GLOBALIZATION AND THE DEVELOPMENT OF UNDERDEVELOPMENT OF THE THIRD WORLD

Journal of Third World Studies, Spring 2005 by Irogbe, Kema

Dependency means, then, that the development alternatives open to the dependent nation are defined and limited by its integration into and functions within the world market. This limitation of alternatives differs from limitations in the dominant nations in so far as the functioning of the basic decisions in the world market....are determined by the dominant nations. Thus the dependent nations must make choices in a situation in which they do not set the terms or parameters of choice.7

The international system or world market upon which the underdeveloped countries depend implies a structure that is characterized by institutions, classes, and power arrangements. The dynamic process within the structure involves domination by one group -- marking a relationship of unequal development. At the core of this power relations within the international system are the multinational corporations -- the agents that foster the economic exploitation of the underdeveloped countries.

MULTINATIONAL CORPORATIONS

There has been no greater challenge to nation-states' sovereignty in the later half of the 20th century than the threat of multinational corporations (MNCs). Defenders of MNCs contend that they are the 'engine of development'. They argue that MNCs create jobs, transfer technology, reduce inflation, and make war unthinkable. But a body of evidence suggests that MNCs, whose goal is the maximization of profits, are not philanthropic institutions and they serve the interest of no one but themselves. The profound hypocrisy and inherent barbarism of MNCs' globalization lies unveiled before our eyes, turning from their homes, where they assume some respectable forms, to the underdeveloped countries where they go uninhibited. The corporations undermine not only their parent countries where they are headquartered but they cause more injuries to the periphery. MNCs unbridled operations in the underdeveloped countries cause environmental degradation, poorer nutrition and health standards, and undermine the sovereignty of host countries. Let us provide some examples.

The early 1980s' efforts of the Nestle Corporation and other international distributors of powdered dry baby formula to market their product to the underdeveloped countries provide a good case. Using sophisticated advertising techniques, the Nestle argued that dry baby formula was as good or even better than mothers' milk in providing the nutritional needs of infants and marketed the formula as the "modern1 way to care for an infant to the African and other peripheral countries. But the corporations failed to consider the quality of water supplies in the underdeveloped countries which are often undrinkable without purification. By mixing formula with water as is required, mothers in those areas exposed their babies to a number of diseases that they otherwise would have avoided by raising the infants on mothers' milk. In fact, another grave danger to infants occurred when, in efforts to economize, mothers put too little formula into each measure of water. Consequently, widespread malnutrition among infants resulted. Only after extensive worldwide publicity campaign, including efforts at the United Nations, did the MNCs reduce their baby formula marketing efforts in the underdeveloped countries.8