Does Economic Progress Lead to Social Progress?

Globalization > Forum > Does Economic Progress Lead to Social Progress?

Does Economic Progress Lead to Social Progress?
Anneke Zwart, Student (University), Netherlands, Moderator
It is often assumed that in companies that upgrade economically – for example by increasing the efficiency of their processes, the quality of their products or by improving technology and knowledge – the conditions of their employees automatically increases as well. This is called social upgrading. Although social upgrading on a global scale might indeed be the result of economic upgrading, especially in labour-intensive and low-skilled labour sectors this is not the case. Even though employment often increases in times of economic upgrading, the nature of new employment is often exploitative and brings a high level of insecurity. In what cases does economic upgrading lead to better social conditions for employees and in which cases it doesn’t?

Barrientos, Gereffi and Rossi (2011) provide a view that takes into account multiple dimensions that together give us a greater understanding of the relationship between economic and social upgrading. The most important factor...Sign up

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