In this thesis, I ground my analysis in the Global production Network (GPN) approach, which in the literature also is associated with possibilities of “strategic coupling” and asks for an analysis of “value capture trajectories”. But can the promise of such as “value capture trajectory” be observed in the case of the Nordmann fir GPN for the Racha region, from which the seeds of Christmas trees originate?
The master thesis seeks to examine prospects for regional development in the Racha region in Georgia. The central research question of the master thesis is thus posed as: “To what extent does the Nordmann fir global production network contribute to development perspectives in the Racha region?” To answer this research question, I mainly draw on the Global Production Network literature (coupled with some perspectives from evolutionary economies) and analyze value creation, enhancement, and capture trajectories.
Christmas is one of the largest religious celebrations of the Christian world. At the same time, consumer society as well as the marketing strategy of industries and retailers increasingly shift the spiritual character of Christmas towards materialist covetousness, leading to higher turnovers for supermarkets, large retailer, and industry. The annual demand for Christmas trees in Germany and Denmark is premised upon the seeds of Nordmann firs, which come exclusively from the Racha region in the Great Caucasus ridge of Georgia. It thus forms what is variously called a commodity chain, value chain or production network (as a phenomenon) and that can be accounted for with different concepts including Global Commodity Chains, Global Value Chains and Global Production Networks.
Table of Contents
1. Introduction
2. Review of the Literature: Global Production Network
3. Methodology
4. The political economy of Georgia
4.1 Development of the business environment
4.2 Labor market structure and labor rights
4.3 Bargaining power under given conditions
5. Study case: Nordmann fir global production network
5.1 Mapping the Nodrmann fir global production network
5.2 Company’s perspective
5.3 Labor conditions
6. Interpretation and discussion
7. Conclusion
Research Objectives and Themes
The master thesis aims to examine the prospects for regional development in the Racha region of Georgia by analyzing the Nordmann fir global production network, specifically focusing on whether the region can secure strategic coupling and how value is captured along the production chain.
- Analysis of Global Production Network (GPN) approaches in the context of regional development.
- Investigation of the political and institutional framework of post-Soviet Georgia.
- Evaluation of labor conditions and bargaining power for local pinecone pickers.
- Case study of the Danish company "Fair Trees" and its social impact.
- Discussion on value capture trajectories and potential for regional tourism and economic infrastructure.
Excerpt from the Book
5.3 Labor conditions
Niko (51) and Lasha (45) come from the village Tlughi, which borders the Tlughi forest. They both were “little boys” as they started to work on pinecone harvest in the Tlughi forest. The price they have been given for harvested pinecones used to be very low, yet both come from poor families and as children, they were more than happy to earn some pocket money. Picking the pinecones is an exclusively male job. Rarely, wives and children of the pickers accompany them and take over the “safer” duties like picking up the pinecones from the ground and sorting.
Nowadays, Niko and Lasha, together with another man, work as a self-organized group of pickers. Their working activity as pickers of Nordmann fir pinecones is not officially registered and they do not have any working contracts. They gain access to the plant bock, in which they pick the pinecones, based on verbal order of either the licence owner or subcontractor of the licence owner of the block. The amount of the pinecones they must pick is defined by the licence owner in advanced.
Summary of Chapters
1. Introduction: Outlines the global demand for Nordmann firs originating from the Racha region and poses the research question regarding prospects for regional development within the GPN framework.
2. Review of the Literature: Global Production Network: Discusses the transition from GCC/GVC perspectives to the GPN approach, emphasizing embeddedness, value capture, and strategic coupling.
3. Methodology: Describes the qualitative research approach, including interviews with company representatives in Georgia and local workers to map the production network.
4. The political economy of Georgia: Analyzes Georgia's transition to a market economy, focusing on political reforms, informal institutional structures, and labor market deregulation.
5. Study case: Nordmann fir global production network: Presents a detailed empirical analysis of the Nordmann fir trade, the role of licencing, the "Fair Trees" company, and the precarious labor situation of local pickers.
6. Interpretation and discussion: Synthesizes the empirical findings, debating the tension between social upgrading and structural exploitation within the Racha region.
7. Conclusion: Summarizes the research findings, highlighting that integration into the GPN has not led to significant regional value capture due to existing institutional and labor constraints.
Keywords
Global Production Network, Racha, Nordmann fir, Georgia, Value Capture, Strategic Coupling, Fair Trees, Labor Conditions, Regional Development, Informal Institutions, Blat, Pinecone Harvest, Sustainability, Economic Transition, Subsistence Economy
Frequently Asked Questions
What is the core focus of this research?
The work examines the development prospects for the Racha region in Georgia by analyzing its integration into the global production network for Nordmann fir seeds.
What are the primary themes discussed?
Key themes include institutional framework reforms, GPN theory, labor market structure, the role of informal networks, and the effectiveness of Corporate Social Responsibility (CSR) initiatives.
What is the central research question?
The thesis asks to what extent the Nordmann fir global production network contributes to regional development initiatives in the Racha region.
Which scientific methodology is applied?
The author uses a qualitative approach, including secondary literature analysis on political economy and empirical data gathered through interviews with Fair Trees representatives, local pinecone pickers, and forest office administrators.
What is covered in the main section of the work?
The main section maps the production network, evaluates the institutional landscape of Georgia, and details the stark contrast between the Fair Trees business model and the exploitation of self-organized local workers.
Which keywords best characterize this work?
The work is defined by terms such as Global Production Network, Racha, Value Capture, Strategic Coupling, Labor Conditions, and Informal Institutions.
Does the author find that the Nordmann fir trade significantly benefits the local region?
The author concludes that despite the global trade, wealth is largely siphoned off, and the region faces structural dependency, with limited genuine value capture occurring for the local population or workers.
What role does the company "Fair Trees" play in this production network?
Fair Trees acts as an outlier in the network, emphasizing ethical and ecological standards through its CSR initiatives, though it continues to face significant challenges due to the broader regulatory and market environment.
How is the term "blat" relevant to this study?
Blat refers to the informal networks of personal favors used to circumvent formal procedures, which the author identifies as a critical factor in how access to natural resources and licensing is managed in Georgia.
- Arbeit zitieren
- Teona Darchia (Autor:in), 2022, Who profits from commoditizing Christmas: Development prospects for Georgia in the Nordmann fir global production network, München, GRIN Verlag, https://www.grin.com/document/1483910
