Bourdieu’s Structuration Theory

Bourdieu didn’t like the label ‘social theorist’ because he insisted that there was a fundamentally important relationship between empirical data, research methods and ‘theory’.

He was not interested in making grand theoretical claims, but rather was engaged in examining particular substantive areas (fields) of social life that existed at particular times and places, such as fields of education.

Drawing inspiration from Marx and Weber, Bourdieu argued that all aspects of social life must be examined in terms of the power relations they embody – the main aim of sociology is to expose the power of elite groups, which would normally not be visible without sociological analysis.

This ‘exposure’ element is different to Giddens’ structuration theory, who generally assumes the knowledgeability of subjects, while for Bourdieu actors are not necessarily conscious of the operation of power.  Bourdieu also focused more on the group, rather than the individual agent.

Bourdieu has been criticise as just being  a Marxist, for seemingly analysing power relations in terms of how structure and ideology reproduce individuals. However, Bourdieu saw his position as successfully mediating between objectivism and subjectivism. He claimed these are transcended by his key concept of habitus – a term meant to describe how social conditions act upon and shape individuals’ actions and how also people are –within certain limits – capable of creative responses to the situations they find themselves in (Reay 2004).

A habitus is the characteristic ways of thinking, feeling, acting and experiencing shared by all members of a certain group.  It describes how social structures act on individuals in a group and how individuals actively respond to the social situations created by those structures – a person’s practices can either maintain or transform the social situations people operate within.

For Bourdieu the primary groups in society are social class groups. He understands power as the domination of one class over another, via attempts at legitimising their world view.

For Bourdieu, the habitus encompasses both  objective and subjective, passive and active, material and ideal elements.

The more objective elements concern wealth and power, and the socialisation processes – socialisation happens at a mental as well as a bodily level — the tiniest details of how we walk, or blow are knows signify aspects of our socialisation, mostly our class background, and for Bourdieu we are not fully aware that everything we do is expressive of the habitus into which we’ve been socialised. Instead the habits disguises itself by making people see the world in common sense ways, and these do not allow critical attention to be paid to it. People just experience what they experience as ‘common sense’.

We do not even realise we have a habitus until we step outside it, into a different context – e.g. a working class person going to a society wedding, realising their ordinary ways of being just don’t fit.

The habitus ‘adjusts expectations to reality’ – so that our subjective outlook meshes with our objective conditions – thus a working class person would just not expect to eat caviar for breakfast, we just accept this.

Bourdieu maintains that habitus does not simply constrain individuals – it also allows action to take place, but it always provides a limited set of possibilities, most of this happens within the realm of practical consciousness.

Bourdieu has been criticised for understating the extent to which people are reflexive today – i.e. it appears that people do increasingly reflect on themselves and their habitus and consciously seek to change what they are.

More to follow>>>

Related Posts 

Cultural Capital and Educational Achievement

Don’t Fall in Love with a Foreigner, at least if you’re poor.

It’s official – the poorest 40% of UK citizens aren’t allowed to bring their foreign born spouses to the UK…

The Supreme Court recently upheld a decision that breaks up families in which a UK spouse earns less than £18.6K and is married to someone outside of the EU.

The government regards such poorer families as a “burden to the state” and so forces its own citizens who fall in love with non-EU citizens to shove off and set up their family life elsewhere.

According to research conducted by Oxford University, nearly 40% of the working UK population wouldn’t be eligible to live here with their non-EU partner – that breaks down to 27% of men and 55% of women. The majority of young people don’t earn enough either. And the statistics are worse if you have a child. So, if you’re a young women and you fall for a handsome stranger from a distant land, it is highly unlikely the Home Office will allow you to remain in this country if you want to live together.

This is a nice link to the families and households topic, showing how immigration and cross-cultural marriage is only for the rich. The poor, it seems, are doomed to marry locally. It’s also a nice tie-in with the social class and family sub-topic.

