DEVELOPMENT DEBATES AND ISSUES
DVA4801
ASSIGNMENT 6
DISCUSS THE VALUE CHAIN ANALYSIS AND THE IMPACT OF THE GLOBAL
FOOD INDUSTRY ON THE DEVELOPMENT OF THE GLOBAL SOUTH.
INTRODUCTION
Value Chain Analysis is a tool used in the process of achieving collaborative
allocation and management of resources within and between enterprises in the
chain, the purpose of which is to improve the competitiveness of the chain as a
whole. Basically, Value Chain Analysis identifies what consumers’ value and will pay
for in a product or service (i.e., its value attributes) and where that value is created or
destroyed in the chain. It includes two basic analytical processes, i.e. process
improvement for existing products/services within and between enterprises in the
chain; they can be thought of as inputs or "how we do things"; and improving existing
or developing new (value-added) propositions for customers and target consumers;
these can be thought of as outputs or 'things we do'. Value chain analysis examines
the various dimensions behind any significant factors in the chain's external
environment, such as marketing, biophysical, economic, socio-economic or cultural
and institutional influences on the chain's structure, behavior and processes. It
highlights where these influences may need to be explored more deeply through
discipline-based research. Value Chain Analysis (VCA) is a research method. In
agri-food applications, its purpose is to identify opportunities to improve the
performance of business chains that produce food and deliver it to consumers. VCA
can be considered an overarching method because it involves the application of
individual research methods drawn from different disciplines, for example marketing,
economics, physical sciences and sociology.
Global value chains
The global economy is increasingly structured around Global Value Chains. The
evolution of global value chains has a significant impact on global trade, production
, and employment, and on how firms, producers and workers from developing
countries integrate into the global economy. This is especially true in industries such
as commodities, apparel, electronics, tourism, and business service outsourcing.
Global value chains connect firms, workers and consumers around the world and
often provide a stepping stone for firms and workers in developing countries to
participate in the global economy. For many countries, especially low-income
countries, the ability to effectively engage in global value chains is a critical condition
for development (Bammann, 2019). This presupposes the ability to access global
value chains to compete successfully and “capture the gains” in terms of national
economic development, capacity building and the creation of more and better jobs to
reduce unemployment and poverty. So it's not just about whether to join the global
economy, but how to do it profitably.
The global value chain framework provides an understanding of how global
industries are organized by examining the structure and dynamics of the various
actors involved in a given industry. In the highly complex industrial interactions of
today's globalized economy, the global value chain methodology is a useful tool to
trace the changing patterns of global production, to link geographically dispersed
activities and actors within a single industry, and to determine the roles they play in
developing countries. The global value chain framework focuses on the sequences
of value-added activities within an industry, from conception to production, end-use
and beyond. It examines job descriptions, technologies, standards, regulations,
products, processes, and markets in specific industries and locations, providing a
holistic top-down and bottom-up view of global industries (Fearne, Martinez, & Dent,
2012).
The comprehensive nature of the GVC framework allows policy makers to answer
questions about development issues that have not been addressed by previous
paradigms. Furthermore, it provides a means of explaining the changed global-local
dynamics that have emerged over the last 20 years. As policymakers and
researchers alike have come to understand the pros and cons of the spread of
globalization, the framework has gained importance in addressing the new industrial
reality. This includes topics such as the role of emerging economies such as China,
India and Brazil as new drivers of global value chains, the importance of international
DVA4801
ASSIGNMENT 6
DISCUSS THE VALUE CHAIN ANALYSIS AND THE IMPACT OF THE GLOBAL
FOOD INDUSTRY ON THE DEVELOPMENT OF THE GLOBAL SOUTH.
INTRODUCTION
Value Chain Analysis is a tool used in the process of achieving collaborative
allocation and management of resources within and between enterprises in the
chain, the purpose of which is to improve the competitiveness of the chain as a
whole. Basically, Value Chain Analysis identifies what consumers’ value and will pay
for in a product or service (i.e., its value attributes) and where that value is created or
destroyed in the chain. It includes two basic analytical processes, i.e. process
improvement for existing products/services within and between enterprises in the
chain; they can be thought of as inputs or "how we do things"; and improving existing
or developing new (value-added) propositions for customers and target consumers;
these can be thought of as outputs or 'things we do'. Value chain analysis examines
the various dimensions behind any significant factors in the chain's external
environment, such as marketing, biophysical, economic, socio-economic or cultural
and institutional influences on the chain's structure, behavior and processes. It
highlights where these influences may need to be explored more deeply through
discipline-based research. Value Chain Analysis (VCA) is a research method. In
agri-food applications, its purpose is to identify opportunities to improve the
performance of business chains that produce food and deliver it to consumers. VCA
can be considered an overarching method because it involves the application of
individual research methods drawn from different disciplines, for example marketing,
economics, physical sciences and sociology.
Global value chains
The global economy is increasingly structured around Global Value Chains. The
evolution of global value chains has a significant impact on global trade, production
, and employment, and on how firms, producers and workers from developing
countries integrate into the global economy. This is especially true in industries such
as commodities, apparel, electronics, tourism, and business service outsourcing.
Global value chains connect firms, workers and consumers around the world and
often provide a stepping stone for firms and workers in developing countries to
participate in the global economy. For many countries, especially low-income
countries, the ability to effectively engage in global value chains is a critical condition
for development (Bammann, 2019). This presupposes the ability to access global
value chains to compete successfully and “capture the gains” in terms of national
economic development, capacity building and the creation of more and better jobs to
reduce unemployment and poverty. So it's not just about whether to join the global
economy, but how to do it profitably.
The global value chain framework provides an understanding of how global
industries are organized by examining the structure and dynamics of the various
actors involved in a given industry. In the highly complex industrial interactions of
today's globalized economy, the global value chain methodology is a useful tool to
trace the changing patterns of global production, to link geographically dispersed
activities and actors within a single industry, and to determine the roles they play in
developing countries. The global value chain framework focuses on the sequences
of value-added activities within an industry, from conception to production, end-use
and beyond. It examines job descriptions, technologies, standards, regulations,
products, processes, and markets in specific industries and locations, providing a
holistic top-down and bottom-up view of global industries (Fearne, Martinez, & Dent,
2012).
The comprehensive nature of the GVC framework allows policy makers to answer
questions about development issues that have not been addressed by previous
paradigms. Furthermore, it provides a means of explaining the changed global-local
dynamics that have emerged over the last 20 years. As policymakers and
researchers alike have come to understand the pros and cons of the spread of
globalization, the framework has gained importance in addressing the new industrial
reality. This includes topics such as the role of emerging economies such as China,
India and Brazil as new drivers of global value chains, the importance of international
