The Political Economy of Social Upgrading

Based on a Marxist reworking of the global value chains (GVC) framework, supplemented by insights from structuralist development economics and dependency theory, the thesis investigates what role evolving class relations play in processes of social and economic upgrading in global garment value chains. Situating workers’ agency at the intersection of a horizontal axis (local capital-labor-state relations) and a vertical axis (governance and distributional dynamics of the GVC), the thesis starts out by examining the key features of the 21st century garment GVC and their implications for producer countries. It is shown how a series of interrelated processes, including the transition to neoliberalism in the North, and the phase-out of quotas in the South, combined to produce a “supplier squeeze” in the garment GVC, with a simultaneous depression of export prices and an escalation of non-price requirements. Drawing on the work of the dependentista Marini, it is argued that these distributional dynamics amount to a form of unequal exchange that incentivizes manufacturers to super-exploit workers, pushing their wages below reproduction costs and/or working them beyond exhaustion.