Global value chains, neoliberalism and development practice: Reflections on Kenya's experience

Abstract

Global value chain (GVC)-led development discourse has gained considerable traction in the international development policy debate. Multilateral institutions and donor agencies shape value chain discourse and practice. Through the scholarly literature, this study critically reviews the conceptual underpinnings of value chain theory and its discourse. The study reviews the thematic programmatic application of the US Agency for International Development (USAID) and analyses the application of value chain from a critical social theory perspective in Kenya. Findings demonstrate that the application of value chain theory to Kenya's development practice is unclear with regard to crucial elements of GVC configuration such as the state's role in facilitating development strategies, asymmetrical power relations within value chains and world historical processes affecting upgrading trajectories. This aspect is evident in the value chain-led development interventions of the USAID in Kenya and supports neoliberal development agenda that caters to the business interests of multinational corporations.