CORPORATE CAPITALISM,
GLOBALIZATION AND GOOD GOVERNANCE
ABSTRACT:
Corporate capitalism is a term is
social science and economics to describe a capitalist market place
characterized by the dominance of hierarchical, bureaucratic corporations,
which are legally required to pursue profit. Globalization has been an
important factor in accelerating democracy’s, growth in recent decades.
Globalization refers to the integration of world markets through free flow of
tread, skills and capital. It also refers to a range of transformative process
of political, economic, trade and social system, education, science and
technology, and cultural process that are affecting all parts of the world.
Good governance is relatively a new area of discussion, which draws upon the
concept from the concepts from politics, economics, administration, law etc.
These three dimension are related to each other is the different way. This
papers attempts to discuss about corporate capitalism with its criticize,
globalization and its aim and challenges and impact, and good governance with
its characteristics and challenges, finally find out a relation among these
concept.
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.
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.
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----
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