Structuration Theory – A Summary

From a structurationist perspective, a social theory must explain both social reproduction (social order being reproduced over time by people continuing to act in ways inherited from the past) and social transformation (how social order is changed by people, intentionally or unintentionally, through their interactions.

Structuration theory seeks to overcome what it sees as the failings of earlier social theory, avoiding both its ‘objectivist’ and ‘subjectivist’ extremes by forging new terminology to describe how people both create and are created by social reproduction and transformation.

The very word structuration attempts to show that social structure and individual action are elements of one single process, the ‘constitution of society’ as Giddens (1984) puts it.

The two most important contemporary structuration theorists are Giddens and Bourdieu. What they both have in common is that they focus on social ‘practices’ rather than ‘actions’. Practices are everyday activities that are routinized, and social structure is just simply routinized practices, and the memories in people’s heads that allow them to keep doing those practices in those ways over time. (Reckwitz 2002).

Thus ‘social structure’ and ‘society’ are not ‘things’ outside of individuals and their practices, they are those practices.

The focus on practices draws from phenomenology the idea of ‘practical consciousness’, the idea that what most people do most of the time is semi-conscious. Practical consciousness, or practices are informed by a stock of taken-for-granted knowledge that makes-up and makes possible our everyday life-worlds. It is these practices which we generally do not reflect upon.

Bourdieu’s and Giddens’ structuration theories differ because they have been developed for different purposes.

Bourdieu, drawing mainly on Marx (especially), Weber and Durkheim, regarded his sociology as one aimed at revealing the nature and operation of forms of domination (which Bourdieu calls forms of ‘symbolic violence’), especially by the higher classes over the lower classes, and in his later life, Bourdieu was an outspoken intellectual, critical of neo-liberal policies.

In contrast, Giddens, drawing mainly on ethnomethodology, put his structuration theory at the service of the ‘third way’ politics associated with Bill Clinton and Tony Blaire which endeavoured to recast ‘soft left’ social democratic policies into an age of global capitalism. Structuration theory was also used by Giddens to diagnose contemporary social and cultural change, including transformations in self-identity and intimacy. (Giddens 1991).

Bourdieu tended to focus on the harms which symbolic violence did to the marginalised, while Giddens tended to focus on new opportunities for liberation which existed for all social classes.

Criticisms of these two are that Bourdieu ends up being too objectivist, Giddens, too subjectivist.

This post covers Giddens’ Structuration Theory in more depth!

Sources

This post is a summary of chapter 10 from Inglis, D (2012) – A Invitation to Social Theory, Polity.

Does Aid Work? The Aid Audit

Does Aid Work? The Aid Audit:

Below is a summary of this World Service Podcast from 2015

Intro

‘Fifteen years ago, German journalist, Ulli Schauen helped compile a book of the top 500 global aid programmes… they ranged from schools for Maasai nomads to support for organic farming to training for volunteer sexual health workers.

The question is did they succeed or fail? Ulli travels to Kenya to see how the projects in that country fared. Ulli sets out to find if Aid really does make a difference.’

(These projects were all related to the original Millennium Development Goals and the folllow ups are here – one author’s blog – The Aid Audit: Development Projects Revisited After Fifteen Years

International Aid money has helped all of the projects below….

Kenya
Kenya

Project One – OSIGILI

in 1995 the Laikipiak Maasai formed an organization called OSILIGI (which means ‘Hope’.)

In one of the first projects OSILIGI organized reading and writing courses geared to the nomadic life. In April, August and December, when the nomadic herdsmen are settled, a teacher comes to the village. During these weeks children have concentrated lessons. This made-to-measure education is considerably cheaper than state elementary school. In 4 years, OSILIGI has reached 380 children with this programme, mainly from poor families.

Eco-Tourism - Marginalising the Maasai?
Eco-Tourism – Marginalising the Maasai?

However, the broader issue OSILIGI campaigns for is to establish land rights – to pasture and watering holes, and here they appear to have lost. The Maasai still have no formal rights and their land, and thus way of life, is under threat from agribusinesses and eco-tourism and in the programme we discover that the Maasai live amongst miles and miles of fences – which fence off private farms – one farm being as large as the island of Malta, which houses shipped-in Rhinos for eco-tourism, but this leaves little room for the Maasai.

