Rumy Hasan

Reflections on Foreign Direct Investment and Development With Reference to non-Governmental Organisations and Corporate Social Responsibility

It is clear that the process of ‘globalization’ has presented acute economic challenges to developing countries. Great importance has been accorded to foreign direct investment (FDI) as a driver of development, a consequence of which is the further empowerment of transnational corporations (TNCs). Competition for FDI prevents host governments from implementing tough regulatory measures. In their stead have stepped in non-governmental organizations whose lobbying has had an appreciable impact on TNC activities and strongly contributed to the rise of corporate social responsibility (CSR). The article posits the concept of an ‘efficiency CSR hypothesis’. Though CSR is a positive outcome, it does not detract from the profound problems of development for the weakest developing countries via the route of inducing FDI in a globalized economic environment. Contrary to expectations, the increasing interdependence in the world economy presents formidable challenges to development and poverty alleviation for such economies.

Confucianism and Development

Examines the key tenets of Confucianism with a summary of Weber’s analysis of Confucianism and why industrial capitalism did not arise in China. There is an overview of China’s economic performance since 1CE. The chapter then turns to the Confucian Culture Area (apart from China, this includes Hong Kong, Taiwan, Japan, North Korea, South Korea, Singapore, and Vietnam) and summarises its key socio-economic indicators, including corruption and level of religiosity. Examines Confucianism’s attitude towards women and concludes with a discussion of Confucianism, Asian values, and modernity.

Introduction: The Nexus Between Religion and Development

Draws attention to the fact that religion has been neglected by economists owing to its ‘soft’ nature. The chapter focuses on Weber’s Protestant Ethic and the Spirit of Capitalism—the first systematic link between religion and the economy; proceeds to argue that mainstream economic analysis of religion has grave limitations. By contrast, the ideas of W Arthur Lewis and Gunnar Myrdal in regard to religion and economic and social development are vital for the Global South. There is a discussion of certain crucial issues that are affected by religion and culture, namely the role of women, corruption, and political freedom, which are examined in the ensuing chapters with respect to the religions examined.

Christianity and Development

Commences with a discussion of Christian doctrines concerning wealth and the economy. It distinguishes between Protestantism and other strands, notably Catholicism and there is an extensive discussion of Pentecostalism in Africa. The socio-economic situation of the modern Christian world is examined, including the status of women, levels of corruption, degree of religiosity, and political freedoms. It examines the reasons why Christian-majority countries generally perform better than those where other religions predominate, and investigates whether Protestant-majority countries outperform others.

Islam and Development

Commences by presenting the present-day economic situation of Muslim-majority countries and examines the reasons for their low development, focusing on whether these are rooted in Islam. It explicates and critiques the work of Timur Kuran, the most extensive in the field. It proceeds to analyse the health and economic impact of the ‘five pillars of Islam’, in particular of the fasting month of Ramadan and estimates that this has a significant annual recessionary impact on the economy of about 3% per annum. There is an examination of the low status of women and high incidence of corruption in Muslim societies.

India, Hinduism and Development

Centres on India in which 94% of the world’s Hindus live and examines the key tenets of Hinduism in particular the karma-samsara-moksha doctrine. The focus is on the centrality of caste to India’s economic and social development, with an overview of the ideas of Phule, Gandhi, Ambedkar, Lohia, and Periyar. It examines the impact of caste on modern India, and concludes with a discussion of gender inequality and the argument that aspects of Hinduism are linked to corruption.

Muslim Identity, Psychic Detachment and Universal Rights

In his letter of 19 January 2015 to 1,000 mosque leaders, UK Communities Secretary Eric Pickles asked how faith in Islam can be part of British identity (DCLG 2015). This was an implicit recognition that there is a tension between being Muslim and British; moreover, it was an acknowledgement by Mr Pickles and his government that there is lack of integration of Britain’s Muslim communities. Similar sentiments are doubtless widespread in Europe so it is unarguably the case that the situation of Muslims in the EU has become a major issue for policy makers and for society at large.