Multinational Corporations and Politics in Developing Countries

Abstract

Recently, much attention has been focused on the influence that multinational corporations (MNCs) have on the politics of developing countries. Even setting aside past legacies of sinister corporate conduct, most students of politics agree that MNCs are potentially important actors—for better or for worse—in a country's political development because they can influence the rate, direction, and beneficiaries of change. Most case studies begin with the assumption that the political impact resulting from the presence of MNCs in developing countries is primarily a function of the international economic system. However, all but one of the books under review focus on the domestic political system in individual host countries as the independent variable rather than on the international economic system. Taken together, these studies make a strong case that the analysis of the MNC and its impact on politics in developing countries must prace heavy emphasis on the particular political circumstances prevailing in each country. The wants, needs, and motivations of key domestic political actors—many of whom do not behave in the manner predicted by either Liberal or Marxist world models—appear to be of fundamental importance in determining how MNCs affect a developing country's politics, and whether that country can counter any potentially adverse political impacts that may accompany MNCs.