Osigili seems now to be focussing on the education aspect, but the land rights issue has been taken up by another organisation – IMPACT. It is possible that more progress will be made in this area in the future.

Project Two – A Voucher System for Health Care

In the far West of Kenya the German Government Trained volunteer health advisers – 20 000 community health workers for 10 years. Unfortunately this terminated in 2006 and so no evaluation or final report can be found, the argument here, however, is that a lasting legacy

The German government now funds a voucher programme for the poor where they can use vouchers to receive free or subsidised contraception, maternal health services and HIV treatment.

Through the voucher programme local (privately run) hospitals receive $50 for maternal treatments and $12 for AIDs screenings (from the German Aid fund, they don’t get state funding) – 3/4s of the money goes on medicine and food, but the rest is available to allow for hospital expansion.

To give an example of how it works – one woman is interviewed who is HIV positive, and giving birth in the hospital meant that the infection was not passed on to her two children.

Despite the above, Kenya still failed to reach two of its MDGs -reducing infant mortality and improving maternal health.

But German Government trying to influence Kenyan health policy into the bargain. Germans wand to promote health insurance, Americans want to promote other issues – donors don’t co-ordinate their programmes.

Project Three – The Matinyani Business Cooperative

mat

This is a cooperative of 4000 women, who initially set up a library, primary school and a health centre. They also established a range of small businesses devoted to weaving, water, candlemaking, bakery.

However, all of this stopped working years ago… 75% of the initial money went into other people’s pockets – so they couldn’t pay workers or for materials to keep the projects going.

However, what these women learnt in the early days of this project allowed them to establish their own businesses, many of which are today successful and export to other countries.

Project Four – Environmental Protection on Lake Victoria

darwins-nightmare1

Lake Victoria is heavily overfished and polluted.

This projects aims were to build water treatment plants and limiting the spread of the water hyacinth. There are laws in place about catch size (enforced by the mesh size of nets). However, it seems that everyone is happy about breaking the law and the aid-funded environmental organisation doesn’t seem to be enforcing the rules.

The World Bank Project labelled this one as unsatisfactory.

Project Five – A Foot Pump for Water

An Australian company called Kick Start (originally known as Aprotec ) which focussed on developing just one product – a small, foot operated water pump, claims to have lifted almost one million people out of poverty. Aid has been essential in this. The CEO says that it is not profitable to develop such products for people – it’s high risk, low return, and high cost – so it’s a market failure – thus subsidies in the form of International Aid, with this money going mainly into Research and Development and marketing (radio ads).

The pumps themselves are sold for $130 – and they have sold 250 000, which means about 900 000 will have been lifted out of poverty. We visit a tree nursery to see how this works – where an employee is using the foot pump (like a step machine) to pump water to water the young trees – this has allowed the company to grow a lot more trees and it is now much bigger than it used to be.

Question – Has development aid worked in the above five cases?

The programme finishes off by noting that we see all of the classic problems associated with Aid in the above examples, but it is the positive impacts which stick in his mind, especially the fact that when official projects collapse, the people who have gained skills carry on campaigning in different ways.

Find Out More…. There are another two episodes in the series if you wish to listen further!

The Strengths and Limitations of NGOs in Development

The advantages of NGO Aid over Official Development Aid

  1. Generally smaller and thus more responsive to the needs of local communities than the kinds of large scale development projects undertaken in the days of Modernisation Theory.
  1. There is no political agenda as is often the case with government aid, and thus aid is not ‘tied aid’ – it is freely given.
  1. NGOs can provide a more continuous supply of aid compared to governments, which can be effected by elections
  1. NGOs are more likely to help the poorest of the poor, unlike TNCs who will only invest in slightly more developed countries that are more stable because these provide a better prospect for profit.
  1. NGOs provide one of the most critical voices of government aid agendas and provide a broader range of knowledge about life in developing countries compared to Official Aid Agencies

