Latin America: State-Owned TNCs

133
DOI: 10.20542/0131-2227-2020-64-3-88-97
MGIMO-University, 76, Prosp. Vernadskogo, 119454, Moscow, Russian Federation;
A. Zakhartsova (a. s.zakhartsova@yandex.ru),
Institute of Latin America of Russian Academy of Sciences, 21/16, Bolshaya Ordynka, 115035, Moscow, Russian Federation

Abstract. Internationalization is dynamic process that many economists around the world try continually to understand and analyze. Under globalization the borders disappear gradually due to the FDI flows. The main actors of the modern economy are the multinationals, which control more than 70% of the world trade and industry. In Latin America transnationalization has led to the rise of proper TNCs – “translatinas”. At the same time, one of the interesting phenomena of the modern world economy is the growing role of state-owned multinationals. State-owned multinationals have recently gained a significant role in the global economy. Economists around the world observe a reinvention of state ownership. Though the number of state-owned “translatinas” appears reduced, due to their size and strategic importance these play key role in countries’ economies. The majority of recent researches on “translatinas” focuses on quantitative indexes, however, because of the weakening investment flows in the region, the study of the qualitative aspects of “translatinas” has become more relevant, particularly addressing the ones with state participation. There are several state-owned enterprises in Latin America that have become multinationals, and they are the most powerful, successful and the most significant Latin American companies. After having saturated their respective domestic markets, “translatinas” started to invest abroad and have become sponsors of international projects first in Latin America, and then all over the globe. The article analyzes how state-controlled “multilatinas” influence economic growth in Latin American countries from the prospective of international competitiveness. The authors concentrate on the role of state-owned “translatinas” in enhancing infrastructure, developing information and communication technologies, innovating, and improving human capital.

Keywords: “translatinas”, state-owned TNCs, Latin America, competitiveness, Argentina, Brazil, Chile, Columbia, Mexico, Peru


REFERENCES

1. International Monetary Fund. World Economic Outlook Database. Available at: https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/index.aspx (accessed 07.11.2019).

2. The Global Competitiveness Report 2018. Geneva, World Economic Forum, 2018. 671 p. Available at: http://www3.weforum.org/docs/GCR2018/05FullReport/TheGlobalCompetitivenessReport2018.pdf (accessed 07.11.2019).

3. World Bank. World Development Indicators Database. Available at: https://databank.worldbank.org/source/worlddevelopment-indicators (accessed 07.11.2019).

4. World Economic Outlook: Growth Slowdown, Precarious Recovery. Washington, International Monetary Fund, April 2019. 216 p. Available at: https://www.imf.org/en/Publications/WEO/Issues/2019/08/30/World-Economic-Outlook-April-2019-Growth-Slowdown-Precarious-Recovery-46575 (accessed 07.11.2019).

5. World Investment Report 2019. Special Economic Zones. Geneva, UNCTAD, 2019. 237 p. Available at: https://unctad.org/en/PublicationsLibrary/wir2019_en.pdf (accessed 07.11.2019).

6. Casilda Bejar R. Las Empresas Multilatinas. Boletin Economico de Informacion Comercial Espanola, 2018, 3105, p. 33-49.

7. Foreign Direct Investment in Latin America and the Caribbean. Santiago, Economic Commission for Latin America and the Caribbean (ECLAC), 2019. 178 p. Available at: https://repositorio.cepal.org/bitstream/handle/11362/44698/10/S1900447_en.pdf (accessed 07.11.2019).

8. Why Multilatinas Hold the Key to Latin America’s Economic Future. Boston Consulting Group, 2018. Available at: https://www.bcg.com/publications/2018/why-multilatinas-hold-key-latin-america-economic-future.aspx (accessed 07.11.2019).

9. Temboury M. El viaje de vuelta: la expansion de las empresas latinoamericanas. ARI 77/2012. 11 p.

10. OECD Review of the orporate Governance of State-Owned Enterprises. Argentina. Paris, OECD, 2018. 132 p. Available at: https://www.oecd.org/daf/ca/Argentina-SOE-Review.pdf (accessed 07.11.2019).

