GLOBALISATION AND EXCLUSION/45exerting pressure for steps towards a new global economic order. Yet
UNCTAD itself made an about-face at the beginning of the 1990s.
UNCTAD put itself at the disposal of MNCs and promoted the policy
of 'export-oriented development'. It began sending out reports to
Third World governments which explained how to go about
attracting investment and competing with one another. To all intents
and purposes, the 1993 UNCTAD report declared, 'Multinationals
are the only salvation!' (Decornoy, 1993). More recently, UNCTAD
has made some gestures inspired by its original objectives; its 1995
report calls for a one-off property tax, and a tax on international
financial transactions of the kind advanced by James Tobin (see
Chapter 17). In the latest twist, however, the 199 7 UNCTAD report
takes a hard neo-liberal line. The institution's general secretary,
Rubens Ricupero, declares, 'Governments must encourage liberal
trade and investment policies and a culture of competition, in order
to maximise their economy's potential' (UNCTAD, press
communique, 21 September 1997). This is a definite step backwards
compared to 19 9 5. The report is also excessively optimistic about the
prospects for FDI in Third World countries and its supposed potential
for lifting them out of dependence. When the 1997 report came off
the presses, FDI in China and the Southeast Asian 'dragons' had
already dropped significantly.
Multinationals take Shelter from the Market: Intra-firm
Trade
At least one-third of world trade takes place within individual multi
national corporations.
As a result, world trade statistics based on trade between countries
do not accurately reflect the reality of global trade.
MNCs loudly proclaim their free market mantras in favour of
unimpeded competition. This, of course, doesn't prevent them from
protecting themselves from such competition when and wherever
possible, especially when it comes to determining the price of their
inputs. They organise trade between their different operations based
on criteria that have little to do with free-market principles (see
section devoted to South-North transfers). 'Do as I say, not as I do.'
Incredible as it may seem, those who attempt to justify these
practices do not shy away from invoking the 'imperfections' and
'defects' of the market. One such analyst, Mr Casson (author of