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Question of the Week 11


How can the embeddedness of multinational organizations within local economies be improved to promote inclusiveness beyond job creation?

Reactions (3)


E. K. Kirigia - McGill University
2016-09-15 20:13

It is unfortunate what has happened in Ethiopia, but the events point to extremely important economic, social and political dynamics in the country. There is not a short answer or a quick technical fix to this. But in light of the question of the week, foreign agro-investments in Ethiopia have been the beneficiaries of a favourable State-led development project that is primarily built on resource (land and water esp.) and cheap labour. That local people mainly shoulder the weight of this economic development model, what's to be done transcends ... read more »

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Romy Santpoort - Shared Value Foundation
2016-09-20 18:00

There is no simple answer to improve the embeddedness of MNO’s or foreign investors into local economies. Although the political context, such as the one in Ethiopia, is hard to manage for foreign investors, a good relation with and embeddedness within the local context is extremely important for the investors and can be realized by the investor first of all by being aware of the local context, hereby being able to reduce risk and to foster embeddedness. This is easier said than done, because the private sector often has trouble identifying loc... read more »

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INCLUDE secretariat - INCLUDE
2016-09-23 11:17

Improving the embeddedness of MNOs into local economies requires investments from both private sector companies and governments. According to the contributors to this Question of the Week, such investments would be worth the effort, not only for the benefit of local economies, but for the MNOs themselves as well.
Above anything, the state is seen as facilitator. That is, through targeted policy governments must create conditions favourable to investors, companies and local employees alike. This would include, for instance, establishing... read more »

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