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MNCs: A Partner for Reducing Civil War and Improving Economic Wellbeing |
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Abstract:
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Today, the quest for economic development and social stability are among the most important issues that confront Asia's policymakers. The optimal outcome would combine sustained robust economic growth with a minimum of social unrest. Under this benign economic and social climate, a country would be able to experience large reductions in poverty and sizable increases in the quality of life of its citizens. This benign climate is the recipe by which countries successfully move from underdeveloped/developing to developed status. Multinational Corporations (MNCs) can offer a foundation for bringing about this virtuous turn of events. By creating jobs and corresponding incomes, transferring and building knowledge and skills, bringing people together in a cooperative fashion on productive endeavors, and providing or drawing investment, MNCs can help produce robust and sustained economic growth and mitigate underlying factors that serve to promote civil strife. This institutional role is among the most beneficial that any private or public institution can play in fostering the development process. Currently, there is a large and growing body of literature that ties a nation's institutions to both economic outcomes and stability. A recent IMF study revealed that institutions play the largest role in determining a country's economic growth rate and reducing the volatility of such growth. Moreover, countries that have made the transition from underdeveloped/developing to developed status have done so after a prolonged period of strong economic growth. At present, most wars are civil conflicts. Such wars usually attract less attention than international conflicts, but they typically last longer and are more destructive. The United Nations Development Program's Human Development Report 2002 reveals that there have been 53 such conflicts during the 1990s resulting in an estimated 3.6 million deaths. Civil wars have a substantial adverse impact on the societies that they impact. According to the 2001 World Bank study, at the end of a civil war, incomes are generally 15 percent below what they would otherwise have been and 30 percent more people live in absolute poverty than would otherwise be the case. This report will draw upon the academic literature that addresses the importance of institutions, highlight the role MNCs can play in that institutional development with a focus on ChevronTexaco's efforts in Nigeria, and illustrate that public policy that is friendly to MNCs makes good economic and social sense. |
Most Common Document Word Stems:
econom (59), civil (52), conflict (50), countri (46), ethnic (35), develop (35), war (28), growth (27), democraci (27), institut (24), risk (20), state (19), world (19), democrat (18), sustain (18), group (17), bank (17), freedom (17), stage (16), govern (16), san (15), |
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Association:
Name: International Studies Association URL: http://www.isanet.org
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Citation:
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MLA Citation:
| Nautiyal, Nita. and Sutherland, Don. "MNCs: A Partner for Reducing Civil War and Improving Economic Wellbeing" Paper presented at the annual meeting of the International Studies Association, Hilton Hawaiian Village, Honolulu, Hawaii, Mar 05, 2005 <Not Available>. 2009-05-26 <http://www.allacademic.com/meta/p70140_index.html> |
APA Citation:
| Nautiyal, N. and Sutherland, D. , 2005-03-05 "MNCs: A Partner for Reducing Civil War and Improving Economic Wellbeing" Paper presented at the annual meeting of the International Studies Association, Hilton Hawaiian Village, Honolulu, Hawaii Online <.PDF>. 2009-05-26 from http://www.allacademic.com/meta/p70140_index.html |
Publication Type: Conference Paper/Unpublished Manuscript Review Method: Peer Reviewed Abstract: Today, the quest for economic development and social stability are among the most important issues that confront Asia's policymakers. The optimal outcome would combine sustained robust economic growth with a minimum of social unrest. Under this benign economic and social climate, a country would be able to experience large reductions in poverty and sizable increases in the quality of life of its citizens. This benign climate is the recipe by which countries successfully move from underdeveloped/developing to developed status. Multinational Corporations (MNCs) can offer a foundation for bringing about this virtuous turn of events. By creating jobs and corresponding incomes, transferring and building knowledge and skills, bringing people together in a cooperative fashion on productive endeavors, and providing or drawing investment, MNCs can help produce robust and sustained economic growth and mitigate underlying factors that serve to promote civil strife. This institutional role is among the most beneficial that any private or public institution can play in fostering the development process. Currently, there is a large and growing body of literature that ties a nation's institutions to both economic outcomes and stability. A recent IMF study revealed that institutions play the largest role in determining a country's economic growth rate and reducing the volatility of such growth. Moreover, countries that have made the transition from underdeveloped/developing to developed status have done so after a prolonged period of strong economic growth. At present, most wars are civil conflicts. Such wars usually attract less attention than international conflicts, but they typically last longer and are more destructive. The United Nations Development Program's Human Development Report 2002 reveals that there have been 53 such conflicts during the 1990s resulting in an estimated 3.6 million deaths. Civil wars have a substantial adverse impact on the societies that they impact. According to the 2001 World Bank study, at the end of a civil war, incomes are generally 15 percent below what they would otherwise have been and 30 percent more people live in absolute poverty than would otherwise be the case. This report will draw upon the academic literature that addresses the importance of institutions, highlight the role MNCs can play in that institutional development with a focus on ChevronTexaco's efforts in Nigeria, and illustrate that public policy that is friendly to MNCs makes good economic and social sense. |
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| Document Type: |
.pdf |
| Page count: |
17 |
| Word count: |
4499 |
| Text sample: |
| MNCs: A Partner for Reducing Civil Conflict and Improving Economic Wellbeing by Nita Nautiyal & Donald Sutherland Today there is a growing body of evidence that strongly indicates that as states move toward what can be described as self-sustaining representative democracies their risk of experiencing significant internal strife or civil war diminishes. This finding has important implications for international policymaking. "Most wars are now civil wars even though international wars attract enormous global attention; they have become infrequent and |
| Forum on Knowledge and Information April 2004. 25 Hernando de Soto "The Missing Ingredient " Address to the CIDA Forum on Knowledge and Information April 2004. 26 Richard Roll and John Talbott "Why Many Developing Countries Just Aren't " UCLA November 20 2001 p.4. 27 Richard Roll and John Talbott "Why Many Developing Countries Just Aren't " UCLA November 20 2001 p.5. 28 Donald Sutherland "Does Freedom Matter?" White Plains: Institute for SocioEconomic Studies April 2002 p.21. 29 Richard |
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