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On Economic Bargaining between African Governments and Multi-National Companies

Published online by Cambridge University Press:  11 November 2008

Robert L. Curry Jr  and
Donald Rothchild
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Extract

The activities of multi-national companies provide primary sources of economic contact between African countries and the industrialised world. The companies' operations in both resource and product markets are often influenced by impositions made, or not made, by host governments in Africa. Such impositions result from bargaining between governments and companies in which each negotiating agent is intent upon obtaining the most preferred conditions—and these are affected by variables that occupy the central focus of our analysis. First, we outline what we believe are crucial variables that affect bargaining outcomes: i.e. particular patterns of benefits and costs arising from the ways that companies manage their businesses in developing lands. Second, we note particular instances where the critical variables appear to be influential, and explore how closer concentration on these might lead to more preferential outcomes from the viewpoint of African governments.

Type
Articles
Information
The Journal of Modern African Studies , Volume 12 , Issue 2 , June 1974 , pp. 173 - 189
Copyright
Copyright © Cambridge University Press 1974

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References

Page 173 note 1 The model appropriates essential elements of more detailed constructions developed by Contini, Bruno, ‘Time in Bargaining Negotiations’, in The American Economic Review (Evanston), LVIII, 3, 06 1969,Google Scholar and by Curry, Robert L. Jr, and Wade, L. L., ‘A Model for SocioPolitical Bargaining’, in The American Journal of Economics and Sociology (New York), XXX, 4, 10 1971,Google Scholar and as suggested in their book, A Theory of Political Exchange (Englewood Cliffs, 1968).Google Scholar

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Page 175 note 2 Clower, Robert W. et al. , Growth Without Development: an economic survey of Liberia (Evanston, 1966), ch. 2.Google Scholar

Page 176 note 1 For example, see Curry, Robert L. Jr, ‘Liberia's External Debts and their Servicing’, in The Journal of Modern African Studies, X, 4, 12 1972, pp. 121–26.Google Scholar

Page 177 note 1 See Shoup, Carl et al. , The Tax System of Liberia (New York, 1971), ch. 8.Google Scholar

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Page 179 note 1 A more extended analysis of these shifting bargaining relationships, and their implications for the ongoing interactional process, appears in Rothchild, Donald, Racial Bargaining in Independent Kenya: a study of minorities and decolonization (London, 1973),Google Scholar chs. 1, 4, and 13. See also his ‘Changing Racial Stratifications and Bargaining Styles: the Kenya experience’, in The Canadian Journal of African Studies (Ottawa), VII, 3, 1973, pp. 419–31.Google Scholar

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Page 183 note 1 New York Times, 11 09 1973, p. 7.Google Scholar

Page 184 note 1 U.N.C.T.A.D., Report on Restrictive Business Practices (Geneva, 1972), p. 82.Google Scholar Also see Articles 20 and 25 of Decision No. 24 of the Cartegena Agreement on the Transfer of Technology, 31 December 1970; and Patel, Surendra J., ‘The Technological Dependence of Developing Countries’, in The Journal of Modern African Studies, XII, 1, 03 1974, pp. 1–18.CrossRefGoogle Scholar

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Page 185 note 2 The Kampala Agreement is reprinted in Rothchild, Donald (ed.), Politics of Integration: an East African documentary (Nairobi, 1968), pp. 224–29.Google Scholar

Page 186 note 1 Ministerial Meeting of the Group of 77, The Declaration and Objectives of the Meeting at Lima (Geneva, 1971), p. 87.Google Scholar

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Page 188 note 3 Ibid. pp. 31–32.

Page 189 note 1 Dumont, René with Mazoyer, Marcel, Socialisms and Development (New York, 1973), p. 335.Google Scholar