Liberal Arts and Social Sciences, College of
Political Science, Department of
BURS Faculty Advisor
Why is there continuing socio-economic inequity in post-conflict countries? Post-conflict governments are too weak to prosper and function cleanly, resorting to making deals with and allowing multinational corporations inside its system, resulting in governmental capture. Multinational corporations contribute to the disparity of wealth in post-conflict zones, often ignoring the community and partnering with the government. There is a question of whether Western and European countries actually have a humanitarian interest or self-interest in post-conflict countries. This research includes a comparative study that aims to show how foreign investment shifts during conflict, where each country scores on transparency and corruption; where each country falls on the Gini Inequality Index. Doing this demonstrates the correlation between socio economic inequality, corruption and MNC foreign investment which perpetuates the continuous inequity in post-conflict countries. Foreign direct investment causes inequity to persist in post-conflict countries. The study provided two main results that inequality prompts an inflow of investment, particularly from unsavory self-interested MNCs that arrive as a result of conflict. Corporations have an interest in maintaining inequality because they gain and profit from it. MNCs will enter a country in conflict in order to extract resources. Inequity persists because companies have an interest in maintaining it. Secondly, many MNCs pull out of countries experiencing conflict in order to maintain company security and avoid turmoil. As companies leave countries at war, these countries are either left in negative FDI or they have lost millions in investment.
Cole, Claire, "Why are Post-Conflict Countries More Inequitable?" (2023). Belmont University Research Symposium (BURS). 228.
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