The Governance of Forced Labour in the Global Economy

Abstract

The problem of forced labour in the contemporary global economy is attracting increasing attention in global governance debates and policy circles. The effectiveness of governance initiatives depends on underlying understandings of the root causes of the problem. We explore how the root causes of forced labour in global production networks (GPNs) are framed in global governance debates. Focusing on the dominant frameworks mobilized by international institutions, with some attention to cognate national-level and corporate governance strategies, we identify certain limitations to dominant interpretations, which derive from their ‘residual’ character and their associated neglect of the manner in which the roots of forced labour reach deeply into the organization of GPNs, the forms of exploitation which are integral to them, and the connections between exploitation and poverty. We set out an alternative, ‘relational’ perspective on the roots of forced labour in GPNs, based on the concept of ‘adverse incorporation’, and consider the implications of the insights generated by this perspective for contemporary governance frameworks.     

Multistakeholder initiatives in global production networks: naturalizing specific understandings of sustainability through the Better Cotton Initiative

In recent years, various academics, consultants, companies and NGOs have advocated a move towards more cooperative approaches to private sustainability standards to address the widely identified shortcomings of the compliance paradigm. However, is it possible to address these limitations by moving towards stakeholder inclusion and capacity building while at the same time catering to the demands of lead firms supplying the mainstream market? In this article, we analyse how the Better Cotton Initiative (BCI) seeks to do just that, in the process identifying three key tensions and competing policy concerns with which standard‐setters have had to grapple – (a) stakeholder inclusion vs process‐control/efficiency; (b) stringency of the standard vs scale of production; and (c) capacity building vs auditing. Combining theoretical considerations about governance in global production networks (GPNs) with a convention theory perspective, we explore these inherent tensions and show that due to pre‐existing power relations in the cotton GPN, it is hard to develop more cooperative approaches because market and industrial values tend to win out despite efforts to follow current best practice on sustainability standard‐setting.     

Labour in Global Production: Reflections on Coxian Insights in a World of Global Value Chains

Abstract

This essay reflects on Robert W. Cox's work on global production, labour, and labour governance, and considers how his insights might illuminate the present conjuncture for labour in production. I work with an understanding of that conjuncture as involving the rise to pre-eminence of global production networks (GPNs) and global value chains (GVCs) as the contemporary expression of the ongoing globalization of production. The primary tasks of the essay are twofold: first, to explore the dynamics of labour and power in the GVC-based global economy, with a particular emphasis on labour exploitation; and second, to link these questions to those of the governance of the global economy, focusing on the shift towards transnational private governance as the dominant mode of contemporary governance, and on the evolving strategies of organized labour and the International Labour Organization in that context.     

Rethinking the dynamic of global production networks: Integrate the influence of suppliers and towards a flexible strategy making causal mechanism

The global production network (GPN) 2.0 framework mainly considers the organizational capabilities of lead firms, neglecting the influence of supplier capabilities on the strategic making of lead firms. I argue that the GPN 2.0 framework must integrate the influence of supplier capabilities (both industrial and individual firm levels) to better explain the organization of the global economy. Industrial-level capability determines the possible strategic choices that firms may make under certain dynamic combinations, whereas the individual firm level determines the geographic extension direction of GPNs. Therefore, this study incorporates the influence of suppliers and builds a more flexible strategy-making causal mechanism other than the definitive and limiting causal mechanism in GPN 2.0. I hope this article can promote the further development of GPN 2.0 and convey some valuable concepts to make it perform better in deconstructing the organization of the global economy in the real world.     

Drivers of Exploitation and Inequity in Non‐Timber Forest Products (NTFP) Value Chains: The Case of Indian Bay Leaf in Nepal and India

This article presents the findings of a study that analysed the Indian Bay Leaf (Cinnamomum tamala) Nees and Eberm value chain (VC) in Uttarakhand, India and Udayapur, Nepal. The results show that bay‐leaf VCs are loosely integrated and consist of stakeholders with asymmetrical power relations and different priorities. Traders in India dominate the chains and inappropriate standards lead to the exploitation of small producers and inequity in the chain. Policy measures are suggested for improving co‐ordination and competitiveness in the bay‐leaf VC which could be applied to the NTFP sector as a whole.     

