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| How can cross-border networks of production and technology promote decent work, growth anddevelopment? |
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Economic activity is not only global in scope, it is also global in organization. Rapid technological advancement and the lowering of barriers to trade and capital flows have given rise to global networks of production and technology. These networks are now a major feature of globalization. The presence and influence of multinational enterprises, the main drivers of these global networks, has also grown in recent years.
For many countries and enterprises, global production networks provide an entry point for participation in global markets. Depending on initial conditions, they offer opportunities for employment, technology and skills transfers, and productivity improvements. However the projection of national systems of production across borders through foreign direct investment (FDI), subcontracting and international sourcing has also led to changes in the employment relationship, and in some instances more precarious forms of employment. There is also growing concern that countries are entering into regulatory competition to attract FDI.
A fundamental issue is how can countries, in particular developing countries, realize the potential benefits from participation in global production networks, in terms of development, industrial upgrading and (decent) jobs? Is the mobility of capital (FDI) and participation of countries in these networks placing downward pressure on labour standards and eroding industrial relations? Or is it, on the contrary, a force for national development? What are the potential policy responses? What are the responsibilities of different public and private actors?
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