Economic, Legal and Political Perspectives
Leuven Global Governance series
Edited by Axel Marx, Miet Maertens, Johan Swinnen and Jan Wouters
Chapter 7: Globalization, Private Standards and Poverty: Evidence from Senegal
Liesbeth Colen, Miet Maertens and Johan Swinnen 1. INTRODUCTION The integration of developing countries in global trade and foreign investments in developing economies have been advocated as important engines for growth and poverty reduction (Dollar and Kraay, 2004; Irwin and Tervio, 2002; Klein et al., 2001). In particular, the enhancement of trade and investment in high-value agri-food supply chains is argued to beneﬁt the poor because of the high surplus created, the direct link the sector has with the rural economy (where poverty rates are often much higher than in urban areas), and because of the intensive use of unskilled labor in the sector (Aksoy and Beghin, 2005; Anderson and Martin, 2005; Carter et al., 1996; World Bank, 2008). The globalization of high-value supply chains and the integration of developing countries in global trade have been accompanied by the increasing importance of public and private standards concerning food safety and food quality. These have largely shaped the structure of today’s global supply chains and have important implications for the diﬀerent actors in the chain (Swinnen, 2007). The EU imposes a number of requirements regarding food safety and quality and, in addition, a large number of private standards have become important in global agri-food trade (Jaﬀee and Henson, 2005). Modern retail chains and multinational processing companies play an important role in the development of these standards and in the organization of modern high-value supply chains. Some papers claim that these changes are detrimental to global poverty reduction (Farina...
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