Multinationals On Trial: Foreign Investment Matters
Henry Veltmeyer, James Petras
Format: PDF / Kindle (mobi) / ePub
Publication Date: October 24, 2007 | ISBN-10: 0754649490 | ISBN-13: 978-0754649496
The role and economic power of corporations that dominate the world economy has generated considerable controversy. The most heated debate, and the most critical questions, surrounding the role of multinational corporations has to do with foreign direct investment (FDI). This book takes an entirely different view of the role of multinationals and the development impact of FDI. It argues that imperialism is a much more useful concept for describing and explaining the dynamics of world development than globalization. FDI is a mechanism for empire-centred capital accumulation, a powerful lever for political control and for reordering the world economy. This is a much needed analysis of global capitalism and its impact around the world which makes this study an excellent resource for students, academics and activists.
About the Author
James Petras is Professor Emeritus in Sociology at SUNY at Binghamton, New York, USA, and Adjunct Professor in International Development Studies at Saint Mary's University, Halifax, NS, Canada. He is the author of over sixty books and numerous other writings on Latin America and world developments, including The New Development Politics (2003). A list and a file of his periodical writings and journal articles can be accessed via www.rebelion.org Henry Veltmeyer is Professor of Development Studies at the Universidad Autonoma de Zacatecas (UAZ), Mexico, and Professor of Sociology and International Development Studies at St. Mary's University, Halifax, NS, Canada. He is author of numerous book length studies and scholarly articles on issues of Latin American and world developments, including Globalization and Antiglobalization (2004).
Hardcover: 182 pages
Publisher: Ashgate (October 24, 2007)
and freedom 83 Index and income inequality 57, 58–9 within-country 61–3 and Latin America 90–1 and new economic model 84 and unsustainability of 85 New Social Policy 72 new world economic order 1 and globalization 5, 84 newly industrializing countries 25, 26 and economic growth 57 Nixon, Richard 25 North Africa, and poverty 67 North American Free Trade Agreement (NAFTA) 96, 98, 99 Nuñez O 48 Organization for Economic Cooperation and Development (OECD) 6, 95 outsourcing, and labour 116–17 Paris
resources the total pillage of Latin America for 2000 is closer to USD100bn than USD70bn. If we multiply this sum for the past decade we can estimate that Latin America made a net contribution to the empire of well over USD1tn. In fact, World Bank and IMF data show that if one were to combine the total transfer in the form of interest payments, capital flight and the price differential for the region’s imports and exports (unequal exchange) then the outflow of financial resources is in the order
maquiladoras the trend if anything has been consolidated. Manufacturing absorbs the bulk of foreign investment, even with the abnormally high price of oil on the world market, second only to oil, a sector that has managed to attract foreign investment notwithstanding constitutional restrictions on ownership. As Saxe-Fernandez (2002) has shown, the profits to be had were simply too great to ignore. Since 1995, sectors such as electronics and transport vehicles have had a higher than 70 per cent
ex-communist countries and reducing labor costs within the imperial countries, playing off one against the other and securing labor incentives from neoliberal states in both. The net effect is to increase profitability by squeezing out Foreign Investment and the State 117 greater productivity per worker at lower costs, expand market shares and create lucrative export platforms to sell back into the home market. The same practice and logic which applied to the outsourcing of unskilled labor to
advertising. While Veblen’s critique of business was on the mark, he overlooked the creative and productive capacities of the working class; he failed to appreciate the potential in an engineer-worker alliance. Most important he understated the tendency for concentrated and unaccountable technocratic Anti-Imperialist Regime Dynamics 143 power to reach an accommodation with business and financial groups. Worker selfmanagement, based on direct democracy factory assemblies and councils serves as