This is very well illustrated in the recent example of the Tan-
zania Fertilizer Factory, the subsidiary of N.D.C. in which
Kloeckner of West Germany holds 40 per cent shares and also has
a management contract. In this case it was necessary to build a
jetty for transporting raw materials for the factory. It was the
N.D.C. which exerted all the pressure necessary for the jetty to be
built.2* (Notwithstanding the fact that kloeckner, as Andrew
Coulson has shown, are likely to be the net beneficiaries of this
whole project rather than Tanzania's economy).

POLITICAL SECURITY, SECURITY AGAINST HIGH WAGE DEMANDS,
STRIKES ETC.

Political security is probably one of the most important benefits
that multinational corporation derives by associating with public
capital. The state, with all its vigour and under the guise of en-
couraging economic development passes all sorts of legislation—
anti-strike laws, ceiling on wages—which ultimately benefit the
corporation. In both Tanzania and Zambia strikes are virtually

illegal and if and when workers go on strike, they are accused of
economic sabotage. President Kaunda banned the strikes and froze
the wages of the mine-workers simultaneously with the partial
nationalisation of the mines.?® The trade unions and the political
party, too, are likely to be reluctant to back workers of a company
whose majority shareholder is a public corporation, the fact of
day-to-day management being in the hands of a foreign firm not-
withstanding. 26

The above is not an exhaustive list of the numerous benefits
derived by multinational corporations from the partnership.
Nevertheless, it is formidable, for we shall now try to show that
what is beneficial to multinational corporation detrimental to the
underdeveloped economy.

THE PARTNERSHIP: LOSSES TO THE PUBLIC CORPORATION

The proponents of partnership have argued vigorously the
benefits that an underdeveloped economy can derive by
associating with foreign private capital. Besides bringing in much-
needed capital, it is said, there is a lot to learmn from the
multinational corporations by way of technology and
management. After all they are the world leaders! One such
protagonist, paradoxically an East European adviser to N.D.C.

has argued:
51