is because the group produces around 80% of the world’s output, constitutes two-thirds of the world’s population, and accounts for three-quarters of the world trade.
“Recover together, recover stronger” is not merely a theme that should be raised together but also a formula for the world’s recovery and faster collective growth, he remarked. [antaranews/photo special]
