Global Governance, Multinational Corporations,
Economic Growth and Development
Multinational corporations, societies and governments are called upon to develop their activities within an increasingly complex global context where international covenants, agreements and treaties are often insufficient in scope to efficiently control and regulate these actions. The ensuing uncertainties emanating
from a constantly changing global environment result in the decision-making process becoming increasingly fastidious and result in long term planning becoming short lived. Notwithstanding these difficulties, the interactions between governance and multinational corporations should in practice lead to greater sustained economic development than has been the case in the past.
Both national and multinational corporations are called upon to constantly adapt to the ever-changing circumstances. Understanding the intricacies involved in international relations between governments and corporations becomes fundamental when the planning process takes place. Keeping abreast of these ever-changing forces no longer belongs to the corporate board room and its planning committees. It has thus become necessary to reach out to higher levels of understanding, outside of the corporation, if one is to succeed and stay the course.
Identifying and determining which of these forces affect our every day corporate life has today become the sphere of highly sophisticated methods and practices. No longer is a straight-forward country or regional analysis sufficient to determine whether we invest or not in any given state as has been the case in the past. Corporate planning is called upon to expand their scope of studies into a much broader context, analysing country interactions with one another, within regions, and ultimately within/between continents. Often is the case where countries must respond to contradictory ideological forces of influence, as for example is the case with China and the Western World.
Keeping abreast and anticipating what course of action is most adequate is paramount for success in today’s world. Purely financial considerations no longer can determine one’s choice of whether to enter or remain in any given country or region. The implications are far broader. Ideological differences are often overlooked in pure economic considerations. If a strong return is to be made, then “go for it” seems to have been the consensus in the past. This poses great danger to the existing international order. Take China and its incursion around the globe. Africa, and Latin America, to mention but two regions, have become highly dependent upon economic aid, assistance, and trade with China. Shunned by the Western world in part, and unwilling to meet their demands, governments today in those regions are quick to capitalise on any help they can to develop their economies. The great risk, however, is falling prey to an ideology that contradicts their very own beliefs, their very democracies, thus creating serious long-term uncertainties.
This paper will argue that the interactions between governance and multinational corporations should in practice lead to greater sustained economic development than has been the case in the past.
