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THE EFFECT OF TRANSNATIONAL CORPORATIONS ON NATION-STATES IN THE CONTEXT OF POWER

Transnational companies have a great contribution to globalization and the global economy. It is the coming together of two or more companies and operating in a common economy by spreading as headquarters and branches. The fact that transnational companies operate in countries outside the center not only contributes to the global economy, but also their effects on nation-states have led to debates both politically and economically.After transnational companies have a great economic power; Some arguments are that it harms the power of nation-states, other arguments are that it does not. (DURA & KILIÇARSLAN, 2011, s. 85) In my study, I will evaluate the impact of transnational corporations on nation states with a literature review on the 'state and society' analysis level and the 'production and trade' structure, which is one of Susan Strange's 4 structures.

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Concepts of Transnational Corporations and Nation-States: Definitions

Transnational Corporations are companies that have a more complex internal structure than normal companies, usually have a head office and give management authority to their branches located in other countries. (TAHIRLI, 2017, s. 80)  Such companies usually consist of two or more branches in different countries. These branches can be directly owned by them or they can be in a branch belonging to a different company, so they invest through a different company.

The nation-state, although it is called a state, nation, country, is actually a form of state that governs a nation. At the same time, the nation-state, which is also described as the state of conflict between the state and the nation, derives its legitimacy from successfully serving its citizens. (ANDERSON, 2006, s. 75)

Lower cost opportunities, better regulatory requirements, and new opportunities to be gained in a new market are often reasons why TNCs want to open a new branch. However, the possibility of not all of these happening at the same time is known as the biggest handicap of transnational companies. General characteristics of such branches; high level of technological integration, sharing of knowledge and experience, and increasing the level of professionalism with high performance. (TAHIRLI, 2017, s. 82-83)

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Transnational Corporations: Power Shift

According to Susan Strange, power is “the ability of a person or a group to influence outcomes in such a way that their own preferences prevail over the preferences of others”. (Strange, 1996) Those who advocate the shift of economic power from nation-states to transnational companies, and those who do not, have taken place in the literature. The strength of TNCs relies on economic resources and informal anonymous connections with other powerful actors. The shift of economic power was first mentioned in Charles Tilly's (1994) 'The emergence of the modern nation-state system'. Tilly states that the current interstate system was formed as a result of the combination of military and economic power between 1000-1800 AD. In the 800-year period when today's modern nation-states emerged, the military and economic power relationship between the state and the city became stronger. Modern nation states are controlled by both military and economic power. (KENTOR, 2005, s. 265) Apart from the view that national sovereignty is in any way captured by Transnational Corporations, Strange argues that the nation-state is undergoing a transformation. This change is triggered by technological and financial changes and structural changes in the world economy due to the integration of national economies into a single global market. (DURA & KILIÇARSLAN, 2011, s. 93) In the next section, I will first discuss the views that TNCs reduce the power of nation-states, and in the following section, I will discuss a review of the views that TNCs do not reduce the power of nation-states.

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Power Shift: Transnational Corporations reduce the power of Nation-States

Transnational corporations, with branches or departments located in different countries, significantly control the assets of the respective countries. (DURA & KILIÇARSLAN, 2011) After the Western Industrial Revolution, TNCs turned into powerful industrial companies with international influence at the end of the 19th century. They have tended to monopolize the world market, especially since the 1920s. With the profit factor transferred to their own countries from many different countries, they gain an advantage over their competitors. The growing importance of trade leads to consolidation of the financial sector and multinational corporations to operate independently as economies, while geographic flexibility helps to strengthen manufacturing innovation and global marketing strategies. (ÖZYAĞCILAR, 2019, s. 131-132)

The authors argue that transnational corporations undermine the economic power of nation-states by defining nation-states and economies as autonomous actors with significant influence over the international system as a whole. (DURA & KILIÇARSLAN, 2011, s. 91) Foreign branches can lead to a decrease in the power and autonomy of the host country, and thus external actors may reduce the ability of the host country to control its own economy in order to increase its control over the internal dynamics of the host country. This loss of control is exacerbated by the political and social ties created by economic ties. The effect of foreign affiliated organizations in weakening the nation-state may vary depending on the economic and political power of the host country. However, the country of penetration of the TNC may also be an underdeveloped country. In this case, the underdeveloped host country may not have the economic and political power to resist the entry of the TNC. If the host country does not want to be deprived of TNCs, the impact of foreign branches on the host country's economy will be very significant.

