dominating the Third World Countries . The World Bank facilitated the growth of imperialist private capital in the former colonies by advancing the socalled soft-loans to infrastructure projects which created basic conditions for flourishing of MNCs . In the name of developmental strategies , the IMF forced the former colonies to accept the structural adjustment which served the penetration of imperialist capital . The WTO helped the imperialist countries to regulate the international trade to their advantage . These are nothing but instruments of imperialist plunder and also become the hotbeds of contention between various imperialist powers .
The MNCs appeared on the stage as a consequence of capitalist development ; relentless accumulation of capital on a world scale ; aided and abetted by every greater concentration and centralization of enterprise . The main contributing factors to the emergence of a new form of international capital operation were : 1 . The system of international payments was reconstituted under US leadership by the Bretton Woods agreement ; 2 . Marshall Plan stimulated the rehabilitation of US native giants , and at the same time , prepared a fertile ground for sprouting of US corporations in Western Europe ; 3 . World War II and its aftermath galvanized business and technological changes are rebuilding of devastated Europe provided opportunities for US . The changes that contributed most to facilitate sprouting of MNCs were : 1 . Expanded air transport ; 2 . Vast improved modes of communication ; and 3 . Sophisticated computers for the amassing and analysis of data needed to plan for global maximisation of profits .
With in a short span of a quarter of a century the MNCs reached a level in the international accumulation of capital that their output away from home base began to outdistance trade as the main vehicle of international economic exchange . As in the past ,
August - 2022 the modern upsurge in transitional production is also concentrated in the hands of a relatively small number of companies . But in contrast with the former pattern , the leading firms are no longer operating in only one or two foreign countries but have truely spread their wings : for example , two hundred of these companies , among the largest in the world , now have affiliates in twenty or more countries . Moreover , the MNCs were formerly for the most part in raw material extraction and to a limited extent in banking . Today ’ s global firms have invaded manufacturing and services , and taken a major leap into international banking and speculation .
Right from the onset of MNCs a hundred years ago , the apologists of imperialism used to speculate that sooner or later the entire process of production will end up in the hands of few global companies and thus virtually eliminates all competition . It is important to note here that the very forces that propel capitalism towards more concentration and centralisation of capital , by their very nature creates obstacles in the elimination of competition . The competition that disappeared between the individual capitalists with the onset of monopoly capitalism had reappeared as cutthroat competition between monopoly groups and imperialist nations . After the end of World War II , the US dominance was a natural outgrowth of great disparity between the US and war devastated Western Europe . Viewed abstractly , many expected that this US hegemony would grow until the world ’ s productive capacity would be in the hands of few US global firms . Contrary to this , the US dominance is being challenged by other imperialist countries .
Another speculation is that the globalisation of capital will eventually result in decline of the nation state and few global giants will police the international affairs . The concept of nation state is vague as it contains nation states of various nature . We must draw a line of demarcation between imperialist states and the state of Third World countries .
The monopoly capital and its home state are not mutually exclusive , rather they are symbiotic .
1 . Almost all the MNCs are infact national organisations operating on a global scale . Capitalism is and has from its beginning being a world system and this system has been further integrated by the MNCs . It is also equally important to recognise that each capitalist firm relates to the world system through the nation state .
2 . The MNCs need social stability in the countries where they operate . For internal law and order , they need a police force and for external stability they need armed forces . The dependence on armed forces as the bedrock of business enterprise acts to strengthen , not weaken , the nation state .
3 . The more the MNCs struggle among themselves for market control , more they need and rely on active support ( Political , Economic and Military ) of the State . The MNCs are far from all powerful financially and need active support and intervention of state in the form of funds .
Thus the problems of maintaining sovereignty of state arise from the contradictions of monopoly capitalism . In other words , the problems arise not from the evils of MNCs alone or presumed submission of state to MNCs ; but the problems are inherent in the nature of imperialism .
As for the states of Third World concerned , the problem is not so simple as the submission of nation state to the dictates of MNCs or World Bank . What is really important and decisive is that these countries , suffered under the yoke of colonialism and semi-colonialism for long years , have evolved a mode of production , a class structure and a social , cultural and psychological milieu that are subservient to imperialism . Depending on this semi-colonial social order , the MNCs and WB-IMF-WTO are playing
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