ExxonMobil – The Worst Corporation in the World?

ExxonMobil is the world’s largest oil and gas corporation – its main ‘business lines’ involve producing a range of fuels for cars, planes and ships, as well the technologies surrounding the extraction and refining of these fuels.

Exxon Mobil.jpg

ExxonMobil: Key Facts and Stats

  • Registered in Texas, USA.
  • Assets (2016) – $330 billion
  • Revenue (2016) – $218 billion
  • 75 000 employees globally
  • The CEO from 2006 to 2016 was Rex Tillerson, until Donald Trump appointed him as the 69th Secretary of State, a position he formally took up in February 2017. Tillerson has a relatively modest Total Net Wealth of $245 million (although I simply CANNOT believe that’s an accurate figure.)
Oil and Money
Rex Tillerson: Putting Oil and Money First?

Criticisms of ExxonMobil

This video outlines a fairly basic criticism of Exxon’s dealings with the ruling family of Equatorial Guinea – which is the richest country in Africa in terms of GDP, but not in terms of social development, because although Exxon pump a lot of oil out of the country, pretty much all of the money from that oil revenue gets pumped into the hands of the ruling family. They’re so rich, that the Vice President (the president’s son) owns a $30 million dollar mansion in Malibu.

I posted about Equatorial Guinnea a while back – this post covers some of the figures surrounding oil extraction.

Teodorin Obiang
Teodorin Obiang – Total Net Wealth of $115 million

NB – Obiang is going on trial in Europe to investigate the obvious corruption that has led to his vast wealth, thanks to the French courts, no thanks to the TNC Exxon.

A second criticism of Exxon is that it could have effectively prevented climate change: its own internal memos show that the company proved the link between burning fossil fuels and global warming in the late 1970s, but then buried the research and instead funded climate change sceptics to spread doubt about man-made climate change, and cynically invested in areas such as the arctic which it thought global warming would open up for further oil extraction.

According to this Guardian article, Bill Mckibben argues that if only Exxon had been honest, we could have taken much early steps to avert global warming.

Further Sources of criticisms of Exxon…

http://www.cracked.com/article_24303_5-leaked-memos-that-prove-famous-companies-are-evil-as-hell.html

Related Posts/ how to use this material

The most obvious use of the above information is to use it to evaluate the role of Transnational Corporations in Development, summaries of which are provided here:

 

 

 

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A Very Brief History of the Democratic Republic of Congo

This year I’m using the DRC as a major case study in underdevelopment (it is last on the UN’s HDI rankings after all) – Here’s my (mainly cut and paste from Wikipedia) very brief history of the DRC – I’ll add in video links, general links, pictures and extracts from numerous books later… 

The Stuff in italics below each heading are the ‘key historical reasons for underdevelopment’

Pre-Colonialism

It was quite nice, suggesting Western Nation States f***ed The Congo Up 

[Pre-Colonialism, tribes in the region were doing pretty well for themselves – Organised into the Kingdom of Luba, according to Wikipedia – Each of these kingdoms became very wealthy due mainly to the region’s mineral wealth, especially in ores. The civilization began to develop and implement iron and copper technology, in addition to trading in ivory and other goods. The Luba established a strong commercial demand for their metal technologies and were able to institute a long-range commercial net (the business connections extended over 1,500 kilometres (930 miles), all the way to the Indian Ocean). By the 16th century, the kingdom had an established strong central government based on chieftainship.’

The African Congo Free State (1877–1908) – Colonialism, Brutalisation and Extraction

History of Colonialism

King Leopold II of Belgium formally acquired rights to the Congo territory at the Conference of Berlin in 1885 and made the land his private property and named it the Congo Free State.Leopold’s regime began various infrastructure projects, such as construction of the railway that ran from the coast to the capital of Leopoldville (now Kinshasa). It took years to complete. Nearly all such projects were aimed at increasing the capital which Leopold and his associates could extract from the colony, leading to exploitation of Africans.

