MULTINATIONAL CORPORATIONS IN DEVELOPING COUNTRIES: A BAG OF MIXED FORTUNES, 1960- 2010

Abstract

The presence of multinational corporations in developing countries has become a case of different strokes for different folks. While some developing countries celebrate their presence and count the accompanying ‘blessings’, others bemoan their devastating impact on various sectors of the country. A country’s government system, general attitude, and economic ideology may be crucial factors in the impact of multinational corporations in it. Developing countries such as India, Singapore, Hungary, Indonesia and the Republic of Korea are used as case studies proving the welcoming attitude and proper utilization of Multinationals by Asian governments for economic growth and development. Likewise, African countries including Nigeria,Gold Coast, South Africa, Democratic Republic of Congo and Namibia show the rather curious ‘underdevelopment’ impact of Multinationals on some African countries. This paper seeks to interrogate Africa’s supposed losses due to the activities of Multinational companies while Asian and European countries record empirical growth garnered from the activities of multinationals. The modernization theory explains the quick adoption of Western culture and development style of developed countries, while the dependency theory highlights the apparent dependence of developing countries on the West.