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8
I am writing this summary on Friday afternoon in Manchester. Thank you to Sweden, South Africa, Estonia and Peru for sending your reports in time to make this summary for everyone. I feel alone because I am not in a study circle. Instead I sit in front of my computer. But your reports bring all the issues alive and make me feel very much part of the education programme. I feel there is a lot which I am learning from your experiences and ideas.
In Session 3, we all looked at the question of why TNCs roam the world. From our own experiences, we saw that one of the main reasons is to search for cheap labour. The study circle in Estonia told us that in their country, the average hourly wages in industry are ten times lower than in Finland and twenty times lower than in Germany. In Peru, there are low wages with a young population who are desperate for work. So low wages are one of the main concerns which TNCs have when they are considering where to invest. The South African study circle said that if TNCs think that wages are too high in one place, either they make threats to force wages down or they move.
TNCs also look for incentives from governments. Many of our countries offer the same incentives to TNCs like lower taxes. In some countries, like Peru, governments have set up special export processing zones for TNCs. In these zones, workers have very few rights, health and safety regulation is weak, and wages are very low. The study circle in South Africa gave a really strong example of how TNCs try to win concessions. They told us how Switzerland offered to provide enough money for all the housing needs of Namibia in Southern Africa if Namibia would let them dump their toxic waste in the Namib desert!
The Swedish study circle told us how the Swedish government has not offered many incentives to TNCs. In response, TNCs have threatened to move to other countries with more favourable conditions. Health and safety standards have already deteriorated in Sweden. In this way, TNCs play off one country against another to maximise their profits.
There are many different views in the international study circle about whether TNCS help or hinder economic development. The Estonian study circle said that TNCs have created jobs in Estonia which is positive. But our friends in South Africa said: They are exploiting poor people and their desperation for jobs. How did TNCs get that money to invest in the first place? Another issue to consider is whether TNCs do transfer technology. We have heard that in Estonia, the technology used is not of a good quality. Have other countries seen this transfer of technology by TNCs? Who is in control? And who interests does it serve?
Some study circles said that TNCs contribute to competition. This is seen as positive. The study circle in Peru and Estonia said we need more discussion about this idea of being competitive. What does it mean for workers? Can it be safe and sound for workers, like Mr Rani Kruuse from Estonia suggested? In all our countries, we are facing this pressure to be internationally competitive. So it would be interesting to hear the views from all the study circles on this question so that we can deepen our understanding.
Our friends in Peru said that it would be good if TNCs let workers around the world develop links and build their global struggle. It is true that TNCs create international links between workers because there are thousands of workers in many different countries who work for the same company. But TNCs try to divide and rule workers. They might give rights to workers in one country by harming workers in another country. The South African study circle suggested that it is a challenge to make sure that we force them to respect rights in all places so that they cannot divide and rule.
If we want international links so that we can work together, then we need strong organisations. In some of our countries, trade unions are facing problems. We heard that in Sweden, the influence of trade unions is decreasing. And in Peru, the study circle felt that trade unions do not understand the strategies of TNCs and so do not have the capacity to fight against them. They listed many of their dreams like to develop campaigns against TNCs, and to build links between trade unions and consumer organisations. In the next three sessions, we will we looking at the many different ways in which we can build international solidarity so that we can feel strong against the international power of TNCs.
Links Conserning this summary
Alana's other summaries
[Session 1]/ [Session 2]/ [Session 3]/ [Session 4]
[Session 5]/ [Session 6]/ [Session 7]/ [Session 8]
Summaries of session 3
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