Do transnational non-state actors challenge state power? Discuss with reference to transnational corporations.
The might of independent and international corporate entities, or transnational corporations (TNC’s) has extended into all sectors of our world through the process of globalisation—creating an economic system of global concentration and financialisation. Undeniably, the ultimate goal of a TNC is to make money, and state political power can be an imperative tool in achieving this. Indeed, the economy is the energy that fuels the world. Therefore, perhaps the immense status and importance of financial TNC’s within the world economy also cause a challenge of state power. However, when looking at the challenge that TNC’s present, we must …show more content…
In fact, when put to comparison, Gilens and Page reported that business based interest groups have significant influence on public policy, while the average citizen has little to no independent influence. These companies are essentially writing their own legislation. Known as “Ag-gag” laws, legislation such as the “Animal Enterprise Terrorism Act” make it so people can be criminalised for interfering with any of animal related industry or photographing abuses committed by these TNC’s. Additionally, legislation known as “cheeseburger laws” prevents civil action against any food company for obesity related diseases caused by their food. Perhaps this is a response to tobacco companies forcibly paying hundreds of billions of dollars to state medicate programs for compensation in treating tobacco related diseases. Companies also use soft lobbying techniques. For example, in 2014 the “Citizens for Health” association pushed the FDA to enforce labelling of beverages containing high fructose corn syrup. Unbeknownst to most, the society received much of it’s financial support from corporations within the sugar industry, who are competitors of corn syrup products. When corporations are able to push legislation onto the government, whether good or bad, this is a huge influence on state …show more content…
Through an international treaty called TRIPS, the US and other countries established licensing agreements for corporations throughout the world. Under the TRIPS agreement, any state providing or producing patent products could be sued by a company and compensated for loss. In 1997, South Africa attempted to reform it’s patent laws, aiming to improve access to AIDS and other medications—which was far too expensive for the average citizen and was causing many deaths and expensive healthcare. More than 40 pharmaceutical corporations who owned the right to these treatment filed a lawsuit against the South African government.. In agreement with the suit, the US and EC threatened economic sanctions. It took three years for the courts to rule in favour of the African federal government. As an implication of this, TRIPS agreements were strengthened. Indeed, this type of patent incident is not isolated. A more recent example occurred in 2013, when another pharma giant received patent rights to a lead poisoning treatment. Prior to this, the price for Calcium EDTA was stable at $950. In one year, the price of the drug increased to almost $27000. These pro TNC policies seem to be a pattern—in fact, a study by UNCTAD reported that of 271 regulatory changes from 102 countries that affected foreign investments in 2004, 87% favoured TNC’s. This shows us just
The might of independent and international corporate entities, or transnational corporations (TNC’s) has extended into all sectors of our world through the process of globalisation—creating an economic system of global concentration and financialisation. Undeniably, the ultimate goal of a TNC is to make money, and state political power can be an imperative tool in achieving this. Indeed, the economy is the energy that fuels the world. Therefore, perhaps the immense status and importance of financial TNC’s within the world economy also cause a challenge of state power. However, when looking at the challenge that TNC’s present, we must …show more content…
In fact, when put to comparison, Gilens and Page reported that business based interest groups have significant influence on public policy, while the average citizen has little to no independent influence. These companies are essentially writing their own legislation. Known as “Ag-gag” laws, legislation such as the “Animal Enterprise Terrorism Act” make it so people can be criminalised for interfering with any of animal related industry or photographing abuses committed by these TNC’s. Additionally, legislation known as “cheeseburger laws” prevents civil action against any food company for obesity related diseases caused by their food. Perhaps this is a response to tobacco companies forcibly paying hundreds of billions of dollars to state medicate programs for compensation in treating tobacco related diseases. Companies also use soft lobbying techniques. For example, in 2014 the “Citizens for Health” association pushed the FDA to enforce labelling of beverages containing high fructose corn syrup. Unbeknownst to most, the society received much of it’s financial support from corporations within the sugar industry, who are competitors of corn syrup products. When corporations are able to push legislation onto the government, whether good or bad, this is a huge influence on state …show more content…
Through an international treaty called TRIPS, the US and other countries established licensing agreements for corporations throughout the world. Under the TRIPS agreement, any state providing or producing patent products could be sued by a company and compensated for loss. In 1997, South Africa attempted to reform it’s patent laws, aiming to improve access to AIDS and other medications—which was far too expensive for the average citizen and was causing many deaths and expensive healthcare. More than 40 pharmaceutical corporations who owned the right to these treatment filed a lawsuit against the South African government.. In agreement with the suit, the US and EC threatened economic sanctions. It took three years for the courts to rule in favour of the African federal government. As an implication of this, TRIPS agreements were strengthened. Indeed, this type of patent incident is not isolated. A more recent example occurred in 2013, when another pharma giant received patent rights to a lead poisoning treatment. Prior to this, the price for Calcium EDTA was stable at $950. In one year, the price of the drug increased to almost $27000. These pro TNC policies seem to be a pattern—in fact, a study by UNCTAD reported that of 271 regulatory changes from 102 countries that affected foreign investments in 2004, 87% favoured TNC’s. This shows us just