Understanding the development implications of agri-food standards and global value chains is crucial, as they are a fundamental component of developing countries’ growth potential and could increase rural incomes and reduce poverty, but at the same time they present serious challenges and could lead to further marginalization of the poor. This chapter reviews some of the implications of the spread of stringent standards associated with global value chains for developing countries and global poverty reduction. The chapter focuses on five aspects: the interaction between standards and value chain governance; the effects on agricultural productivity and smallholder welfare; farm-level and institutional spillovers; labor market and gender effects; and the interaction between liberalization policies and value chains.
Global Value Chains : Linking Local Producers from Developing Countries to International Markets