Literature Review: MNCs' Role in Alleviating Poverty in Africa

This literature review investigates the complex relationship between multinational corporations (MNCs) and poverty alleviation in Africa. The review explores the debate surrounding MNCs' impact, examining their roles in job creation, community development, and economic growth. It analyzes various perspectives, including the views of respondents who believe MNCs play a crucial role in poverty reduction through employment opportunities and investment in local projects. The review also considers factors such as political instability, climate change, and the importance of government policies in fostering a favorable environment for MNCs to contribute to poverty reduction. Key aspects include the impact of globalization, the role of international associations, and the importance of ethical business practices. The conclusion highlights the significance of MNCs in alleviating poverty and the need for sustained efforts and collaboration between corporations, governments, and communities to achieve meaningful and lasting change.

Literature review for dissertation question
‘can multinational corporations help alleviate
poverty in Africa?’

Table of Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
CONCLUSION...........................................................................................................................................5

INTRODUCTION
Poverty has long been an academic issue in developing countries. The role of
multinational corporations in fostering and undermining formulating within poor nations and
developing nations has subject of intensive debate in academic circle (Kandachar, and Halme,
2017). The economic activities are generating by investment for reduction in poverty level which
occurs in the African country. It is the best strategy which can lead towards being part of
economy and emerging as visible customers for multinational corporations. The report is going
to discuss about can Multinational Corporation and associations assist alleviate poverty in Africa
nation. Along with this, the main purpose of this assignment is to analyze various international
corporations which are helping country in alleviate poverty in proper manner.
MAIN BODY
As per the view of Turyahabwa, Joy, the role of multinational; corporations in eradicating
poverty, the majority of respondents think that MNCs had a role to play alleviate the African
country poverty. The most important role includes providing employment, contribution of local
and community development projects and offer industrial training to young people with
convergence views and opinions by both internal and external stakeholders. Poverty in Africa is
often caused by lack of access to clean, safe water and proper sanitation. There are various other
reasons through which poverty has been increasing in this country. Poverty can be the result of
political instability, ethnic conflicts, climate change and other man made causes. The companies
help in reducing poverty by developing and implementing rapid and sustained economic growth
policies and programs in different areas such as health, education, nutrition and sanitation. This
will allow poor people to participate and contribute in growth activities. They required to focus
on different people who are survive in various areas of Africa without proper basic facilities.
It can be stated by Franklin Cudjoe, multinational corporations and associations that
regulate and operate in multiple nations at the same time and expand their business operations
and activities in all over the geographical frontiers. An MNC such as HP, the computer makers,
for example they are maintain and manage their marketing department in the USA. Along with
this, there are various other popular MNCs in Africa includes Shell, Diageo, Nestle, Unilever and
Barclays Bank. poverty can alleviate with the help of multinational corporations when they are

provide job opportunities to the young people who are willing to work hard to gain success and
growth in their life. For identify ways to reduce poverty has poses a major issue and challenge
for political leaders and intellectual in all over the African country effectively. The authors
analyzed that the effect of globalization on the developing world and also address ways where
multinational corporations (MNCs) can play a positive role in fight against the increment of
poverty among nation people. It can be seen that international association are best equipped and
technique for relieve the global poverty (Amankwah‐Amoah, 2015). The ways includes making
investment among poor people in order to gain profit and shareholders wealth rather than as
charity. The economic activity is generating by investment for reduction in poverty level which
occurs in the African country. It is the best strategy which can lead towards being part of
economy and emerging as visible customers for multinational corporations. In addition to this,
they address various facts of this plan in which MNCs and domestic host environment and
policies are directly impact on government rules and regulations of the respective nation.
The another effective solution for reduction in poverty will be great interest to scholars of
international relations and business, multinational corporate managers and executives and
government bodies are dealing with global matters. They require making contact with other
developed countries and developing strong connection with them (Noe and et. al., 2017). For
this, they can easily get investment opportunities from them and work on reduction in poverty
level among people.
According to the view of George Lodge, that government does not understand that
poverty reduction/alleviation has got to do with running clean and small governments. African
country respect the poor people rights, enforce contracts or agreement, respect the rules of law,
decentralize power and resources and respect the term limits which imposed by constitutions.
They also required relaxing business entry and exit rules that enable ordinary people in order to
make or create employment for themselves and others. Along with this, government bodies have
no business creating employment such as national youth Employment Programmes are generally
gimmicks for political benefits and advantages. Reduction in poverty is one of the essential aim
and motive but multinational corporations (MNCs) which provide many new jobs in developing
countries (George and et. al., 2016). It can be analyzed that social impact of MNCs is
overwhelmingly positive and they are underestimate practical complexities or difficulties of

measuring whole social effects of any new activity. This is directly affected on poor people who
are surviving in the African countries.
Nicholas Stern said that multinational companies are take steps of supporting
government policies and strategies which are made by them, in order to reduction in poverty.
They are making improvement in policies and strategies as per the requirement poor people of
Africa which also increasing growth and development level. There are various things which they
are offer to poor people such as medical care services, extra income, benefits and different offers
and so many which help them in survey their life in better manner. Today, there are various
companies which understand that long term investment goals can help in achieving stable,
healthily and free social and financial environment within Africa for people.
CONCLUSION
On the basis of above described report, it can be concluded that multinational
corporations assist in alleviate poverty within Africa. For identify way to reduce poverty has
poses a major issue and challenge for political leaders and intellectual in all over the African
country effectively. They require making contact with other developed countries and developing
strong connection with them. This is directly affected on poor people who are surviving in the
African countries.

REFERENCES
Books and journals
Kandachar, P. and Halme, M., 2017. Introduction. Farewell to pyramids: how can business and
technology help to eradicate poverty?. In Sustainability Challenges and Solutions at the Base of
the Pyramid (pp. 13-40). Routledge.
Amankwah‐Amoah, J., 2015. Solar energy in sub‐Saharan Africa: The challenges and
opportunities of technological leapfrogging. Thunderbird International Business Review. 57(1).
pp.15-31.
Noe, R.A., and et. al., 2017. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
George, G., and et. al., 2016. Bringing Africa in: Promising directions for management research.
Holt, D. and Littlewood, D., 2015. Identifying, mapping, and monitoring the impact of hybrid
firms. California Management Review. 57(3). pp.107-125.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1). pp.23-34.
ONLINE
Is there a role for multinational corporations through CSR to alleviate poverty in Africa? 2018.
[Online]. Available through: <https://brage.bibsys.no/xmlui/handle/11250/2567479>.
BUSINESSES ARE HELPING TO OVERCOME GLOBAL POVERTY. 2018. [Online]. Available
through: <https://iveybusinessjournal.com/publication/businesses-are-helping-to-overcome-
global-poverty/>.