Working Paper No. 25 - The social dimension of global production systems: A review of the issues

Currently globalization has produced global production systems, one of the main drivers behind the worldwide increase in trade and FDI. They promote an economic activity that is more focused on global organization and raise questions on how they can affect the social dimension of globalisation, meaning work, the quality and quantity of employment, income and regulation of labour markets. Global production systems are found in high-tech industries, labour intensive goods, software development, financial services and customer call services sectors. They aim to break production processes into different stages, locate these in different parts of the world, and take advantage of new information and communication technologies. As a review, this paper discusses the emergence of global production systems, their characteristics, and what kind of impact they can have on employment, wages, and working conditions in developed and developing countries. The paper concludes by raising pertinent questions that can guide policy makers when dealing with social issues regarding the effects of global productions systems.

This paper was written as an insight into the work of the World Commission on the Social Dimension of Globalization 2004 that aims to provide a fairer globalization for all.