An Appraisal of the Transnational Cooperation and the Niger-Delta Region on Peace
CHAPTER ONE
OBJECTIVES OF THE STUDY
The main objective of this study is to examine transnational cooperation and the Niger – Delta region on peace.
The specific objectives of this research are;
- To ascertain the influences of transnational corporation in the Niger Delta
- To proffer possible solutions for the effective and efficient relationship between transnational corporation and the Niger Delta.
- To ascertain if transnational corporation enhances or impedes peace in the Niger Delta.
- To analyze the economic policies that will be responsive enough to strengthen economic union between transnational corporation and the Niger Delta.
- To analyze the contemporary pattern of transnational corporation investment in Nigeria.
CHAPTER TWO
Literature Review and Historical Background.
Literature Review
A transnational corporation is a company, firm or enterprise with its headquarters in a developed country such as one United States, Britain Germany, Japan etc, and also operates in other countries, both developed and developing.
They are spread not only in the developing countries of Asia, Africa and Latin America, but also on the continents of Europe, Australia, New Zealand and South America. They are engaged in mining, tea, rubber, coffee and cocoa plantations; oil extraction and refining, manufacturing for home production and exports, etc. Their operations also include such services as banking insurance, shipping, and hotels and so on. Transnational corporations overwhelming dominate not only global investment but also international production, trade finance and technology. Thus “like animals in the zoo, transnational corporations come in various shape and sizes, perform distinctive functions differently and their individual impact on the environment”.
Sanjoy Lai and Streeten define transnational corporations from economic, organizational and motivational viewpoints. The economic definition lays emphasis on the size, geographical spread and extent of foreign involvement of the transnational corporation. According to this definition, a typical transnational corporation is one with net sales of 100 million dollars to several thousand million dollars having direct foreign investment in manufacturing usually accounting to at least 15 to 20 percent of the company’s total investment.
The organizational definition stresses on some organizational aspects of a transnational corporation besides the economic ones. In this respect a truly transnational corporation is that which:
- Acts an organization maximizing one overall objective for all its units.
- Treats the whole world (or the parts open to it) as its operational area, and
- Is able to coordinate all its functions in any way necessary for achieving (a) and (b).
The motivational definition highlights ‘‘corporate philosophy and motivation in laying down criteria for multinationality. This ‘True’ multi-nationality is generally indicated by a lack of nationalism, or a concern with the firm as a whole rather than with any of its constituent units or any country of its operation. ‘‘on this basis, firms are distinguished between ethnocentric (home oriented) polycentric (host oriented) and geocentric (world oriented), on the basis of altitudes revealed by their executives. (LAI and Streeten 2003).
CHAPTER THREE
CORPORATE SOCIAL RESPONSIBILITY AND POLICY VARIATIONS
Corporate Social Responsibility as understood by TNCs and its Variations and forms of implementation
Prior to the 1980s, CSR was relatively understood as a form of corporate philanthropy which a company pursues after it has been able to accrue profits, which simply means that in the absence a profit, a corporation can behave irresponsibly. While other corporate entities saw the act of corporate social responsibility as a form of waste of shareholders resources. Nonetheless between the 1980s and 1990s, there was a shift in thinking as to the utility of CSR by corporations in that they saw Philanthropy as a means of accruing more profits, public relations mechanism of promoting organizational performance and identity (Chamhuri and Harizan, 2005, Monumental to this debate and understanding of CSR is that the continuous increase in corporate power and influence and the concurrent widespread of ethical issues corporate misconduct and the inability of government to perform their basic responsibility has led to the inevitable, which is the ultimate acceptance of CSR by corporations (Carroll, 1999, pp. 43).
Despite the fact that CSR has been somewhat described as costly, the notion of economic gains and good publicity has informed the business stance adopted by most corporations which perceive CSR as a moral vehicle by which economic gains are achieved (Bowie, 1991, pp. 57).
CHAPTER FOUR
CONSEQUENCES OF WEAK REGULATORY FRAMEWORK IN NIGERIA: THE ENVIRONMENTAL CASE
Historical Development of Environmental Law
Right from the United Nations Conference on Human Development in 1972, there were negotiations regarding the duties of companies and corporations in ensuring the protection of the global commons and the need for incorporating environmental norms and codes of conduct in company policy (UNCTC 1993, pp. 7). This was the first time environmental protection was regarded to as a subject to be considered as a right, thereby kick-starting the first attempts of connecting environmental law and human rights.
This has further led to the global recognition of concepts such as sustainable development, peace and inter-dependent, human rights and sustainable environment.
