Economic and social upgrading in global production networks: A new paradigm for a changing world

Abstract

Abstract. A key challenge in promoting decent work worldwide is how to improve the position of both firms and workers in value chains and global production networks driven by lead firms. This article develops a framework for analysing the linkages between the economic upgrading of firms and the social upgrading of workers. Drawing on studies which indicate that firm upgrading does not necessarily lead to improvements for workers, with a particular focus on the Moroccan garment industry, it outlines different trajectories and scenarios to provide a better understanding of the relationship between economic and social upgrading.significant proportion of trade now takes place through coordinated value A chains in which lead firms play a dominant role globally and locally. The outsourcing of production by Northern buyers has stimulated the growth of manufacturing, agriculture and service industries in the South. It has promoted regional and global production networks (GPNs) that have opened up supply opportunities in new and expanding markets, including China, India and Brazil. Firms engaged in GPNs have opportunities for economic upgrading through engaging in higher value production or repositioning themselves within value chains. However, they also face challenges meeting buyers' commercial demands and quality standards, which smaller and less efficient producers find hard to satisfy.

Pathways to empowerment?: dynamics of women's participation in Global Value Chains

“…Several studies have highlighted the problems facing workers employed at the base of global value chains; some related to weak labour regulation or global processes of de-regulation associated with neo-liberalism , Barrientos, et al, 2011, Barrientos and Kritzinger, 2004, Palpacuer, 2008 and others indirectly related to purchasing practices of global retailers and brands (Hale and Opondo, 2005, Hughes, et al, 2010, Oxfam, 2004, Raworth and Kidder, 2009). More recently researchers have asked about whether workers and communities benefit from efforts by producers at the bottom of the chain to integrate into GVCs, i.e.…”

Влияние Внешних Факторов На Развитие Рынка Консалтинговых Услуг

“…Even where productivity gains offer the potential for social upgrading, they may be used instead to lower prices and help maintain or increase global market shares rather than to raise wages. This pressure can be particularly strong in the context of GVCs, where the demanding sourcing policies of lead firms or first-tier suppliers manifest in the form of low wages and precarious labour arrangements involving temporary, contract and migrant labour (Barrientos et al, 2011;Locke, 2013). To the extent that wages do rise, the stylized fact is that there is an increase in the returns to skilled relative to unskilled work, driving a positive association between trade integration and wage inequality in developing countries Goldberg and Pavcnik, 2007).…”

Supplier strategies to compensate for knowledge asymmetries in buyer-supplier relationships: implications for economic upgrading

“…The GVC approach provides a holistic view of global industries from two vintage points: top down and bottom up (Gereffi and Lee, 2012). The top-down view focuses on the organisation of value chain activities and the modes of governance coordinating the value chain (Gereffi et al, 2005), while the bottom-up view focuses on upgrading by suppliers (Barrientos et al, 2011;Gereffi, 1999;Giuliani et al, 2005;Pavlínek and Ženka, 2011). These two perspectives are complementary and interdependent (Lee and Gereffi, 2015).…”

“…The capital dimension refers to the use of new machinery and advanced technology. The labour dimension refers to skills development through which increased productivity is achieved (Barrientos et al, 2011). Humphrey and Schmitz (2002) categorise economic upgrading in the following way:…”

“…The firms have some minor differences in terms of the surrounding area, ownership structure, workforce nationality, revenue turnover and net profit. The state of economic upgrading of the firms was analysed by drawing upon Barrientos et al (2011), who categorise economic upgrading in terms of capital and labour dimensions (Table 4). The capital dimension included factors such as functional activities, technological advancement, level of automation and level of value added, while the labour dimension included the productivity rate, defect rate, skills development mechanism, promotion, work allocation system and workers' level of skill.…”