Leslie Sklair

Introduction

p. 165 -- capitalism produces a distorted form of development if any at all

p. 166 -- the only successes are the NICs, which were heavily state supported

how do TNCs influence development and uderdevelopment?

Globalization

p. 166 -- TNCs are richer than most nations, and there are more of them at that level

p. 167 -- growth of mass media through TVs has been astounding

Sociology of the Global System

three parts: economic, political, and cultural

TNCs and Capitalist ‘development’

p. 168 -- current development strategies have consisten mostly of ‘export-led industrialization fuelled by foreign investment and technology’ ELIFFIT

a few TNCs can have a tremendous impact on a poor third world nation

Criteria for the development effects of TNC investment

The six criteria evaluated

Linkages

The importing and exporting connections to the local economy

very limited in third world nations

p. 170 -- TNCs usually have their own channels

little incentive for them as the local markets are generally so small

Foreign currency earnings

the more value added and the more currency that stays in the host country the better

not much in terms of local purchases of raw materials

wages and salaries are often spent on imported luxury goods

TNCs target the third world to sell goods -- result: balance of payments problems

Upgrading personnel

the smaller the number of expatriate managers, technicians, and personnel the better

p. 171 -- a few may find good jobs, but the majority are worse off for the economic liberalization

Technology Transfer

not just technology relocation

p. 172 -- no one knows yet

Conditions of work

compared to the rest of society

the work is bad, but the workers are generally glad to have it any ways

Wages

decent when compared to local jobs, but still exploitative

major effect will probably be a fall in wages in the first world

Job security

p. 173 -- if anything the TNCs are running away from the first world, not the third

Hours of work

Workplace facilities

Environment

The TWNs (third world nations) don’t have the resources to enforce environmental laws, but it is not clear if a lot of TNCs move for these reasons

The Transnational Capitalist Class in the Third World

TNC executives and their local affiliates

p. 175 -- not clear if these people are really members

increasingly nationality is becoming less important

Globalizing state bureaucrats

p. 176 -- against the nationalists and for globalization

in a culture where the government was based on import substitution and was strongly against business

Capitalist-inspired politicians and professionals

Consumerist elites

p. 177 -- merchants and media involved in promoting the consumerist ideals

The Culture-Ideology of Consumerism in the Third World

it has no serious opposition

media-based ideology which encourages constant increases in consumption

p. 178 -- the effects of this ore to encourage consumption but not to guarantee income

it promises better living for everyone, but has so far only delivered it for the first world

Distorted ‘development’ and Development

p. 180 -- export strategies have only worked in the NICs, unlikely to work everywhere

development based on consumption will certainly be skewed

TNC-led development is bad, and local capitalist development is worse

need some sort of cooperative initiative

p. 181 -- capitalism cannot distribute fairly on a global scale

Conclusions

p. 181 -- as long as consumerism spreads and the transnational classes can insure access to consumer goods for the dominant groups, this will be the only visible way to development

argue that democratization comes about as people hope it will lead to rapid improvements through privatization, not that it will create them