Thursday, January 19, 2006
Tessa Brunton reviews "The Challenge To Power" in the latest Metro Santa Cruz:
Self-defense manuals do not often recommend hitting an aggressor in the wallet. But in a world where megacorporations have carte blanche and suspect business practices can lead to environmental disasters, human rights abuses and corruption, concerned citizens have to hit corporations where it counts. And that means hitting below the belt at the bottom line.
However, due to the fact that corporations are composed of people with limited liability, who self-govern in a self-perpetuating system, corporations are frighteningly untouchable. "They are sovereign and don't have to obey the laws of the land and can move with adeptness and agility not only from one state to another but from one country to another," Harrington says. "There's no way to get at this leviathan. That's the really frightening part of it."
While the U.S. government does regulate corporations, the measures taken are often ineffective. A recent example of this was the Monsanto Corporation's brush with bribery. Monsanto, a major producer of genetically modified seed, recently admitted to bribing Indonesian officials in order to speed the approval of its products. Monsanto was later fined $1.5 million dollars by the U.S. government for violating the Foreign Corruption Act. But according to Harrington, such fines have little impact on giant corporations.
"They can pay fees and fines, but the fines are fairly meaningless in the stream of income," Harrington explains. "The only thing that these leviathans will respond to is money. So when you affect their access to capital and their market or their cost of doing business, that's the only time they ever respond."