Global value chains in a post-Washington Consensus world

By Gary Gereffi. 2014

830 citations recorded by the source corpus.

ABSTRACT Contemporary globalization has been marked by significant shifts in the organization and governance of global industries. In the 1970s and 1980s, one such shift was characterized by the emergence of buyer-driven and producer-driven commodity chains. In the early 2000s, a more differentiated typology of governance structures was introduced, which focused on new types of coordination in global value chains (GVCs). Today the organization of the global economy is entering another phase, with transformations that are reshaping the governance structures of both GVCs and global capitalism at various levels: (1) the end of the Washington Consensus and the rise of contending centers of economic and political power; (2) a combination of geographic consolidation and value chain concentration in the global supply base, which, in some cases, is shifting bargaining power from lead firms in GVCs to large suppliers in developing economies; (3) new patterns of strategic coordination among value chain actors; (4) a shift in the end markets of many GVCs accelerated by the economic crisis of 2008–09, which is redefining regional geographies of investment and trade; and (5) a diffusion of the GVC approach to major international donor agencies, which is prompting a reformulation of established development paradigms.

Subfields: Business and International Management, Plant Science, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/d31e46b448040f3b38f6ad938a6d2aa954db0e05

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Citations in the corpus

Escaping the middle-income technology trap: A comparative analysis of industrial policies in China, Brazil and South Africa (2020, background): “The GVC framework stresses the opportunities for companies to specialise in specific production tasks or components, preferably ‘high-value niches’, while avoiding the building up of entire vertically integrated industrial sectors or blocks of industries (Gereffi, 2013; Milberg and Winkler, 2013).”
The emergence of Southern standards in agricultural value chains: A new trend in sustainability governance? (2015, background): “This shift in focal audience fits recent dynamics that indicate a slight shift in power balances in global value chains from Northern ‘lead’ firms to large supply side actors (Gereffi, 2014), which makes it both possible and attractive to focus on the latter audience in attaining legitimacy.”
Global Value Chains, National Innovation Systems and Economic Development (2018, background): “It was argued that this might provide enterprises in developing countries with opportunities to upgrade technologically and in terms of functions through participating in such networks (Ernst and Kim, 2002; Gereffi and Fernandez-Stark, 2011; Gereffi, 2014).”
From Global Value Chains (GVC) to Innovation Systems for Local Value Chains and Knowledge Creation (2017, positive): “The concept helps in setting a framework to understand how international supply chains link economic activities at the global, regional, national, and local levels within particular industries (Gereffi, 2014).”
Digital Control in Value Chains: Challenges of Connectivity for East African Firms (2018, background): “Global value chains (GVCs) are a key medium through which export-oriented production is operationalized in a globalized world (Gereffi 2014), and GVC literature provides a base for critically exploring how East African producers and services providers integrate into global markets.”
Toward a Dynamic Theory of Global Production Networks (2015, background): “Through interfirm learning and deepening transactional relationships, these suppliers can evolve further to become the strategic partners of global lead firms (Yeung 2007, 2009; Appelbaum 2008; Sturgeon, Humphrey, and Gereffi 2011; Gereffi 2014).”
An integrative typology of global strategy and global value chains: The management and organization of cross‐border activities (2020, background): “Especially after the 2008–2009 financial crisis, when export growth slowed and many of the emerging economies began to turn inward and focus on domestic capabilities, the regionalization of value chains became a more significant trend and there was a weakening of the Washington Consensus development”
Industrial Policy in the 21st Century (2020, background): “…costs, more interconnectedness via ICTs), cost-reduction opportunities associated with offshoring of labour-intensive manufacturing processes, and the increasing openness to trade and investments (Gerefﬁ, 2014, 2018; Milberg and Winkler, 2013; Nolan, 2001; Ponte et al., 2019; Storm, 2015).”
Outsourcing governance: states and the politics of a ‘global value chain world’ (2017, background): “In a remarkably short time period, the concept of GVCs has entered the thinking of practitioners at both national development agencies and international organisations (Milberg and Winkler 2013, Gereffi 2014, Gereffi and Mayer forthcoming).”
Enforcing higher labor standards within developing country value chains: Consequences for MNEs and informal actors in a dual economy (2019, background): “Increased costs in buyer-dominated GVCs are mitigated to some extent because returns at almost every stage of the value chain are determined by the lead firm (Kaplinsky, 2005; Kaplinsky & Morris, 2001; Gereffi, 2014).”
Global value chains, rising power firms and economic and social upgrading (2015, background): “The trend has been intensified by the global recession as GVC lead firms streamlined their supply chains to focus on a smaller number of large, more capable suppliers, which are strategically located near dynamic nodes of GVCs (Gereffi, 2014).”
Do Global Value Chains Enhance Economic Upgrading? A Long View (2020, background): “Onemight even argue that the success of the formal sector in exporting and productivity growth depends crucially on its ability to exploit networks of informal workers (Gereffi, 2014).”