Social upgrading and cooperative corporate social responsibility in global value chains: the case of Fairphone in China

In this article, we explore how a lead firm's strategy for corporate social responsibility influences the social upgrading of a supplier in a global value chain. Based on a single case study approach, we investigate the interaction between Dutch smartphone producer Fairphone and its Chinese supplier Guohong. On the one hand, the case illustrates how a cooperative approach to corporate social responsibility can lead to progress in suppliers' social upgrading. In particular, we highlight the role of a so‐called workers' welfare fund as a mechanism not only for improving measurable labour standards but also for enabling rights. On the other hand, the case demonstrates how the limited production and technological capabilities of the suppliers, a competitive market environment and lead firms' limited strategic access to the supply chain might constrain the extent of social upgrading through a cooperative approach towards corporate social responsibility in a global value chain.     

Reconsidering the role of the digital in global production networks

Global production networks (GPNs) have become a key framework in conceptualizing linkages, power and structure in globalized production. However, this framework has been less successful in integrating the influence of digital information and ICTs in production, and this problematic in a world where relationships and power are increasingly mediated by digital information flows and resources. We thus look to adapt the GPN framework to allow more substantive analysis of ‘the digital’. Primarily, this is done through a theoretical analysis of the three core categories of the GPN framework – embeddedness, value and networks – to highlight how these categories can better integrate a more dynamic and contested conceptualization of the digital. Illustrations from research on the digitalization of tea sector GPNs in East Africa highlight how these theoretical advances provide new insights on the digital and its expanding role in economic production.     

Power,governance and distributional skew in global value chains: Exchange theoretic and exogenous factors

The relationship between power, governance and value creation/capture is a central concern in global value chain (GVC) research. In the context of calls to develop a more expansive view of power in GVCs, we argue for retaining a focus on bargaining power, but shifting the conceptualization of bargaining power from the dyad to the network. We advance two arguments. First, we elaborate an exchange theoretic model in which skew of value capture is a function of the degree of power asymmetry inherent in the ratio of buyers to suppliers. Second, we explain how this model can be expanded to consider the role of external factors, such as the institutional and normative contexts in which exchange occurs. Rather than see these factors as contending forms of power, we treat them as forces that can affect value skew by either attenuating the bargaining power of lead firms or by moderating the distributional effects of power asymmetries between exchange partners. We conclude that an exchange theoretic approach to bargaining power in GVCs provides a parsimonious framework for explaining how inter-firm governance shapes the distribution of value capture in global production.     

Power and its sources in the governance of global value chains: The Argentina–European Union biodiesel value chain

This paper tackles the broader question of why inequality along global value chains (GVCs) tends to remain unchallenged despite the successful upgrading and insertion of firms operating in the world-system's periphery. Because the reduction and reproduction of inequalities are both intimately connected to power relations along GVCs, such relations are at the core of my analysis. Conceptually, my theorization of power builds on recent work by Dallas, Ponte and Sturgeon, which has sought to more systematically theorize and account for the multidimensional nature of power, and complements it with key insights drawn from World-Systems theory. Empirically, this paper analyses the biodiesel GVC between Argentina and the European Union, a case in which the successful economic upgrading and enhanced competitiveness of biodiesel producers in Argentina fail to overturn their subordinated position vis-à-vis European producers and traders.     

Making connections between global production networks for used goods and the realm of production: a case study on e‐waste governance

Recent scholarship on waste within economic geography and global production network (GPN) studies has identified several unique characteristics of networks for used goods vis‐à‐vis ‘traditional’ GPN studies focused on production, exchange and consumption. However, in un‐bracketing GPNs to include analysis of post‐consumption activity, identifying how the distinct moments of production, exchange, consumption and disposal/recycling are related becomes a crucial task. Towards this end, I present a case study on the governance of e‐waste networks that draws upon discussions of performativity and Hudson's cultural political economy approach to GPNs. In my analysis, I demonstrate how multiple factors, such as ideological differences over how to handle e‐waste, the non‐standardized nature of used goods, as well as production factors such as design choices and planned obsolescence, all shape and disrupt efforts to standardize and coordinate resource recovery and hazard mitigation in the post‐consumption phase of electronic goods. Such analysis moves past the novelty of GPNs for used goods toward a more integrated understanding of GPNs as a whole.     

