Governance and Upgrading Global Value Chains - Essay Example

Governance” and “upgrading” Global value chains Global value chains (GVC) typically highlight how novel and new patterns of international trade, production, and employment shape the prospects for development and competitiveness. The adoption of the Global value chains mechanism is systematically transforming the entire way of undertaking business worldwide and in the contemporary spheres. The concurrent inclusion of proper governance process and entailed upgrading process allows for the expansion of the model of doing business globally. Governance and upgrading process are highly notable amongst the desirable ingredients for the success of the GVC. The other needed portion or segments for success of the GVC entail well entails an input-output structure, geographical consideration and an institutional context. The essence of the Upgrading is highly relevant with recognition of the significance it places on enhancing dynamic movement inside value chain process by thoroughly examining how producers normally shift between dissimilar stages of the chain process. The upgrading essence highly dwells on the development of the early application of GVC methodology that focuses hugely on the economic or enhancement of the competitiveness issues but due to recent shift in social or environmental lengths has hence been entailed (Bair & Gary, 21). According to (Gary & Karina, 78) , on contrary, entailing of enhanced governance tackles the input problems like labor parameter issues, corresponding workforce progress, the relevant greening of value chains and solving of the interlinked gender issues attached to the successful running of the process. Proper outline of the earlier identified sections are highly relevant but the roles of the governance and upgrading essence are highly and immensely stressed in the process. Failure in upgrade of governance results in major technical errors that obviously results in pathetic loss along the way of sales of the products due to additional storage predicaments of even perishing of the products in case they are vegetables. Consider vegetable to be airlifted to foreign countries but are still held at the air due to quality issues or governance issues (Cattaneo, Olivier, &Cornelia, 90). It automatically leads to great losses along the way despite having a ready market at their destinations. Governance of various firms and entailed companies need a rigorous system to check and counter check the emanating issues in the conventional production era thus avoiding the eminent failure of the system (Gary & Karina, 72). The governance structure like large, medium state-owned or private, or small structures allows for the lubricated process of GVC leadership the channels proper communication process (Dolan, Catherine& John, 76). The roles of governance are highly important for instance when it comes to analysis process and allows an individual to understand and comprehend the model of chain control, coordination process. The governance allows for allocation of various actors and empowers them to works in a much regulated zone (Barrientos et al, 26). The governances structure allows for legitimate participation of various offices and powers divisions and allocation to each sector that determine the model on which financial, various material and involved human resources are coordinated for successful output. While in the earlier and original times the global commodity chains structure, governance mainly entailed a “buyer-driven” and “producer-driven” models currently governance has adopted new measures to raise the levels of the contemporary structures. The inclusion and consideration of the buyer-driven chains underscores the powerful responsibility of large retailers, for instance Wal-Mart or even Tesco. The roles of the governance at this sphere dictates how or the way the chains are usually operated by pushing suppliers to meet definite standards and entailed protocols, disregarding the limited even inability to produce (Dolan, Catherine& John 274). There is a slight a distinct difference on producer-driven chains are typically more perpendicularly integrated down all divisions of the supply chain and it applies extensive leverage on the technological scale. The producer-driven chains governance models also presents a scale advantages as compared to the integrated unit of suppliers. Proper comprehension of the outlined governance and how a supply chain is regulated facilitates firm admission and development surrounded by global industries thus enhancing the management process. The essence of governance has always been analyzed and well marked thus prompting it divisions into various units relevant to distinguishing the entire GVC process. These groups include the markets, captive, modular, relational, and hierarchy that are uniquely applied into various GVC models for successful management scales (Gary & Karina, 70). Upgrading option and role on the GVC allows for its extreme analysis with regards to the global economy from two varying contrasting vantage locations points (Cattaneo, Olivier, &Cornelia, 20). The ranging of the two models from the top down and eve from bottom up is key to expansions and developing of the GVC. Upgrading feature has extensive application and attachment to governance process. Upgrading in large terms refers to the strategies applied by various countries, trading blocks, regions, or even how other economic stakeholders facilitate or maintain and improve their business positions in the entire prevailing global economy. Proper and timely positioning of a country symbolizes or means greater income revenue from the sales process of the concerned countries. The precise upgrading also means increased the benefits which are read in terms or elevated security, capabilities profits and enhanced value-added measures process. Upgrading and dynamism shifts continuously over time and therefore a dynamic perspective is normally entailed in the process of outlining new measures and guidelines in the GVC (Bair & Gary, 21). The outlined upgrading mainly entails a properly linked series of economic responsibilities and roles whose capabilities are highly linked and related to production. Normally, coordinating of intense export activities for instance assembly based or even entailed imported inputs are highly effectual. In conclusion the running of GVC is entirely a process that is embedded on the proper application of recurrent upgrading process and governance issues to penetrate the market effectively and coordinate various organs in the process. While governance offer the structural outline and managerial issues upgrading allows for the enhanced timely elevation of the model of lubricated working of the various portions of the in facilitation of the GVC. Works cited Bair, Jennifer and Gary Gereffi. (2001). "Local Clusters in Global Chains: The Causes and Consequences of Export Dynamism in Torreon’s Blue Jeans Industry." World Development, 29(11, November): 1885-1903. Barrientos, Stephanie, Gary Gereffi and Arianna Rossi. (2010). Economic and Social Upgrading in Global Production Networks: Developing a Framework for Analysis. http://www.capturingthegains.org/pdf/ctg-wp-2010-03.pdf. Business and Innovation Center- Brno. (2009). Firms in the BIC Family. Retrieved anuary 28, 2009 from http://www.bicbrno.cz/content/family.htm. Business Trust- South Africa. (2010). Business Process Outsourcing Sector Support Programme. Retrieved August 25, 2010, from http://www.btrust.org.za/index.php?id=202. Cattaneo, Olivier, Gary Gereffi and Cornelia Staritz. (2010). Global Value Chains in a Postcrisis World: A Development Perspective. Washington, DC: The World Bank. Dolan, Catherine and John Humphrey. (2004). "Changing Governance Patterns in the rade in Fresh Vegetables between Africa and the United Kingdom." Environment and Planning, 36: 491-509. ECLAC. (2008). Foreign Direct Investment in Latin America and the Caribbean. Santiago: Economic Commission for Latin America and the Caribbean. Gary Gereffi & Karina Fernandez-Stark, 2011 Global Value Chain Analysis: A PRIMER Center on Globalization, Governance & Competitiveness (CGGC) Duke University Durham, North Carolina, USA UNCTAD, World Investment Report 2011: Non-Equity Modes of International Production and Development, Chapter 4 (Moodle) Kiriyama, N. (2011), “Trade in Information and Communications Technology and its Contribution to Trade and Innovation”, OECD Trade Policy Working Papers, No. 115, OECD Publishing. http://dx.doi.org/10.1787/5kg9m8cqg4wj-en Read More