Global Players – Global Markets
International Institutions and Global Governance series
Edited by John-ren Chen
Karl Socher The creation of international institutions after the Second World War had the aim of inducing economic growth and reducing poverty in the industrialised and developing countries by freezing markets for goods, services and capital from restrictions and creating a stable international monetary system. Later, environmental protection became an important aim and, after the breakdown of planned economies in socialist countries, liberalisation, deregulation and privatisation (‘Washington Consensus’) were implemented in the transition economies. In this process of globalisation, multinational enterprises (MNEs) have become the most important actors in the global markets. The aim of the second International CSI Conference was to discuss the controversial questions raised by critical economists as well as non-governmental organisations (NGOs) concerning the power and inﬂuence of today’s global market players. One question was whether the activities of MNEs are in conformity with the aims of the global international institutions: economic growth, development, reduction of poverty and protection of the environment. Do their managements take into account negative effects of their activities? Another question was whether market or government failures prevent countries achieving their aims, so that global international institutions have to act and have to be adapted to eliminate these failures in order to minimise the negative effects without hampering the positive effects of the activities of MNEs. CORPORATE GOVERNANCE OF MNES In Chapter 1, John-ren Chen refers to the tasks of governments to correct market failures (especially by the production of public goods and by internalising externalities) and to create a framework...