全球生产网络（GPN）下的深圳市物流业发展格局研究——对外贸易和物流视角

本研究以对外贸易和物流为研究对象,选择国际化程度较高,物流业发展国内领先的深圳市为案例,分析了深圳市在全球生产网络中物流业发展地位和发展格局。提出全球生产网络下物流业会有较大的发展,每个城市和地区都应积极融入全球生产网络中;融入过程受到周边区域和城市的激烈竞争;港口和空港是城市融入全球生产网络的重要物流终端,政府应重视港口和空港货运发展,尤其是未来空港货运发展。     

Antagonistic governance in South African fruit global production networks: a neo‐Gramscian perspective

Governance is a core focus of the global value chain (GVC) and global production network (GPN) literatures. Recent research claims ‘complementary’ or ‘synergistic’ governance, achieved through the confluence of private, public and civil society actors, is required for sustainable social gains. While moving beyond a narrow focus on economic coordination, such analysis lacks a sufficiently nuanced examination of power relations. In this article, I draw on neo‐Gramscian perspectives to account for ongoing contestation, positing that governance needs to be understood in the context of a broader hegemonic project. ‘Antagonistic governance’ is proposed to conceptualize contestation within and across diverse initiatives, which forge, challenge and transform hegemonic stability in GVC/GPNs. I explore this through the South African fruit sector, in particular, a labour crisis in 2012/13. I argue that we need to move beyond apolitical readings of governance to account for the material and discursive practices through which contestation gets played out, compromises are forged, and hegemonic order is maintained.     

Upgrading,uneven development,and jobs in the North American apparel industry

In this article we examine the developmental consequences of globalization at multiple scales, using a commodity chains framework to investigate the case of the North American apparel industry. In the first section we outline the apparel commodity chain and offer a brief typology of its lead firms. In the second section we discuss the concept of industrial upgrading and describe several main export roles in the global apparel industry. In the third section we focus on the regional dynamics resulting from the North American Free Trade Agreement (NAFTA). We contrast the Mexican experience with that of countries in the Caribbean Basin to show the impact of distinct trade policies on export‐oriented development. We argue that NAFTA is creating upgrading opportunities for some Mexican firms to move from the low value‐added export‐oriented assembly (or maquila) model to full‐package production. In the fourth section we explore the unevenness of upgrading dynamics through a comparison of two blue jeans manufacturing clusters in the United States and Mexico: El Paso and Torreon. Our conclusions about upgrading and uneven development in the North American apparel industry emphasize the importance of local, national and regional institutional contexts in shaping inter‐firm networks and their development impact.     

Gendered Leadership: The Effects of Female Development Agency Leaders on Foreign Aid Spending

This article examines the effects of gender on the leadership of bilateral development aid agencies, particularly their official development assistance (ODA) allocations toward gender‐related programming. Drawing on earlier research on gendered leadership, the article tests the hypothesis that female director generals (DGs) and ministers responsible for aid agencies will allocate more ODA than their male counterparts toward gender programming. This existing literature on gendered leadership is divided: some scholars argue that women and men have distinct leadership styles on account of their gender, while others argue that the only distinguishing factor is the institutional context in which they lead. Drawing on data collected on aid flows and agency leadership within the major Western aid donors of the Organisation for Economic Co‐operation and Development (OECD) Development Assistance Committee (DAC) over the period from 1995 through 2009, we use pooled time series analysis to examine the effects of gendered leadership on aid allocation. Our analysis reveals a tendency for female DGs and ministers to focus ODA on gender‐mainstreaming programs, while male DGs focus ODA on gender‐focused programs. We argue that these divergent priorities reflect the women's desire to reform gendered power structures within their respective aid agencies, and the men's desire to maintain existing gender power structures from which they benefit.     

Lifecycle effects on consumer financial product portfolios in South Africa: An exploratory analysis of four ethnic groups

This paper assesses ownership of 16 financial products by households in different lifecycle stages amongst four ethnic groups (Africans, Coloureds, Asians, and Whites) in South Africa. The lifecycle hypothesis indicates younger households should own more debt-related financial products, whereas households in intermediate lifecycle stages should own more financial products to accumulate assets; both these claims are disconfirmed for all groups. However, White households in intermediate household stages own more financial products than younger and older households, consistent with previously reported lifecycle findings in Western countries. Consistent with the literature on innovation adoption we find that younger, affluent and highly educated households amongst the other three ethnic groups tend to own more financial products than older Africans, Coloureds and Asians. These results indicate that innovation adoption literature may better describe financial product ownership in developing countries than the lifecycle hypothesis.     