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Susan Strange puts forward four important hypotheses that there are significant transformations in the world production structure and that transnational corporations play an important role in this. These hypotheses; the control and management ability of the state is decreasing, the effectiveness of TNCs in welfare distribution is increasing, TNCs are taking on the role of the state in labor management relations, and TNCs are taking on the role of tax farmers and income collectors. (BAHÇEKAPILI, 2009, s. 28-29)

According to Thomas Friedman, two countries with a large transnational corporation that is considered a large global cannot go to war with each other because stability is assured somehow. (YEUNG, 1998, s. 295) This view shows the extent to which TNCs can influence the decision-making mechanisms of the countries in which they are located.

John Ruggie points to an emerging "global public sphere" that is intellectually and physically separated from traditional systems based on nation-state systems. This new global public sphere is defined as the space where negotiations, discussions and activities related to the production of global goods are institutionalized. In addition to states, international order also emerges from interactions between transnational actors other than states. As a result, authority in the distribution of values in society has crossed national borders. Many rules are now determined by transnational links and processes. Multinational companies operate on a global scale and increasingly transcend the national-centered international world. (DURA & KILIÇARSLAN, 2011)

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Power Shift: Transnational Corporations do not reduce the power of Nation-States

The most sharply opposed to the idea that TNCs reduce the power of nation-states have been the Neomercantilists. Robert Gilpin, one of the neomarkantilists who advocated that the power of nation states should not be underestimated, emphasized the great role of state power in the creation of international economic regimes. According to him, states should be accepted as independent variables responsible for the creation and maintenance of the world economic structure. (BIERSTEKER, 1980, s. 209) Another thought of the neomercantilists is; Before a new world order emerges, the strength of TNCs is paralleled by the strength of their source countries. In other words, the stronger the country that has a say in the world economy, the stronger the TNCs originating from that country are in the world economy. (DURA & KILIÇARSLAN, 2011)

According to C.Fred Bergsten, the power of multinational corporations has not weakened the power of the state, on the contrary, the sovereignty is now in the hands of the host country. Bergsten evaluates this transfer of power between states and multinational companies by showing the extent of the differences from country to country and from industry to industry. (BERGSTEN, 1974, s. 138) On the other hand, Alfred Stepan believes that multinational corporations do not reduce the power of the state, on the contrary, it increases it and the role of the state in economic management will increase. (BIERSTEKER, 1980, s. 210) Stepan believes that the increase of multinational companies will encourage planning and negotiation organizations such as the Andean Treaty Organization and OPEC, which will be formed with the participation of many countries, and will increase the mutual bureaucracy in which states play a key role. According to this view, the state will play a more active and active role. Despite the power differences between third world countries and foreign capital, it is possible for countries to develop policies that will increase their bargaining power over foreign capital. Transnational corporations are also a part of globalization. Henry Yeung stated that the roles of states also show their strategies in the globalizing world. According to Yeung, some of these roles are; the state provides the conditions for the global growth of domestic capital, the state directly engages in transnational economic activities to become a collective capitalist, the state is one of the most effective regulators of the global economy, nation states still have significant power over domestic economies in the globalizing world, and the state's role in internationalization policy is today global equally important in the economy. (YEUNG, 1998, s. 297) Moreover, according to some schools of international organization, increasing complexity in the global economy has made it necessary to regulate regional and international institutions.

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Conclusion

In the literature review, starting with definitions, the power shift of transnational companies over nation-states was realized through two arguments. The first argument was that such companies reduce their power by creating a power shift effect on nation-states. The supporters of this argument have generally been that transnational companies have turned into strong industrial companies and implemented monopolization strategies on the international plane. According to this argument, it is seen that transnational companies increase the economic power of these countries by increasing their profits to central countries. As a result, it is seen that the power of the host countries is shaken. The loss of economic control of the host countries over their own country has been strengthened by political ties and has come to the point of losing its resistance against transnational companies. Thinkers such as Susan Strange, Thomas Friedman, and John Ruggie have been the main supporters of this argument. One of the most supportive theses belongs to Friedman. According to this thesis, the two countries in which such companies are located could not go to the path of conflict due to the loss of control. The reason for this was the influence of transnational companies on the decision-making mechanisms of nation-states.

