Characteristics and Implications of Supply Chain-Linked Development Cooperation by Type

Soyoung Lim
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Soyoung Lim: Korea Institute for Industrial Economics and Trade

No 1, Research Papers from Korea Institute for Industrial Economics and Trade

Abstract: Securing sustainable and resilient supply chains makes international cooperation indispensable. Supply chain-linked development cooperation, which mainly involves cooperation between supplier and consumer countries of mineral resources, can be classified into types according to the purpose of cooperation. The supply chain sustainability enhancement type, whose purpose is reducing environmental and social risks that may arise across global supply chains, has been carried out for many years by advanced European donors, with Germany's Initiative for Global Solidarity (IGS) as a representative case. The regional or sector-focused value chain development type aims to strengthen local industrial capacity in order to upgrade local industry and raise productivity.

The win-win supply chain cooperation through resource cooperation type targets industries in which the donor holds a comparative advantage among upstream supply chain industries such as minerals and mining, with Switzerland's Better Gold Initiative (BGI) and Norway's Oil for Development (OfD) program as representative cases. Advanced donors plan and pursue supply chain-linked development cooperation programs for win-win cooperation grounded in the demand of developing countries and the donor's comparatively advantaged industries, and they brand separate programs focused on supply chains to raise program visibility. They also respond proactively to changes in domestic policy and global norms by transforming their cooperation programs, and they pursue effective cooperation by drawing on diverse partnerships.

Keywords: supply chains; global value chains; development cooperation; trade cooperation; industrial cooperation; trade policy; industrial development (search for similar items in EconPapers)
JEL-codes: O19 O21 O24 (search for similar items in EconPapers)
Date: 2026-04-30
New Economics Papers: this item is included in nep-min
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Published in the April 2026 edition of KIET Monthly Industrial Economics

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