The link between economic and social upgrading in global supply chains: Experiences from the Southern Cone

This article uses nine case studies of global supply chains (GSCs) in Southern Cone countries to explore the extent to which economic and social upgrading are linked and spread from lead firms to their supply chain. While economic and social upgrading are found in lead firm segments throughout the case studies, the impacts on suppliers are varied. Pattern groupings enable the authors to develop a three‐part typology of development in GSCs, in the light of which they consider the roles of public policies, company behaviour and social actors in addressing developmental outcomes for GSC lead firms and suppliers.     

Urban infrastructure: Trends,needs and the role of aid

The benefits of urban services have to be made accessible to increasing numbers of low income families in less developed countries. High levels of service are unlikely to be sustainable, and success depends upon addressing the key issues of Affordability and Maintenance. The complex interactions between technical, financial and social factors must be considered. The provision of high standards of service by implementing agencies is expensive and reflects neither the priorities of the beneficiaries nor their ability to pay. It is more effective to provide only the most basic level of service (primary level infrastructure) at the outset, which can subsequently be upgraded. The community should be able to take individual and collective responsibility for their priorities in improving the services based upon what they can afford. Primary level infrastructure is provided without cost recovery, with subsequent improvements being funded through loans to individuals and the community. It is easier both to recover costs from and to maintain individual plot service connections; however, the installation costs and tariffs must be affordable. Efficient operation and maintenance is essential. This is frequently the responsibility of an urban local authority who should be fully involved throughout; design and implementation should take account of their technical and financial capabilities.The factors which should be considered in the implementation of urban infrastructure can be summarised by the “Five I's”: Incremental improvement; Involving people; Individual services; Income related; Institutional.Possible implications for external aid are: (1) funding of primary level infrastructure for identifiable communities, including support for continued community development; (2) funding loans for infrastructure upgrading, with loan repayments forming a revolving fund; (3) strengthening the financial and managerial performance of urban local authorities; (4) technical training for housing authorities, urban local authorities, and public utilities.     

Strategic coupling,cross-scalar tension and local upgrading in the globalizing automotive industry in Guangzhou,China

This paper examines how latecomer firms manage to achieve industrial upgrading through strategic coupling with global lead firms in automotive production networks. Drawing upon the example of the Guangzhou Automotive Corporation in southern China, this paper theorizes ‘cross-scalar tension’ as a key factor to explain why the four cases of strategic coupling between lead firms, the same domestic firm and state ended in different results, from decoupling to a sustainable coupling with local upgrading. This paper contributes to the pertinent literature by demonstrating that cross-scalar tension is inherent to the nature of global production networks, and unreconciled tension concerning different corporate strategies on technological transfer, localization and product development could lead to decoupling. Importantly, good coordination and matching on corporate strategies between lead and domestic firms could relieve cross-scalar tensions, thus fostering local industrial upgrading and sustainable strategic coupling.     

Supplying lead firms,intangible assets and power in global value chains: Explaining governance in the fertilizer chain

Global suppliers of agricultural inputs such as seeds, fertilizers and agrochemicals exert increasing degrees of power in global value chains (GVCs). Although the GVC literature has explained how global buyers govern GVCs from the buying-end, the question of how global suppliers achieve governance from the supplying-end remains underexplored. We address this gap by combining a multidimensional typology of power with literature on intangible assets. We argue that intangible assets are crucial resources for global suppliers to morph otherwise ungovernable supply chains for undifferentiated input commodities into more sophisticated and governable GVCs. We illustrate our argument with the case of the global fertilizer supplier, YARA International. YARA's intangible asset investments were instrumental in governing the value chain integration of Tanzanian smallholder farmers. They allowed YARA to exert more than bargaining power (demonstrative, institutional and constitutive power) and to effectively position itself as supplying lead firm in Tanzania's agro-industrial GVC.