First Mile of the Global Value Chain: Bringing Gender into GVC Governance

Abstract

Gender inequality has become a major challenge that has been reflected in the United Nations Sustainable Development Goals. This issue is becoming increasingly important to multinational corporation (MNC) managers responsible for the performance of their global value chains (GVC) as well as government policymakers and non-governmental organizations (NGO). One of the key ways to address gender inequality has been through various types of interventions, including public regulations, private standards, and certifications. However, it remains a theoretical and empirical question as to the conditions under which various interventions alleviate gender inequality through the empowerment of women. To address this gap, we build on institutional and social identity theories to establish a theoretical framework that allows us to understand the specific attributes of interventions intended to improve women’s empowerment. Our empirical study examines the effect of an intervention launched among artisanal mining communities—in the furthest reaches of a GVC when local institutions are weak and social relationships are fragile—using a longitudinal dataset collected from 1,777 individuals in six communities within Democratic Republic of Congo during the period 2017-2018. We find that the specific intervention (i.e., village saving and loan association) has significantly positive impact on workplace-related women’s empowerment (i.e., perception of equal payment and capabilities), but there is no significant impact on household-related women’s empowerment (i.e., equal access to household decision-making and attitudes towards domestic violence). Our analysis offers novel insights into the outcomes of interventions intended to lead to social upgrading of women within the first mile of the GVC.