Global value chains (GVCs), which have become highly efficient, specialized and interconnected, have in the past few years seen disruptions and become extremely fragile to global risks. The COVID-19 pandemic exposed vulnerabilities of trade and GVCs that have continued to emerge in the context of conflict, climate crisis and the current cost-of-living crisis. This has resulted in both demand and supply shocks that portend an extended period of ‘de-globalization’ and brings into question the basic business model premise of GVCs. The unravelling of GVCs had started even prior to the current crises in response to political, technological (including automation, robotization, and digitalization of the production of goods and services) and structural changes (such as, the shifting geography of global sourcing, and increasing market concentration and supply base consolidation). The COVID-19 pandemic has accelerated the impact of these changes owing to the supply side disruptions and changed consumer preferences, evidenced through the surge in demand for goods through e-commerce marketplace platforms, which is impacting the GVC model. To adapt to these changes, companies are reassessing their sourcing strategies, including multi-sourcing, expanding inventories, nearshoring or proximity sourcing and regionalization, among others. Such transformations and shocks not only affect trade and investment decisions but also have important implications for the world of work, and particularly for small firms and for workers in developing and emerging countries.
Track II invites papers that bring in new perspectives and strategies at the international, national and local levels to ensure decent work for all in global value chains. The track will address the following questions:
What are the implications of ‘de-globalisation’ and GVC restructuring on the geographies of production, industrial development and employment strategies, especially in the developing countries?
What are the distributional impacts on workers, and small and medium-sized enterprises (SMEs) specifically with respect to employment and work quality?
How do technological upgrading and changes related to Industry 4.0 impact employment and work quality in GVCs, including as a result of the rise of e-commerce platforms and reshoring in the developing countries? Will these changes lead to a long-term structural transformation? What are the skills and related policies needed to ensure an inclusive, equitable GVC upgrading?
How do the current crises impact jobs in different tiers of value chains? How are SMEs and different categories of workers, especially those with higher vulnerabilities, affected by the current crises?
Is there a restructuring and rethinking of the GVC model? What shape could it take? Will it lead to a reconfiguration of production processes? What could a potential restructuring of the GVC model mean for its potential to drive inclusive growth and development?
How do current crises impact regulatory and governance frameworks in trade and GVCs, including access to remedy and grievance mechanisms?
Track coordinators: Anne Posthuma, Arianna Rossi, Uma Rani, Praveen Jha, Marva Corley, Anil Verma
