The effect of offshore securities operations on third world development : the case of Costa Rica

Author

Christopher David Kane

Date of Award

6-1981

Degree Type

Thesis

Degree Name

Master of Arts

Major

Political Science

Major Professor

Robert L. Peterson

Abstract

In this study, the relationship between the International Controls Corporation and the government of Costa Rica was examined in an effort to determine the extent to which certain transnational actors affect the process of development in certain Third World states.

The method used to examine this relationship was the case-study. After identifying both the Costa Rican Government and the International Controls Corporation, and delineating their respective resources and points of access, an analysis of their relationship was attempted This analysis revealed that although International Controls, in the person of Robert Vesco, was able to capture the Costa Rican executive, it was unable to co-opt other sectors of the Costa Rican political establishment. Specifically, the legislature, the judicial branch, the opinion leaders, and the political parties rejected International Controls, fearing that its demands upon domestic political resources outweighed any potential economic benefits.

From the perspective of the study of transnational relations, the broader implications of this study are most significant. While transnational business enterprises operate throughout the Third Word, few Third World states possess the political resources necessary to control the activities of the transnationals. It is feared that such states will sacrifice a measure of their political autonomy in an effort to secure the not inconsiderable economic benefits offered by transnational businesses.

The solution, as proposed in this paper, is some form of regulation of transnational businesses, particularly offshore securities operations. Because of the special characteristics of offshore securities operations and the states in which they operate, the most effective form of regulation would be a type of international securities and exchange commission. The existence of such a body would allow the Third World to take advantage of the regulatory expertise of the industrialized states and to enjoy the economic advantages of hosting a transnational business without suffering any direct political dislocation.

Recommended Citation

Kane, Christopher David, "The effect of offshore securities operations on third world development : the case of Costa Rica. " Master's Thesis, University of Tennessee, 1981.
https://trace.tennessee.edu/utk_gradthes/15205