Economic and Social Upgrading in Global Value Chains Comparative Analyses, Macroeconomic Effects, the Role of Institutions and Strategies for the Global South

Acknowledgements
Contents
Notes on Contributors
List of Figures
List of Tables
1 Introduction: Governance, Rent-Seeking and Upgrading in Global Value Chains
	The Role of Governance and Market Constellations for Rent-Seeking in Global Value Chains
	Rent-Seeking and Trade Union Power
	Economic and Social Upgrading
	Structure of the Book
	References
Part I Interdisciplinary Theoretical Contributions—Framing the Debate
2 Contemporary Globalisation and Value Systems: What Gains for Developing Countries?
	Introduction
	Global Value Systems: A Longue Durée Analytical Sketch
	The Current Juncture and Some Implications for the South
	Concluding Remark
	References
3 Global Value Chains—A Panacea for Development?
	Introduction
	Shifting Development Strategies—from Import Substitution to Export Orientation to Global Value Chains
		Import Substitution Development Strategy
	The 1990s and the Acceleration of Trade Fragmentation in the Form of GVCs
	Economic Development Related to Global Value Chains
		Global Value Chains and Industrialization
		Concentration Trends in Selling Markets of Lead Companies
		Terms of Trade Effects of Different Groups of Goods
	Productivity and Employment Effects of Integration in Global Value Chains
		Global Value Chains and Productivity
		Global Value Chains and Employment
	Conclusion
	References
4 Social Upgrading in Global Value Chains—The Role of Labor and Industrial Relations
	Introduction
	Global Value Chain Governance and Employment Relations
	The Role of Labor Power for Social Upgrading in Global Value Chains
	Transnational Labor Governance
	Country-Specific Analyses of Labor in GVCs: The Role of Industrial Relations Systems
	Conclusion: Intersecting Power Asymmetries Between Industry-Specific Vertical and Public Governance
	References
5 Embeddedness of Power Relations in Global Value Chains
	Lukes’ Three Faces of Power
	Moving Beyond the Dyad: Networks
	Institutions as Bedrocks for Exercising Power
	Hegemony—Origin and Reproduction of Institutions
		Genesis of the Neoliberal Historical Bloc—The Precondition for Global Sourcing
		The Reproduction of the Neoliberal Historical Block
	Conclusion: Bringing Capitalism Back in
	References
6 Social Upgrading in Global Value Chains from a Perspective of Gendered and Intersectional Social Inequalities
	Introduction
	Commodity Chains and Their Entanglement with the Sphere of Social Reproduction
	New International Division of Labour—Research on Gender in Global Value Chains Since the 1970s
	From Global Commodity to Global Value Chains and Production Networks
	Gender in the Context of Debates on Industrial and Social Upgrading
		Gender Division of Labour in Production
		Changing Modes of Social Reproduction: Private Households and Informality
	The Importance of an Intersectional Perspective for Agency
	Conclusion
	References
Part II Insights from Different National Sectors
7 Social Upgrading, a Mixed Bag: The Indian IT/ITES Sector
	Introduction
	Employment Relations and GVC/GPNs
	Evolution of the Indian IT Industry
	The State as a Facilitator
	Social Upgrading: A Mixed Bag
	Commodified Work
	Implications for Employees
	Experience with Employee Voice
	Attempts at Individual Resistance
	Conclusion
	References
8 India’s Automobile and Textile Industries in Global Value Networks: An Assessment
	Introduction
	A Brief Profile and Structure of the Indian T&Cs and Automobile Industries
		Textile and Clothing
		Automobile Industry
	Data and Methodology
	Policy and Regulatory Framework
		Automobile Industry
		Textile and Clothing Industry
	Some Impacts on India’s Economic and Social Upgrading
		Economic Upgrading in India’s T&Cs and Automotive Industry
		Social Upgrading in the Automobile Industry
		Social Upgrading in the Textile and Clothing Industry
	Conclusion
	References
9 Collective Bargaining During and After Apartheid: Economic and Social Upgrading in the Automobile Global Value Chains in South Africa
	Introduction
	Part I: The Automotive Manufacturing Value Chain in South Africa, with a Comparison to India
