DEFINIT was appointed by DIE (German Development Institute, a German leading think-tank institution) and GPFI (Global Partnership for Financial Inclusion) to conduct this study. This study addressed the motivation and bottlenecks for adopting sustainability standards in SMEs linked to Global Value Chains (GVCs) and the subsequent demand for finance. The study was underpinned by five country case studies in Brazil, China, India, Indonesia and South Africa which were synthesized into a joint study by DIE. An extract of this study was incorporated as a contextual chapter into the stocktaking study of IFC on “Leveraging Financial Services for Small and Medium-sized Enterprises (SMEs) in Sustainable Global Value Chains (GVCs)”. The stocktaking study had been commissioned by the SME Finance Subgroup of the GPFI as a deliverable under the German G20 presidency.
DEFINIT, in cooperation with CSIS (Centre for Strategic and International Studies), contributed for the case study of Indonesia, which consisted of the following chapters:
- Chapter 1 – Sustainability standards and certifications in Indonesia
- Chapter 2 – Analysis of the incentives and challenges for SMEs to adopt sustainability standards
- Chapter 3 – SMEs and industry specific profile in Indonesia
- Chapter 4 – Financial services for SMEs to integrate into value chains
Presentation and discussion of the first draft of the country case studies had been conducted in an international workshop in Berlin, 25 April 2017. Meanwhile, the final draft and results of this study had been presented in Geneva, 24 to 29 September 2017.
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