The other argument is that transnational corporations do not reduce the power of nation-states. The supporters of this idea have been primarily the neomercantilists, Robert Gilpin, C. Fred Bergsten, Alfred Stepan, and Henry Yeung. For them, nation-states are part of the globalizing world. The strength of transnational corporations is in line with the strength of the host countries. Especially according to Bergsten, such companies do not weaken the sovereignty of the host country, on the contrary, the sovereign power is still in their hands. Stepan went further, claiming that transnational corporations could increase the power of states. In particular, he defended the thesis that third world countries can increase their bargaining power with foreign capital.

These debates still continue today. Both arguments have their supporters. Lobbying activities are seen as the biggest trump cards of those who support power loss today.

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References

ANDERSON, G. (2006). THE IDEA OF THE NATION-STATE IS AN OBSTACLE TO PEACE. International Journal on World Peace, 75.

BAHÇEKAPILI, C. (2009). Küreselleşme Sürecinde Güçsüzleşen Ulus Devlet. İstanbul: Derin Yayınları.

BERGSTEN, C. (1974, October 1). Coming Investment Wars? s. 138.

BIERSTEKER, T. (1980). “The Illusion of State Power: Transnational Corporations and the Neutralization of Host-Country Legislation. Journal of Peace Research, s. 209.

DURA, C., & KILIÇARSLAN, Z. (2011). ULUSÖTESİ ŞİRKETLER VE ULUS DEVLET :GÜÇ KAYMASI ÜZERİNE BİR ARAŞTIRMA. Sosyal Bilimler Enstitüsü Dergisi, 93.

KENTOR, J. (2005). The Growth of Transnational Corporate Networks 1962-1998. Journal of World Systems Research, 265.

ÖZYAĞCILAR, K. (2019). Relationship between Government and Transnational Corporation: Paradoxical Approach. Uluslararası Sosyal Bilimler ve Eğitim Dergisi , 128-140.

Strange, S. (1996). The Retreat of The State: The Diffusion of Power In The World Economy. Camridge University Press.

TAHIRLI, O. (2017). TRANSNATIONAL COMPANIES: DEFINITION, SPECIFICATION AND ADVANTAGES. İstanbul Aydın Üniversitesi Dergisi, 80.

YEUNG, H. (1998). Capital, State and Space: Contesting The Borderless. Transactions of the Institute of British Geographers, 291-309.

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Africa and Safari

One of the activities we should do if we come to Africa is undoubtedly safari. In short, Africa is exactly a safari base. The word safari comes from the Arabic word 'Safarīyah' and its meaning is travel. It is called 'Kusafiri' in East Africa. It offers a magnificent safari in Zambia, Zimbabwe, Uganda, Rwanda, Namibia, Botswana, especially in Kenya, Tanzania, and the Republic of South Africa.

Those who want to do this activity for the first time in Africa, which has many safari points, generally prefer 'Maasai Mara' in Kenya, 'Serengeti' in Tanzania, 'Kruger' or 'Sabi Sand' in South Africa. Apart from these, I think one of the most interesting is Ngorogoro Crater in Tanzania. This crater, which was formed as a result of the eruption of a volcanic mountain, has been protected by UNESCO. Bwindi Impenetrable Forest in Uganda and The Parc National Des Volcans in Rwanda can be among the choices for those who want to see mountain gorillas. Etosha National Park in Namibia is one of the places that is rarely preferred but offers a magnificent experience. Those who want to see hippos and crocodiles should definitely visit South Luangwa National Park in Zambia. Offering an experience of 9000 kilometers, this Park attracts the attention of visitors. Those who come to Botswana should definitely visit Chobe National Park. You can see the elephants in the region closely in this event, it may be a little costly. The most important feature of the Okavango Delta is that it is the world's largest delta that does not flow into the sea. This Delta is also located in Botsvana. The adventure that started with canoe in this region continues on foot. In this safari experience, it is possible to see elephants, lions and crocodiles. In some seasonal times, it is possible to see only birds. Finally, if you want to observe all kinds of hippos, you can go to Livonde National Park in Malawi. The Shire River in the region offers this experience. 

