Globalisation and unequalisation: What can be learned from value chain analysis?

Although many have gained from the process of globalisation, there remains a stubbornly large number of people living in absolute poverty and a rise i n inequality within and between countries, The issue is thus not whether to participate in the global economy but how to no so in a manner which provi des for sustainable and equitable income growth. This study shows how value chain analysis can be used both ro chart the growing disjuncture between g lobal economic activity and global income distribution nod to provide causa l explanations for this outcome. In so doing, value chain analysis provides valuable insights into policy formulation and implementation.