Transnational Corporations and Industrial Transformation in by Rhys Jenkins

By Rhys Jenkins

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Extra resources for Transnational Corporations and Industrial Transformation in Latin America

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A similar trend away from the dominant position enjoyed by US capital was clearly evident in other Latin American countries in the I95os, so that by Ig6o the United States accounted for less than half the cars imported into Colombia and Venezuela, less than a third in Peru and less than a sixth in Chile (Society of Motor Manufacturers and Traders, Ig6I). The development cif a local manufacturing industry Although in the larger Latin American countries the parts industry had experienced considerable development during the Depression and the Second World War, production was mainly for the replacement market and the terminal firms continued to operate primarily as assemblers of imported CKD kits.

3 THE STRUCTURE AND NATURE OF TNC PENETRATION It is clear that by the I 97os, in the major Latin American countries a situation had developed in which the TNCs were key actors in the determination of the pattern of development of the local economies. The internationalisation of capital in the late I950s and I96os created a qualitatively different form of integration of Latin American industry into the world economy, whose implications extended far beyond manufacturing production. 2). Such aggregate figures, however, are a poor indicator of the nature of the qualitative changes that had taken place in industry.

Local content requirements were set at ovet go per cent in Brazil and Argentina and 6o per cent in Mexico. In the smaller Latin American countries, Chile, Venezuela, Peru, Colombia and Uruguay, efforts were made during the Ig6os to develop an assembly industry which would make increasing use of locally produced parts, although the aim was not to promote full manufacturing operations locally. The successful implementation of these programmes and the establishment of a substantial number ofTNC subsidiaries in Latin America in the late I950s and early Ig6os must be seen in the context of the developments in the international motor industry in this period described above.

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