Globalisation and Unequalisation: What Can Be Learned from Value Chain Analysis?

TLDR

Globalisation has lifted many, yet a large share remains in absolute poverty and inequality is rising within and between countries, raising the question of how to participate sustainably and equitably. The study aims to use value chain analysis to chart the growing disjuncture between global economic activity and income distribution and to explain its causes. The authors employ value chain analysis to map global economic activity against income distribution, identifying causal links. This approach yields insights that inform policy formulation and implementation. Keywords: Globalisation, Poverty, Unequalisation, Income Distribution, Value Chain Analysis.

Abstract

Abstract Although many have gained from the process of globalisation, there remains a stubbornly large number of people living in absolute poverty and a rise in inequality within and between countries. The issue is thus not whether to participate in the global economy but how to do so in a manner which provides for sustainable and equitable income growth. This study shows how value chain analysis can be used to chart the growing disjuncture between global economic activity and global income distribution and to provide causal explanations for this outcome. In so doing, value chain analysis provides valuable insights into policy formulation and implementation. Keywords: GlobalisationPovertyUnequalisationIncome DistributionValue Chain Analysis