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Global Value Chains

Global Value Chains: Linking Local Producers from Developing Countries to International Markets

Meine Pieter van Dijk
Jacques Trienekens
Series: EADI
Copyright Date: 2012
Pages: 280
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  • Book Info
    Global Value Chains
    Book Description:

    This important volume presents seven case studies of global value chains alongside two theoretical chapters concerning these chains. The contributors explore a wide range of issues relevant to value chains: the impact of global value chains on local upgrading strategies, the role of governance structures shaping global value chains, the role of buyers in creating, monitoring and enforcing commodity specifications and of international standards in shaping the patterns of chain governance. They also consider the role of donors, governmental organisations, and civil society in influencing value chains and the importance of partnerships as mechanisms for value chain upgrading. This carefully researched work is essential reading to scholars and students of the rapidly changing global economic order. This title is available in the OAPEN Library -

    eISBN: 978-90-485-1499-1
    Subjects: Economics

Table of Contents

  1. Front Matter
    (pp. 1-4)
  2. Table of Contents
    (pp. 5-6)
  3. I Theoretical Contributions

    • 1 Global Value Chains An Overview of the Issues and Concepts
      (pp. 9-30)
      Meine Pieter van Dijk and Jacques Trienekens

      Global value chains are about linking local producers from developing countries to international markets. They link the raw-material producer and the final consumer. Which organizations are involved in this process and how important are they? According to a Chinese consultant quoted in the Chinese journalChina:“Processing on order will only land a company at the bottom end of the industrial chain”. However, “developing a full range of products under a respected brand puts a producer in a different league from traditional manufacturers” (October 2010: 29). This is “trying to climb the value chain” or “progression up the economic value...

    • 2 The Bottom of the Pyramid (BOP) and the Private Sector A Value Chain Research Approach
      (pp. 31-42)
      Diederik P. de Boer, Victor L. van der Linden and Ronald S.J. Tuninga

      The global debate on poverty alleviation is increasingly framed in terms of enabling economic opportunities for the poor, in order to create sustainable economic growth in developing countries (World Resources Institute, 2007). Perhaps the most significant consequence of this shift is the increasing conviction that the private sector should be engaged in the challenge to create economic growth in developing countries. Economic and political developments, in particular, globalization and the increased influence of markets and private investments worldwide, have added to the belief that mobilizing existing private sector financial and intellectual resources is vital in order to achieve sustainable development,...

    • 3 Value Chains in Developing Countries A Framework for Analysis
      (pp. 43-68)
      Jacques H. Trienekens

      Chapters 1 and 2 of this book defined key issues for policy and research on developing-country value chains. Globalization and expanding international markets as well as the fast growing middle-and high-income class in many developing countries offer opportunities for developing-country producers to operate in emerging regional, national and international markets. However, important barriers for these producers are the lack of an enabling environment offering institutional and infrastructural support, availability of resources and efficient and effective coordination in value chains. In particular small-scale producers in developing countries are in a disadvantageous position because they have little capital to invest, use traditional...

  4. II Local Agricultural Value Chains

    • 4 Beer multinationals Supporting Africa’s Development? How Partnerships Include Smallholders into Sorghum-beer Supply Chains
      (pp. 71-88)
      Jeroen van Wijk and Herma Kwakkenbos

      Restrictions on the import of barley malt by the Nigerian government in the 1980s have facilitated an import substitution strategy that is now widely adopted by the African brewing industry. Barley malt is a key resource for beer brewing. Due to the Nigerian import ban, it was discovered that locally produced sorghum could serve as an adequate substitute for barley (Ogun, 1995). At present, all major brewers on the African continent partially substitute imported barley by sorghum and other locally produced crops, because they are cheaper and do not entail currency losses (Lapper, 2010; Wiggens, 2008). The African informal market...

    • 5 Bush-to-energy Value Chains in Namibia Institutional Challenges for Pro-poor Rural Development
      (pp. 89-116)
      Michael Brüntrup and Raoul Herrmann

      Modern bioenergy production has received a lot of attention in recent years.¹ There are different reasons for that. On the one hand, modern bioenergy is believed to play an important role in the transformation of existing fossil-fuel energy systems to reduce global greenhouse gas (GHG) emissions (see WBGU, 2008). Modern energy is further seen as a requirement for social and economic development (World Bank, 2009a). On the other hand, recent strong criticism of bioenergy production, particularly larger-scale liquid biofuels, concerning potential negative environmental and social impacts has shown that bioenergy also brings along substantial challenges (see Cotula et al., 2008)....

