The Role of Transnational Corporations in Development

A few criticisms of  the role of Transnational Corporations in International Development 

Criticisms of Coca ColaTransnational Corporations are one of the primary agents of Global Capitalism and many have been criticised because of the social and environmental harms they cause in the pursuit of profit. In this blog I outline some case studies of Corporations exploiting workers.

My main inspiration for writing this blog is ‘The Corporation’ (1) (2). However, although this blog does draw on this excellent resource, it also provides more contemporary examples of corporate harm than this 2004 documentary.

Examples of Corporations exploiting workers

Probably the best known criticism to be levelled at well known Corporations such as Nike, Addidas and Primark is that they profit from ‘sweatshop labour’ – with the workers who manufacture their products working extremely long hours in poor conditions and for extremely low wages.

In chapter 5 of The Corporation, one researcher calculates that workers at one of Nike’s factories in Indonesia were earning 0.3% of the final selling price of the products they were making. Now, I know there are middle men, but in classic Marxist terms, this is surely the extraction of surplus value taken to the extreme! The anti- sweat shop campaigns are years old now, but still ongoing –

Of course sweat shop labour is not limited to the clothing industry – the BBC3 series ‘Blood Sweat and T shirts/ Takeaways/ Luxuries’, (3) in which young Brits travel to developing countries to work alongside people in a wide range of jobs, clearly demonstrates how workers in many stages of the productive process, including rice sowing, prawn farming, gold mining, and coffee packing, suffer poor pay and conditions. Many of the goods focussed on in this series end up being bought and the sold in the West by Transnational Corporations for a huge mark up, and it is extremely interesting to see the Brits abroad struggling with the injustice of this.

Apple SweatshopsThe Daily Mail recently conducted some undercover journalism in a Chinese factory that makes the i-pad – where the report they ‘encountered a strange, disturbing world where new recruits are drilled along military lines, ordered to stand for the company song and kept in barracks like battery hens – all for little more than £20 a week.’ Apparently workers have to endure shifts up to 34 hour s long, and the factory has been dubbed the ‘i nightmare factory’ (4)

Even worse conditions are to be found at some of Coke’s bottling factories in Columbia according to the killer coke campaign. Campaigners have documented a ‘gruesome cycle of murders, kidnappings and torture of union leaders involved in a daily life and death struggle’ at these plants. The bosses at some of Coke’s factories in Columbia have contacts with right wing paramilitary forces, and use violence and intimidation to force unionised labour out of work, and then hire non unionised labour on worse contracts for half the pay. There have been more than 100 recorded disappearances of unionised labour at Coke’s factories. (5) (6)

Now the Coca Cola Corporation is obviously not directly to blame for this, as Columbia is one of the more violent countries on the planet, and this culture of violence and intimidation is widespread. The company is, however, responsible for making the conscious decision to choose to invest in a region well known for such practices, and failing to either pull out or protect its workers.

See http://www.nosweat.org.uk/ for more details of Corporate Complicity in sweat shop labour and Union Busting (7)

(1)  http://www.youtube.com/view_play_list?p=FA50FBC214A6CE87 – All the chapters of the Corporation on youtube – although you should really show your support by purchasing this documentary!

(2)  http://www.thecorporation.com/ – The web site of The Corporation.

(3)  http://www.bbc.co.uk/programmes/b00s6103 – The BBC web site for the recent ‘Blood, Sweat and luxuries programme which has an interest blog of comments and a ‘what can you do to help’ link.

(4)  http://www.dailymail.co.uk/news/article-1285980/Revealed-Inside-Chinese-suicide-sweatshop-workers-toil-34-hour-shifts-make-iPod.html

(5)  http://www.killercoke.org/pdf/KCBroch.pdf – a link to the main campaign leaflet of the ‘killer coke’ campaign.

(6) http://www.staticbrain.com/archive/killer-coke-coke-is-the-drink-of-the-death-squads/ – featuring a video of the song ‘Coke is the drink of the Despots’ – sing along if you like!

(7)  http://www.nosweat.org.uk/files/New%20general%20leaflet%2009.pdf – A link to the most recent nosweat leaflet which has some nice ‘sweatshop sums’ peppered throughout which provide facts such as ‘Children as young as 10 were found working in a shop for Primark – Primark made sales of 1.1 billion in the sixth months to March 2009.’

The Golden Arches Theory of Decline – This 2016 post by George Monbiot argues that Transnational Corporations such as Mcdonalds are undermining democracy and that a global system which concentrates power in the hands of a relatively few TNCs is not compatible with the democratic will of the people of Nation States – hence why Trump won in the USA – he’s one of the few political candidates to have promised to limit the power of TNCs.

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