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Guidelines are the expectations that MNEs should, Concerns related to MNC…
Guidelines are the expectations that MNEs should
Contribute to the economic, environmental and social progress with a view to achieving sustainable development
Respect internationally recognized human rights
Encourage local capacity building
Encourage human capital formation through providing employment and training opportunities
Provide full financial and operating information
Concerns related to MNC activity:
Possible exploitation of workers
Use of child labour
Inability of workers to form trade unions
Business practices that cause immediate or future environmental damage
two areas of possible improvement:
microfinance
a type of financial service that is geared specifically to the poor.
examples: small loans, savings accounts, insurance, & cheque books.
micro-credit: provisions of small loans to person who have no access to traditional sources.
micro-credit loans are given to enable poor people to start up cery small-scale businesses (micro-enterprises)
example: roadside kiosks, bicycle repair service
why? to give protection against unexpected occurrences and seasonal problems
women is the main recipient of micro-credit.
mobile phone banking
access to banking service has been increased in recent times in developing countries with the advent of mobile phone banking & mobile money.
many mobile phone companies are taking over banking services in less developed countries.
Example: hospitals in Tanzania send money to women so that they can pay for the bus fare to the hospital
-People who work in other countries, can much more easily, cost effectively and securely send remittances home
increasing women's empowerment
-strategies:
increase support for the education of females
increase access to healthcare for women
establish the right for women to own property and other assets
increase female involvement in decision making
empowerment is the process by which women gain power and control over their own lives and acquire the ability to make strategic choices.
How might social enterprise promote economic development?
Social enterprises
Organisations that have specific social objectives as their primary goal
Principal objective and purpose is to overcome, or alleviate, a global or local issue eg poverty
Example: Sunny Money provides solar powered products to rural and off-grid communities in Africa
How can institutional change impact economic growth and/or economic development?
Improved access to banking system
Impacts of limited access to financial infrastructure in developing countries
Limits the ability of households and business to save
Affects the ability of people to buy and sell goods and services
Limits the ability of entrepreneurs and firms to gain credit to start and expand business