easoning contends further that the MNC, if not the only source of most of these resources in the quality and quantity required by developing countries, is, most certainly, the most efficient source. It is contended, also, that foreign capital is the "engine of growth" for the developing country, and that only the MNC with a profit incentive is likely to provide such capital (Vernon 44). Supporters of this view see no evils in the activities of MNCs. Supporting this perspective, a Brookings Institution study said that: "Traditional theory posits that foreign direct investment contributes positively to development. It brings those societies most in need of them capital, technology, and management and marketing skills. In addition to the direct income effects, jobs are created and government tax revenues, which can be used for further development, are augmented" (Bergsten, Horst, and Moran, 112).
The Advice of the Free Market State Capitalist Minister
The state capitalist minister advised that the MNC operating in the country should be allowed to continue to operate, but that the state should, in effect, become a partner with the MNC. In this context, the MNC would not become a state-owned enterprise, nor would Prosperia's economic organization shift to that of a command economy. Rather, the taxation on the profits of the MNC's Prosperia operations would be increased to support the social welfare programs and social development programs that most of the country's population desperately require (Marshall 886). The minister advised that the economic organization for Prosperia should have as an end goal the emulation of the organization of the Swedish economy.
To support his argument, the minister quoted William Tabb (215), who was associated with Queens College, City University of New York at the time of his statement, who stated that: "On the one side are national and regional producers who stand to be squeezed out with fur...