Limitations and Criticisms of Non-Governmental Organisations

  1. NGOs provide a tiny amount of aid compared to Governments and the World Bank – ODA from Britain is around £10 billion a year, total donations to development charities measured in the hundreds of millions. This relative lack of funding means NGOs can only do a limited amount compared to bigger, official aid agencies. NGOs cannot help to bring about Industrialistion or serious economic growth, only help small local communities with social development.
  1. NGOs spend much of their money on glossy advertising campaigns and administration costs rather than helping people in the developing world – a good 25% of money raised is spent on such costs.
  1. A lot of aid campaigns portray images of Africans as starving and helpless in order to generate sympathy and thus donations. This perpetuates the idea of Africa as a helpless continent incapable of helping itself, whereas the opposite is actually true – Africa is full of incredibly creative entrepreneurs.
  1. NGO Aid can often be misguided, doing more harm than good such as with the ‘buy a goat campaign’ or the ‘sponsor a child campaign’.

Related Posts

What are Non Governmental Organisations?

Neoliberalism in Conservative and New Labour Education Policy (1979-1997)

The resurgence of neoliberalism between 1979 to 1997 resulted in a rolling back of the collectivist principles of welfare state and a return to Victorian era individualsim, a reassertion of the twin pillars of individual liberty defined as freedom to choose and market forces, or the discipline of competition.

Throughout this period, conservative economic policy was reoriented towards the neoliberal agenda of deregulation, privitasation and and liberalisation.

Neoliberalism under the conservative government (1979-1997)

Ball points to six key elements of the conservative (neoliberal) framework for education, the main platform for which was the 1988 Education Reform Act:

  • The establishment of a national curriculum – (What Ball refers to as revisionist – a Victorian fantasy with Britain at the centre as a benign power lighting the way for others)
  • Suspicion of teacher professionalism – accountability and control
  • ‘Teacher-proof’ evaluation – more market information
  • Offering parents choice
  • Devolution of budgets from LEAs to schools
  • Enhancement of roles of governors and headteachers in local management systems.

These elements tied together as a reform package that provided the infrastructure for an education market and the neoliberal vision of the education system focused on market reform, which also had six key elements:

  • Choice for parents
  • Per capita funding meant schools were driven by recruitment
  • Diversity of provision
  • Competition
  • League tables
  • New organisationl ecologies – management modeled on business – focusing on ‘efficient’ use of resources and budget maximisation.

Further features of the neoliberal education system include:

  • A complex infrastructure of testing
  • A discourse of othering – constructing inner cities as a problem in need of correction, for example.
  • The TVEI was also established to reorient schools to the needs of employers. This was intended to make colleges more vocationally oriented, provide job-related training to 14-18 year olds and steer students into boom industries.

 Neoliberalism under the New Labour Government (1997-2010)

When New Labour cam to power in 1997 there were three further shifts or ruptures which were subtle yet distinct inflections of the period of Thatcherism or neoliberalism:

  • A further move in political terms towards the knowledge economy
  • A reassertion of the state as the ‘competition state’
  • A re-articulation of values to new labour values Following Jessop (2002) a competition state ‘aims to secure economic growth within its borders and/or seek competitive advantage for capitals based in its borders’ by promoting the economic and extra-economic conditions necessary for competitive success.

There was a corresponding refocusing of funding so it was increasingly related to performance and competitive success and a move away from public funding to contract funding through private, voluntary or quasi-public bodies.

 Specific policies to drive up standards included:

  • priortiorising literacy and numeracy
  • performance tables were amended to show student progress
  • every school was to be inspected every six years
  • failing schools were to become fresh start schools
  • there were more standards and effectiveness units and task forces

Policy also became increasingly complex/ diverse and dynamic – it talked of culture of success, and the economic imperative became absolutely clear – which represented a change in tone of policy making.

