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2011-11-11 CGGC-RTI Skills for Upgrading Volume SKILLS FOR UPGRADING: Workforce Development and Global Value Chains in Developing Countries NOVEMBER 2011 Gary Gereffi Karina Fernandez-Stark Phil Psilos Skills for Upgrading: Workforce Development and Global Value Chains in Developing Countries “Skills for Upgrading: Workforce Development and Global Value Chains in Developing Countries” This research project examines workforce development strategies in developing countries in the context of the shifting upgrading dynamics of global value chains. Funded by RTI International and carried out by Duke CGGC, this research addresses policymakers, donors and development practitioners to improve our understanding of how workforce development strategies can enhance the upgrading efforts and competitiveness of developing countries in global industries. Acknowledgements We would like to thank all of our co-authors, collaborating researchers, support staff, interviewees and reviewers, who gave generously of their time and expertise. None of the opinions or comments expressed in this study are endorsed by the companies mentioned or individuals interviewed. Errors of fact or interpretation remain exclusively with the authors. The authors can be contacted at: Gary Gereffi [email protected] Karina Fernandez-Stark [email protected] Phil Psilos [email protected] Duke University, Center on Globalization, Governance and Competitiveness (Duke CGGC) The Duke University Center on Globalization, Governance & Competitiveness (Duke CGGC) is affiliated with the Social Science Research Institute at Duke University. Duke CGGC is a center of excellence in the United States that uses a global value chains methodology to study the effects of globalization in terms of economic, social and environmental upgrading, international competitiveness, and innovation in the knowledge economy. Duke CGGC works with a network of researchers and scholars around the world in order to link the global with the local and to understand the effects of globalization on countries, companies and the full range of development stakeholders. RTI International RTI International sponsors and conducts collaborative Research and Practice Programs with world- leading universities and experts to provide the development community with evidence-based approaches to critical economic growth challenges. RTI’s Research and Practice Programs include: Workforce Development and Global Value Chains, Mobilizing SME Investment in Frontier Finance Countries, Smart Regulation, Cultivating Leadership for Sub-National Economic Growth and Measuring Local Government Effectiveness in Agriculture and Food Security. © November, 2011 Center on Globalization, Governance & Competitiveness, Duke University Posted: November 17, 2011 Skills for Upgrading: Workforce Development and Global Value Chains in Developing Countries Contents 1. Workforce Development in the Global Economy: Linking Skills and Capabilities to Upgrading Phil Psilos and Gary Gereffi 1 2. The Fruit and Vegetable Global Value Chain: Economic Upgrading and Workforce Development Karina Fernandez-Stark, Penny Bamber and Gary Gereffi 13 3. The Apparel Global Value Chain: Economic Upgrading and Workforce Development Karina Fernandez-Stark, Stacey Frederick and Gary Gereffi 75 4. The Offshore Services Global Value Chain: Economic Upgrading and Workforce Development Karina Fernandez-Stark, Penny Bamber and Gary Gereffi 132 5. The Tourism Global Value Chain: Economic Upgrading and Workforce Development Michelle Christian, Karina Fernandez-Stark,Ghada Ahmed and Gary Gereffi 190 6. Meeting the Upgrading Challenge: Dynamic Workforces for Diversified Economies Gary Gereffi, Karina Fernandez-Stark and Penny Bamber Phil Psilos and Joe DeStefano 239 Appendix: Executive Summaries 259 i Skills for Upgrading: Workforce Development and Global Value Chains in Developing Countries Tables Table 1.1. Comparison of Cluster and GVC Perspectives and Implications for Workforce Development 5 Table 1.2. Industries and Countries Selected for Analysis .......................................................................... 9 Table 2.1. Prominent Standards in the Horticulture Industry .................................................................... 19 Table 2.2. Upgrading Trajectories in the Fruit and Vegetables Global Value Chain ............................... 26 Table 2.3. Job Profiles in the Fruit and Vegetables Global Value Chain .................................................. 28 Table 2.4. Selected Economic and Industry Country Indicators, 2008 ..................................................... 31 Table 2.5. Chile: GVC Upgrading and Workforce Development Initiatives ............................................ 37 Table 2.6. Kenya: GVC Upgrading and Workforce Development Initiatives .......................................... 