11. “Energia para la Paz”: la Gran Apuesta del GEB por el Progreso de las Comunidades que Mas Sufrieron con el Conflicto. Comunicado de prensa, June 7, 2018. Available at: https://www.grupoenergiabogota.com/sala-de-prensa/2018/energia-para-la-paz-la-gran-apuesta-del-geb-por-el-progreso-de-las-comunidades-que-mas-sufrieron-con-el-conflicto (accessed 07.11.2019).

12. ISA. Iniciativas para la Paz y la Educacion. Available at: http://www.isa.co/es/etica-y-sostenibilidad/Paginas/gestion-social-y-ambiental/iniciativas-para-la-paz-y-la-educacion.aspx (accessed 07.11.2019).

13. ENAP. Memoria Anual 2018. Available at: https://www.enap.cl/pag/695/1709/memorias2018 (accessed 07.11.2019).

14. Petrobras Sustainability Report 2018. Available at: https://www.investidorpetrobras.com.br/enu/144/Sustainability_2018_10_06.pdf (accessed 07.11.2019).

15. ISA. Reporte Integrado de Gestion 2018. Available at: http://www.isa.co/es/sala-de-prensa/Documents/nuestra-compania/informes-empresariales/informe%202019/Reporte%20Integrado%20ISA%202018.pdf (accessed 07.11.2019).

16. Vale Sustainability Report 2018. Available at: http://www.vale.com/EN/investors/information-market/annual-reports/sustainability-reports/Sustainability%20Reports/Sustainability%20Report%20Vale%202018_RI.pdf (accessed 07.11.2019).

17. Grupo EPM. Informe de Gestion 2018. Available at: https://www.epm.com.co/site/Portals/0/Informe-de-gestio%CC%81n-2018-V2.pdf?ver=2019-05-02-075927-260 (accessed 07.11.2019).

18. Informe de Sustentabilidad Pemex 2017. Available at: https://www.coursehero.com/file/45352445/informe-de-sustentabilidad-2017-PEMEXpdf/ (accessed 07.11.2019).

19. Petrobras Annual Report 2018. Available at: https://www.investidorpetrobras.com.br/enu/204/RA%202018_english.pdf (accessed 07.11.2019).

20. YPF Sustainability Report 2017. Available at: https://sustentabilidad.ypf.com/PDF/EN/Sustainability-Report-2017.pdf (accessed 07.11.2019).

21. Form 20-F. Annual Report Vale S. A. Available at: http://www.vale.com/EN/investors/information-market/annualreports/20f/20FDocs/Vale_20-F%20FY2018%20-%20final_i.pdf (accessed 07.11.2019).

22. Grupo Energia de Bogota creara Centro de Innovacion en Bogota. Comunicado de prensa, April 28, 2019. Available at: https://www.grupoenergiabogota.com/geb/index.php/sala-de-prensa/comunicados-de-prensa/2015/grupo-energia-de-bogotacreara-centro-de-innovacion-en-bogota (accessed 07.11.2019).


Registered in System SCIENCE INDEX

For citation:
Cretsu O., Zakhartsova A. Latin America: State-Owned TNCs. World Eonomy and International Relations, 2020, vol. 64, no. 3, pp. 88-97. https://doi.org/10.20542/0131-2227-2020-64-3-88-97



Comments (0)

No comments

Add comment







Indexed

 

 

 

 

Dear authors! Please note that in the VAK List of peer-reviewed scientific journals, in which the main scientific results of dissertations for the degree of candidate and doctor of sciences should be published for the “MEMO Journal” the following specialties are recorded:
economic sciences:
5.2.5. World Economy.
5.2.1. Economic Theory
5.2.3. Regional and Branch Economics
political sciences:
5.5.4. International Relations
5.5.1. History and Theory of Politics
5.5.2. Political Institutions, Processes, Technologies

 

Current Issue
2024, vol. 68, No. 7
Topical Themes of the Issue:
  • The Supporting Structure of Global Security
  • Institutional Features of the Fourth Energy Transition
  • The Evolution of Modern German Christian Democracy
  • The Monarchies of the Persian Gulf and Central Asia
Submit an Article
INVITATION FOR PUBLICATION
The Editorial Board invites authors to write analytical articles on the following topics:
  • changes in the processes of globalization in modern conditions
  • formation of the new world order
  • shifts in civilization at the stage of transition to a digital society

The editors are also interested in publishing synthesis articles / scientific reviews revealing the main trends in the development of certain regions of the world - Latin America, Africa, South Asia, etc.