Documents value chains 328 results

"Outlining the economic significance of the role of global supply chains (GSCs) in the organisation of the global economy, this paper initially presents some indications of health and safety outcomes in low- and middle-income counties (LMICs) where GSCs source much of the production destined for use in advanced economies. It goes on to discuss the operational dynamics of these chains and the corporate priorities that they reflect, which, it argues, do little to improve the poor work health and safety (WHS) outcomes in LMICs. It then examines evidence for the effectiveness of various private and public regulatory strategies that are claimed to bring about improved health and safety practices and outcomes among GSC suppliers in these countries. The paper critically evaluates this evidence and argues that, while there may be some examples of effective strategies and regulatory practices in particular contexts, their overall influence remains limited. It identifies and discusses the principal reasons for these limitations and concludes that the global regulation of conditions of labour – including WHS – at the end of GSCs falls well short of universal best practice and is, more generally, insufficient to counter the economic forces working against the maintenance of adequate standards of worker protection."

"This paper investigates the relationship between China's import competition and the innovation strategies of domestic firms. Using firm level data from Italy spanning 2005-2010 and employing IV fixed effects estimation techniques, we find that the impact of China's import competition on innovation varies depending on the type of goods imported (intermediate vs. final). Specifically, imports of final goods boost both product and process innovation, while imports of intermediate goods reduce both. Additionally, we extend the analysis to consider the role of unions in moderating these responses. We find that, in unionized firms, imports' impact on innovation is mitigated, specifically to protect workers' employment prospects."

"This book explores the combination of capital's changing composition and labour's subjective agency to examine whether the waning days of the 'sweatshop' have indeed begun. Focused on the garment and footwear sectors, it introduces a universal logic that governs competition and reshapes the chain. By analysing workers' collective action at various sites of production, it observes how this internal logic plays out for labour who are testing the limits of the social order, stretching it until the seams show. By examining the most valorised parts of underdeveloped sectors, one can see where capital is going and how it is getting there. These findings contribute to ongoing efforts to establish workers' rights in sectors plagued by poverty and powerlessness, building fires and collapses. With this change and a capable labour movement, there's hope yet that workers may close the gap."

"The World Health Organization declared COVID-19 a global pandemic on the 11th of March 2020, but the world is still reeling from its aftermath. Originating from China, cases quickly spread across the globe, prompting the implementation of stringent measures by world governments in efforts to isolate cases and limit the transmission rate of the virus. These measures have however shattered the core sustaining pillars of the modern world economies as global trade and cooperation succumbed to nationalist focus and competition for scarce supplies. Against this backdrop, this paper presents a critical review of the catalogue of negative and positive impacts of the pandemic and proffers perspectives on how it can be leveraged to steer towards a better, more resilient low-carbon economy. The paper diagnosed the danger of relying on pandemic-driven benefits to achieving sustainable development goals and emphasizes a need for a decisive, fundamental structural change to the dynamics of how we live. It argues for a rethink of the present global economic growth model, shaped by a linear economy system and sustained by profiteering and energy-gulping manufacturing processes, in favour of a more sustainable model recalibrated on circular economy (CE) framework. Building on evidence in support of CE as a vehicle for balancing the complex equation of accomplishing profit with minimal environmental harms, the paper outlines concrete sector-specific recommendations on CE-related solutions as a catalyst for the global economic growth and development in a resilient post-COVID-19 world."

"The COVID-19 pandemic has caused a dramatic shortage in the medical supplies needed to treat the virus due to a massive surge in demand as the disease circled the globe during the first half of 2020. Prior to the crisis, there was an interdependence of trade and production for medical supplies, with advanced industrial countries like the United States and Germany specializing in the relatively high-tech medical devices sector, while low-cost production hubs such as China and Malaysia were leading producers of less technologically sophisticated personal protective equipment (PPE) products such as face masks, surgical gloves, and medical gowns. After the COVID-19 outbreak, global shortages of PPE products emerged as many affected countries imposed export controls and sought ways to boost domestic output. A case study of the face mask value chain in the United States shows misalignments between the priorities of U.S. federal government officials and the strategies of leading U.S. multinational producers of face masks, which resulted in exceptionally costly policy delays in terms of health outcomes. On balance, the U.S. shortage of N95 respirators during the COVID-19 pandemic is more a policy failure than a market failure. The global value chain framework highlights strategic options that could lead to more resilient supply chains and diversified sourcing patterns."

