Governance in a value chain world

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Economic globalization, particularly the rise of global value chains, has created a global challenge for governance to ensure that social upgrading of poor workers and small-scale producers accompanies economic upgrading. Governance is not just a function of government policy; it also involves the actions of companies (private governance) and societal groups (social governance). The importance of these types varies by sector, but, in a value chain world, effective governance requires that all three act together. It also requires a targeted approach: that there be an explicit focus on ensuring that social upgrading is linked with economic upgrading and that governance solutions be tailored to the needs of different sectors.