44 Table 2.7. Morocco: GVC Upgrading and Workforce Development Initiatives ...................................... 50 Table 2.8. Jordan: GVC Upgrading and Workforce Development Initiatives .......................................... 54 Table 2.9. Honduras: GVC Upgrading and Workforce Development Initiatives ..................................... 59 Table 2.10. Workforce Development and Upgrading in the Fruit and Vegetables Global Value Chain .. 65 Table 3.1. Lead Firm and Brand Types with Regional Examples ............................................................ 80 Table 3.2. Top Apparel Export Countries by Year, 1995-2008. (Values in $US Billions) ...................... 82 Table 3.3. Upgrading Trajectories in the Apparel Global Value Chain .................................................... 87 Table 3.4. Job Profiles in the Apparel Global Value Chain ...................................................................... 89 Table 3.5. Selected Economic and Industry Country Indicators, 2008 ..................................................... 92 Table 3.6. Turkey: GVC Upgrading and Workforce Development Initiatives ......................................... 98 Table 3.7. Sri Lanka: GVC Upgrading and Workforce Development Initiatives ................................... 102 Table 3.8. Bangladesh: GVC Upgrading and Workforce Development Initiatives ................................ 108 Table 3.9. Lesotho: GVC Upgrading and Workforce Development Initiatives ...................................... 114 Table 3.10. Nicaragua: GVC Upgrading and Workforce Development Initiatives ................................ 119 Table 3.11. Workforce Development and Upgrading in the Apparel Global Value Chain .................... 122 Table 4.1. Employment, Revenue, and Salary Information—Selected Segments of the Offshore Services Industry in a Middle-Income Country, 2008 ............................................................................ 142 Table 4.2. Upgrading Trajectories in the Offshore Services Global Value Chain .................................. 145 Table 4.3. Job Profiles in the Offshore Services Global Value Chain .................................................... 147 Table 4.4. Selected Economic and Industry Country Indicators, 2008 ................................................... 150 Table 4.5. India: GVC Upgrading and Workforce Development Initiatives .......................................... 157 Table 4.6. The Philippines: GVC Upgrading and Workforce Development Initiatives ......................... 162 Table 4.7. List of Incentives under the High Tech Investment Program-Chile ...................................... 163 Table 4.8. Chile: GVC Upgrading and Workforce Development Initiatives .......................................... 168 Table 4.9. The Offshore Services Industry in Dominican Republic, El Salvador, and Guatemala ........ 169 Table 4.10. Workforce Development Implications and Upgrading in the Offshore Services Global Value Chain ............................................................................................................................................. 177 Table 5.1. International Visitor Arrivals ('000 people) ........................................................................... 196 Table 5.2. Upgrading Trajectories in the Tourism Global Value Chain ................................................. 202 Table 5.3. Job Profiles in the Tourism Global Value Chain ................................................................... 204 Table 5.4. MNC Hotel Brand Training Programs ................................................................................... 207 Table 5.5. UNWTO Education and Training Products ........................................................................... 208 Table 5.6. Selected Economic and Industry Country Indicators, 2008 ................................................... 209 Table 5.7. International Hotel Groups and Brands Operating in Costa Rica .......................................... 211 Table 5.8. Costa Rica: GVC Upgrading and Workforce Development Initiatives ................................. 216 Table 5.9. Jordan: GVC Upgrading and Workforce Development Initiatives ........................................ 222 Table 5.10. Vietnam Tourism Employment Breakdown, 2005 ............................................................... 224 Table 5.11. Vietnam Tourism Type of Training Received, 2005 ........................................................... 225 Table 5.12. Vietnam: GVC Upgrading and Workforce Development Initiatives ................................... 228 Table 5.13. Workforce Development and Upgrading in the Tourism Global Value Chain .................... 233 Table 6.1. Global Value Chains and Countries
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