Prof. Dr. Jann Lay

Dr. Jann Lay is Head of the Research Programme “Growth and Development” at the GIGA – German Institute for Global and Area Studies in Hamburg and serves as an Adjunct Professor of Development Economics at the University of Göttingen.

His research focuses on key aspects of economic development in the Global South, with a strong regional emphasis on Africa. He investigates issues such as informal employment and labor markets, structural change and its implications for poverty and inequality, land use conflicts (“land grabbing”), and climate and energy transitions.

At the University of Göttingen, he is involved in the Collaborative Research Centre 990. Dr. Lay has published widely in leading international journals and is an experienced policy advisor. He has consulted for various international organizations and German development cooperation bodies. He is a member of the European Expert Network on International Cooperation and Development (EENICD) of the European Commission and serves on the Steering Committee of the Land Matrix initiative.

What motivates your research on sustainability in global value chains?

Investigating the real-world effects of the well-intended Germany’s Lieferkettengesetz and the EU’s new Corporate Sustainability Due Diligence Directive (CS3D) on working conditions and environmental outcomes – from factory floors in Ethiopia to assembly lines in Vietnam – is crucial to understanding which governance modes of GVCs suit human needs and human rights best. I want to produce solid evidence that tells policymakers whether these laws improve wages and working conditions, and environmental standards — or, for example, simply shift trade to less-scrutinised competitors.

Which key challenges or opportunities do you see in making value chains more sustainable?

Making global value chains more sustainable is not trivial and cannot be simply mandated by European regulation. Thus, a genuine “race to the top” not something that can be taken for granted. Instead, close attention will have to be paid to unintended consequences, such as potential exclusion effects for small producers with low compliance capacities and the potential leakage effects. Leakage refers to the re-allocation of production (or exports) to places with less stringent regulation and might even lead to adverse effects on human rights and environmental harm.

How does your current work contribute to sustainability governance in global value chains?

Both the intended as well as unintended consequences of mandatory sustainability due diligence are poorly understood. We can build on ongoing research in in the context of the network on sustainable supply chains (see www.sustainablesupplychains.org).

What excites you most about being part of this research network?

The science space lets me discuss and jointly investigate all of the above research topics with researcher from management science, law, and political science. While we bring the development economics perspective from the “producer” country to the table, sustainability in global production can only be investigated when our expertise is blended with views from these other disciplines.