World Development Report 2020: Trading for Development in the Age of Global Value Chains by The World Bank

Author:The World Bank
Language: eng
Format: epub

Relational GVCs and production techniques

Environmental concerns associated with globalization may be alleviated in the age of GVCs. Because lead firms have a brand name to protect, they pay attention to how their supply chains function in terms of social and environmental standards. Typically, the lead firms in GVCs are well known, and so their behavior can be easily monitored. Some firms actively promote standards along the value chain, including by assessing the monetary value of better social and environmental standards in their balance sheets. Consumers are demanding more sustainable products, and so producing such products can have positive economic returns from either cost savings, risk mitigation, or product recognition.34

Recent studies provide empirical evidence that stricter regulation can enhance business performance.35 At the country-industry level, higher compliance with social and environmental standards is correlated with economic upgrading.36 An example of how higher standards help save the water and energy of supplying firms is described in box 5.3. As in other successful cases, the example described in box 5.3 involves a joint effort of private and public stakeholders.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.