DEPARTMENT FOR BUSINESS, ENERGY & INDUSTRIAL STRATEGY

GCRF Decent Work: Decent Work in Regional Value Chains: Promoting Public-Private Governance in Sub-Saharan Africa

Project disclaimer

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Description

The growth of South-South trade involving Southern lead firms and end markets presents critical challenges for the governance of decent work. However, we have limited information on whether the commercial dynamics of domestic and regional value chains (RVCs) coordinated by Southern lead firms undermine decent work. Or do they provide new channels for promoting labour standards through multi-stakeholder public-private alliances based in the global South? Can governance of RVCs in Southern markets become more ethical leading to labour outcomes that support sustainable development? This study aims to address this critical gap by asking: What are the implications of regional and domestic value chains in the global South for public-private governance and regulation of decent work in global production? This has key policy implications for the potential development of Southern-based multi-stakeholder public-private 'ethical trade platforms' to support Sustainable Development Goal 8 (SDG8) on decent work. The research addresses this question on three fronts. First, empirically it examines South African and Kenyan retailers that coordinate value chains domestically and across the sub-Saharan Africa (SSA) region. African producers have long supplied multi-national companies (MNCs) through global value chains (GVCs). MNCs apply private governance of social standards (codes of labour practice and fair trade) as a result of civil society campaigns to hold them to account for decent work deficits in GVCs. However, commercial pressures on suppliers to reduce costs and meet delivery criteria often undermine social standards. Production can shift to suppliers with weak labour rights and intensify use of precarious workers. Private social standards have been largely ineffective in securing decent work for precarious workers, many of whom are women. There are now calls for public governance (national labour regulation and social clauses in trade agreements) to play a greater role. Increasingly SSA suppliers also sell into RVCs coordinated by South African and some Kenyan retailers. This research focuses on sourcing by South African and Kenyan retailers of horticulture and garments from South Africa, Lesotho and Kenya. It assesses the implications for attaining decent work, especially for precarious female workers. It examines whether the spread of RVCs imply greater commercial challenges for labour, or could provide a channel for enhancing public-private governance of decent work. Second, analytically the research advances global value chain and global production network (GPN) approaches to governance combined with gender analysis of decent work for precarious labour. It adapts polycentric analysis of public and private governance of RVCs to incorporate 'joint and several' accountability for decent work. This extends beyond direct employers, involving wider commercial actors that can influence working conditions, including buyers, suppliers and labour contractors across different value chain tiers. It provides an analytical framework for examining governance of decent work in RVCs that overlap with GVCs. This has important implications for analysis of how linkages between public and private governance can be enhanced to support attainment of SDG8. Third, policy wise the research combines an inter-disciplinary team working in close collaboration with the UK Ethical Trading Initiative (ETI). ETI has strong connections in sub-Saharan Africa through its company, NGO and trade union members, and with MSIs in South African and Kenya. We aim to provide a research informed contribution to examining how Southern-based multi-stakeholder alliances involving government, commercial and civil society actors could be tailored to South African and Kenyan RVCs. The research will inform ETI's 2020 vision of promoting new 'ethical trade platforms' in Africa as a new model of sustainable development in support of SDG8 on decent work

Objectives

The Global Challenges Research Fund (GCRF) supports cutting-edge research to address challenges faced by developing countries. The fund addresses the UN sustainable development goals. It aims to maximise the impact of research and innovation to improve lives and opportunity in the developing world.

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Location

The country, countries or regions that benefit from this Programme.

Kenya, Lesotho, South Africa

Disclaimer: Country borders do not necessarily reflect the UK Government's official position.