I then show the concrete processes of how global north capital, personified in multinational corporations, captures value from the global south by applying systemic rationalization and flexible systems as mechanisms to exert control over their dependent suppliers in laborvalue commodity chains. Globalisation, value chains and development institute of. Producerdriven commodity chains, which dominated during an era of fordist production, are rapidly giving way to buyerdriven commodity chains in which giant retail conglomerates call the shots. The organisation of buyer driven global commodity chains. We expect students to tailor what follows to meet their own needs, expanding in some areas and contracting in others. The purchase and primary use of a commodity is often assumed to be the end point of the production system or commodity chain. Retailers shape overseas production networks, in pp. Global value chains and the rise of the global south. Available formats pdf please select a format to send. Automobile industries are best known as producerdriven chains. Global value chains and development by gary gereffi. From commodity chains to value chains and back again. Us customs services net import file, retailers accounted for 48% of the total value of.
The international competitiveness of asian economies in the. Open international trade has encouraged nations to specialize in different. Steven topik is professor of history at the university of california, irvine. The fresh vegetables trade is now very much a buyerdriven global commodity chain. In commodity chains and global capitalism, edited by gereffi, gary and korzeniewicz. However, previous empirical studies to substantiate gereffis assertion have been highly western centric and predominantly based on the empirical evidence of american retailers and brand name companies. Within the purview of contemporary international development discourse, china, alongside other regional powers are perceived as growth poles or drivers of global development. Characteristics of buyer driven vs producer driven chains. The purpose of the introduction is to provide some basic concepts regarding global commodity chains gccs, and to orient the reader to the scope of the texts treatment of. Learn vocabulary, terms, and more with flashcards, games, and other study tools.
Producerdriven and buyerdriven global commodity chains in global capitalism, economic activity is not only international in scope, it is also global in organization. The organization of producerdriven and buyerdriven global commodity chains. Governance of global value chains in response to food safety. Trade wo fdi retailers, global brands, manufacturers without factories. It is shown that music distribution channels and retail environments. Commodity chain analysis food and agriculture organization. Governance of global value chains in response to food safety and certi. International trade and industrial upgrading in the. This work not only highlighted the importance of coordination. Commodity chains in the capitalist worldeconomy prior to 1800 commodity chains. In this article, we consider the implications of the shifting dynamics of global trade and the greater prominence of southern actors for the conceptualization of global value chains gvcs and global production networks gpns. Producerdriven gvcs tend to have high barriers of entry since many commodity chains require capitaltechnologyintensive production and economies of scale, such as in the automobile and aeronautical industries. It thus has brought to the fore the key role of commodity chains in the relationships of capital, labor, and states.
In contrast, buyerdriven commodity chains are highly competitive and controlled farther down the. This note has been prepared as a complement to the paper global commodity chain. Which theory uses the concept of global commodity chains to describe how manufacturing has become globalized. Pdf the organization of buyerdriven global commodity. Retailers shape overseas production networks, in gereffi, gary and korzeniewicz. Global commodity chains have three main dimensions. However, this framework has been less successful in integrating the influence of digital information and icts in production, and this problematic in a world where relationships and power are increasingly mediated by digital information flows and. Pdf on jan 1, 1994, gary gereffi and others published the organization of buyerdriven global commodity chains. The current restructuring of the worldeconomy under global capitalism has further integrated international trade and production. How us retailers shape overseas production networks. A critical distinction in this approach is between buyer driven and producer driven commodity chains. On the sociology of national development, american. Buyerdriven commodity chains refer to those industries in which large retailers, marketers, and branded manufacturers play the pivotal roles in setting up decentralized production networks in a. Society, culture, and the world economy, 1400 to the present with kenneth pomeranz and trade and gunboats.
Korzeniewicz, in commodity chains and global capitalism, chapter. The case of shrimp from vietnam nhuong tran the worldfish center, penang, malaysia conner bailey and norbert wilson auburn university, usa and michael phillips the worldfish center, penang, malaysia summary. Governance and competitiveness in global value chains. Shifting governance structures in global commodity chains, with special reference to the internet. Globalization and the rise of integrated world society. Commodity chain analysissometimes also known as the global commodity chains gcc approachis a development of the worldsystem perspective. Commodity chains and global capitalism by gary gereffi. In particular, the debate on global commodity chains or, more recently, on global value chains has produced a comprehensive contribution to this conceptual development.
Gvc is similar to industry level value chain but encompasses operations at the global level. Producer and buyerdriven value chains the geography of. Buyerdriven chains tend to be found in industries where large retailers walmart and brandname merchandisers nike play the central role in establishing and controlling the global production systems of their commodities. Praeger, entitled the organization of buyerdriven global commodity chains. This article contends that the cuban experience must be understood as part of a set of larger global processes. Commodity chains and global capitalism, 1994 online. Much of the debate on commodity chains, the focus of this article, is derived initially from wallersteinian world system theory. A key mechanism that explains the policy impact of the gvc approach are the networks created between the policy entrepreneurs inside the international. The organization of buyerdriven global commodity chains.
Oct 31, 2017 a growing body of research points to the rise of the south and the growth of southsouth trade. This paper addresses these and related questions using a global commodity chains framework. Retailers shape overseas production networks chapter pdf available january 1994 with 7,4 reads how we measure reads. Global value chains gvc come in two major categories depending on which actor has the most significant influence. Thus we have a circular, rather than linear structure. Commodity chains, creative destruction and global inequality. Going further, examples of services value chains on their own are provided. Retailers shape overseas production networks find, read and cite all. International trade and industrial upgrading in the apparel. E vii abbreviations ato alternative trade organization c. This article builds on whitleys comparison of the business systems and global commodity chains approaches to the study of economic organization within and across nations and regions. Coffee is a truly global commodity and a major foreign exchange earner in many developing countries.
