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Multinational Companies and Rural Development: The Case of Lamco in Liberia
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies.
2009 (English)Book (Other academic)
Abstract [en]

MNCs activities in less developed countries (LDCs) are regularly contracted to undertake rural development around their sites. Likewise, they regularly fail. How can a profit-making MNC encourage rural development in an undeveloped area of a host LDC? The purpose of this research is to investigate how an MNC could fulfill its contractual commitment for local development in a way that benefits MNC and also the involved parties. This study concerns the urgent and interesting issue of how MNCs manage their relationships with other organizations in LDCs for local development. This study followed ten years of a mining company (Lamco) in Liberia which promised success in rural development, had it not been for drastically falling prices for iron ore and a civil war. Apart from the MNC and the host government, a PVO and the rural people were involved. The main result of this study is that the use of an intermediary PVO is an effective means for an MNC to fulfill its contractual commitments related to rural development. The empirical contributions discuss the implications for MNCs, host governments, local communities and PVOs.

Place, publisher, year, edition, pages
Saarbrücken: VDM Verlag Dr. Müller , 2009, 1. , 244 p.
Keyword [en]
MNCs, Rural Development, Lamco, Liberia
National Category
Business Administration
Research subject
Business Studies
URN: urn:nbn:se:uu:diva-131928ISBN: 978-3-639-05448-4OAI: oai:DiVA.org:uu-131928DiVA: diva2:356135
Available from: 2010-10-11 Created: 2010-10-11 Last updated: 2010-10-20Bibliographically approved

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Latifi, Mohammad
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