Micro Enterprise and Economic Development

Although studies have found that financial program to microenterprise yields highly positive final results for developing countries, the emphasis remains, for your most part, on bigger enterprises, for example multinational firms (MNCs). Some observers take a dim view of MNC exercise in developing countries.

"The owners and managers of global firms view the globe as their factory, farm, supermarket, and playground."7 An option view was expressed by former American Undersecretary of Land (and, now, investment banker) George Ball, who refered to MNCs as cosmocorps, and defended their activities, which he described as "taking the raw materials made in one group of countries, transforming these into manufacturing products in the labor and plant facilities of one more group, and selling the merchandise in still a third group . . . from the benefit of instant communications, quick transport, computers, and modern-day management techniques."8 3Agreeing with Ball, Peter Drucker, American management and firm analyst and theorist, said that, "to the developing nation . . . , the multinational is both very significant and extremely visible.

"9 Over a other hand, Eric Williams, former Prime Minister of Trinidad and Tobago, said that the Holly Sklar held how the "locus of power of an international ruling class will be the global corporation" and that this international ruling class, in the MNC, seeks to "rationalize the world economy in their interest."19 Sklar further pointed out how the "economies of most countries are dwarfed by the economic power on the largest firms and banks."20 5 THE FUNCTIONING OF REVOLVING LOAN FUNDS, AND 9C. F. DiazAlehandro, "The Andean Common Market," in Analysis of Development Problems, Revised Edition, (eds.), R. S. Eckaus, and P. N. RodensteinRodan (Amsterdam: NorthHolland Publishing Company, 1983, pp. 293326.

The crude oil cost and offer shocks of the mid1970s along with other economic issues experienced by several of the developed countries, especially the United States, soon produced it apparent how the new regime would be unworkable. Consequently, the Second Amendment with the Articles of Agreement in the IMF was accepted by member nations, and became powerful inside the late1970s1978.25 The Second Amendment, which is the protocol under which the IMF functions inside the late1980s, successfully ended the organization's role in currency exchange rate control. With implementation from the Amendment, member countries have been free to adopt exchange rate arrangements of their very own choice. The result has generally been a situation characterized by a market determination of exchange rates for most currencies.

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