Socioeconomic and International Geo-Politics in Private Sustainability Standards (PSS): Relevance for India

Abstract

Globally the private/voluntary standards have found significance with the increasing role of global value chain coupled with globalisation and liberalisation initiative by emerging markets. It is also linked to the more prominent role of the private sector in such activities of commerce from the 1970s onwards. The global commercial history after the second world war can be broadly divided into two phases, the first phase of 1946 to 1970 a period dominated by the state-led initiative of regional groupings. The second phase begins with post-1970s wherein the private sector had a direct or indirect role is steering the various trade grouping and negotiations. The United Nation has played differential roles since the inspection under the two broad phases. The pronounced role of the UN is that of a neutral player within the divided world this has witnessed an erosion since the beginning from the 1970s. The increased role of the private sector has led to various initiatives driven by their interests. One such initiative has been the private/voluntary sustainability standards (P/VSS). The example is of a pressure cooker wherein the ‘value’ is private sustainability standards. There would be little interest in the more significant globally on sustainability issues which is more of a public good when the private sectors are actively driving the global processes. Therefore, the likely impacts need to be analysed in detail. The section is the part two of the three-part draft report titled “Emergence of Private Sustainability Standards: Concerns and Challenges for India’s Exports and Domestic Industries”. Chapter two of part one of the Report addresses the trend and usage of the VS/ PSS in India. It further highlights the challenges in doing so owing to lack of clear distinction - given the lack of consensus-based definition of VS/ PSS. Some private standards have evolved to become the private sustainability standards. Globally the voluntary/ private standards numbered are 624, with minimal number graduated to become truly PSS. Secondly, it traces the origin of the understanding of all existing VS/ PSS to United Nations Conference on the Human Environment (1972). In this context, inter-ministerial coordination between finance, labour, health, environment and commerce could help Indian industries – by way of active participation in standards-setting processes and adoption of more regional standards. There are no agencies assigned formally by the Department of Commerce (DoC) for record of VS/ PSS present and operating in India. Given its importance for international trade for India, there is an urgent need to keep a record of all VS and PSS. These would help in the impact analysis of the domestic adoption in the context of exports and coordination of value chains.