Ball refers to New Labour’s third way as warmed-over neoliberalism. The Third Way preferred a flexible repertoire of state roles and responses (following Eagle 2003) rather than being into market fundamentalism…. but ultimately the aim of the state was not to replace the market, but to make sure it worked properly.

Later on through the agendas of increasing diversification, differentiation and personalisation of learning we see policy being adapted to the interests/ fears and skills of the middle classes.

There was a new emphasis on modernisation, flexibility and dynamism – responding to globalisation – Schools should be innovators

There was a move away from the discourse of the comprehensive school, minimum standards and the start of what Kenway (1990) calls a ‘discourse of derision’ – bog standard comprehensives were stereotypically portrayed as bad – in order to undermine public services.

Sources

Post sumarised from Stephen Ball’s (2013) – The Education Debate

How Private Aid Foundations Influence Economic Policy in Developing Countries

It could be used in the Global Development topics on ‘Organisations in Development’ or ‘the role of Private Aid in Development’

A flow chart of what’s below would run something like this…

TNCs (pump their profits into their) – Charitable Foundations (who established) – The Council of Foreign Relations (which influences) – The World Bank (which sets the economic policies of) – Developing Countries

Basically Roy argues that in the early 20th century, three of the largest corporations in the world (one of which was Ford) set up Philanthropic (charitable) organisations – In the middle of the 20th century, after World War Two, these organisations were key to establishing the Council of Foreign Relations, the World Bank, the United Nations and the CIA. Essentially, Roy is arguing that US Corporations run the biggest international organisations in the world, which in turn coerce Developing countries into doing what these Corporations want.

The enthralling history of ‘philanthropic foundations’ began in the United States in the early 20th century. Among the the first was the Rockefeller Foundation, endowed in 1914 by J.D Rockefeller, founder of Standard Oil Company.

Rockefeller was America’s first billionaire and the world’s richest man. He believed his money was given to him by God. Among the institutions financed with Rockefeller’s money are the United Nations, the CIA, and the Council on Foreign Relations.

Philanthropic Foundations are non tax-paying legal entities with massive resources with an almost unlimited brief. They are wholly unaccountable, wholly non transparent, and are basically about translating economic power into social, political and cultural capital.

They emerged in the 1920s because it was then that US Capitalism began to look outward for raw materials and overseas markets. Foundations began to formulate the idea of global corporate governance. In 1924 the Carnegie and Rockefeller Foundations formed the Council on Foreign Relations (the CFR), also funded by the Ford Foundation as well. By 1947 the CIA was working closely with the CFR and over the years the CFR’s membership has included 22 secretaries of state, and all eleven of the World Bank’s presidents have been members of the the CFR. The CFR also contributed a grant of £8.5 million to pay for the land in New York on which the United Nations building now stands.

Given that the World Bank has more or less directed the economic policies of the Third World, coercing them to open up their markets in return for loans and aid, and given that the World Bank is steered by the Council of Foreign Relations, which in turn is steered by Transnational Corporations, it seems to follow that it’s TNCs which really have really determined the foreign policies of third world countries over the past few decades.

By the 1950s the Rockefeller and Ford Foundations were funding international educational institutions began to work as quasi-extensions of the US government, which was at the time toppling democratically elected governments in Latin America, Iran and Indonesia.

The Ford Foundation established a US style economics course in Indonesia at the Indonesian University. Elite Indonesian students, trained in counterinsurgency by US army officers, played a crucial part in the 1965 CIA backed coup in Indonesia which bought General Suharto to power. He repaid his mentors by slaughtering hundreds of thousands of communist rebels.

Twenty years later, young Chilean students who came to be known as the Chicago Boys were taken to the US to be trained in neoliberal economics by Milton Friedman and the University of Chicago (endowed by J.D Rockefeller), in preparation for the 1973 CIA backed coup that killed Salvador Allende and brought General Pinochet and a reign of death squads, disappearances and terror that lasted for seventeen years. Allende’s crime was being a democratically elected socialist and nationalising Chile’s mines.

