The diplomacy of multinational corporations (MNCs) : bargaining with developing states

[摘要] ENGLISH ABSTRACT:This assignment investigates the bargaining relationship between multinationalcorporations (MNCs) and developing countries. The units of analysis of this study inGlobal Political Economy are MNCs (non-state actors) and nation-states. In thecontemporary global production structure the 'balance of power' between MNCs anddeveloping countries has shifted in favour of MNCs. Descriptive secondary sourceswere used to illustrate the MNC-State bargaining relationship in telecommunicationsprivatisation in Sub-Saharan Africa.In the contemporary global economy nation-states only rarely still compete for territory,but rather for wealth-creating activities to be located within their borders. Importantchanges in the global production structure have resulted in the increased mobility andeconomic power of MNCs. These developments have affected the strategic relationshipbetween MNCs and nation-states and the former have used their advantage to gainpreferential treatment in the bargaining process. The nation-states are also competingamongst themselves for the investment and technology and knowledge transfers fromthese firms. Privatisation programmes in Sub-Saharan Africa have substantiallyincreased MNC participation on the continent, which has been historically marginalisedfrom global foreign direct investment receipts. Research has shown that MNCparticipation in infrastructure service provision is more efficient than governmentownership. However, this does not constitute a loss of sovereignty, but ratheremphasises the changing role of nation-states as facilitators of global market relations.On examination, the distinct bargaining relationship in telecommunications privatisationclearly illustrates the dependence of Sub-Saharan African countries on technologicallyadvanced MNCs. Thus, the 'balance of power' has shifted more to MNCs in the globalpolitical economy.

[发布机构] Stellenbosch University