Social Scientist. v 7, no. 80-81 (March-April 1979) p. 59.


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TNMs IN DEVELOPING COUNTRIES 59

development of the national sector of their economies (this, of course, does not mean an unconditional attack on foreign monopolies; rather, the development ^>f jthe national economy^an even encourage the investment activities of the_TNMs) the TNMs have to accept the limitation of the extent of their investment wherever capital from within the developing countries has made some advance. Thus the continued presence of TNMs in the developing countries would depend on whether and for what length of time these countries consider their presence necessary for the realization of the development of the national economy. On the other hand, the leading sections of the capitalist class within the developing countries extensively promote the activities of the TNMs, by arguing that cooperation with them is the only way in which the economic position of the country can be strengthened, though in reality it is their own class position and their alliance with foreign capital that gets reinforced. However, that part of the national bourgeoisie whose conditions of existence are a priori limited by foreign capital, strive for the realization of the objectives of national development. Thus, among the sections within the capitalist class of the developing countries there are contradictions which can be exploited by foreign capital.

Though the dissolution of the colonial system was a setback to monopoly capital, the imperialist states still dispose of considerable political and military power, created and preserved to be used in their interventions against the developing countries. Nevertheless, constrained by the need to adapt to the modified world historical situation, the utilization of this power is increasingly shifted to the economic field. In this process the imperialist state assumes new functions of regulation* The monopolies require help from their home States in the acquisition of new zones of influence. However, the efforts of the former colonial powers to ensure, via tariff and financial means, a favoured position for their own national capital in external territories become less and less defensible.

Competition Between Capitals

Further, capital from the developed capitalist countries flows more freely [toward the developing world than previously as a result of the rivalry between capitals from different nations, and the sw ofcapital investments becomes increasingly a criterion for the disposal of the territories in different developing countries. It is for these reasons that the capitalist state mobilizes all means in its state monopoly arsenal in the interests of its capitalists. Because of the



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