Integrating Poverty and Environmental Concerns into Value-Chain Analysis: A Conceptual Framework

Abstract

Many policy prescriptions emphasise poverty reduction through closer integration of poor people or areas with global markets. Global value chain (GVC) studies reveal how firms and farms in developing countries are upgraded by being integrated in global markets, but few explicitly document the impact on poverty, gender and the environment, or conversely, how value chain restructuring is in turn mediated by local history, social relations and environmental factors. This article develops a conceptual framework that can help overcome the shortcomings in ‘standalone’ value-chain, livelihood and environmental analyses by integrating the ‘vertical’ and ‘horizontal’ aspects of value chains that together affect poverty and sustainability.