There is a growing literature on the impact of Covid-19 on commercial and labour conditions at suppliers in apparel global value chains (GVCs) Yet much less is known about the implications for suppliers operating in regional value chains (RVCs) in the global South In this article, we focus on Eswatini, which has grown to become the largest African manufacturer and exporter of apparel to the region We draw on a combination of firm-level export data and interviews with stakeholders before and after the Covid-19 lockdown to shed light on the influence of private and public governance on suppliers’ economic and social upgrading and downgrading We point to the coexistence of two separate private governance structures: the first characterised by direct contracts between South African retailers and large manufacturers (direct suppliers);the second operating through indirect purchasing via intermediaries from relatively smaller producers (indirect suppliers) While direct suppliers enjoyed higher levels of economic and social upgrading than indirect suppliers before Covid-19, the pandemic reinforced this division, with severe price cuts for indirect suppliers Furthermore, while retailers provided some direct suppliers with support throughout the crisis, this was not the case for indirect suppliers, who remain comparatively more vulnerable In terms of public governance, the negative consequences of the lockdown on firms’ income and workers’ livelihoods have been compounded by the state’s ineffective response Our paper contributes to the research on RVCs in the global South, enhancing our understanding of how different governance structures and external shocks affect firms’ and workers’ upgrading and downgrading prospects [ABSTRACT FROM AUTHOR] Copyright of European Journal of Development Research is the property of Palgrave Macmillan Ltd and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission However, users may print, download, or email articles for individual use This abstract may be abridged No warranty is given about the accuracy of the copy Users should refer to the original published version of the material for the full abstract (Copyright applies to all Abstracts )
Governance of Eswatini Apparel Regional Value Chains and the Implications of Covid-19