The International System: Economic and Science and Technological Perspectives

Abstract

I T wo phenomenal developments characterized the change in the international system in the years after the Second World War: (i) the spread of Multinational Corporations (MNCs) and (ii) the rise of a Third World, with its pluralization of political systems, economic forms and social doctrines. While the former is an important factor in the North–South relationship, the latter development has brought about new changes in the international economic system. While not exercising any direct political power, the MNCs are economic giants, mostly belonging to the United States. The emergence of more than 500 MNCs has drastically changed the character of the international system, and while academics continue to discuss whether they are benevolent giants engaged in the task of abolishing poverty and creating a world community, or parasites preying upon the life-blood of the host country, they are spreading their economic tentacles. The MNCs have become the dominant actors in the international system, and several of them today exercise more collective influence than most of the nation states. However, it would be incorrect to regard American MNCs as a tool of American imperialism. They are quite capable of undertaking policies independently of the US Government. Nor are the MNCs completely independent actors, capable of pursuing objectives incompatible with the US national interest. The US Government and the American MNCs function independently of each other, though occasionally the former adopts policies and positions in the field of international relations, which suit the interests of MNCs. In spite of a plurality of States replacing bipolarity in the political field, economic power continues to emanate from the United States. While the socialist countries have been able to resist political and military pressures, including the nuclear might of the United States, they seem to have willingly accepted the economic influence of the multinationals. The Cold War has been replaced by détente in the political field, and cooperation between the two Super Powers is more pronounced in the economic field. The extensive trade agreements signed between the United States and the From the Archives