The Impact of Privatization on Rural Communities: The Potential for Multinational Corporations to Act as Development Aids in the Global South

     In the wake of nations worldwide adapting neoliberalist policy, developing nations’ economies have become increasingly influenced by multinational corporations (MNCs). Because such policy has opened the doorways for... [ view full abstract ]

     In the wake of nations worldwide adapting neoliberalist policy, developing nations’ economies have become increasingly influenced by multinational corporations (MNCs). Because such policy has opened the doorways for international investment in developing nations, big-business involvement has risen significantly in the global south. In the agricultural sectors of developing nations, the desire for locally sourced raw materials (LSRMs) has driven companies to become more involved in rural communities. The ability to source materials locally makes production processes for such companies cheaper and more convenient.

     Due to the increased interest in rural areas by MNCs, one must question the influence of these corporations on the well-being of the region in which it has established itself. Using data collected from previous research on the impact of an international brewery on the communities of local Ugandan farmers, library research on similar case studies, and theoretical works to frame these case studies, this research assesses such influences and the implications it holds for the potential developmental power of MNCs in agricultural sectors. The research finds that while there are certain risks associated with private-sector-driven development, there are ways for MNCs to uplift and empower a community if the focus remains on the community itself.