Multinational corporations and the Third World: the case of Japan and Southeast Asia
The dramatic transformation of the climate surrounding relations between rich and poor nations since the OPEC oil embargo in 1973 has raised new hopes that MNCs may be made to energize development in the Third World. Improved information about the vulnerability of the rich nations and about techniques for dealing with MNCs, some writers argue, will enable underdeveloped countries to ensure that foreign investment serves as an “engine of development.” This view exaggerates the strengths of Third World states. A lack of information about opportunities and techniques is a small part of the burden which underdevelopment imposes on poor countries in their dealings with MNCs. A case study of Japanese MNCs in Southeast Asia raises doubts concerning the likelihood that the poor countries will be able to harness MNCs for their development. Southeast Asia's growing dependence on Japan in the fields of trade, official development aid, and private investment tends to impose constraints on efforts to influence the behavior of MNCs. A more basic problem resides in the “softness” of underdeveloped states, which renders ineffectual regulations intended to control MNCs. Because MNCs in certain important respects inhibit the process of building viable indigenous institutions and even contribute to the perpetuation of soft states, they may do more to impede than to stimulate development, at least in the softer Third World states. It may well be that more serious attention should be paid to studies of how Third World states might develop if the role of MNCs were circumscribed.
Volume (Year): 30 (1976)
Issue (Month): 03 (June)
|Contact details of provider:|| Postal: Cambridge University Press, UPH, Shaftesbury Road, Cambridge CB2 8BS UK|
Web page: http://journals.cambridge.org/jid_INO
When requesting a correction, please mention this item's handle: RePEc:cup:intorg:v:30:y:1976:i:03:p:373-404_01. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Keith Waters)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.