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Hegemon, Health and Hubris
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9
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Mauritius
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Panama
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Poland (Posnan, Lodz)
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Scotland
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Slovakia (Bratislava)
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Sweden (Malmo)
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Wales
Cases Where Negotiations Stalled (frequently after a negative experience in one city or disagreement on questionable contract provisions):
Cameroon Ghana Nigeria Tanzania Malawi Rwanda Benin Chad Mali
Malaysia India Sri Lanka Pakistan Bangladesh
Some cases, such as Johannesburg, South Africa, appeared to be failures at one point in time, but recent news suggests that reforms are in process. There is inadequate data on current conditions. So why privatization efforts have been pursued and implemented in a number of cases, we have a small set of cases with at least some data that can be applied to the criteria. For this presentation, we compared Private Success with Private Failure. A later study will compare Success with Failure. What political/governmental factors might be logically related to MNC success or failure? Several items were stressed by the WB, IMF, and US, and measures are available from Kaufman
30
and World Bank on these:
Control of corruption
The less the control of corruption, the more likely the failure of the MNC. The
logic is that the corporation will need to employ corrupt methods to run the enterprise. Refusal to pay leads the government to cancel the contract, while payment of bribes leads to charges and convictions of corruption (in home country). The greater the corruption, the less likely services will be expanded, and the more likely prices will rise. Water may be part of the “spoils” of office for those in power. Rule of Law
The stronger the rule of law the more likely the success of private multinationals.
MNCs need firm rules, known to all, under which to operate. Courts must be able to function to apply the rule of law.
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9
•
Mauritius
•
Panama
•
Poland (Posnan, Lodz)
•
Scotland
•
Slovakia (Bratislava)
•
Sweden (Malmo)
•
Wales
Cases Where Negotiations Stalled (frequently after a negative experience in one city or
disagreement on questionable contract provisions):
Cameroon
Ghana
Nigeria
Tanzania
Malawi
Rwanda
Benin
Chad
Mali
Malaysia
India
Sri Lanka
Pakistan
Bangladesh
Some cases, such as Johannesburg, South Africa, appeared to be failures at one point
in time, but recent news suggests that reforms are in process. There is inadequate data
on current conditions.
So why privatization efforts have been pursued and implemented in a number of cases,
we have a small set of cases with at least some data that can be applied to the criteria.
For this presentation, we compared Private Success with Private Failure. A later study
will compare Success with Failure.
What political/governmental factors might be logically related to MNC success or failure?
Several items were stressed by the WB, IMF, and US, and measures are available from
Kaufman
30
and World Bank on these:
Control of corruption
The less the control of corruption, the more likely the failure of the MNC. The
logic is that the corporation will need to employ corrupt methods to run the enterprise.
Refusal to pay leads the government to cancel the contract, while payment of bribes
leads to charges and convictions of corruption (in home country). The greater the
corruption, the less likely services will be expanded, and the more likely prices will rise.
Water may be part of the “spoils” of office for those in power.
Rule of Law
The stronger the rule of law the more likely the success of private multinationals.
MNCs need firm rules, known to all, under which to operate. Courts must be able to
function to apply the rule of law.
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