REVISIONS Poverty Chains and Global Capitalism -.pdf (717.4 kB)
Poverty chains and global capitalism
The proliferation of global value chains is portrayed in academic and policy circles as representing new development opportunities for firms and regions in the global south. This article tests these claims by examining original material from non-governmental organizations’ reports and secondary sources on the garment and electronics chains in Cambodia and China, respectively. This empirical evidence suggests that these global value chains generate new forms of worker poverty. Based on these findings, the article proposes the novel Global Poverty Chain approach. The article critiques and reformulates principal concepts associated with the Global Value Chain approach – of value-added, rent and chain governance – and challenges a core assumption prevalent within Global Value Chain analysis: that workers’ low wages are a function of their employment in low productivity industries. Instead, it shows that (1) many supplier firms in the global south are as, or more, productive than their equivalents in the global north; (2) often predominantly female workers in these industries are super exploited (paid wages below their subsistence requirements) and (3) chain governance represents a lead firm value-capturing strategy, which intensifies worker exploitation.
History
Publication status
- Published
File Version
- Accepted version
Journal
Competition and ChangeISSN
1024-5294Publisher
Maney PublishingExternal DOI
Issue
1Volume
23Page range
71-97Department affiliated with
- International Development Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2018-09-20First Open Access (FOA) Date
2018-09-20First Compliant Deposit (FCD) Date
2018-09-20Usage metrics
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