Transcript What are Transnational Corporations? (TNCs)

External Forces
Affecting
Jamaica
The Caribbean Basin
Jamaica
Jamaica
Country Profile: JAMAICA
Population: 2,665,636
Capitol: Kingston
Major cities: Spanish Town, Montego Bay
Colonial power(s): Britain
Date of Independence: 1962
Primary language(s): English, Creole
GDP/capita: $3,700
Expected population: 20 yrs – 2,937,530
30yrs – 3,073,478
(http://www.cia.gov/cia/publications/factbook/index.html)
CARICOM
Caribbean Community and Common Market
The Standard of the Caribbean Community features a blue background the upper part being of a light blue representing the sky and the lower
part of a dark blue representing the Caribbean Sea. The yellow circle in
the center of the Standard represents the sun on which is printed in black,
the logo of the Caribbean Community - two interlocking c's. The two c's
are in the form of broken links in a chain, symbolizing both unity and the
break with our colonial past. The narrow ring of green around the sun
represents the vegetation of the Region.
Mission Statement of CARICOM:
"To provide dynamic leadership and service, in
partnership with Community institutions and Groups,
toward the attainment of a viable, internationally
competitive and sustainable Community, with
improved quality of life for all."
Members of CARICOM:
a)
Antigua and Barbuda
(b)
The Bahamas *
(c)
Barbados
(d)
Belize
(e)
Dominica
(f)
Grenada
(g)
Guyana
(h)
Haiti
(i)
Jamaica
(j)
Montserrat
(k)
St. Kitts and Nevis
(l)
Saint Lucia
(m)
St. Vincent and the Grenadines
(
(n)
Suriname
(o)
Trinidad and Tobago
*The Bahamas is a member of the Community but not the Common Market
CARICOM Objectives:
1) Improved standards of living and work;
2) full employment of labor and other factors of production;
3) accelerated, coordinated and sustained economic development and convergence;
4) expansion of trade and economic relations with third States;
5) enhanced levels of international competitiveness
6) organization for increased production and productivity;
7) the achievement of a greater measure of economic leverage and effectiveness of
Member States in dealing with third States, groups of States and entities of any
description;
8)enhanced co-ordination of Member States' foreign and [foreign] economic policies;and
9) enhanced functional co-operation, including (i) more efficient operation of common services and activities for the benefit
of its peoples;
(ii) accelerated promotion of greater understanding among its peoples and
the advancement of their social, cultural and technological development;
(iii) intensified activities in areas such as health, education, transportation,
telecommunications.
Organs and Functions of CARICOM:
(a)
The Conference of Heads of Government commonly called "The Conference"
1) The Conference is the Supreme Organ of the Community. It consists of the Heads
of Government of the member states and is the final authority of the Community.
2) The primary responsibility of the Conference is to determine and to provide the
policy
direction for the Community.
3) It is the final authority for the conclusion of Treaties on behalf of the Community
and for
entering into relationships between the Community and International
Organizations and
States.
(b)
The Community Council of Ministers commonly called "The Council"
The Council is the second highest Organ. It consists of Ministers responsible for
Community Affairs and any other Minister designated by Member States in
their
absolute discretion. It is responsible for the development of Community
strategic planning and coordination in the areas of economic integration, functional
cooperation
and external relations.
World Summit on Sustainable
Development
(WSSD)
Alternatively known as the World Summit on
Sustainable Development (WSSD) or simply the
Johannesburg Summit, WSSD will be a ten year review
of all progress (and setbacks!) since the creation of
Agenda 21 at the first Earth Summit, held in Rio de
Janeiro, Brazil in 1992. This important event will assess
the current state of sustainable development, highlight
obstacles, and begin to define new solutions for the
future.
(http://citnet.org/worldsummit/overview/orientation/whatiswssd.aspx)
Priorities of WSSD
1) Corporate Accounts
2) Earth Values
3) Energy/Climate Change
4) Human and Environmental Rights
5) Forest and Fresh Water Concerns
(http://wssd.info/)
What are
Transnational
Corporations?
(TNCs)
In a nutshell…
• TNCs operate outside the control of the nation in
which it resides.
• TNCs principle reason for existence is to make
profit for private economic gain.
• TNCs have control over a certain amount of goods
and services; also gives them control over national
governments.
Who’s the boss of TNCs?
• Corporations are controlled by the people
that manage it – Shareholders.
–Banks, other corporations, national governments, or
individuals.
–Those shareholders that own 10-15% of the stock
typically have individuals serve as a chairman of the board.
–Decisions are often made form corporate
headquarters which are often thousands of miles
away.
Where do profits come
from?
Example:Alcoa
• Profit comes from developing a natural
resource into a commodity
• Alcoa
– Vertical integration: owns the equipment for
every part of production.
– Production includes: extraction of bauxite,
smelting, refining, fabrication, shipment,
marketing the aluminum.
Problems with TNCs
• Some consider TNCs the new form of
Colonialism.
• People are expendable, profit is not.
• Cause countries to rely on IMF/WB.
• Goods needed for country are often
exported leading to importation of goods
at higher cost.
TNCs in Jamaica
• Numerous fast food organizations
– McDonald’s, KFC, Burger King, etc.
•
•
•
•
Alcoa
Kaiser and Hydro Aluminum of Norway
Glencore International AG (Swiss based)
Mirant (Fortune 500 based in Atlanta, GA)
– Involved in the generation, purchase, transmission,
distribution of electricity.
The Impact on the
People of Jamaica
The Effects of Structural
Adjustment
• Structural Adjustment has lead to the
“liberalization, privatization, and devaluation of
the Jamaican economy” (Mullings).
• Decrease in spending towards health care, social
security, and education have hit the poor the
hardest.
• Increase in tourism to aid development
Tourism Reform
• The proliferation of all-inclusive resorts
• Much of the income generated by these hotels is in
the hands of a few large hoteliers. Small hoteliers
are having a difficult time competing.
• The informal vendors are becoming increasingly
marginalized – less tourist income going directly
to the community.
The Growth of the Sex Tourism
Industry
• “The growth of sex tourism has been inextricably
connected to the policy choices of government and
the impact of these policies on the social an
economic opportunities open to the population, in
particular, its poorest members” (Mullings).
• More jobs focus on the formal tourist sector, but
they are low-skill, low-wage jobs that offer little
hope of mobility. Many men and women are
entering into the sex tourism industry because it
offers more money and easier work than
traditional occupations.
Benefits and Implications of the
Sex Tourism Industry
• Sex tourism industry offers a better standard
of living for men and women involved.
However, it is seen by some as a threat to
legitimate tourism.
• “The body has become a form of
international currency creating a space
where the international and the personal
converge” (Mullings).
People and destinations have
become products for consumption –
commodities of the Third World
exported for consumption by the
First World, further perpetuating the
power inequality between the North
and South.