MNC – Page 2 – State Legitimacy

I linked yesterday to Ann-Marie Slaughter‘s excellent presentation to PopTech on International Relations and the non-state actors that influence and even dictate so much development in the world. Watching it again this morning (and it’s worth watching twice) a number of questions crossed my mind. First, she talks about social actors and ad hoc networks, but never quite gets to social networks. Just as ad-hoc supra-national organisations are bringing together strange bedfellows, and getting ahead of the State actors in driving change, people are developing connections and social networks beyond traditional family and even cultural groups; one could argue that technological change is facilitating the re-structuring of the DNA of culture. Kin, geography, language, religion and race remain important, but they are no longer the exclusive determinants of social alignment. People connect now through trade, sports, entertainment, hobbies, and other interests, forming close relationships. People’s identity – closely tied to these relationships – is changing. National identity is less relevant.

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The role of the non-state actor can tell us much about the nature and power of the state. While in the first instance the role of the MNC is seen as relevant in development and labour standards, for example, there are deeper more fundamental aspects of the MNC that help us to understand legitimacy. Some countries that struggle for legitimacy – fledgling regimes, less democratic regimes, oppressive regimes – manage to sustain themselves in spite of a lack of popular support by enriching those who control the levers of power, such as the army generals, and the judiciary. The wealth that flows to those regimes comes from multiple sources, including the sale of natural resources, and sovereign debt markets, both of which are essentially controlled by MNCs.