{"id":35355,"date":"2023-10-05T09:11:22","date_gmt":"2023-10-05T09:11:22","guid":{"rendered":"https:\/\/www.africa-press.net\/mauritius\/all-news\/global-corporate-power-is-out-of-control-but-reports-of-democracys-death-are-greatly-exaggerated"},"modified":"2023-10-05T09:31:14","modified_gmt":"2023-10-05T09:31:14","slug":"global-corporate-power-is-out-of-control-but-reports-of-democracys-death-are-greatly-exaggerated","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/mauritius\/all-news\/global-corporate-power-is-out-of-control-but-reports-of-democracys-death-are-greatly-exaggerated","title":{"rendered":"Global corporate power is \u2018out of control\u2019, but reports of democracy\u2019s death are greatly exaggerated"},"content":{"rendered":"

Africa-Press – Mauritius. <\/strong><\/span>The past 40 years have seen massive expansion of the dominance of large corporations in the global economy. A wave of neoliberal reforms spread internationally from the 1980s with the promise that deregulated markets would unleash the animal spirits of private enterprise, bringing a new era of growth and prosperity.<\/p>\n

Corporations were touted as the heroes of the neoliberal dream, casting off the shackles of staid state bureaucracy as they leapt forward into a future where there was no alternative to unfettered global capitalism. So what happened?<\/p>\n

The dream of popular capitalism<\/b><\/p>\n

In the late 1970s, Margaret Thatcher championed \u201cpopular capitalism\u201d as a means to deliver \u201crenewed material prosperity, [. . . ] individual freedom, human dignity and to a more just, more honest society\u201d.<\/p>\n

Ronald Reagan promised that cutting the taxes of corporations and the wealthy would create a new era of economic prosperity for all. This was dubbed \u201ctrickle-down economics\u201d.<\/p>\n

As leaders in the 1980s of the United Kingdom and United States, respectively, Thatcher and Reagan were harbingers of major changes to the global economic order.<\/p>\n

By 1989, what came to be known as the Washington Consensus was firmly established as the dominant policy position of the International Monetary Fund (IMF). This prompted a wave of structural reforms to economies across the developing world, lest they lose access to IMF dollars.<\/p>\n

The \u201cconsensus\u201d, for rich and poor nations alike, was that privatisation of state enterprises, liberalisation of markets, corporate deregulation, reduced taxation and the general withdrawal of government from economic affairs were the only ways to secure global economic growth.<\/p>\n

A dream that did not come true<\/b><\/p>\n

Journalists Claire Provost and Matt Kennard\u2019s Silent Coup: How Corporations Overthrew Democracy charts what has become of the corporate-led global prosperity that was promised in the 1980s. Their assessment is grim and hopeless.<\/p>\n

Instead of shared progress arriving on the wings of an ever-empowered capitalism, what we got was a massive grab for power and money by the corporations that were supposed to save the world.<\/p>\n

The book asserts that corporations have staged nothing less than a political coup d\u2019e\u0301tat: a deliberate and successful attempt to usurp the power of nation states and establish themselves as rulers of the world.<\/p>\n

By its own account, Silent Coup provides a guide to the rise of supranational corporate empires that now dictate how resources are allocated, how territories are governed, how justice is defined and who\u2019s safe.<\/p>\n

Provost and Kennard chart four ways this corporate political revolution has been achieved. These involve the international legal system, the international aid and development system, the corporate acquisition of territory, and the growth of private corporate armies.<\/p>\n

It all amounts to an undermining of democracy by ever-growing corporate empires. The first part of Silent Coup, \u201cCorporate Justice\u201d, examines the international treaties that have been established across the world by countries wishing to increase corporate foreign investment.<\/p>\n

These treaties give corporations legal authority to sue nation states in international tribunals if their investments are jeopardised. The book illustrates the power shift this entails with precisely documented examples from around the globe, from El Salvador to South Africa to Germany.<\/p>\n

In El Salvador, for example, the Canadian mining company Pacific Rim sued the government \u2013 unsuccessfully, in the end \u2013 for blocking it from opening a particular gold mine.<\/p>\n

Pacific Rim claimed the government\u2019s actions, while legal, caused it to have lost \u201cfuture profits\u201d. Provost and Kennard portray the system as being \u201cout of control\u201d.<\/p>\n

Investor trade arbitrations have turned the tables of power. The popular sovereignty of democratic nations, they argue, has been ceded to the private economic interest of the world\u2019s corporations.<\/p>\n

Silent Coup then delves into the domination of international aid by large corporations. By way of example, Provost and Kennard report on the G8 initiative called New Alliance for Food Security and Nutrition, designed to reduce poverty and grow agriculture in Africa.<\/p>\n

In practice, this was implemented through changes to tax and agriculture laws designed to boost the profits of private agribusiness. Government aid, in today\u2019s world, is no longer positioned as reparation or generosity; wealthy countries now want a return on their investment.<\/p>\n

Projects that create trade and wealth opportunities for corporations are prioritised. This means, in effect, that aid is increasingly used to benefit big business as much as it ostensibly claims to be funding economic development.<\/p>\n

A section on \u201cCorporate Utopias\u201d takes aim at Special Economic Zones established within countries to give corporations preferential tax rates and more relaxed regulations.<\/p>\n

Some of these zones are even exempt from labour laws and protections. There are 3,500 such zones across the globe, from Myanmar and Shenzhen to Ireland and the UK, employing 66 million generally low-paid workers. Unfettered, union-free, government-backed worker exploitation, the authors argue, runs rampant amid this epidemic of \u201csweatshop globalisation\u201d.<\/p>\n

The final section of Silent Coup, \u201cCorporate Armies\u201d, reports how corporations are engaging in military and police-like activities to protect their premises, transportation and logistics in places such as occupied Palestine, Columbia and Honduras.<\/p>\n

One example discussed is fruit company Chiquita, which the US Department of Justice found guilty of funding and arming known terrorists to protect its presence in the banana-growing regions of Colombia.<\/p>\n

Elsewhere, corporations are making profits from running immigration detention centres and prisons. In today\u2019s world, corporations control armed forces at a level hitherto the exclusive realm of nation-states.<\/p>\n

For More News And Analysis About Mauritius<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Mauritius. The past 40 years have seen massive expansion of the dominance of large corporations in the global economy. A wave of neoliberal reforms spread internationally from the 1980s with the promise that deregulated markets would unleash the animal spirits of private enterprise, bringing a new era of growth and prosperity. Corporations were […]<\/p>\n","protected":false},"author":84,"featured_media":35354,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,9],"tags":[233,245,599,241],"class_list":["post-35355","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-miscellaneous","tag-africa-press","tag-africa-press-mauritius","tag-economy","tag-mauritius"],"yoast_head":"\nGlobal corporate power is \u2018out of control\u2019, but reports of democracy\u2019s death are greatly exaggerated - Mauritius<\/title>\n<meta name=\"description\" content=\"The past 40 years have seen massive expansion of the dominance of large corporations in the global economy. 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