Like all good Imperialists, the Philanthropoids set themselves the task of creating and training an international cadre that believed that Capitalism and by extension the hegemony of the United States was in their own interests.

Corporate foundations also provide scholarships at universities for courses in development studies – and many of these are for people from the middle classes in the developing world – these are the future finance ministers, corporate lawyers and bankers of the developing world. Of course the courses funded are the ones which sing the virtues of neoliberal economic policy, rather than the ones which are critical of neoliberalism.

According to Roy, not only do Philanthropic Foundations control the agendas of International Economic Organisations, governments and education systems, they also control the media and social movements which emerge to protest neoliberal policies – she gives a few examples of how, but probably the best piece of supporting evidence for this point of view is that we don’t question the role of philanthropic foundations in society. When Corporate funded philanthropic foundations first appeared in the United States, there were debates about their accountability, and people suggested that if they had so much money they should maybe raise the wages of their workers instead, nowadays we just don’t question them.

In summary, Roy argues that Philanthropic Foundations are simply a way of using a minuscule percentage of profits to run the world.

A Question to Consider….

The largest philanthropic foundation on earth today is the Bill and Melinda Gates Foundation. Roy points out that it’s odd that Bill Gates*, who admittedly knows a thing or two about computers, is now designing education, health, and agriculture policies, not just for US governments but for governments all over the world.

The question that Roy makes us ask is this – Is Bill Gates really trying to help people through his organisation, or is the Bill and Melinda Gates Foundation really a just a way for Gates to translate his economic capital into global political power, and to make sure that government policies the world over benefit Microsoft?

*Or to refer to him by his full name – ‘The Man Child Bill Gates’.

Sources 

The above post is summarised from Arundhati Roy’s ‘Capitalism: A Ghost Story’ (2014).

The Role of Non-Governmental Organisations in International Development

There is a very wide range of non-governmental organisations (NGOs). NGOs are groups of concerned citizens who are independent of the government and business, and are thus nominally non-political and non-profit organisations. NGOs typically have charity status and raise funds through a combination of voluntary donations from the public, but also grants from governments and other international development institutions.

Many NGOs are tiny, focusing on development in one region and specializing in one area, others, however, are global institutions, have huge budgets and work in several countries on numerous types of development project. This section focuses on these larger ‘aid organisations’ with an international focus – such as Oxfam and Action Aid. Although such organisations have an international focus, they still have a tendency to divide their attention so they focus on hundreds of different micro-level projects at one time.

Commentators generally point to four functions of NGOs in development

  1. The development function – Probably the most obvious – This typically involves focusing on small scale aid projects such as local irrigation schemes, or developing rural health and education schemes in conjunction with local communities.
  1. The Empowerment Function – More so than with private companies and Governments – NGOs aim to ‘empower’ local communities – This involves striving to give local communities a role in how aid projects are developed, but also lobbying International institutions like the European Union to establish trade rules which do not unfairly advantage Western companies and farmers. (We’ll come back to this point later).
  1. The Education Function – Oxfam is a good example of an NGO that puts a lot of money into developing education for schools and advertising to keep developing world issues in the public consciousness.
  1. The ‘emergency aid function’ – when natural or social disasters occur – Earthquakes, Hurricanes, Famines for example – NGOs are often the front line in the delivery of emergency aid.

More Evidence for Toxic Childhood

Ten times more children are being drugged to combat sleep disorders* compared to ten years ago, according to recent analysis of NHS data by the BBC’s Panorama programme.

toxic-childhood-sleep-disorders
Evidence for Toxic Childhood?

On the surface this seems to be strong supporting evidence for Sue Palmer’s theory of toxic childhood – the idea that a combination of factors associated with (post) modern life are harming children. The article lists three factors which are seen being responsible for increasing sleep deprivation among children

  • Blue light emitted by smartphones and tablets reduces the production of melatonin, the ‘ sleepy hormone’ – NB I can just imagine a vicious cycle at work here – can’t sleep, get on your phone – which makes it less likely that you’ll get to sleep!
  • Households where both parents work can be busier in the evenings, pushing bedtimes later – here’s a nice link to the concept of paranoid parenting – because children are the most precious things in parents lives, they have to see them before they go to bed, which does them unintentional harm. 
  • Fizzy drinks high in sugar and caffeine have also made it harder for children to switch off at night – which can also compound the negative effects of sleep deprivation. 

