Discussion 2: Micro, Small and Medium Enterprises and Global Value Chains

Pedro J. M. Edo
Wed, 02 Apr 2014 14:08:52 +0000

Good morning, afternoon or evening to all of you who are joining us today from different corners around the globe to participate in this discussion. I would like to give you all a warm welcome to this second round of consultations on decreasing existing risk exposure for both governments and enterprises by sharing risk information and using business-based solutions. The objective will be to look into how this process of exchange can reduce disaster risk for cities, global value chains, and micro, small and medium enterprises (MSME’s).

In this particular thread of the consultation we will focus on micro, small and medium enterprises (MSME’s) and global value chains (GVCs) in the context of reducing disaster risk.

In an increasingly interconnected world, more attention needs to be directed to the distinct challenges of engaging MSME’s in disaster risk reduction and climate change adaptation. Furthermore, GVCs play a fundamental role in increasing risk exposures due to their rapid geographical expansion in recent years and the high interdependency between nodes.

In this context, we would like to propose the following questions for discussion:

1. MSME’s often experience a lack of both human and financial resources to manage disaster risks primarily as a result of lower access to risk information as a hurdle to manage risk effectively. How can the capacity and awareness among MSME’s be increased? Please indicate what you think are the most useful solutions (e.g. templates and toolkits from industry organizations; helpdesks and networking opportunities; funding or financial incentives, resources and personnel)?

2. In what ways can international, national and local public policies and regulation create an enabling environment for resilient Global Value Chains? What role could industry value chains play in increasing the appetite for collaboration and standards across value chains? What should be the approach of multinational companies towards supplier resilience auditing in the context of disaster risk in GVCs? Should it be just a matter of CSR or part of the integrity audit of the supply chain?

3. Is there scope for a formalized risk-sharing mechanism between transnational companies, local MSME’s and innovative structures such as geographically diverse associations of local MSME’s, in dealing with the interconnected risks and uncertainties posed by GVCs?