Multinational Corporations, Rentier Capitalism, and the War System in Colombia

Richani, Nazih

doi:10.1353/lap.2005.0037

Cited by 26 publications

(13 citation statements)

References 14 publications

(3 reference statements)

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“…Third, our study assumed the government as a single variable and does not take into account the existence of more or less federal governments and the competition between subunits (municipalities, provinces, etc.) around economic rents generated by an MNC (Richani, 2005;Wood, 1986). In some cases, the MNCs can politically integrate lower levels of government as a way to neutralize central government opportunistic behavior or the MNC can play a role at being used as a pawn in power struggles between the host country central government and the provinces.…”

Section: Implications Discussion and Limitationsmentioning

confidence: 99%

Attacked from Both Sides: A Dynamic Model of Multinational Corporations' Strategies for Protection of Their Property Rights

Bucheli

Kim

2015

Global Strategy Journal

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Multinationals operating in site‐specific industries face two types of opportunistic behavior. If they vertically integrate, host governments have incentives to change existing legislation challenging the firms' property rights. If they do not, they can be held up by business partners or lose control over the production process. These conflicting problems are reflected in the contradictory assessment made by the obsolescing bargaining power and transaction costs economics theories. Drawing on property rights theory, we introduce political integration as a strategy to address the two conflicting problems. It involves the integration of the host country's polities within the multinational's structure to avoid government opportunism, while still benefiting from the advantages of vertical integration. However, this strategy can backfire after institutional changes in the host country.

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Section: Implications Discussion and Limitationsmentioning

confidence: 99%

Attacked from Both Sides: A Dynamic Model of Multinational Corporations' Strategies for Protection of Their Property Rights

Bucheli

Kim

2015

Global Strategy Journal

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“…For instance, representatives from economic sectors linked to oil exploitation approached different offices of the U.S. government to emphasize the need for help to defeat the narco-guerrillas. 51 After the experience of the peace talks, a military solution was preferable to a broader negotiation on economic and development policies that could negatively impact their assets. 52 Because the security strategies required sizable resources, the support of the business elite was important.…”

Section: Alliances With the Economic Elitementioning

confidence: 99%

Understanding the Effect of Security Assistance on Human Rights: The Case of Plan Colombia

Fajardo-Heyward

2015

The Latin Americanist

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Existing large-N research argues that governments that rely on their citizens for their revenue are more accountable to their citizens and thus have more incentives to protect human rights. This argument predicts that other sources of revenue fail to provide such incentives. Due to this, governments that rely on alternative sources of revenue will experience poor human rights conditions. This article is aimed at exploring this expectation by looking at one particular type of alternative source of revenue: security assistance. According to the argument, security assistance should negatively impact human rights conditions due to its effect on governments' efforts to protect and respect human rights. This article uses the case of Plan Colombia to assess this argument. By looking at the way in which foreign assistance interacts with domestic institutions, the case suggest that the negative effect is caused by the erosion on checks and balances and, most importantly, by changes in civil-military relations.

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“…While this model is problematic in that it takes for granted that militaries respond fully to national government decisions when in fact Latin American armed forces exhibit autonomy in security matters (Pion-Berlin and Trinkunas 2007), it does draw attention to private transnational companies' power, which should be exceptional in Latin America, given the region's widespread privatization of state-owned enterprises. 1 Indeed, Richani (2005) argues that neoliberalism has fed Colombia's internal conflict by bringing progressively more profits to private transnational companies operating in natural resource extraction because, from those profits, companies have compensated actors on all sides of the conflict, including the armed forces, for security.…”

Section: A Local Political Economy Approach To Third-party Financingmentioning

confidence: 99%

Private Financing of the Military: A Local Political Economy Approach

Jaskoski

2012

St Comp Int Dev

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In developing countries that are democratizing after military rule, and undergoing liberalizing economic reforms that encourage a shrinking of the state, what missions are the armed forces performing, who funds those missions, who benefits from military services, and why? This article analyzes security provision by the armed forces for paying clients-especially private companies in extractive industries-in accordance with negotiations between clients and commanders of the local military units that directly provide the security. The analysis identifies two paths toward local military-client relations. First, weak state capacity may mean that government control of military finances brought by democratization and economic reform remains limited to the national level, promoting local military-client exchanges. Second, amid minimal government control of military finances, even in the capital city, demand from companies in the powerful extractive industries and from recently endowed subnational governments can encourage local military-client contracting.

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Multinational Corporations, Rentier Capitalism, and the War System in Colombia

Cited by 26 publications

References 14 publications

Attacked from Both Sides: A Dynamic Model of Multinational Corporations' Strategies for Protection of Their Property Rights

Attacked from Both Sides: A Dynamic Model of Multinational Corporations' Strategies for Protection of Their Property Rights

Understanding the Effect of Security Assistance on Human Rights: The Case of Plan Colombia

Private Financing of the Military: A Local Political Economy Approach

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