ABSTRACT
In debates among sociologists and political scientists on the effects of openmarkets on society, ErichWeede (1986, 1996, 2004) has steadfastly challenged pessimistic assessments. The past three decades have proved his assessments to be correct. Weede argued that open markets will reduce the power of rent-seeking forces that constrain development. In this age of “globalization,” the opening up of markets to foreign investors, trade, and technology allows capital-poor developing states to benefit. Skeptics argue that international capitalism may constrain democracy and that democracies are shunned by foreign direct investment (FDI) due to the relentless desire of multinational corporations for “monopoly profits.” In the present chapter, we address this narrow, yet crucial, concern. Do multinational corporations (MNCs) shun democracy, thereby causing a “reversal of fortune” for the poor who now clamor for international markets?2