Some of the possible harmful effects of sleep deprivation are as follows:

  • Decreased concentration at school, leading to lower educational achievement
  • Increasing illness
  • An increase risk of obesity – according to this BBC article
  • Also, it’s just generally not pleasant in itself.

Evaluations of the evidence

While this appears to be straight-up supporting evidence for Toxic Childhood, you need to be careful how the concepts are operationalised (see * below), also the fact that children are more likely to be taken to hospital doesn’t necessarily mean there is an increase in sleep deprivation, it might mean that paranoid parents are just more sensitive to the issue today, and/ or medical practitioners are happier to diagnose sleep, so this could all be a social construction….

*Actually TBH that statement’s a headline grabber – according to the article, adults and children aged 0-55 (combined) are more likely to be given prescriptions for sleep deprivation, but children are ten times more likely to have hospital appointments for the condition.

 

 

 

What are Transnational Corporations?

We’ve probably all heard of companies such as Walmart, Amazon, Apple, and Shell, and these are all examples of Transnational Corporations – in fact these four all feature in the top 10 global companies by revenue in 2020. Some of the others you may never have heard of because they don’t have such a public face.

But what are Transnational Corporations?

Introduction – Definition and Scale of TNCs

Transnational Corporations are businesses that operate across international borders, though most of them have their headquarters in the USA, Europe and Japan.

According to the United Nations Conference on Trade and Development there were an estimated 77 000 Transnational Corporations in the world in 2007, that’s the most recent data I could find! That had almost doubled since the late 1990s when there were 37 000.

The key characteristics of TNCs are:

  • They seek competitive advantaged and maximization of profits by constantly searching for the cheapest and most efficient production locations across the world
  • They have geographical flexibility – they can shift resources and operations to any location in the world
  • A substantial part of their workforce is located in the developing world, but often employed indirectly through subsidiaries.
  • TNC assets are distributed worldwide rather than focused in one or two countries – for example, 17 of the top 100 TNCs have 90% of their assets in a different country from their head office.

The Huge Economic Power of TNCs

TNCs are economically very wealthy and thus potentially more powerful than many of the world’s nation states.

According to Oxfam, of the top 100 ‘revenue collectors’ in the world, 70 are corporations and only 30 are countries, or nation states. For example, BP is bigger than Finland, while Chevron is bigger than Ireland, and the combined annual revenue of the 200 largest TNCs exceeded those of the GDP of the 182 nation states containing 80% of the world’s population.

Critics remind us that GDP and annual revenue measure different things, so these figures may not show actual differences in economic power, but this aside, the relative economic power of TNCs has grown in relation to nation states over the last few decades, and today TNCs wield much more economic power than they did in the past.

Fobel et al (1980) note that from the 1970s TNCs set about investing significantly in the developing world because of high labour costs and high levels of industrial conflict in the West, which reduced profits.  The investment was greatly helped by developing countries, which actively sought TNC investment by setting up special areas called Export Processing Zones, or Free-Trade Zones, in which TNCs were encouraged to build factories for export to the West.

Free Trade Zones offered incentives such as infrastructure provided by the government (transport links), few planning controls on building, and low taxation. There are now over 5000 free or export processing zones in the world today which employ over 43 million workers, the majority of which are based in China’s territories.

SignPosting

Transnational Corporations are one of the global organisations students study if they choose the most excellent globalisastion and global development option in their second year of A-level sociology.

Immediately after reading this introductory post, you should read the following two posts which explore the impacts of TNCs in developing countries….

Please click here to return to the homepage – ReviseSociology.com

Sources

Chapman et al (2016) – A Level Sociology Student Book Two [Fourth Edition] Collins.