A case on Global Value (Supermarket) Chains and Small Producers: Governance, Participation, and Strategies

Abstract

Whether or not local producers can gain access to global value chains and at which point is likely to be an important factor in determining whether they will benefit from trade liberalization. Understanding how these chains/networks are organized, controlled and governed is key to understanding how gains from them are shared across the chain participants. This paper analyzes the functioning of these chains with special focus on the implications for small producers in Asia. Besides defining and discussing the various aspects of the value chain framework and its utility for analysis, it also examines the context in which governance of these chains has acquired importance. It profiles the governance mechanisms and the issues involved, with specific focus on chains originating in Asia. The paper concludes by outlining some of the ways through which the participation of the small producers in these chains can be facilitated.