Rubber was the main export from the Congo Free State, used to make tyres for the growing automobile industry, and the sale of rubber made a fortune for Leopold.

Leopold’s colonization of the Congo was incredibly brutal. Thousands of Congolese were forced to work on Leopold’s Rubber plantations, and the practice of cutting off the limbs of the natives as a means of enforcing rubber quotas was widespread. During the period of 1885–1908, millions of Congolese died as a consequence of exploitation and disease. In some areas the population declined dramatically; it has been estimated that sleeping sickness and smallpox killed nearly half the population in the areas surrounding the lower Congo River.

The actions of the Free State’s administration sparked international protests led by British reporter Edmund Dene Morel and British diplomat/Irish rebel Roger Casement, whose 1904 report on the Congo condemned the practice. Famous writers such as Mark Twainand Arthur Conan Doyle also protested.

The Belgian Congo (1908–1960) – Colonialism, Condescension and More Extraction

In 1908, the Belgian parliament took over the Free State from the king. From then on, as a Belgian colony, it was called the Belgian Congo and was under the rule of the elected Belgian government. The governing of the Congo improved significantly and considerable economic and social progress was achieved. The white colonial rulers had, however, generally a condescending, patronizing attitude toward the indigenous peoples, which led to bitter resentment from both sides. During World War II, the Congolese army achieved several victories against the Italians in North Africa.

Independence and Political crisis (1960–1965) – Turmoil and Transition

The Belgian Congo achieved independence on 30 June 1960 under the name ‘The Democratic Republic of Congo’. Just previous to this, in May a growing nationalist movement, led by Patrice Lumumba, had won the parliamentary elections. The party appointed Lumumba as Prime Minister. Shortly after independence, most of the 100,000 Europeans who had remained behind after independence fled the country, opening the way for Congolese to replace the European military and administrative elite.

On 5 September 1960, Kasavubu dismissed Lumumba from office. Lumumba declared Kasavubu’s action unconstitutional and a crisis between the two leaders developed. Lumumba had previously appointed Joseph Mobutu chief of staff of the new Congo army. Taking advantage of the leadership crisis between Kasavubu and Lumumba, Mobutu garnered enough support within the army to create mutiny. With financial support from the United States and Belgium, Mobutu paid his soldiers privately. Mobutu took power in 1965 and in 1971 changed the country’s name to the “Republic of Zaïre”.

Mobutu and Zaire (1965 – 1996) – Dictatorship (propped up by the United States), extreme corruption, yet more extraction and infrastructure deterioration

Corruption, Aid, The United States, Cold War

The new president had the support of the United States because of his staunch opposition to Communism. Western powers appeared to believe this would make him a roadblock to Communist schemes in Africa.

A one-party system was established, and Mobutu declared himself head of state. He periodically held elections in which he was the only candidate. Although relative peace and stability were achieved, Mobutu’s government was guilty of severe human rights violations, political repression, a cult of personality and corruption. By 1984, Mobutu was said to have $4 billion (USD), an amount close to the country’s national debt, deposited in a personal Swiss bank account. International aid, most often in the form of loans, enriched Mobutu while he allowed national infrastructure such as roads to deteriorate to as little as one-quarter of what had existed in 1960.

During the 1970s and 1980s, Mobutu was invited to visit the United States on several occasions, meeting with U.S. Presidents Richard Nixon, Ronald Reagan and George H. W. Bush. In June 1989, Mobutu was the first African head of state invited for a state visit with newly elected President Bush. Following the dissolution of the Soviet Union, however, U.S. relations with Mobutu cooled, as he was no longer deemed necessary as a Cold War ally.

The first and second Congo Wars (1996 – 2003) – Rwanda’s Ethnic conflict heads west while neighbouring nations plough in and extract resources    

End of the Cold War, Ethnic Conflict, Rwanda, Resource Curse

By 1996, following the Rwandan Civil War and genocide and the ascension of a Tutsi-led government, Rwandan Hutu militia forces (Interahamwe) had fled to eastern Zaire and began refugees camps as a basis for incursion against Rwanda. These Hutu militia forces soon allied with the Zairian armed forces to launch a campaign against Congolese ethnic Tutsis in eastern Zaire.

