Multinational companies and the private sector

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A multinational company — a firm that operates in many countries, such as Apple or Shell — often very powerful and profit-driven.

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When a company builds or buys operations in another country, bringing in money and creating jobs.

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Through investment, jobs, technology, skills, infrastructure, exports and — if they pay tax — revenue for public services.

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By paying low wages in poor conditions, demanding tax breaks and dodging taxes, polluting, and sending most profits abroad.

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Their revenues can be larger than many countries' whole economies, so they can bargain hard with governments.

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The terms of investment and whether the host government is strong enough to regulate and tax the company effectively.

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No state can create enough jobs and wealth alone; a dynamic private sector is the main engine of growth in most development successes.

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A weak state may be unable to make a powerful company pay fair wages and taxes or protect the environment, so the company can behave badly.

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Because a strong-regulation country can force fair wages, taxes and environmental standards, while a weak one cannot.

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When a company sends most of the profits it makes in a host country back to its home country, so little stays to fund local development.

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The private sector is essential, but MNCs help or harm depending on the terms and regulation, so the goal is fair terms and strong state capacity to tax and regulate.