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

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.