-
Business linkages, foreign direct investment and meeting the millennium goals
01.12.2005
The appearance of Transnational Corporations (TNCs) in developing countries is not always associated with the crowding out of local businesses – sometimes they offer backward linkages to supplier small businesses that can develop these small businesses' technical and managerial capabilities and expand the local economy. This article describes three such cases: public–private sector relationships in Penang, Malaysia, Anglo-American's supplier development programme in South Africa, and civil society initiatives to develop backward linkages between DaimlerChrysler and producer groups in the Amazon region, Brazil. Although the types of partners and the importance of government policies vary, certain characteristics are common to all three cases: commercial viability, a long-term view of the business relationship, and vision on the part of both the TNC and the SME.