Socialist Progressives
Related: About this forumThe Era of Corporate Colonialism
In the past, nation-states have set up colonial outposts in less powerful areas of the world in order to build their empire. Colonies facilitated trade, acted as military outposts, and allowed the colonial powers to siphon resources from the indigenous populations.
Such colonial empires formed during the expansion of the 1500s and were sustained by numerous European nationsincluding the British colonies which eventually became the United Statesuntil the mid-1900s, by which time a variety of geopolitical factors (ex. revolts, over-extension, etc.) had led most empires to dissolve.
While colonialism by nations has decreased across the world, it appears that an era of corporate colonialism is upon us. Unlike in the pastwhen nations would set up physical empiresgiant multi-national corporations have started to set up de-facto empires across multiple sovereign nations. This new era of corporate colonialism will be characterized by giant corporate interests capturing power in society through economic and social factors, and then using their power to exploit humanity for a massive profit.
Why Would a Corporation Want to be a Colonial Power?
Colonialism is an attractive concept to corporations because it allows the colonial power to extract resources (profits) from the host country without having to worry about giving anything back. Because the colonial power has no stake in the welfare of the indigenous population, they have no need to worry about negative externalities (ex. pollution) or the effects of their exploitation on the local economythey can simply extract resources and pay poverty wages while living elsewhere and avoiding all of the negative consequences of their conduct.
In addition to not having to worry about externalities, a colonial power doesnt need to care about social programs or education for the indigenous populations; they simply need enough bodies to facilitate their production and have no interest in the welfare of those who are too young or old to work. If the colonial power needs skilled labor, they can simply hire people from other areas, thus removing the necessity of funding school systems.
As is immediately apparent, this type of high-profit, low-cost operation is ideal for the amoral profit-generating mentality of a corporation.
abandon rights at corporate gate cartoon
How Does a Corporation become a Colonial Power?
In order to set up an empire, an entitywhether it is a private corporation or a nationneeds to establish control over areas that they are not based in and begin exploiting them for position or resources. Such control can happen through military force (as nations did in the past) or through economic/political force (which is what corporations are doing now).
Corporate interests which wish to become a de-facto colonial power need to locate areas with weak or corruptible governments and significant quantities of resources or labor. Once they locate such a location, corporations are able to essentially capture the government through economic pressure and bribery, letting them game the system to gain an advantage. The advantages that these corporations can gain are variedranging from tax exemptions and government contracts to weakened labor laws and assistance in dealing with other countriesbut they are all aimed at letting the corporation extract the maximum profit from the indigenous population while paying nothing back.
Since the mid-20th century, corporate interests have grown immensely wealthy. Currently, some corporate entities have resources which eclipse the economic power of entire countries. For example, Walmarts yearly revenue is so large that, if it were considered a country, its gross domestic product would be the 25th largest in the world. To put this into perspective, Walmart has a yearly revenue which is larger than the combined GDP of Pakistan, Israel and North Koreathree of the worlds nine nuclear powers.
By storing up huge amounts of money and investing it in political races and policy think-tanks, corporations have gained political influence, particularly in the USA, where weak campaign finance laws allowed wealthy interests to engage in legalized bribery. This economic and political power creates a situation where individual corporations and trade organizations can affect policy and steer governments to do their bidding.
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http://theprogressivecynic.com/2013/08/09/the-era-of-corporate-colonialism/
I can't recommend this article ENOUGH
socialist_n_TN
(11,481 posts)the worker's revolution being internationalist in character. It was important a century ago (VERY important), but it's even more important now.