Why does the current system favour multinationals over developing economies?

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The current global financial system favours multinationals over developing economies because it is heavily dollar-dependent and leaves many smaller economies and small businesses exposed to external shocks.

Prime Minister Datuk Seri Anwar Ibrahim said the existing global system “largely favoured multinational corporations” while leaving many developing economies and small businesses vulnerable when shocks hit. He linked this to a legacy system that is “highly dependent on the dollar,” and said crises can spread quickly across borders, pointing to the 2008 global financial crisis that began in the United States and then triggered a worldwide downturn. In his framing, this structure tends to benefit large multinational companies more than small business owners, especially when international conditions deteriorate.
The system’s dollar dependence and uneven benefits
Anwar described the global financial system as one that is highly dependent on the dollar. In his account, that dollar-centric structure is part of a wider legacy that typically benefits large multinational companies over small business owners. He did not detail the precise mechanics of how dollar dependence translates into advantage, but he presented the dependence itself as a defining feature of the imbalance.
External shocks spread across borders faster than safeguards
Anwar emphasised the interconnected nature of the global economy, saying crises in one part of the world can spread across borders. He cited the 2008 global financial crisis as an example, noting it originated in the United States before leading to a worldwide economic downturn. This pattern, in his view, helps explain why developing economies and small businesses remain vulnerable when global conditions shift.
How financial technology is framed to address vulnerability
Anwar argued that as artificial intelligence reshapes finance, new technology should help reduce economic inequalities instead of reinforcing existing imbalances. He said fintech innovations should strengthen resilience, reduce exposure to international shocks, and provide micro-credits, particularly for underserved communities and small businesses. This framing positions the current system’s vulnerability problem as something that technology and access to financing can target, at least in principle.
Power concentration risks tied to AI and data control
While calling for fairer outcomes, Anwar also warned that advances in AI can concentrate power among those who control data, digital platforms, and infrastructure. He said strong governance and human oversight are essential, with human judgment remaining central to decision-making even as machines become more capable. This warning is part of his broader point that the benefits of new financial tools can depend on who holds the underlying power and access.

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Why does the current system favour multinationals over developing economies?

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