October 15, 2009 - Issue 346 |
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Do Corporations Already Rule the World? |
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Observers
of our times in the past several years have said that, if we’re not careful,
corporations will rule the world. Most
Americans, including the economics experts, don’t know that many, if not
most, of the corporations and their managerial leaders believe that they
really do rule the world. If our economic experts know, they’re not telling
the people. Since
they have no allegiance to any country, no matter where their corporate
headquarters are located, they seem to just move their production from
one place to another, according to where the climate for investment seems
to be the most lucrative, and to countries where the government doesn’t
bother them much. Most
of us think that this is a new phenomenon, but it’s been happening with
great deliberation and speed since the end of World War II, even faster
than it did in the years between the two world wars. The
loyalty of corporations lies not with the country of its origin or the
place where it keeps its money, but it’s with the shareholders - after
top management takes care of itself. After that, such extras as livable
wages, benefits, pensions, and a healthy place to work might be considered,
but don’t bet on it. In
1972, Hugh Stephenson, a British journalist and economist, pointed out
in his book, The Coming Clash: The
Impact of Multinational Corporations on National States, “In terms
of the relationship between industry and politics, to use a phrase coined
in another context, the medium is the message. The lesson that the oil
companies demonstrated first and most conclusively is that, in an industry
with heavy capital requirements and where the end product is without national
characteristics the only viable long-term strategy is one that ignores
as far as possible the political and cultural divisions of the world into
countries…The development since 1945 is that ever-growing sectors of industry
are moving more or less rapidly into the same category as the oil companies…” Simply
put, he pointed out that nation states don’t matter to modern corporations. As
accurate as Stephenson was in tracking the trend of transnational corporations
in the period between 1945 and 1972, he could not have anticipated the
virtual tidal wave of money and raw material that would be sent by the
world’s biggest corporations to developing countries in the age of “information
technology” for production of clothing, shoes and boots, small machinery,
automobiles, household appliances, and every kind of electronic device
imaginable. “Global
free trade” is important to growth of the power of the corporations, which
have re-created themselves in subsidiaries in scores of other countries,
as a way of making themselves acceptable to governments and peoples. Just
as oil has no national characteristic, many other commodities have no
national characteristic. A gallon of oil is a gallon of oil, whether it
comes from The
myth of free trade, combined with the World Trade Organization (and previously,
the General Agreement on Tariffs and Trade or GATT) further opened up
the world to the overpowering influence of corporations on nations and
societies everywhere. Using
the carrot of loans and restructuring of economies (usually the privatization
of most or all government services), transnational corporations, through
the levers of the World Bank and the International Monetary Fund, can
convince just about any government or leader that they should be in charge
of “development” of that country, because they have the know-how and the
structure and the expertise to demonstrate how that country’s resources
should be used. For
the most part, not only do the workers and the farmers, peasants, and
indigenous people lose control of their land and its resources, governments
have been reduced to being mere observers of the exploitation of their
countries. People have lost their very cultures and their traditions,
but there are stirrings of some push-back. Through
most of the last hundred years, corporate emphasis has been on what might
be called the hard resources - such things as mined metals, lumber, oil,
and gas. Lately,
though, food has become the product of choice to own by transnational
corporations. The Vegetable
and fruit production could be controlled by just a few corporations in
the next few years, not only by the traditional giant growers in places
like California, Florida, and Texas, but control could come because mega-corporations
are buying most independent seed companies and patenting every variety
of seed that can be patented. The patenting of food animals also is under
way. Through
patents, they will be able to collect royalties, even from the planting
of a backyard garden. Small farmers are at a disadvantage and will be
at greater disadvantage when the “food safety” laws, promoted and supported
by corporate agribusinesses are pushed through Congress. These laws, being
deliberated now, will make it difficult for small farms to survive, while
corporate farms will be able to easily conform to the laws or, through
their lobbying and campaign contributions, shape the laws to make themselves
exempt. To
gain an insight into the power of corporations in other countries - especially
the developing countries - one need but look at the tactics of the world’s
biggest retail corporation, Wal-Mart and how it insinuates itself into
an American community. Even
where Wal-Mart is not welcome, its use of public relations, gifts, town
hall meetings, the promise of hundreds of jobs, and legal mechanisms to
fight the will of the people usually make the company victorious, and
they build their big store. In months or a few years, the remaining small
retail stores in the community, not able to compete with a conglomerate
that sets its own prices on a worldwide scale, simply go out of business. What
Wal-Mart has done to communities across But,
there is a fight-back movement growing in many places where workers and
their unions and farmers and their organizations are demanding to have
a say in the way their countries are run and have a say in who gets to
use their resources. La
Via Campesina, a worldwide
organization of peasants and indigenous farmers, is demanding “food sovereignty,”
the right to grow their own native foods on their own farms or plots of
land and the right not to have imported food from corporate farms of other
countries literally shoved down their throats because of “free trade.”
Workers of nations in this hemisphere are electing people who represent
them and not just the elite
and privileged. Organizations
of farmers and indigenous peoples and the unions of wage workers around
the world have their work cut out for them, for they are the only power
that can counterbalance the power of transnational corporations. But they
can do that only if they work in solidarity with one another. BlackCommentator.com Columnist, John Funiciello, is a labor organizer and former union organizer.
His union work started when he became a local president of The Newspaper
Guild in the early 1970s. He was a reporter for 14 years for newspapers
in |
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