CORPORATE CAPITALISM, GLOBALIZATION AND GOOD GOVERNANCE
ABSTRACT:
KEY WORDS:
Corporate, capitalism, globalization, governance, good governance etc.
INTRODUCTION:
In recent years there has been a change in the scenario of the world. The economic change is called globalization-integration of economics, grater capital flows, trade flows, extent of privatization, lesser restrictions on trade and investment. The capital change is corporate capitalism, which is the element of globalization because, for corporate capital, multinational company spread all over the world. In the change of governance is called good governance-rule of law, human rights, independence of judiciary, accountable and transparent administration, free media etc. corporate capitalism, globalization and good governance are interlinked where globalization is goal, good governance and corporate capitalism are relatively way and elements of globalization.
OBJECTIVES AND THE PROCEDURE:
This paper presents the conceptual analysis of corporate capitalism, globalization and good governance, it also find out the relation among these. And the procedure is at first discussed abstract with introduction, then discuss about the concept, definition, characteristics etc. of corporate capitalism, globalization and good governance, then find out a relations among this and finally concluding remarks.
CORPORATE CAPITALISM, GLOBALIZATION AND GOOD GOVERNANCE: A CONCEPTUAL FRAMEWORK:
The triple concepts-corporate capitalism, globalization and good governance have dominated international discourse for sometime now. The definition, characteristics, challenges etc given blow-
Corporate capitalism
Corporate capitalism consists by two words corporate and capitalism, where corporate mean belonging to a corporation, unite, or association consists by law. Capitalism is the economic form of democracy.
Corporations are usually called public entities when parts of their business can be bought in the form of shares on the stock market. This is done as a way of raising capital to finance the investments of the corporation. The shareholders appoint the executives of the corporation, who are the ones running the corporation via a hierarchical chain of power, where the bulk of investor decisions are made at the top, and have effects on those beneath them.
Capitalism is the economic system in which most of the means of production are privately owned, and production is guided and income distributed largely through the operation of markets. Capitalism has been dominant in the Western world since the end of mercantilism. It was fostered by the Reformation, which sanctioned hard work and frugality, and by rise of industry during the Industrial Revolution, especially the English textile industry (16th-18th centuries).
Capitalism in the economic system in which (1) private ownership of property exists; (2) aggregates of property or capital provide income for the individuals or firms that accumulated it and own it; (3) individuals and firms are relatively free to compete with others for their own economic gain; (4) the profit motive is basis to economic life.
Corporate capitalism is a term used in social science and economics to describe a capitalism market place characterized by the dominance of hierarchical, bureaucratic corporations, which are legally required to pursue profit.
THE DOMINION AND CORPORATE CAPITALISM:
The intergalactic dominion’s economy is built on corporate capitalism, which is controlled for the most part by the Megacorporations. Each Megacorporation is made up of thousands of smaller companies, ranging from industrial companies to law firms. Although this gives the Megacorporations seemingly dictatorial powers, they are just as bound by dominionese customs and laws as the individual, and the fierce, continual competition between the corporations ensures a healthy, consumer-based social environment, which benefits everyone. In addition if a company is found guilty of unethical business dealings, it is quickly removed from the market, and before long another one appears to take its place as corruption and immoral market practices are not tolerated by the general public and the liberalized market makes for quick replacements of corporations that are failures.
The intergalactic dominion’s style of corporate capitalism puts forth that increased stability of its economy results from careful government regulation, that regulation should be as limited as possible so that Tier-One participants can generate the greatest GDP. However, regulation is needed to ensure that individuals do not exploit markets for personal gain at the expense of market growth and stability.
GLOBALIZATION:
Globalization emerged as a dominant international system at the end of the twentieth century and affected everyone in the world directly or indirectly. According to Murtin Albrow, “Globalization refers to all those processes by which the peoples of the world are incorporate into a single world society, global society”.
According to Rosabeth Moss Kanter, “The world is becoming a global shopping mall in which ideas and products are available everywhere at the sometime”
According to Smyth, globalization is the latest phase of uneven development within capitalism. According to Keohane and Nye, “Globalization is a state of the world involving interdependence at multi-continental distances, that can be linked through flows and influences of capital and goods, information and ideas, people and force, as well as environmentally and biologically relevant substances.”
