COVID Disruptions to the Apparel Supply Chain: Focus on Bangladesh

As part of the DUCIGS/Rethinking Diplomacy series on COVID-19 and global supply chain, this session will focus on how disruptions to the apparel supply chain are affecting clothing manufacturers and the garment workers they employ. The focus of the talk will be Bangladesh, one of the world’s largest apparel exporters, and, since the Rana Plaza collapse of 2012, the site of far-reaching reforms designed to improve worker health and safety. Jennifer Bair will discuss developments since Rana Plaza, and the status of the industry on the eve of the COVID crisis. Mark Anner will present findings from a survey of manufacturers on the extent of supply chain disruptions, as well as efforts to secure some protection for suppliers and workers negatively affected by declining demand from global brands and retailers. Gary Gereffi will moderate the discussion.

This event is open to the public but registration is required. Please register at: https://bit.ly/2Xj0LI7
Date/Time: June 2, 2020: 12:30-1:45 PM EST

Pakistan in the Apparel Global Value Chain

This Duke GVCC study on Pakistan’s apparel industry was sponsored by the World Bank in order to understand potential upgrading strategies to enhance the country’s competitiveness in the GVC. It begins by providing an overview of the apparel GVC to present a clear understanding of the scope of the industry, how markets are structured and how changing distribution of demand and supply destinations and lead firm organization alter structural dynamics in the chain. It then analyzes the industry within Pakistan, first detailing the country’s position in the chain by looking at its firm profile, backward linkages, product profile and end markets. The internal organization of the industry is then outlined as well as recent examples of upgrading and the factors that influence the labor environment. After assessing the country’s advantages and constraints, it provides short case studies on Vietnam and Sri Lanka’s experiences in the industry. The report concludes with potential upgrading strategies for the Pakistan in the industry.

Central America in Manufacturing Global Value Chains (GVCs)

This research uses the global value chain (GVC) framework to analyze Central America’s participation in global manufacturing value chains, to understand the region’s competitiveness drivers and to evaluate potential risks to continued participation if US trade policies were to change. Central America’s entry into manufacturing GVCs has been through the insertion in various chains including apparel, wire harnesses (automotive) and medical devices. These sectors span low-, medium-, and high-tech manufacturing. They are important contributors to the region’s export basket, and the US is central to their trade. To understand how the region operates in these manufacturing sectors, this report analyzes the participation of select countries in each of the three value chains: apparel (El Salvador, Guatemala, Honduras, and Nicaragua), wire harnesses (Honduras and Nicaragua) and medical devices (Costa Rica and Dominican Republic).

Apparel

The apparel global value chain (GVC) has been one of the hallmark cases of globalization, since the establishment of the Multifibre Arrangement (MFA) in the early 1970s through the phase-out of the MFA in 2005. The MFA quota system sparked the spread of global production in apparel to every corner of the globe.

Duke GVC Center researchers have tracked global apparel trends in multiple projects, publications and websites. The apparel industry is analyzed in the North Carolina in the Global Economy website, and it is also one of the four industries covered in a Duke GVC Center report on Skills for Upgrading: Workforce Development and GVCs in Developing Countries. Gary Gereffi and Stacey Frederick have published several articles on apparel GVCs, including a chapter in the World Bank book by Cattaneo, Gereffi and Staritz (eds.), Global Value Chains in a Postcrisis World: A Development Perspective (2010), and Frederick has collaborated with Cornelia Staritz in developing a series of detailed country case studies for another World Bank book by Lopez—Acevedo and Robertson (eds.), Sewing Success? Employment, Wages and Poverty Following the End of the Multi-fibre Arrangement (2012).

Vietnam at a Crossroads – Engaging in the Next Generation of Global Value Chains

Vietnam has emerged as an Asian manufacturing powerhouse, carving out a role for itself within global value chains (GVCs). In this World Bank Group publication, readers will gain a strong understanding of Vietnam’s current and potential engagement with GVCs and will learn about strategic policy tools that can help developing countries achieve economic prosperity in the context of compressed development. Its findings will be of particular interest to policy makers, development practitioners, and academics. Duke researcher Stacey Frederick authored chapter 7 of this publication. The chapter covers Vietnam’s textile and apparel industry and trade networks.

Stitches to Riches?: Apparel Employment, Trade, and Economic Development in South Asia

CGGC’s Stacey Frederick authored chapters 2 and 5 in this World Bank book on the apparel industry. The book is motivated by South Asia’s need to create more and better jobs for a growing population; it investigates the region\’s potential for expanding and improving jobs in the labor-intensive apparel sector. It estimates the effects of rising wages in China on apparel exports, employment, and wages in South Asia, and provides policy recommendations to leverage the sector for greater job creation.

Peru in the High Quality Cotton Textile and Apparel Global Value Chain: Opportunities for Upgrading in Peru

Bahrain’s Position in the Global Apparel Value Chain: How the U.S.-Bahrain FTA and TPLs Shape Future Development Options

This report analyzes the situation and potential future outcomes of Bahrain’s apparel industry in light of the upcoming TPL expiration in July 2016.

Pro-Poor Development and Power Asymmetries in Global Value Chains

This report presents the asymmetric power relations in global value chains. It examines the limits of private governance and its development implications for local firms and producers in developing countries by drawing on the cases of apparel, cocoa-chocolate, and sugar-‘soft drink’ global value chains.

Regional trade agreements and export competitiveness: the uncertain path of Nicaragua’s apparel exports under CAFTA

The Central American Free Trade Agreement (CAFTA) has been a mixed blessing for economic development. While exports to the US economy have increased, dependency may hinder economic growth if countries do not diversify or upgrade before temporary provisions expire. This article evaluates the impact of the temporary Tariff Preference Levels (TPLs) granted to Nicaragua under CAFTA and the consequences of TPL expiration. Using trade statistics, country- and firm-level data from Nicaragua’s National Free Zones Commission (CNZF) and data from field research, we estimate Nicaragua’s apparel sector will contract as much as 30–40% after TPLs expire. Our analysis underscores how rules of origin and firm nationality affect where and how companies do business, and in so doing, often constrain sustainable export growth.