  5. III International Agricultural Value Chains

    • 6 Localizing Global Standards Illustrative Examples from Kenya’s Horticulture Sector
      (pp. 119-136)
      Gloria Otieno and Peter Knorringa

      Farmers in developing countries increasingly need to comply with a bewildering array of standards and codes of conduct in order to be able to export. These standards encompass a wide range of quality, health, environmental and ethical concerns, implemented either as mandatory public standards or as voluntary private standards. Standards diverge in terms of compliance requirements and certification practices, and especially private voluntary standards frequently change over time. Until recently, standard setting and certification were primarily seen as technocratic processes to ensure more quality-conscious and sustainable production processes. However, standard setting and certification processes are also an important governance mechanism...

    • 7 Using a Partnership to Achieve Sustainable Development of the Palm Oil Value Chain in Malaysia
      (pp. 137-162)
      Meine Pieter van Dijk

      Partnerships have become important for economic development. At the World Summit on Sustainable Development (WSSD) in Johannesburg in 2002, goals for sustainable development have been set. World leaders concluded that agricultural trade and market dynamics can play a major role in achieving sustainable development and eradicating poverty. In order to profit from trade, however, countries must ensure that their products meet the high quality standards in the field of health, food safety, social standards and environment of developed countries. Food safety and agricultural health standards can impede trade, especially for developing countries, through explicit bans on imports of particular products...

  6. IV Value Chains in the Industrial and Services Sector

    • 8 Global Competition in the Semiconductor Industry A Comparative Study of Malaysian and Chinese Semiconductor Value Chains
      (pp. 165-200)
      Paul Goes and Meine Pieter van Dijk

      Because of lower production costs Asian countries are very attractive to locate electronic assembly activities. Countries, cities and companies try to create sustainable competitive advantages, to achieve sustainable economic growth. Knowledge and the ability to innovate are important to achieve sustainable economic development. Continuous innovation is one of the semiconductor industry’s main characteristics. Semiconductors are components that provide the memory, logic and virtually all other intelligence functions in today’s electronic systems. In this chapter, a comparison between China’s and Malaysia’s semiconductor industry is made. This comparison is chosen because China is showing the highest economic growth figures in the region...

    • 9 Business-community Partnerships The Link for Sustainable Local Development?
      (pp. 201-234)
      Diederik de Boer and Laura Tarimo

      Governments in African countries are struggling on how best to focus on sustainable local economic development. How can communities benefit from investments within their area? What can the government do to promote linkages between the communities and business, and what can the communities themselves do to make effective use of local investments in their region?Partnerships are increasingly being promoted as vehicles for addressing development challenges. It is assumed that partnerships contribute to economic development when they are working towards a set of policies, programs, and activities which initiate and contribute to broader processes (Pfisterer et al., 2009).

      There is need...

  7. V Conclusions:: Upgrading Value Chains in Developing Countries

    • 10 Upgrading of Value Chains in Developing Countries
      (pp. 237-250)
      Jacques H. Trienekens and Meine Pieter van Dijk

      The title of this book is: Linking local producers to international markets by developing global value chains. We have given a number of examples in the previous chapters and emphasized that upgrading value chains in developing countries will increase the benefits these countries derive from being linked to world markets. China is probably the country that has benefited most from globalization, in the sense of increasing its exports and import technologies and currently buying whole companies abroad (Van Dijk, 2006). We started in 1 with a Chinese consultant who indicated that developing countries need to have more control over global...

    • 11 A Learning Case of a Local Value Chain The Banana Subsector in Arusha Municipality and Arumeru District: Producing Banana Beverages
      (pp. 251-272)
      Match Maker Associates Ltd

      This study was conducted in order to develop a real-life case of banana beverages. The case was developed in preparation for the value chain development (VCD) course, which is designed and facilitated by Match Maker Associates Limited (MMA).¹ The banana beverages case was selected due to its great potential for learning, i.e. the application of the methodologies and tools provided in the first week of the VCD course, and because the value chain is only active within the region of Arusha. Hence, it enables course participants to visit the major actors and stakeholders in the chain.

      This case study was...

  8. About the Authors
    (pp. 273-276)
  9. Index
    (pp. 277-279)
  10. Back Matter
    (pp. 280-280)