Voluntary initiatives in global value chains

The organization of production in global value chains (GVCs) has been accompanied by a rise of informal and insecure work. Yet, the role of labour agency has received scant attention in the GVC and related literatures. Selwyn (2013) therefore demands to shift attention towards engagement with labour movements to identify what he terms ‘labour-led’ social upgrading. We engage with this plea by investigating the role of voluntary initiatives (VIs) as non-governmental systems of labour regulation in GVCs. The paper asks under which conditions VIs with a more active role for labour emerge in GVCs. In order to answer this question, we apply Wright’s (2000) theory of the factors enabling positive class compromise to a VI that has been implemented in the Indonesian sportswear industry: In June 2011, a Protocol on Freedom of Association (FoA) was signed by Indonesian trade unions, large Indonesian manufacturers and major multinational brands. Based on the analysis of this case, we show that, while the spatial dispersion of production has weakened state mechanisms for the guarantee of labour rights, new pressure points for labour have also emerged, e.g. brands’ reputation or just-in-time production. Besides, new possibilities for transnational labour networks have opened that strengthen workers’ associational power. Moreover, GVCs fragment capital in different factions, such as producers and brands. Their material concerns are not necessarily congruent. Workers’ movements might be able to benefit from such divergent interests. We conclude that if VIs are to create conditions under which decent work can be strengthened, the involvement and strength of local labour organizations is required and producers’ and/or buyers’ dependence on workers’ cooperation may act as a catalyst

Emerging trends in global commodities markets: the role of Brazil and China in contemporary agrarian transformations

Drawing on the wider political economy of global commodities markets, this paper analyses the dynamics of agrarian change related to the rise of emerging economies. Departing from an overview of China's trade relations with Brazil, it discusses the consequences of these asymmetric relations for the countries' international strategies and their broad impacts in developing countries. To do so, the paper is structured according to two objectives. The first focuses on the political economic trends of the emerging countries' role in the agricultural sector, particularly through the shift in soy trade flows towards Brazil and China and their engagement in building a global biofuel market. The second objective connects the shifts in patterns of trade to an increasing wave of investments in southern Africa's farmland and it analyses the barriers and the effects of this movement in Mozambique. (Résumé d'auteur

Confronting root causes: forced labour in global supply chains

Excerpt It is by now widely recognised that effectively tackling forced labour in the global economy means addressing its ‘root causes’. Policymakers, business leaders and civil society organisations all routinely call for interventions that do so. Yet what exactly are these root causes? And how do they operate? The two most commonly given answers are ‘poverty’ and ‘globalisation’. Although each may be foundational to forced labour, both terms are typically used in nebulous, catch-all ways that serve more as excuses than explanations. Both encompass and obscure a web of decisions and processes that maintain an unjust status quo, while being used as euphemisms for deeper socio-economic structures that lie at the core of the capitalist global economy. The question thus becomes: exactly which aspects of poverty and globalisation are responsible for the endemic labour exploitation frequently described with the terms forced labour, human trafficking or modern slavery? Which global economic processes ensure a constant and low-cost supply of highly exploitable and coerced workers? And which dynamics trigger a demand among businesses for their exploitation, making it possible for them to profit from it? This 12-part report is an attempt to answer these questions in a rigorous yet accessible way. With it, we hope to provide policymakers, journalists, scholars and activists with a road map for understanding the political economy of forced labour in today’s “global value chain world”

The role of freight transport in economic development: An analysis of the interaction between global value chains and their associated transport chains

The purpose of this paper is first to discuss the paradox that freight transport, which so clearly is an important prerequisite for the processes of regional development and economic international-isation and globalisation, since the 1970s has almost vanished from mainstream economic geo-graphy and development studies, and is most often hardly mentioned in studies of international industrial development and global commodity or value chains. Secondly, the paper discusses the consequences of leaving freight transport out of the value chain analyses and argues that it has had serious consequences for economic development especially in the peripheral parts of the world, not least in Africa, and for our understanding of rural poverty.Formålet med dette papir er først at diskutere det paradoks, at godstransport - der så klart er en vigtig forudsætning for økonomisk regional udvikling, internationalisering og globalisering - stort set er forsvundet fra økonomisk geografi og udviklingsstudier, og meget sjældent behandles i stu-dier af international industriudvikling og globale vare- og værdikæder. For det andet diskuterer papiret konsekvenserne af ikke at inddrage overvejelser om godstransporten og dens organisering i de globale vare- og værdikædeanalyser, og det konkluderes, at det har haft alvorlige konsekven-ser for den økonomiske udvikling i de perifere dele af verden, ikke mindst i Afrika, og for vores forståelse af fattigdommen i ulandenes landdistrikter

Network-based analyses of Hungarian cash supply

This paper focuses on analyzing the cash supply network, in which the central bank - as an institutional member - acts as a key influencing node/party. By analyzing the case study example of the Hungarian cash supply, the paper introduces the different kinds of special network patterns that can appear in cases, when the network exists in an institutional (B2A) context and the institutional network member has a special regulatory role in influencing the manner of other business network members. The research findings are based on the application of the case study method. One case will be analyzed that focuses on introducing the main features of the Hungarian cash supply network and the behavior of its key members [central bank (the institutional one); cash logistic providers, commercial banks, post office, retail chains (business ones)]. From managerial point, the analyzed case provides evidences that influencing and interplaying network effects are valid for an institutional member as well, even if it has special rights to influence the basic network processes and structure

Corporate Engagement on Water Supply, Sanitation and Hygiene: Driving Progress on Sustainable Development Goal 6 (SDG6) Through Supply-chains and Voluntary Standards

There is specific potential for progressive action on WASH through corporate supply chains given their reach and scale, locations in priority countries for improvements in (water, sanitation and hygiene) WASH and links to under-served communities. But to drive greater corporate involvement in the attainment of SDG6 an improved understanding of the business opportunities and benefits of WASH in supply chains is needed.This report and associated case studies on corporate engagement on WASH were developed by WaterAid, CEO Water Mandate and the World Business Council for Sustainable Development. Water Witness International provided guidance and support in the development of the materials

Sustainability of local and global food chains: Introduction to the special issue

Sustainability assessment is one of the keys to competition by food supply chains over sustainability. The way it is conceived and embodied into decision-makers' choices affects the competitiveness of local and global chains. Science-based assessment methodologies have made substantial progress, but uncertainties-as well as interests at stake-are high. There are no science-based methods that are able to give an unchallenged verdict over the sustainability performance of a firm, let alone a supply chain. Assessment methods are more suited for medium-large firm dimensions, as planning, monitoring, and reporting are costly. Moreover, the availability of data affects the choice of parameters to be measured, and many claims of local food are not easily measurable. To give local chains a chance to operate on a level playing field, there is the need to re-think sustainability assessment processes and tailor them to the characteristics of the analysed supply chains. We indicate seven key points on which we think scholars should focus their attention when dealing with food supply chain sustainability assessment

Have labour practices and human rights disclosures enhanced corporate accountability? The case of the GRI framework

This paper critically evaluates Transnational Corporations’ (TNCs) claimed adherence to the Global Reporting Initiative (GRI)´s ‘labour’ and ‘human rights’ reporting guidelines and examines how successful the GRI has been in enhancing comparability and transparency. We found limited evidence of TNCs discharging their accountability to their workforce and, rather, we found evidence to suggest that disclosure was motivated more by enhancing their legitimacy. TNCs failed to adhere to the guidelines, which meant that material information items were often missing, rendering comparability of information meaningless. Instead, TNCs reported large volumes of generic/anecdotal information without acknowledging the impediments they faced in practice