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.Globalisation, Poverty, Unequalisation, Income Distribution, Value Chain Analysis,
As firms struggle to cope with an increasingly turbulent and uncertain environment there is widespread recognition of the importance of organisational learning. One option here is to look at the potential of shared learning between firms, where common interests and interdependence provide motivation for experience-sharing and other forms of synergy in learning. A particular version of inter-firm learning is the use of supply chains as a mechanism for upgrading and transferring 'best practice' and this paper reports on exploratory research on this theme. It draws on a literature survey and a detailed study of six supply chains at various stages of implementing supply chain learning.
In recent years globalisation has been associated with growing inequality both among countries and inside their borders as well as with increasing number of people living in poverty. Among those participating in globalisational processes losers can also be found. The article discusses ways to provide under such conditions stable income growth of poor people and poor countries. It is essential to determine means of design and production of goods including internal company structure and relations among companies as well as possibilities of interaction of poor producers and poor countries with producers and consumers in the world economy. Value chain analysis covering the complete cycle of economic activity – from producing the product to its consuming and recycling – is an adequate instrument for assessing the effectiveness of private and public enterprises. Moreover, it helps to deeper understand the political tasks which arise before private and public sectors. Basic theories of value chain concept are considered in the article and specific examples of its implementation are given.
The past two decades have been characterised by an increasing uncoupling of economic growth and social and economic development. Outside of China, the numbers living in absolute poverty have remained stubbornly large; in Africa, they have increased substantially. Although this uncoupling has multiple sources, the trajectory of innovation (large in scale, capital intensive in nature and destructive of the environment) has contributed to these outcomes. Reorienting towards a more 'inclusive innovation' path has an important role to play in overcoming exclusion. However, we have only a weak understanding of the definition, nature and dynamics of inclusive innovation and this paper seeks to fill this conceptual gap. It argues that inclusive innovation needs to be understood and developed in the context of a holistic conception of the innovation cycle, the distinction between process and product innovation and the roles played by the poor as both producers and consumer. It further charts the growing interest of private sector actors in inclusive innovation (including, but not confined to TNCs seeking the "fortune at the bottom of the pyramid") and large global funds working in tandem with the private sector and governments. Consideration is also given to the role which growth trajectories play in determining the direction of innovation and in promoting linkages between the globally absolute poor (incomes below $1pd) and those with discretionary cash incomes living in the margins above $1pd. The paper concludes with a call for a more holistic and balanced approach to inclusive innovation to be adopted by a range of stakeholders so that resources are deployed most effectively to aid the recoupling of growth and development.
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