Those who want to experience safari in Africa should not be surprised if they hear the term 'Big 5'. 5 Big means the 5 most dangerous and wild animals of Africa. It consists of lion, leopard, African elephant, African buffalo, and black rhino. Those who want to experience safari in Africa usually want to complete these five. In most of the safari spots I mentioned above, you can experience this at the same time and in one go. 

This short video may reveal your interest in safari. Have a good watch.

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Great African Painting Artists Who Performed Art of Painting Best

As in many fields, the value of some African artists was unknown at the time. In this blog post I will talk about some of the important African painting artists. In the Richard Taittinger gallery exhibited in New York in 2016, Chika Okeke-Agulu's magazine titled 'Guess Who's Coming to Dinner' was exhibited. The works of 12 artists who can literally be called 'Real Artists' were exhibited in this exhibition.

The most important wish of the exhibition is to show the cultural or aesthetic works of contemporary African artists by breaking down the "Africanness" phenomenon in fixed assumptions. Apart from the creative thoughts engraved in their individual work, individual practices have intimate contexts that motivate internationalism. It points out that these contents will gradually become globally modern.

In the exhibition where Ephrem Solomon took the first place, there were works by people who have devoted themselves to African art such as Aida Muluneh, Halida Boughriet, Amalia Ramanakarihina, Onyeka Ibe, Chike Obeagu, Gopal Dagnogo, Uche Uzorka, Beatrice Wanjiku, Amina Menia, Chika Modum, and Sam Hopkins. 

Algerian artist Halida Boughriet's work, which reflects the portraits of people living on the margins of society, attracted great attention. According to a report I have read, the rorşah-ink prints of the Madagascar artist Amalia Ramanakarihina amazed and impressed the visitors. Visitors who saw the photographs made by Aida Muluneh as an Ethiopian artist influenced by the surrealism movement, they were very surprised to see this work. Because this painting reflected how much the artist had a contemporary perspective. Many of these artists are either born in African countries or have African descent. The important thing is that these works have presented global problems to the audience by conveying local experiences through art. 

As an additional information, I can say that Jimmy Nelson, an artist from England, was educated in Africa. Known for his portraits of indigenous peoples, Nelson also mentioned the importance of art in Africa in some of his books. 

You can also browse the news about the exhibition at https://richardtaittinger.com/?s=africa. 

Below are photos of some of the works exhibited. Have a good time to look at these magnificent works ..

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African Film History and Their Success

African films have a great place in the world film history from past to present. Many films were shot under the influence of both Arabian culture and Sub-Saharan region. Wanting to get rid of colonial history and Western pressure, they established their own film schools and participated in various film festivals.

Although most of us think of a colonial-influenced Africa and films made with this effect, there are films in many categories, both historical, comedy and drama. They have participated in major festivals such as Cannes Film Festival, International Berlin Film Festival, Sundance, and BFI London. There are very good films, especially those that won awards at the Cannes Film Festival. In 2011, Oliver Hermanus received the Queer Palm award at the Cannes Film Festival with the movie 'Skoonheid'. Abderrahmane Sissako received the FIPRESCI award at the Cannes Film Festival with his film 'Waiting for Happiness'. Mati Diop with the movie 'Atlantique' received the Grand Prix award at the 72nd Cannes Festival in 2019. In addition, although these films returned to their countries with good awards, the top 20 African films published by The Guardian in January 2020 were again made by Mahamat-Saleh Haroun with the film ‘Abouna’, which made its world premiere in Cannes.

Although Africa achieved success in the field of film by isolating it from external influences, unfortunately, many of these films did not see the value expected by the audience. According to some studies, this was due to the prejudices of the audience. As in every field, popularity has come to the fore in the field of film. Nowadays, with the popularization of online platforms, it has become easier for viewers to reach new movies and African movies appear as a category. 

I hope the increase in views increases over time, and we see movies that see the value they deserve. We continue to see more views, especially in the African category, where amateur movies are on the rise. We live in an age where social media and digital platforms prevail. It becomes more possible to use this variety in these years. By watching these beautiful African movies, I think that films made of that culture will give us the pleasure of watching.