The Structural Adjustment Programme (SAP) is the prescription of World Bank and IMF for the woes of developing countries in the post second world war era. Intense debate is happening across the globe particularly after the catastrophic collapse of this programme throughout Latin America and a series of popular discontent unleashed against these measures (Totten, pars. 1-8). On the other hand two giant economies of Asia, India and China are often called booming economies and projected as the success of SAP. Though these programmes are in existence since 1950s (Wikepedia) but it became a popular topic in the last decade of 20th century when large scale implementation of these measures were initiated in Latin America and Asia with a declared good intention of bringing prosperity to native population. Here the whole issue is analyzed keeping in mind the spirit of natural justice and well being of the majority. Lenin stated, “The general framework of formally recognized free competition remains, and the yoke of a few monopolists on the population becomes a hundred times heavier, more burdensome and intolerable”(para 26). This statement puts in nutshell the whole issue of Multinational Companies and developing countries.To qualify to get loans from World Bank and IMF the borrowing country should abide by SAPs. The guiding principles and features of SAPs are export led growth, privatization and liberalization, and the efficiency of the free market
Different scholars have argued about the role of corporations in complying with host country laws and promotion of their human rights. While others feel the corporations have failed, others fell that corporations are doing all they can to fulfil their social responsibility.
In doing so, various factors have been considered such as language barrier, geographical distance, HRM practices. References to various previous studies on the subject have been provided to further affirm the aforementioned argument.
Global business is constantly evolving and competition across businesses has led to a surge in companies expanding across domestic borders.
It manages production and/or delivery of services in more than one country. These corporations are very powerful and some do have revenues, profit and budgets that exceed the gross domestic product (GDP)'s of the host countries hence have a powerful influence on world affairs and on globalization.
Later the Committee for Economic Development (CED) used a ‘three concentric circles’ approach to explain the significance CSR can uphold in a MNC. Out of three circles, the inner circle is dedicated for economic functions, the intermediate circle
The author states that the social democratic model measures universality of public welfare entitlements, frees citizens from their reliance on the market and ‘decommodifies’ labour. Esping-Andersen refers to the term ‘decommodification’ as the extraction of an individual from dependency on the market.
The presence and establishment of MNC in developing countries has brought a lot of debates all over the world. Globalization-brought about by advancement in technology, transport, and communication- has made it possible for multinational corporations
Western observers need to refrain from comparing third world countries’ wage situations to that of the first world. If wage earnings for workers in multinationals are analysed, one will realise that MNCs are agents of
7 pages (1750 words)Essay
Cite this document
(“Social-multinational companies and developing countries Essay”, n.d.)
Retrieved from https://studentshare.net/sociology/305005-social-multinational-companies-and-developing-countries
(Social-Multinational Companies and Developing Countries Essay)
“Social-Multinational Companies and Developing Countries Essay”, n.d. https://studentshare.net/sociology/305005-social-multinational-companies-and-developing-countries.
Cited: 0 times
The Structural Adjustment Programme is the prescription of World Bank and IMF for the woes of developing countries in the post second world war era.Intense debate is happening across the globe particularly after the catastrophic collapse of this programme throughout Latin America and a series of popular discontent unleashed against these measures …