Globalization is a comprehensive term covering various aspects of developments, both economic theory and political practice. These clearly noted that due to technological advancements, geographic distances are reduce peoples relations and interdependences are becoming worldwide.
EMERGENCE OF THE CONCEPT:
Though the globalization is a new buzzword, but it is not a new process, globalization of the present day as the forth stage of its development.
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DIMENSIONS OF GLOBALIZATION:
According to Abul Kalam, there are six dimensions of globalization- (1) Technological; (2) Information; (3) Economic; (4) Military; (5) Environmental and (6) Sociopolitical and Cultural globalism. According to Robert T. Kudrle, there are three types of globalization. Such as communication, market and direct.
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ELEMENTS AND CONDITIONS FOR GLOBALIZATION:
Globalization process comes from GATT, which is WTO at present. This organization sets some elements and condition for ensure and increase globalization. These are-
1. Ensure free market economic polices;
2. Enhance privatization;
3. Import liberalization;
4. Export oriented industries introduce and create;
5. Reduce agricultural subsidy;
6. Change and expansion of technology;
7. Free print and electronic media;
8. Revoke rationing system;
9. Conventions and agreements on the global environment;
10. Multilateral agreements on trade, service and intellectual property.
CHALLENGES OF GLOBALIZATION:
1. Trade reform this is a major challenge of globalization Bangladesh as well as third world countries. In Bangladesh liberalization of trade regime started in the middle of the 1980s under structural adjustment reforms initiated by the World Bank and IMF.
2. Shift in export profit.
3. Increase in export.
4. Shift from public investment to private
5. Privatization of state owned enterprises.
6. Industrial relation.
IMPACT ON THE DEVELOPING COUNTRIES:
Globalization, a dominant force in the present-day world, is shaping a new era of interaction among nations, economies and people. While globalization has positive, innovative and dynamic aspects, it also has negative, disruptive, and marginalizing aspects. Its horizontal flow of capital and nature of marginalization are difficult to control. So globalization is inviting a lot of criticism from some scholars economists. Critics strongly argue that globalization created opportunities for the rich dominant North along with northern Multinational and Transnational corporations?
· The developing countries cannot compete with the development countries.
· Because of low-quality of products and high-cost, the goods of the developing countries cannot compete with the products of the development countries. As a result, there is little prospect for the growth of industries in the development countries.
· The most revealing aspect of globalization is that it has made our people a consumer-class.
· Globalization appears to be a serious threat to indigenous culture. Western culture/ cultural globalizations led to the fragmentation or elimination of domestic culture.
· The whole-world, particularly the developing countries are being controlled by the developed countries with the help of various institutions like World Bank, IMF, WTO and MNC.
GOOD GOVERNANCE:
Before defining good governance, it is pertinent to define governance in order to use it as a point of departure of fully understand good governance. Simply put, “Governance” means, the process of decision-making and the process by which decisions are implemented.
According to Keohane, governance, the emergence and recognition of principles, norms, rules and procedures that both provide standards of acceptable public behaviour and that are follower sufficiently to produce behavioural regularities.
The 1992 Commission of Global Governance defines governance “as the sum of the many ways individuals and institutions, public and private, manage their common affairs.” The World Bank defines governance as the manner in which power is exercised in the management of a country’s economic and social resources. The UNDP views governance as the exercise of economic, political and administrative authority to manage a country’s affairs at all levels.
Good governance means an ideal governing system that is inevitable for political, economic, social and cultural development of a country. It is the ideal orientation of a state that works best to achieve self-reliance, sustainable development and social justice.
Former UN Secretary General Kofi Annan defined good governance as ensuring respect for human rights and the rule of law, strengthening democracy, promoting transparency and capacity in public administration.
Good Governance, for the World Bank, includes some or all the following features:
· An efficient public service;
· An independent judicial system and legal framework to enforce contracts;
· Accountable administration of public funds;
· An independent public auditor, responsible to a representative legislature;
· Respect for the law and human rights at all levels of government;
· A free press.
In essence, good governance can be applied at international, national, local, and organizational levels and to manage many types of resources. Although terminology may differ, the principles of good governance as recognized worldwide are similar.