"he challenges for work health and safety (WHS) posed by global supply chains (GSCs) are well known. In a comprehensive review of the literature on the effectiveness of private and public regulatory measures upon relations within and around these chains, this article explores ways to improve prevention practices and their outcomes for WHS. It concludes there are a range of regulatory approaches utilised to achieve improvements but to be effective they require politically supported interventions and better orchestration at global and national levels. Whether, as recent literature suggests, the 2022 amendment adding WHS to the International Labour Organization's Declaration of Fundamental Principles and Rights is able to serve as a catalyst for this remains to be seen. Without such support and the political will to drive interventions, however, the analysis suggests that the current operational weaknesses of regulatory approaches to supporting WHS in GSCs are unlikely to be remedied."

"After the endorsement of the United Nations Guiding Principles on Business and Human Rights (UNGPs) by the Human Rights Council on 16 June 2011, 15 March 2024 marked another milestone for transnational corporate governance. That day, a qualified majority of the member states of the European Union (EU) voted in favour of the Directive on Corporate Sustainability Due Diligence (CSDDD) setting human rights and environmental obligations for large companies in their global value chains.1 The CSDDD is the first region-wide due diligence legislation, yet it is also a political compromise among EU member states, which civil society and business have been watching closely. This piece explains the main elements of the CSDDD and outlines some of its implications beyond the EU."

"While global supply chains have recently gained attention in the context of the Covid-related crisis as well as the war in Ukraine, their role in transmitting and amplifying climate-related physical risks across countries has received surprisingly little attention. To address this shortcoming, this paper for the first time combines country-level GDP losses due to climate-related physical risks with a global Input-Output model. More specifically, climate-related GDP-at-risk data are used to quantify the potential direct impact of physical risks on GDP at the country or regional level. This direct impact on GDP is then used to shock a global Input-Output (IO) model so that the propagation of the initial shock to country-sectors around the world becomes observable. The findings suggest that direct GDP loss estimates can severely underestimate the ultimate impact of physical risk because trade can lead to losses that are up to 30 times higher in the EA than what looking at the direct impacts would suggest. However, trade can also mitigate losses if substitutability across country-sectors is possible. Future research should (i) develop more granular, holistic, and forward-looking global physical risk data and (ii) examine more closely the role of both partially substitutable outputs, and critical outputs that are less substitutable or not substitutable at all, such as in the food sector."

"Supply chains are being reshaped by digital and green transitions and geopolitical shifts. This evolving landscape necessitates rethinking the trade-labour relationship to improve labour standards and foster inclusivity.

This white paper, part of the Trade and Labour programme jointly run by the World Economic Forum and the Thinking Ahead on Societal Change (TASC) Platform at Geneva Graduate Institute and funded by the Laudes Foundation, combines extensive desk research and over 50 stakeholder interviews, to examine the trade-labour nexus. It highlights progress and ongoing challenges and emphasizes the critical role of policy tools like multilateral instruments, regional trade agreements and corporate due diligence frameworks in enhancing labour outcomes.

As globalization continues to influence job creation and working conditions, this paper stresses the need for fair benefit distribution and social justice. It calls for stronger collaboration between trade and labour communities to harness trade's potential in creating better labour outcomes amid a rapidly changing global landscape."

"Global value chains (GVCs) connect consumers in the Global North with producers in the Global South. Many of these value chains are coordinated by multinational enterprises (MNEs), which act as lead firms. Weak regulations in sourcing countries and suppliers' negligence of human rights and environmental standards have led MNEs to increasingly govern the sustainability performance of their suppliers. This has largely occurred through the codification of social standards, which have been formulated by global brands or multiple stakeholders and imposed on suppliers, and their compliance has been monitored through regular factory audits. ..."