By Howard Jones (auth.)
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Meanwhile their sheer size ensures that they can dominate the economies of the poorer countries in which they are established, and intimidate their governments: Today, for instance, the four largest transnational corporations together have an annual turnover greater than the total GNP of the whole continent of Africa. The top thirty-four companies, with turnovers over 10 billion dollars per year, outdistance the GNPs of some seventy countries normally ranked in the 'world economic hierarchy'. Together these companies have a global production in excess of the total product of some eighty poor countries in which over half of the world population live.
Such a plan would moderate the present obsession with industrialisation in order to make fuller use of the human and natural resources of the rural areas. Foreign corporations might be required to reinvest part of their profits in 34 Social Welfare in Third World Development the underdeveloped parts of the economy, perhaps as a condition for being allowed to repatriate the rest. This is less likely to lead to attempts at evasion than is complete prohibition. Much will depend on the readiness of the industrialised countries to bring about an international economic order which is conducive to development among their poorer neighbours.
Lending by the World Bank, like that of the IMF, has shrunk, and is now often conditional on the acceptance of policies which set back the clock socially. IMF Special Drawing Rights (SDRs) are not conditional in this way, but they are very limited. And the developed countries, which control the IMF, have not been willing to link SDRs to aid instead of to the fixed IMF quotas, in order to ensure that they go where they are most needed. There is also the vexed question of access to overseas markets at a time of widespread if disguised protectionism in North America, the European Community and Japan.