ELEMENTS/PRINCIPLES OF GOOD GOVERNANCE:
The principles of good governance may be showed into different ways----
a) A number of multilateral organizations like the United Nations, World Bank and OECD generally equate good governance with sound economic management based on Accountability; Participation; Predictability; and Transparency.
b) The UNDP (1977) has identified following five basic principles of good governance namely-Legitimacy and voice, Direction, Performance, Accountability, Fairness.
c) According to D. Bandyopadhyay, some of the main elements of good governance are:
· Accountability-both financial and political;
· Transparency both financial and political;
· Easy access to information;
· Popular participation in decision making and implementation;
· Responsiveness;
· Efficient delivery system of services and goods; and
· Enforcement of rule of law.
FEATURES/CHARACTERISTICS OF GOOD GOVERNANCE:
Good governance must have the following 8 major characteristics----
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MAIN CONSTRAINTS/ CHALLENGES TO GOOD GOVERNANCE IN BANGLADESH
Despite the continuing efforts of Bangladesh to enhance the quality of governance in the country, it is still suffering, among other things, from numerous and diverse governance-related insufficiencies and complexities, both structural and non-structural. At present, one of the key challenges of good governance in Bangladesh is: how to ensure a continually meaningful participation of rural people, including those at the grassroots level and the poor in local, national, regional and global economics, politics, peace, security and right based development?
a) Corruption
b) Inefficiency of bureaucracy
c) Nepotism and Politicization in Public Administration
d) Improper and non-observance of the rule of law
e) Improper use of resources
f) Poor planning strategy
g) Criminalization of Politics
h) Independence of judiciary
i) Lack of accountability
GLOBALIZATION AND GOOD GOVERNANCE:
There are a relation in globalization and good governance. Good governance is the result of globalization in the perspective of aim and objectives of globalization and good governance. The purpose of globalization and the goals of good governance and the expansion of international trade. Good governance ensure the stability of politics, economics an socio-cultural. Which is helpful of globalization.
The world is becoming more unified than ever before politically. Countries of the world are integrating more and more and cooperating in the areas of trade, military and economy. The unification has blurred barriers to free movements of nationals across the sub-region, and the emergence of a single Eurocurrency has resolved constraints in the business transactions. Protectionism, except in a few countries is not more in vogue.
GOOD GOVERNANCE AND CORPORATE CAPITALISM:
Good governance is an indeterminate term used in development literature to describe how public institutions conduct public affairs and manage public resources in order to guarantee the realization of human rights. Corporate capitalism is a capitalist market place which is legally required to pursue profit, for this it make a pressure to government to ensure good governance Branko Horvat Stated “… it is now well known that capitalist development leads to the concentration of capital, employment and power. It is somewhat less known that it leads to the almost complete destruction of economic freedom……….”.
According to Lenin, the export of financial capital superseded the export of commodities; banking and industrial capital merged to form large financial cartels and trusts in which production distribution are highly centralized; and monopoly capitalists influenced state policy to carve up the world into spheres of interest. These trends led states to defend their capitalist interests abroad through military power.
CORPORATE CAPITALISM AND GLOBALIZATION:
Corporate capitalism is the capitalist market place, which is the economic aspect of democracy. Capitalism include imperialism and oppression on over the third world states. In the name of globalization different types of corporate houses, multinational companies and capitalist enter into economically and technological poor but resourceful countries and shift the profit to development countries. Globalization helps to investment of capitalist and corporate houses. Because globalization wants to open the door of free market economy, export oriented industries, technological development. To ensure these development countries depended on developed countries and corporate capitalist take over this opportunity.
CONCLUSION:
From the above discussion it should be clear about corporate capitalism, globalization and good governance that these three are not separated from each other. Globalization helps corporate capitalist to expand there are all over the world and it wants to ensure good governance of the different countries. Because globalization is the destination or goals where good governance is the way of this. Sustaining the gains of the synergy between corporate capitalism, globalization and good governance demands that the counteracting agencies should be independent and neutral. They should be supported by the civil society, including mass media and to operate in the environment of political freedom and transparency. We can not stay out side of globalization corporate houses, multinational companies. So we should take some initiative infavour of national unity and interest, and by these system we can get profit of globalization.
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CORPORATE CAPITALISM, GLOBALIZATION AND GOOD GOVERNANCE -- MD. HELAL UDDIN
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