		South African Automotive Manufacturing’s Economic Upgrading Through Industrial Policy
	Part II: Collective Bargaining: Building Workers’ Power, Turning the Tide Against Exclusion
		Industrial Councils and Centralised Bargaining
		Centralised Collective Bargaining in Post-apartheid South Africa
		South African Automobile Manufacturing Bargaining Units and Trade Union Agents
		Employers’ Organisations, and the Extension of Bargaining Agreements
	Part III: Labour Agency and Social Upgrading
		NUMSA’s Three-Year Collective Bargaining Strategy, and the Challenge of a Strong, United Trade Unionism in India
		Social Upgrading in the Automobile Industry in South Africa
	Conclusion
	References
10 Economic and Social Upgrading in Global Value Chains: The Automotive Industry in Brazil
	Introduction
	An Overview of the Brazilian Economy, 1997–2017
	Key Developments in the Automotive Industry
		Insertion into GVCs and Dominance of Foreign Companies
		Productivity
		Forward and Backward Linkages and the Auto Parts Sector
		Industrial Policies
		Summary
	Social Upgrading in the Automotive Industry in Brazil
		Changes in the Quality and Quantity of Employment
		Organised Labour and the Brazilian Automotive Industry
		Challenges for Organised Labour, Labour Rights, and Social Dialogue
		The Volkswagen Case: An Exemplary Tradition of Collective Bargaining
		The Renault Case: Social Dialogue Built from the Global Framework Agreement
	Final Considerations
	References
11 Locked Between Buyer-Driven Global Value Chains and State Control: An Analysis of the Stagnation of Economic and Social Upgrading in the Garment and Electronics Industries in Vietnam
	Introduction
	Participation in Global Value Chains, Industrial Policy and Economic Upgrading
	Linkage Between Economic and Social Upgrading
	Vietnam’s Economic Policy
		Discriminatory Economic Policy Against the Domestic Private Sector
	The Garment and Electronics Supply Chains in Vietnam
		Garments
		Electronics
	Economic Upgrading?
		Garments
		Electronics
		Reasons for a Lack of Upgrading
	Social Downgrading?
	Conclusions
	References
12 Foxconnisation of Automobile Manufacturing? Production Networks and Regimes of Production in the Electric Vehicle Industry in China
	Introduction
	The neo-Fordist Car Industry Under Stress: Late Revenge of Wintelism?
	Triple Alliances and Refurbished State Capitalism
	Disruptive Forces: The Challenge of Network Capitalism
	Regimes of Production: Low-Wage Mass Production as New Lead Model?
	Policy Challenges
	References
13 Few Opportunities for Smallholders for Upgrading in Agricultural Value Chains
	Introduction
	Problems of Measurement
	Why Economic Upgrading Does Not Automatically Translate into Social Upgrading for Workers
	The Selection of the Case Studies
	Key Findings from the Case Studies
		Working and Livelihood Conditions
		Social and Economic Upgrading
		Size Matters
		Perishability Worsens the Bargaining Power of Smallholders
		Mechanization Leads to Social Upgrading and Downgrading
		Nutritional Importance Does not Always Translate into Sufficient Government Support
		Prospects of Foreign-Exchange Earnings Attract Government Involvement
		The Limited Impact of End Markets and Certification
		Social Upgrading Requires State Support and Collective Action
		The Key Role of the State
		The Importance of Collective Action
	References
Part III Strategic Consequences and Solutions from Different Backgrounds
14 The Governance Challenges of Social Upgrading in Apparel Global Value Chains in the Context of a Sourcing Squeeze and the Covid-19 Pandemic
	Introduction
	Power Asymmetries in Apparel Global Value Chains
	Research Methods
	Production and Employment Dynamics in India’s Apparel Export Sector
	The Price Squeeze and Wages in India
		Hours of Work, Work Intensity, and Contingent Work
		Worker Survey and Conditions of Labour
	The Sourcing Squeeze and the Covid-19 Pandemic
	Addressing the Decent Work Governance Gaps
	Conclusions
	References
15 Social Upgrading in the Bangladeshi Garment Sector Since Rana Plaza: Why Some Governance Matters More Than Others
	Introduction
	Different Trajectories to Social Upgrading
	Methodology and Data
	Social Upgrading in the Bangladeshi Garment Industry—An Unlikely Case?
