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The Shaping of Southern Social Standards for Southern Markets: the Case of Trustea

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The Shaping of Southern Social Standards for Southern Markets: the Case of Trustea The shaping of Southern social standards for Southern markets: the case of Trustea A thesis submitted to the University of Manchester for the degree of Doctor of Philosophy in the Faculty of Humanities 2017 Natalie Langford School of Environment, Education and Development Global Development Institute 1 Contents Chapter 1: Introduction ........................................................................................................................ 11 1.1 Introduction ................................................................................................................................ 11 1.2 Research gap and research sub questions .................................................................................. 12 1.3 Selection of Case Study ............................................................................................................... 15 1.4 Contribution of the thesis ........................................................................................................... 16 1.5 Structure of the thesis ................................................................................................................ 17 Chapter 2: Conceptualising the shaping of social standards in an era of polycentric trade ................ 23 2.1 Introduction ................................................................................................................................ 23 2.2 Conceptualising global production in an era of polycentric trade.............................................. 27 2.2.1 The global value chain (GVC) framework ............................................................................. 28 2.2.2 The global production network (GPN) framework .............................................................. 31 2.2.3 Implications of polycentric trade for GVC/GPN frameworks ............................................... 36 2.3 Governance of global production ............................................................................................... 40 2.3.1 The role of standards in governing production ................................................................... 41 2.4 Multi-stakeholder initiatives ....................................................................................................... 45 2.5 Institutional approaches to the study of MSIs ............................................................................ 48 2.5.1 Neoinstitutional approach to the development of MSIs ..................................................... 49 2.5.2 Political institutional approach ............................................................................................ 54 2.6 A framework for analysing the shaping of Southern social standards in an era of polycentric trade .................................................................................................................................................. 59 2.7 Conclusion ................................................................................................................................... 63 Chapter 3: Research Methodology ....................................................................................................... 65 3.1 Introduction ................................................................................................................................ 65 3.2 Methodological Approach .......................................................................................................... 67 3.3 Mapping overlapping production networks ............................................................................... 68 3.3.1 Mapping the global production network ............................................................................. 69 3.3.2 Mapping the domestic production network of Indian tea production ................................ 72 3.4 Case Study Methodology and Selection ..................................................................................... 75 3.4.1 Linking GPN and Case Study Methodology .......................................................................... 76 3.5 Developing a field research strategy .......................................................................................... 77 3.5.1 Locations and dates of field research .................................................................................. 79 3.6 Data analysis and interpretation................................................................................................. 84 2 3.7 Challenges and limitations of conducting research .................................................................... 86 3.8 Conclusion ................................................................................................................................... 89 Chapter 4: Shifting dynamics in the Indian tea industry ....................................................................... 90 4.1 Introduction ................................................................................................................................ 90 4.2 The global tea industry ............................................................................................................... 91 4.2.1 Major producing countries .................................................................................................. 91 4.2.2 The structure of the global production network of Indian tea ............................................ 95 4.3 The local tea industry .................................................................................................................. 97 4.4 Three shifts in the global and local tea industries .................................................................... 102 4.4.1 The growth of Southern markets for Indian tea ................................................................ 102 4.4.2 The divestment of lead firms from the ownership of Indian tea production .................... 106 4.4.3 The shift to smallholder production .................................................................................. 109 4.5 What the shift in markets means for the ways in which we analyse the development of Southern social standards ............................................................................................................... 113 4.6 Conclusion ................................................................................................................................. 115 Chapter 5: Evolving Governance of the Indian tea industry ............................................................... 117 5.1 Introduction .............................................................................................................................. 117 5.2 Social conditions of production in Indian tea production .......................................................... 118 5.3 Northern standards ................................................................................................................... 121 5.3.1 Ethical Tea Partnership ...................................................................................................... 122 5.3.2 Rainforest Alliance ............................................................................................................. 122 5.3.2 Utz Certified ....................................................................................................................... 124 5.3.3 Fairtrade ............................................................................................................................. 124 5.3.4 Comparing the standards ................................................................................................... 125 5.4 The public regulation of social conditions in the Indian tea industry ....................................... 127 5.4.1 The Ministry of Labour ....................................................................................................... 128 5.4.2 The Tea Board of India ....................................................................................................... 132 5.5 The rise of Southern standards ................................................................................................. 133 5.6 Conclusion ................................................................................................................................. 140 Chapter 6: The role of lead firms in shaping Trustea .......................................................................... 142 6.1 Introduction .............................................................................................................................. 142 6.2 Global Production Network ...................................................................................................... 145 6.3 Domestic Production Network .................................................................................................. 150 6.3.1 Initial attempts to certify the domestic production network ............................................ 151 3 6.3.2. The emergence of Trustea ................................................................................................ 156 6.4 Discussion .................................................................................................................................. 158 6.5 Conclusion ................................................................................................................................. 163 Chapter 7: The role of governmental actors in shaping Trustea .......................................................
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