Global Value Chains and Development

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"Over the past half century globalization has transformed how nations, firms, and workers compete in the international economy. The chapters in this book, authored by one of the founders of the global value chains (GVC) approach, trace the emergence of the most influential paradigm used to analyze globalization and its impact by academics and policy makers alike. In the mid-1990s, Gary Gereffi introduced the notion that offshore production was fuelled by buyer-driven and producer-driven supply chains, which highlighted the role of giant retailers, global brands, and manufacturers to orchestrate complex networks of suppliers in low-cost developing economies around the world. The GVC framework was built around the twin pillars of 'governance' (how global supply chains are controlled and organized) and 'upgrading' (how countries and firms try to create, capture, and retain high-value niches in GVCs). This book contains the seminal writings used to launch the GVC framework, along with in-depth case studies that explain how Mexico, China, and other countries emerged as prominent exporters in the world economy. As the social dimension of globalization became more pronounced, Gereffi and colleagues elaborated the concept of 'social upgrading' and a new paradigm of 'synergistic governance' based on the coordinated efforts of private, civil society, and public-sector actors. During the 2000s, the rise of large emerging economies like China, India, Brazil, and South Africa transformed the structure and dynamics of GVCs in the direction of greater regionalization. Today new challenges are looming in resurgent economic nationalism and populism. Large international organizations such as the WTO, World Bank, and ILO, policymakers in national economies, development practitioners, and academics continue to be guided by insights from the GVC approach"--

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