Exploitation, Economic Performance & Global Value Chains Dr - PowerPoint PPT Presentation

Exploitation, Economic Performance & Global Value Chains Dr Stephanie Ware Barrientos ODI Conference ODI Conference February 2009

Introduction Introduction • How is labour positioned within Global How is labour positioned within Global Value Chains? • What are the changing dynamics of GVCs • What are the changing dynamics of GVCs and implications for workers? • Reflections on impact of global crisis R fl ti i t f l b l i i

Global Value Chains Global Value Chains • Changing dynamics of southern trade Changing dynamics of southern trade through GVCs • GVC • GVC – GPN analysis: GPN analysis: – social embeddedness of firms; – commercial power i l • Civil society campaigns: – poor working conditions – codes of labour practice

Changing Dynamics of GVCs Changing Dynamics of GVCs • Financialisation of GVCs Financialisation of GVCs • Expansion in low-price high volume markets markets • Exploiting bi-lateral trade agreements • Competitive pressures – value chain rationalisation • China repositioning

Implications for Workers Implications for Workers • Labour supply post China/India opening Labour supply post China/India opening • Global labour sourcing/labour contractors • Buyer purchasing practices vs codes of • Buyer purchasing practices vs. codes of labour practice (double standards?) • Expansion beyond niche brands: Price • Expansion beyond niche brands: Price point over workers’ rights • Expansion within south: • Expansion within south: – Low vs. high road – Commercial vs developmental tensions – Commercial vs. developmental tensions

Impact of Global Recession Impact of Global Recession • Speed of impact Speed of impact • Consequences for vulnerable workers • Development impacts D l t i t – poor rural & urban households – gender impact – vulnerability, risk of exploitation – lack of protection • China – highest profile example g p p

Reflections Now? Reflections Now? • Impact of global crisis on workers – ‘social Impact of global crisis on workers social time bomb’ • Waged work key to poverty reduction • Waged work key to poverty reduction • Reflections: – Protectionism? – Voluntary vs. regulatory approach? – Pressure for more ‘moral’ ‘regulated’ financial markets?