Fighting the Wrong Enemy: Antiglobalist Activists and Multilateral Enterprises / Edition 1

Fighting the Wrong Enemy: Antiglobalist Activists and Multilateral Enterprises / Edition 1

by Edward M. Graham
     
 

Antiglobalist forces have been gaining ever greater momentum in recent years in their efforts to reverse what they view as the negative effects of an integrating global economy, with the 1999 WTO meeting in Seattle serving as an example. Their influence was felt earlier when efforts to create a Multilateral Agreement on Investment (MAI) ended in failure in 1998 after… See more details below

Overview

Antiglobalist forces have been gaining ever greater momentum in recent years in their efforts to reverse what they view as the negative effects of an integrating global economy, with the 1999 WTO meeting in Seattle serving as an example. Their influence was felt earlier when efforts to create a Multilateral Agreement on Investment (MAI) ended in failure in 1998 after France left the bargaining table at the Organization for Economic Cooperation and Development, effectively killing the initiative.

In this study, through an evaluation of the MAI itself and the issues raised by its opponents, Edward M. Graham takes a fresh look at the growing backlash against globalization. He first explores whether the MAI negotiations failed due to political maneuvering by antiglobalist nongovernmental organizations (supported by US organized labor) or because of irreconcilable differences among the negotiating parties over the substance of the issue of foreign direct investment. He then objectively and thoroughly assesses antiglobalist assertions that the activities of multinational firms have had negative effects on workers both in the home (investor) and host (recipient) nations, with a special focus on developing nations. An important finding is that multinational firms tend to pay workers in developing nations wages that are significantly above generally prevailing wages. Graham then examines the issue of globalized economic activity and the environment, finding that economic growth in developing nations can lead to increased environmental stress but also finding that foreign direct investment can lead to reductions in this stress. On the issue of globalization and the environment, he finds that the worry of many environmentalists of a "race to the bottom" is not borne out by the evidence.

The final chapters assess whether or not a negotiation to create a comprehensive agreement on investment should be included in a multilateral negotiating round at the World Trade Organization in the near future. The interests of developing nations in this agenda are given special attention. Graham indicates that, while many developing nations would accept such rules, it might nonetheless be premature to press for a comprehensive agreement at this time. Rather, a limited investment agenda might be both more feasible and more productive.

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Product Details

ISBN-13:
9780881322729
Publisher:
Peterson Institute for International Economics
Publication date:
08/01/2000
Series:
Praeger Special Studies in U.S, Economic, Social, and Political Issues Series
Edition description:
New Edition
Pages:
262
Product dimensions:
5.90(w) x 8.90(h) x 0.50(d)
Lexile:
1520L (what's this?)

Table of Contents

Prefacexi
Acknowledgmentsxv
1Introduction1
The Dog That Did Not Bark1
FDI and Its Benefits3
The MAI Negotiations Falter7
The Negotiations Fail10
An Economic Autopsy of the MAI12
2The MAI and the Politics of Failure: Who Killed the Dog?15
The MAI Is Conceived20
Deep Internal Difficulties Emerge25
The NGOs Enter the Stage35
The Cavalry That Did Not Arrive49
3Dissecting the MAI51
The Structure of the MAI54
Goals, Scope, and Applications55
Obligations of Host Countries57
Dispute Settlement Procedures74
Exceptions, Safeguards, and Reservations78
The Mouse That Might Have Roared?80
4Globalization, Foreign Direct Investment, and Labor81
Direct Investment and Wages in Developing Countries84
Globalization and the Sweatshop Issue99
US Direct Investment Abroad and Employment in the United States106
Does Globalization Reduce Workers' Bargaining Power?125
Summary and Conclusion129
5Globalization, Foreign Direct Investment, and the Environment131
The Environmental Impact of Globalization and Growth134
Foreign Investment: Can It Be Made Part of the Solution to the Environmental Problem?148
Toward Global Rules That Are Environmentally Friendly158
Conclusion161
6The MAI and the Developing Countries165
The Changing Position of Developing Countries on Foreign Direct Investment167
Changing Attitudes Toward Multilateral Rule Making173
Developing Countries and the Provisions of the MAI175
Is There a Deal Breaker?183
Is Any Negotiation on Investment Between Developing and Developed Countried Doomed to Failure?184
7Where Does the Multilateral Investment Agenda Go From Here?185
Arguments For and Against Multilateral Investment Rules186
Is There a Constituency for Multilateral Investment Rules?190
A Comprehensive WTO Investment Agreement: A Bridge Too Far?198
Appendix AProductivity and Wage Determination201
Appendix BIs Foreign Direct Investment a Complement to Trade?207
References213
Index223
Tables
Table 4.1Annual Compensation per worker by foreign affiliates and parent companies of US multinational corporations, by industry, 199692
Table 4.2Average compensation paid by foreign affiliates and average domestic manufacturing wage, by host-country income, 199494
Table 4.3US direct investment position abroad by host-country income, 1997107
Table 4.4Countries in the sample by income category in 1985 and 1995108
Table 4.5Net fixed assets of foreign manufacturing affiliates of US multinational corporations and of US manufacturing firms, by host-country income, 1996114
Table 4.6US FDI and US unemployment116
Table 4.7Trade in goods among foreign affiliates, their US parents, and unaffiliated firms by host-country income, 1995118
Table 4.8Coefficients indicating relationship between US exports or imports of manufactured goods and US direct investment abroad120
Table B.1FDI-related activities and trade212
Figures
Figure 4.1Outflows of US foreign direct investment by host-country income (1995 income categories)109
Figure 4.2Shares of US foreign direct investment outflows by host-country income (1995 income categories)109
Figure 4.3Outflows of US foreign direct investment by host-country income (1985 income categories)110
Figure 4.4Shares of US foreign direct investment by host-country income (1985 income categories)110
Figure 4.5Outflows of US equity capital by hot-country income (1995 income categories)111
Figure 4.6Shares of US equity capital outflows by host-country income (1995 income categories)112
Figure 4.7Outflows of US equity by host-country income (1985 income categories)112
Figure 4.8Shares of US equity capital outflows by host-country income (1985 income categories)113
Figure 5.1Income and pollution138
Figure 5.2The optimum level of pollution control151

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