This paper traces the principal channels and barriers that determine the conditions of access for musical products entering the us music market. Different methodologies have been developed for analysis of commodity chains. During the past decade cuba has become a haven for international sex tourists. The global organization of the clothing industry has been the prime example of buyer. Jackson and colleagues point out that though the agrofood literature has been in. Global commodity chains by gary gereffi, roberto p. Global inequality and change reading list updated by lir wang, august 2012 this list is meant to serve as a starting point. Value chains transforming and distort the globalization debate. Interfirm networks in the global economy global supply chains. This volume develops a new set of conceptual categories for analyzing new patterns of global economic organization. While the literature has long acknowledged worker rights abuses in global apparel supply chains, less attention has been paid to the recent worsening of certain decent work deficits and its causes, which this article links to predatory purchasing. Gereffi 2001 shifting governance structures in global commodity chains, with special reference to the internet, american behavioral scientist, vol.
In such chains, retailers play the key role in governing the chain of activities that link widely dispersed producers to consumers in developed countries. It utilizes a commodity chains framework in order to uncover the links between the local sex tourism industry and these larger international processes. In contrast, buyer driven commodity chains are highly competitive and controlled farther down the. This article argues that the global value chains gvc perspective bridges the firmspecific, privatesector and countrylevel, societal divide that has separated the international business and international economics literatures. Pdf the organization of buyerdriven global commodity chains. A commodity chain refers to the whole range of activities involved in the design, production, and marketing of a product. The purpose of the introduction is to provide some basic concepts regarding global commodity chains gccs, and to orient the reader to the scope. Global value chains and international development policy. Gary gereffis chapter in the 1994 book he edited with miguel korzeniewicz, commodity chains and global capitalism westport, ct.
In development studies, the global value chain gvc describes the people and activities involved in the production of a good or service and its supply, distribution, and postsales activities also known as the supply chain when activities must be coordinated across geographies. Existing methodologies in commodity chain analysis. Gary gereffi, the organization of buyerdriven global commodity chains. Planning meeting of the task force on chinas sustainable development and global markets. The commodity chain analysis or approche filiere commodity chain analysis cca was developed by french research institutions5 as. Global commodity chains an emphasis on the internal governance structure of supply chains.
Pdf a commodity chains framework for analyzing global. Globalization coll 001 pilot core curriculum university of. Some have argued that the more inclusive language of value chains should replace the more specific concept of commodity chain. However, this framework has been less successful in integrating the influence of digital information and icts in production, and this problematic in a world where relationships and power are increasingly. The contributors to this volume explore and elaborate the global commodity chains gccs approach, which reformulates the basic conceptual categories for analyzing new patterns of global organization and change.
Hopkins and immanuel wallerstein the shipbuilding commodity chain, 15901790 by. The global coffee chain has changed dramatically as a result of deregulation. In the context of africas development around which some of the emergent issues have been framed, analyses often proceed along a bilateral framework where the influence of china is isolated and assumed to be neither. How us retailers shape overseas production networks, in gereffi, g. Retailers shape overseas production networks gary gereffi global industrialization is the result of an integrated system of production and trade. Drawing on a three year institutional ethnography of west virginias food banking economy, we analyze the transition from producer to buyer driven supply chains in a network that is dependent on charitable giving and affective labor to process surplus foods and revalue obsolete corporate inventories. Internationalization refers to the geographic spread of. In the early 2000s, the global commodity chains research agenda helped to spawn the closely related global value chain and global production network approaches.
Ver the past two decades, a voluminous literature on international trade and production networks has accumu lated. Reconsidering the role of the digital in global production. Buyerdriven commodity chains refer to those industries in which large retailers, branded marketers, and branded manufacturers play the pivotal roles in setting up decentralized production networks in a variety of exporting countries, typically located in the third world. This has resulted in valuable increases in ffv exports from some regions. The chapters appearing in commodity chains and global capitalism including one by hopkins and wallerstein had been given as papers at the 16th annual conference on the political economy of the worldsystem, which took place at duke university in april, 1992.
Implications for 21st century trade and development of the. Producer driven systems are characterized by high barriers to entry for the inputs of production. Crudely, this period was a watershed between producerdriven and buyerdriven forms of organisation. In reality, many commodity chains are interconnected the end point of one commodity chain may well be the beginning of another. This can be either the producer manufacturer or the buyer. Predatory purchasing practices in global apparel supply. It secured integration into the global supply chains of. Commodity chains are most simply defined as the link between successive processes of manufacturing that result in a final product available for. Global production networks gpns have become a key framework in conceptualizing linkages, power and structure in globalized production. Aug 11, 2016 global production networks gpns have become a key framework in conceptualizing linkages, power and structure in globalized production. Internationalization refers to the geographic spread of economic activities across national boundaries. This cited by count includes citations to the following articles in scholar. Monday, june 11, 2007 global commodity chains global commodity chains this reading is from the introduction to commodity chain and global capitalism, by gary gereffi, miguel korzeniewicz, and roberto p.
A commodity chain is a process used by firms to gather resources, transform them into goods or commodities, and finally, distribute them to consumers. Competitiveness, local production systems and global. The organisation of buyerdriven global commodity chains. Korzeniewicz, and miguel korzeniewicz historical and spatial patterns of commodity chains in the worldsystem. Producerdriven and buyerdriven global commodity chains. A global value chain perspective on industrial policy and. Regulation, markets and consumption in the global coffee chain stefano ponte summary. Lastly they draw out some of the implications of the phenomenon of services value chains for 21st century trade, industry and development.
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