CHAPTER 21— ROLES AND INTERACTIONS OF PUBLIC 

 AND PRIVATE INSTITUTIONS IN INTERNATIONAL 

 TECHNOLOGY 



The power and reach of technology have altered the role of private 

 industry in diplomatic relations. Historically, an important task of 

 the diplomat was to facilitate private commercial intercourse across 

 national boundaries. Protection of traders and their property was an 

 early concern; later, investment and operation abroad of plantations, 

 mineral extraction, followed by factories to employ both local materials 

 and local labor, called for the diplomacy of early capitalism — also 

 term3d by its critics "imperialism" or "colonialism." At best, such 

 overseas development added wealth and improved living and ed- 

 ucational standards, and built an infrastructure to support homo- 

 grown economic activity. At worst, it was indeed exploitive 

 colonialism. U.S. diplomacy during this period played a relatively 

 passive role, protecting U.S. investments by appeals to international 

 law without reference to differences in the normative values of the 

 activities in question. 



However, from about 1950 on the overseas role of U.S. business and 

 industry has shown a more varied range of characteristics. Both 

 industry and diplomacy have advanced to a more sophisticated value 

 system. 



Kinds oi Technological Diplomacy Since 1950 



A major feature of U.S. diplomacy, sustained from the early 1950s 

 on, has been the transfer of technology to developing countries. 

 While the organization and planning of this effort vras in govern- 

 mental hands, private industry was called upon to provide sub- 

 stantive elements in the form of knowledge and artifacts. Consultants 

 loaned by private companies worked in the field. Individual companies 

 worked under contract to formulate and implement development 

 plans. 



Another major element of diplomacy contributed by private in- 

 dustry has been the supplying of sophisticated military s\'stems ac- 

 companied by training of indigenous troops in their operation and 

 mamtenance. 



A third major force has been the spread of the multinational corpora- 

 ation, generally regarded as the primar^^ path for the transfer abroad 

 of U.S. technology and management skills. 



As these direct contacts of U.S. private industry penetrate further 

 and deeper into economies of other nations, it becomes of progres- 

 sively greater interest to U.S. fii^ms to act according to diplomatic 

 precepts. In this sense, private industry becomes not only a bene- 

 ficiary of diplomacy but an interested participant in the process of 

 seeking the mutual benefit of the home countiy and the overseas host. 



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