As globalization enters a phase of strategic realignment, SEMS Lab researchers are actively contributing to the conversation. In our latest peer-reviewed publication, “Navigating Fragmented Globalization: Local Content Policies in a New Trade Order,” we examine how emerging economies can recalibrate their roles in global value chains (GVCs). Authored by a multidisciplinary team from Universitas Indonesia, including researchers from mechanical, chemical, and industrial engineering, the paper explores the evolution of Local Content Requirements (LCRs) beyond traditional protectionism. We argue that smartly designed LCRs are becoming strategic tools for economic resilience, inclusive industrial development, and technological sovereignty.
Key Highlights:
– LCRs can catalyze transformation from shallow assembly lines into robust industrial ecosystems through localized manufacturing, workforce training, and supplier development.
– Case studies from Indonesia, India, Brazil, and Vietnam showcase how strategic LCR alignment fosters backward linkages and enhances sectoral capabilities.
– Geopolitical shifts and supply chain vulnerabilities—exposed by COVID-19 and trade tensions—demand more flexible, context-sensitive policy interventions.
At SEMS Lab, this research reflects our broader mission: to integrate systems thinking and policy innovation for sustainable development. As emerging markets navigate fragmented globalization, we envision LCRs not as barriers but as bridges to strategic autonomy and inclusive growth.
Read the full paper here: IJTEch Article.
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