		Economic and Social Upgrading in Bangladesh: Status Quo
		Market-Driven Path
		CSR-Driven Path
		Multi-Stakeholder Path
		Cluster-Driven Path
		Labor-Centered Path
		Public Governance Path
	Discussion: Towards a Hierarchy of Paths
	References
16 China’s Leverage of Industrial Policy to Absorb Global Value Chains in Emerging Industries
	The Leverage of Industrial Policy as an Enabler for China’s Economic Development
	Foreign Investment and Shifting GVCs as Catalysts for Economic Upgrading
	Developing China’s Blueprint for Dominating Emerging Industries: The Solar Industry
		China’s Integration into the Global Solar Industry
		China’s Blueprint for Dominating Emerging Industries
	A Major Opportunity for China’s Global Dominance: The NEV Battery Industry
	Discussion and Concluding Remarks
	References
17 New Business and Human Rights Laws—Support for Social Upgrading?
	Introduction
	Transnational Business and Human Rights Laws—A Classification
	Assumptions About the Effectiveness of Business and Human Rights Legislation
	Potential to Change Company and Supplier Practices—Examples of Business and Human Rights Laws
		The UK Modern Slavery Act—Outline
		The UK Modern Slavery Act—Assessment and Experience
		The French Duty of Vigilance Law (Loi De Vigilance)—Outline
		The French Duty of Vigilance Law (Loi de vigilance)—Assessment and Experience
		The German Supply Chain Due Diligence Act—Outline
		The German Supply Chain Due Diligence Act—Assessment
	Central Elements of Effective Design of Business and Human Rights Laws
		Corporate Coverage
		Reach of Due Diligence Down the Supply Chain
		Statutory Duties
			Reporting
			Elements of Human Rights Due Diligence
		Supervision
		Liability for Damages—Access to Justice for Harmed Rights Holders
	Conclusion
	References
18 Lessons of the Indonesian Freedom of Association Protocol
	Steps Towards Transnational Collective Bargaining: International Framework Agreements
	The Indonesian Freedom of Association Protocol
		Content of the Freedom of Association Protocol: Protection of Trade Union Rights
		Scope of Application
		Factors that Promote Strong Trade Union Rights in the Formation Phase
			Public Awareness Due to Intensive Campaigning Around a Mega Sports Event
			Why the Topic of Freedom of Association?
			Strong Support from Different Actors
			A Neutral Facilitator as a Central Factor for Success
	Low Involvement of Global Union Federations
	Implementing the Freedom of Association Protocol
	Conclusions
	References
19 From Corporate Social Responsibility Towards Working Solution: A Comment By The Former Executive Director of ‘Action, Collaboration, Transformation’ (ACT)
	Shortcomings of Corporate Social Responsibility Approaches
	Beyond Unilateral Corporate Social Responsibility
		The Bangladesh Accord
		Global Framework Agreements
		Action, Collaboration, Transformation
	Supportive Regulation
		Legally Enforceable Due Diligence
		Preferencing Wages
	References
Part IV Conclusions and Outlook
20 Comparing National and Industry-Specific Trajectories of Economic and Social Upgrading as Well as Various Strategic Solutions
	Analysing Global Value Chains—Governance, Rent-Seeking and Economic and Social Upgrading
		Global Value Chain Governance
		Rent-Seeking
		Economic Upgrading
		Social Upgrading
	Empirical Results and Interpretation of Case Studies
		India and Bangladesh—Limited Economic Upgrading, Weak Trade Unions and Market Despotism
		China and Vietnam—Heavy Government Interventions, Economic Upgrading and State Corporatist Unitarism Without Independent Trade Unions
		Brazil and South Africa—Stagnant Upgrading and Democratic Corporatism Under Liberalising Pressure
		Comparative Analysis
		Summary of Macroeconomic Effects
	Theoretical and Policy Conclusions for Economic and Social Upgrading in Global Value Chains
		The Need for Industrial Policy
		Addressing Income Inequality and Economic Upgrading
		Collective Voice and Public Governance
	Concluding Remarks
	References
21 Economic and Social Effects of the COVID-19 Pandemic and the Future of Global Value Chains
	Short-Term Economic and Social Effects of the COVID-19 Pandemic
		A Global Economic Contraction and Its Effects
		Fiscal Response
		Monetary Policy
		Global Merchandise and Service Trade
		Different Policies in Different Countries
	Effects on Global Value Chains
		Deglobalization, Renationalization, and Regionalism
		Supply Constraints
		Changes to Bargaining Power in GVCs
	Conclusion
	References
Index