Economic And Social Upgrading Of Developing Countries In Global Value Chains

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.