Undeniably the Stockholm declaration’s preamble states a clear directive at the responsibilities of corporations towards environmental protection:
“To achieve this environmental goal will demand the acceptance of responsibility by citizens and communities, and by enterprises and institutions at every level, all sharing equitably in common efforts (UNCHE. 1972, pp. 7)”.
CHAPTER FIVE
Summary, Conclusion and Recommendations.
Summary
This research has been able to examine the operations of transnational corporation in the Niger Delta, its achievements, and its disadvantage, it has been able to perceive transnational corporation as agent of the imperialism.
The study revealed that transnational corporations constitute a mix blessing. Indeed their role-whether benevolent or malevolent- is exaggerated by proponents and opponents alike. Many examples of the perceived negative effects of the activities of transnational corporations are actually other the result of the policies of the countries themselves or a integral part of the development process itself. Countries do not share the positive and negative effects of the transnational corporations alike. The strength or weakness of a country’s economy is a critical factor in the measurement of gain or loss through the activities of the transnational corporations.
It also revealed that the stereotype that transnational corporations only invest where labor and natural resources are cheap is clearly not a good general explanation of transnational corporation behaviour, although it does apply to some specific situations. A great deal of foreign direct investment goes from rich, high-wage countries such as Germany to other rich, high-wage countries such as the United States. And any case, the theory that transnational corporations go where labor is cheap is at best on incomplete theory since labor is cheap in many parts of the world; so why do transnational corporations invest here (Nigeria) instead of there (Ghana) since wages are low in both places? The question of why transnational corporations invest where they do is thus a very interesting one, since it is unlikely that a single theory can explain all of their behaviour.
Conclusion
It is not that transnational corporations are simply the agents of exploitation; they also act as agents of development.
By establishing manufacturing plants, providing production, managerial, technical, and organizational and marketing skills, and by harnessing their resources. Transnational corporations have helped in augmenting the Gross Net Product (GNP) of Nigeria; these benefits accounting to such countries have been the outcome of the self-interest of transnational corporations, that is, the need to meet the United States domestic market.
The problem before the other developing countries like Nigeria is how to control and curtail the damaging effects of transnational corporations and harness them for their maximum benefit. All this depends upon the “will” to control the working of these global giants.
Recommendation
In the global context, a more obligatory regulatory framework/hard law should be created under the umbrella of International Law which should not possess a voluntary character but should be binding on all participants including civil and corporate actors leaving TNCs with no choice but accountability. In enforcing this, states should be empowered under this new law with the power to exercise strong punitive measures on TNCs who have been found guilty of either environmental degradation or human rights violation.
Also there should be the creation of international hard laws which would empower and extend jurisdiction to ICC and ICJ on the complicity of states that have either ignored negative CSR policies of TNCs or has colluded with TNCs in the violation of human rights and degradation of the environments. Most especially government officials who have benefitted from corrupt TNC practices should be extradited and tried under the ICC or ICJ.
- Nigeria should have stringent anti-trust laws as a country like India, the twin institution known as the Monopolies Commission and the MRTP ACT.
- Transnational corporations should be encouraged to enter into “licensing agreements’ with a local manufacturer who may be taught the use of the patented processes in lieu of a fixed royalty.
- Nigeria should also take advantage of the expertise and superior technical know-how of transnational corporation by entering into ‘turnkey agreements with them whereby a foreign company undertakes to build a plant or help in exploiting their natural resources imparts training to local personnel, provides technical know-how, starts production and then leaves the country for good by entrusting the entire operations to the local firm.
- Nigeria should not press transnational corporations to pay specially high wages to local labour. Rather, transnational corporations should be asked to employ local people at the prevalent rates for the same jobs in the country.
- Nigeria should tax transnational corporations more heavily sp that the people of the country benefit rather than the few people who work for them. This increased tax revenue may be spent in providing greater infrastructural facilities to the people which will benefit all sections of the society including transnational corporations.
- Nigeria should press transnational corporations to establish plants in backward areas of regions so that regional imbalances are ironed out.
- Nigeria should have a ‘code of conduct’ which may govern the operations of transnational corporations, Nigeria should have its own independent agency to report on the working of transnational corporations from time to time and should not hesitate to take stem actions against the offending giants which may even be tantamount to nationalization
Endnotes
- Aja Akpuru Aja, (1998) Fundamentals of Political Economy and International Economic Relations, Owerri, Data-Global Nigeria
- Caves, Richard (1982) Multinational Enterprise and Economic Analysis, New York Cambridge University Press.
- Rourke, J.T (1989) International politics on the world stage, Connecticut, the Duskin group.
REFERENCES
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- Onwuka R.I (1992) Political Economy of control of Multinational Corporation in Nigeria, International University Press.
- Onimode, Bade (1983) imperialism and under development. In Nigeria London, Macmillan.