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Social-multinational companies and developing countries - Essay Example

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Social-multinational companies and developing countries

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

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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 …
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