ABSTRACT

This chapter outlines an overview of the literature on governance in global value chains. Governance has long been a central concern of the global value chain (GVC) literature. A Dutch entrepreneur with a Tanzanian subsidiary, procuring Jatropha oilseeds from smallholder farmers for bio-kerosene production, soon showed interest in obtaining certification under NTA8080/81. Farmers may respond to high demand for biofuels created by European subsidies and mandatory fuel mix requirements by cultivating crops such as Jatropha on lands that were hitherto used for cultivating food crops. For smallholders, sale of the Jatropha seeds brought in a small amount which, although perhaps not exceeding 1" of their annual income, could pay for the school fees of a child. The process of pressing oil out of Jatropha seeds leaves a considerable residue called seedcake. At the same time, however, this use of the seedcake comes at the expense of further soil nutrient depletion of smallholders' land, threatening the sustainability of their livelihood.