Prior to the 1970s, FDI and, hence, TNCs were seen by developing economies as part of a problem to development, to be solved by minimising the role of TNCs. They were perceived by developing country politicians and development economist as an unnecessary evil that:
made huge profits,
imported obsolete technology,
introduced unfavourable balance of payments,
was a neo-colonial vehicle,
milked the developing economies through transfer pricing, and
introduced a dependencia syndrome which eroded their self-reliance.