ABSTRACT
This chapter starts from the empirical observation that many value chains are rather regional than global in scope, or that they combine – at least – a regionally organized production platform with global sales of the final product of the value chain. The chapter adopts an IPE perspective to regional value chains (RVCs) and dissects the various connections between RVCs, policies and politics at various governance levels. States respond to demands from international(-izing) companies by creating regional economic spaces and larger markets through free trade areas, customs unions or common markets in order to facilitate the development of RVCs. States also formulate development policies that consist of connecting local companies and workers to RVCs and global value chains (GVCs). In turn, the actual functioning of these value chains leads them to either design specific policies for economic and social upgrading and/or to regulate the behaviour of companies in value chains. Regional organizations, such as the EU and the Inter-American Court of Human Rights, play a complementary role therein. Finally, RVCs and GVCs are increasingly seen as relevant contexts for local and trans-border political action for all stakeholders to defend their rights or interests. Stakeholders include those directly involved in the value chain (companies, workers, consumers) as well as those indirectly affected by the activities in the value chain.
