- Have the reforms that the World Bank introduced to its policy prescription since the 1990s solved the problems identified in structural adjustment? (Chapter 9)
The World Bank faced anxiety when structural adjustment was unable to stabilize growth and reduce poverty. As a result, the World Bank introduced the concept of good governance, the idea that in order for market-orientated development strategies to be effective, political systems that surround them must be accountable, transparent, responsive, efficient and inclusive. Good governance was one of many reforms that the World Bank decided to institute in the 1990s.
The problem with instituting reforms such as good governance and rule of law is that critics believe that the World Bank has expanded into areas beyond their expertise. Another criticism is that the World Bank has advocated a move away from market-central models to ones that focus on the role plated by the state. Overall, it seems that criticism of the World Bank’s actions have continued until today which leads me to believe that the World Bank’s problems were never fully solved.
- Which theoretical approach to the multinational corporation (mercantile, Marxist, international business perspective) do you find most appealing, and why? (Chapter 11)
A multinational corporation is a corporation that manages production or delivers services in more than one country. The country that contains the corporation’s headquarters is known as the home country. I personally find the most appealing approach, with regards to multinational corporations, is the mercantile approach. The mercantile approach suggests that multinational companies are examples of homogeneous actors that are structurally determined by the global distribution of power and wealth.
I find this approach the most appealing because the representation of political and economic interests of a home country within another country is key for business relations. I am in the commerce program and have discovered through my studies that the use mercantilism is one of the most important functions of a successful business. I find communication between mother countries and representing multinational corporations extremely appealing.
- Are NGOs a positive factor in the development process? Whose interests do they primarily represent --- those of the donors and the guardian of the new world order? Or the groups that are socially excluded, marginalized and poor? (Chapter 12)
NGOs are a positive factor in the development process. Non-governmental organizations were recruited to mediate between donors and poor communities, and to promote the virtues of private enterprises. There are two fundamental perspectives on NGOs. One sees them as catalysts of development, however, others believe they do not serve the interests of poor as much as the transnational capitalist class of CEOs and investors.
Despite the fact that NGOs may be criticised for turning the rural poor away from joining social movements, I believe that NGOs are a positive factor in the development process because if they don’t try and empower the poor to act on their own behalf, seek improvements and change power structures, who will? In conclusion, I believe that NGOs primarily represent donors but primarily help the socially excluded, marginalized and poor.
Works Cited
Haslam, Paul A. Schafer, Jessica. Beaudet, Pierre. Introduction to International Development
– Approaches, Actors, and Issues. Oxford University Press. 2009.