A coalition of Rwandan and Ugandan armies, led by Lawrence Kabila, then invaded Zaire to overthrow the government of Mobutu, launching the First Congo War. By May 1997, Kabila had made it to the capital Kinshasa, named himself president and changed the name of the country back to the Democratic Republic of Congo. Mobutu was forced to flee the country.

However, a few months later, President Kabila asked foreign military forces to return back to their countries because he was concerned that the Rwandan military officers who were running his army were plotting a coup against him. Consequently, Rwandan troops in DRC retreated to Goma and launched a new Tutsi led rebel military movement (the RCD) to fight against their former ally, President Kabila, while Uganda instigated the creation of another rebel movement called the Movement for the Liberation of Congo (MLC), led by the Congolese warlord Jean-Pierre Bemba. The two rebel movements, along with Rwandan and Ugandan troops, started the Second Congo War by attacking the DRC army in 1998. Angola, Zimbabwe and Namibia became involved militarily on the side of the government.

Kabila was assassinated in 2001 and was succeeded by his son Joseph Kabila, who organised multilateral peace talks which to the signing of a peace accord in which Kabila would share power with former rebels. By June 2003 all foreign armies except those of Rwanda had pulled out of Congo. On 30 July 2006 DRC held its first multi-party elections. Joseph Kabila took 45% of the votes and his opponent, Jean-Pierre Bemba took 20%. On 6 December 2006 Joseph Kabila was sworn in as President.

Contemporary Conflicts in the DRC (2003 – Present Day) – Numerous groups fighting over various things

Ethnic Conflict, Rwanda, learned violence.

There are a number of rebel groups still operating mostly in the Eastern Democratic Republic of Congo. It is widely suspected that Rwanda is funding some of these rebel groups. A lot of the recent conflicts seem to go back to the Hutu-Tutsi conflict from Rwanda.

The FDLR -The Democratic Forces for the Liberation of Rwanda- Consist almost entirely ethnic Hutus who wish to regain power in Rwanda. The FDLR contains some of the ‘original Hutu genociders’ who carried out the genocide in Rwanda and currently have about 7000 troops still in operation in the DRC. Some of the leaders of the FDLR are facing trial for crimes against humanity in the ICCJ

 

 The CNDP – In 2006, the Congolese military declared that it was stopping operations against the FDLR. This lead to some troops mutinying and the foundation of the CNDP, or  The National Congress for the Defence of the People,  mostly consisting of ethnic Tutsis, whose main aim continued to be the eradication of the Hutu FDLR. The CNDP consisted of approximately 8000 troops and was believed to be backed by Rwanda.

The M23 Rebels – In March 2009, The CNDP signed a peace treaty with the government, in which it agreed to become a political party and its soldiers integrated into the national army in exchange for the release of its imprisoned members. Its leader, Lawrence Nkunda was also arrested and is now facing trial at the United Nations Court for ‘Crimes against humanity’.

However (here we go again) in 2009 Bosco Ntaganda, and troops loyal to him mutinied from this new ‘integrated army’ and formed the rebel military March 23 Movement, claiming a violation of the treaty by the government. M23 claims that some CNDP troops have not received jobs in the military as promised by the government and also want some limited political reforms.

M23 is estimated to have around 1500 – 6000 troops and as recently as November 2012, M23 captured the city of Goma, with a population of over 1 million, and the provincial capital of the Kivu Province in Eastern DRC, with the aim of getting its political demands met.

Rwanda is widely suspected of funding this rebel group as well, although both Rwanda and M23 deny this.

Other Rebel Groups – In addition to the above there is on and off fighting amongst other rebel groups. For example, Joseph Kony’s Lord’s Resistance Army moved from their original bases in Uganda (where they have fought a 20-year rebellion) and South Sudan to DR Congo in 2005.