ECONOMIC AND SOCIAL UPGRADING OF DEVELOPING COUNTRIES IN GLOBAL VALUE CHAINS

Abstract

The issue of overexploitation in developing countries in the era of Global value chains (GVC ) is directly related to the question of the relationship between the economic and social upgrading of countries in GVC. The relevance of this topic is due to its  narrow representation in the scientific field, as well as the persistence of a low standard of labor force’s living in developing countries, despite the growth in labor productivity and the transition to the production of goods with higher added value. This article examines the problems faced by low-and medium-skilled workers in developing countries, including extremely low wages, social insecurity, and gender inequality. Often the reason for the preservation of this situation is the low price of goods, which is set by the purchasing  companies  that  govern  the  GVC.  International  organizations  and  the  media systematically  attract  public  attention  to  this  problem,  which  has  led  to  the  establishment  of control  over  working  conditions  by  the  parent  companies  of  the  GVC.  However,  in  many industries, the workers’ situation is still unsatisfactory, which indicates that the measures taken in this direction are insufficient. According to the author, significant improvement of working conditions  is difficult without the  participation of industry and  inter-industry trade unions  of employees.