Multinationals and Maldevelopment: Alternative Development Strategies in Argentina, the Ivory Coast and Korea

305 Pages·1998·26.955 MB·English

by  Lawrence R. Alschuler

Multinationals and
Maldevelopment
Alternative Development Strategies in
Argentina, the Ivory Coast and Korea
Second Edition
Lawrence R. Alschuler
MULTINATIONALS AND MALDEVELOPMENT
Also by Lawrence R. Alschuler
PREDICfING DEVELOPMENT, DEPENDENCY, AND CONFLICT
IN LATIN AMERICA
DEPENDENT AGRICULTURAL DEVELOPMENT AND
AGRARIAN REFORM IN LATIN AMERICA (editor)
DEVELOPPEMENT AGRICOLE DEPENDANT ET MOUVEMENTS
PAYSANS EN AMERIQUE LATINE (editor)
Multinationals and
Maldevelopment
Alternative Development Strategies in
Argentina, the Ivory Coast and Korea
Lawrence R. Alschuler
Professor of Political Science
University of Ottawa, Canada
Second Edition
© Lawrence R. Aischuler 1988, 1998
All rights reserved. No reproduction, copy or transmission of
this publication may be made without written permission.
No paragraph of this publication may be reproduced, copied or
transmitted save with written permission or in accordance with
the provisions of the Copyright, Designs and Patents Act 1988,
or under the terms of any licence permitting limited copying
issued by the Copyright Licensing Agency, 90 Tottenham Court
Road, London WIP 9HE.
Any person who does any unauthorised act in relation to this
publication may be liable to criminal prosecution and civil
claims for damages.
The author has asserted his right to be identified as the author
of this work in accordance with the Copyright, Designs and
Patents Act 1988.
Published by
MACMILLAN PRESS LTD
Houndmills, Basingstoke,Hampshire RG21 6XS
and London
Companies and representatives
throughout the world
First edition 1988
Reprinted 1994
Second edition 1998
ISBN 0-333-69946-7 hardcover
ISBN 0-333-69947-5 paperback
A catalogue record for this book is available
from the British Library.
This book is printed on paper suitable for recycling and
made from fully managed and sustained forest sources
10987654321
07 06 05 04 03 02 0 I 00 99 98
Printed and bound in Great Britain by
Antony Rowe Ltd, Chippenham and Eastbourne
To Zoe and Freda,
multinational enterprises I cherish
This page intentionally left blank
Contents
List of Tables IX
List of Figures
X
Preface to the First Edition Xl
Preface to the Second Edition Xlll
Multinationals: Engines of Development or
Maldevelopment?
Introduction: trains of thought on maldevelopment 1
Model construction 3
Triangulation: a methodology 23
2 Argentina: From Egalitarian Stagnation to
Authoritarian Growth 27
Historical background 28
Six political regimes: 1946-76 33
Multinationals, development and dependence in
Argentina 57
3 Ivory Coast: Libertarian Growth without Equality 65
Historical background 65
Three development plan periods: 1960-75 68
A re-examination of three myths in the Ivory Coast 96
4 Korea: Authoritarian Growth with Equality 103
Introduction 103
Historical background 106
Three development plans: 1962-76 115
Multinationals, development and dependence in
Korea 133
5 Alternative Development Strategies and
Maldevelopment 161
Direct impacts of multinationals on maldevelopment 162
Parallels between national development strategies
and multinational strategies 164
vii
Vlll Contents
Development strategies and maldevelopment 168
Explaining maldevelopment in Argentina, the Ivory
Coast and Korea 176
Conclusions 183
6 What is the New Comparative Political Economy? 187
Identifying the new comparative political economy 189
The new comparative political economy of development 190
Approaching our study of divergent development 192
7 Divergent Development: the Newly Industrialising
Countries of East Asia and Latin America 195
The model 197
The methods 211
The cases 215
The results 224
Appendices
1. Qualitative causal path analysis 230
2. Special considerations in some predictions 233
3. A prediction form 236
4. Source references for Tables 7.1 and 7.2 237
5. Indicator definitions and data sources 244
6. Data set 247
Notes 251
References 269
Index 281
List of Tables
1.1 Typology of Situations of Maldevelopment 6
1.2 Typology of State Regulation of Foreign Capital 11
1.3 Comparison of the Cases 25
3.1 Percentage Distribution of Exports to Various
Countries, 1960-70 74
3.2 Percentage Composition of Exports, 1960-70 76
3.3 Percentage of Employment by Sector and Nationality,
1971 and 1974 93
4.1 Trade Partner Concentration, 1910-41 109
4.2 Vertical Trade, 1915-41 109
4.3 Korean Economic Growth, 1960-75 112
4.4 Net Foreign Capital Inflows, 1962-76 112
4.5 Relationship Between Ownership Structure and
Market Orientation 136
4.6 Comparative Data on the Flow of Foreign Direct
Investment, 1972-76 139
5.1 RegimelPlan Periods by Type of Maldevelopment 162
5.2 Twelve RegimelPlan Periods According to Type of
State Regulation of Foreign Capital 165
5.3 Alternative Development Strategies in Argentina, the
Ivory Coast and Korea 169
5.4 Summary of Data on the Twelve Regime/Plan Periods 178
6.1 The Subfields of Political Economy 191
7.1 Argentina: Initial Values for Policies, FDI and State
Effectiveness 219
7.2 Korea: Initial Values for Policies, FDI and State
Effectiveness 223
7.3 Results for Argentina 225
7.4 Results for Korea 225
A.l Growth: change in per capita gross domestic product 247
A.2 Equality: ratio of real wage index to productivity index 248
A.3 Liberty: political rights and civil liberties 249
A.4 Liberty: democracy minus autocracy 250
ix