Developing countries are often very vulnerable to exploitation by multinational corporations. They support industrialization but lack of infrastructure is a major limiting factor. Further, without suitable laws and regulations, developing nations are ill-prepared for such endeavours. In their efforts to attract business, these nations often overlook the health and safety violations by the corporations doing business within their borders. Drawn by low-cost labour, new markets, and lower operation costs, corporations have little incentive to address environmental and human risks once they are entrenched. In this situation, there is an imminent threat of disaster. Discuss some feasible strategies to balance economic development and safety and security of people at large in developing countries with special emphasis on India. (15 Marks)

Mentors Comments: Discuss the character of MNCs first with specific examples showing their disregard for human welfare. Then discuss various mechanisms at national and global level to address the deficiencies in policies and institutions. Answer: Developing countries are attracting a significant portion of global Foreign Direct Investments. Governments of such countries often compete fiercely for … Continue reading Developing countries are often very vulnerable to exploitation by multinational corporations. They support industrialization but lack of infrastructure is a major limiting factor. Further, without suitable laws and regulations, developing nations are ill-prepared for such endeavours. In their efforts to attract business, these nations often overlook the health and safety violations by the corporations doing business within their borders. Drawn by low-cost labour, new markets, and lower operation costs, corporations have little incentive to address environmental and human risks once they are entrenched. In this situation, there is an imminent threat of disaster. Discuss some feasible strategies to balance economic development and safety and security of people at large in developing countries with special emphasis on India. (15 Marks)