ABSTRACT
Important transformations in the global political economy associated with economic globalization, the advent of flexible and fragmented production, and the growing authority of transnational corporations (TNCs) have contributed to the prominence of global value chains (GVCs), also known as global commodity chains (GCCs), global supply chains and global production networks. Governance through value chain contracting is an excellent example of private transnational governance by contract because value chains span national borders and link local and global producers, suppliers, and consumers of both a public and private nature. This chapter explores the neglect of the power-related distributional consequences of contractual governance in GVC analysis. GVCs as sources of private transnational governance by contract have emerged as key mechanisms through which lead firms exercise power and control over the world economy. The chapter identifies the contours of a critical political economy approach to GVC governance, and addresses the legitimacy of this mode of private transnational governance by contract.
