The topic of global business and economic autonomy is very interesting, especially when it comes to other topics we have discussed such as sovereignty and public authority. The Inayatullah article discusses the role of colonialism and sovereignty in the world economy. The infrastructure that countries were colonized was not set up in their best interest, rather that of the one that was colonizing them. This relates to public authority as well, as discussed, in that the structure of many of these developing and underdeveloped countries falls back to the structure that was imposed on them.
One of the problems mentioned regarding TOCs was that they were able to take advantage of loopholes in the system and the justice system was not adequate enough to be able to reign over them and their activities. I see how the infrastructure that allows exploitation in regards to the justice system is also part of the economies in these countries. As discussed by Inayatullah, the economic system established in most of these countries was imposed and not created internally, as that was often best for taking advantage of resources that could make money for the colonizing countries. These economies often crash, as seen with Argentina, Chile, etc. as they were thrown into the emerging markets with help of the IMF. As well as countries such as India, mentioned by Inayatullah, where the structure was set up for the benefit of the Britain and not India.
I think it’s difficult to see where the economic structure, as well as other structures, are for the benefit of the country and for what benefit they are to others, as they continue to difficult and encounter problems, but it definitely something that leaders should think about and consider. And where are loopholes in the economic system, just like in the justice system, that allow global corporations to take advantage?
Jessica, I agree with you in that it is often difficult to see where structures are in a country and who they benefit. Often, the intricacies of the governance mechanisms don't have the adequate checks and balances to ensure they aren't implemented for poor, irrational or even illegal reasons.
ReplyDeleteAdditionally, I think the loopholes you mentioned are not only taken advantage of by the TOCs but also certain socio-economic statuses. The opposite is also true, how cyclical patterns continuous oppress a groups people or countries without hope for a break. The best example of this are the numerous factors influences the US recidivism rates of individuals reentering society post incarceration.
Jessica, great questions, great post! One of the questions I have after reading your post is whether imposed economic systems, meant to benefit the colonizer countries more than the colonized, intentionally leave loop holes open. That is to say, whether these ideas of free markets and liberalism and less regulation intentionally leave room for multinational corporations to exploit developing countries, ultimately benefitting the developed countries. Certainly, some people out there know these loop holes and no how to exploit them. So, it's plausible then that policy makers and regulators know these loop holes and keep them open...
ReplyDeleteVery conspiracy theory comment, but that's what I'm thinking about after your post :)