Political intervention by transnational corporations

Undisclosed influence of transnational corporations on global policy-making

Nature

Transnational corporations may occasionally actively promote subversive political intervention in the domestic affairs of host, particularly developing, countries. Such intervention is incompatible with the long-term existence of transnational corporations in host countries and infringes upon national sovereignty. Regional political influence, if not intervention, may also be attained by foreign investors, and this may be facilitated by the assistance and incentives given to transnational corporations by colonial governments, either by increasing the number of transnationals or by strengthening them directly and indirectly.

Background

The classic cases of foreign corporate control of governments were the so-called 'banana republics' of Latin America.

Claim

Covert action may be taken by transnational corporations to influence foreign and domestic policy by utilizing their broad financial power and their often close relationship with government cadres. They may lobby for or against governments of host countries, depending on whether or not they receive specially favourable terms or treatment. In host countries, the affiliates can seek to support particular political parties of their choice and they can rally against groups advocating social reforms.

Counter-claim

The national willingness to subordinate local welfare to imported claims by transnational corporations no longer exists as it did earlier in this century. Those transnational corporations which stay in business do so because they provide benefits for their host countries commensurate with the profits they receive. At the forefront of the much-heralded "global village" which is so enriching to society today are transnationals. Where others approach global harmony in abstraction, these are families and individuals who practically engage in the face-to-face effort to build bridges between cultures and nations. Perhaps the most important force that exists today to counter the wanton destructiveness of the chauvinistic nation state is the transnational corporation.