Table of Contents

Poverty Alleviation and Environmental Law

Poverty Alleviation and Environmental Law

The IUCN Academy of Environmental Law series

Edited by Yves Le Bouthillier, Miriam Alfie Cohen, Jose Juan Gonzalez Marquez, Albert Mumma and Susan Smith

This timely book explores the complex relationship between the alleviation of poverty and the protection of the environment. There is every reason to believe that these issues are in many ways interdependent. However this book demonstrates that there are situations where alleviation of poverty and the protection of the environment appear to be in a fraught relationship. The contributing authors illustrate that the role played by law in this relationship, whether at the international or national level, will vary depending on the situation and will be more successful at pursuing environmental justice in some cases than in others.

Chapter 15: Chartering Sustainable Transnational Corporations

Susan Lea Smith

Subjects: development studies, law and development, environment, environmental law, law - academic, environmental law, human rights, law and development, politics and public policy, human rights

Extract

Susan Lea Smith 15.1 THE CHALLENGE OF CREATING SUSTAINABLE TRANSNATIONAL CORPORATIONS Transnational corporations, like any other corporation, are legal fictions recognized by the government to serve the public interest.1 They are recognized as legal entities,2 granted rights such as freedom of speech and due process as if they were persons,3 given privileges such as limited liability to induce investors to private capital, and endowed with perpetual existence,4 a benefit not yet received by mere mortals. As a result of this remarkable set of legal policies, transnational corporations have been able to aggregate unprecedented, almost unimaginable amounts of extremely fluid and geographically mobile capital. Just the 300 largest global corporations hold 25 per cent of the entire world’s productive assets.5 The magnitude of operations of these corporations is difficult to comprehend. Wal-Mart’s 2007 revenues were $378.8 billion, more than the entire gross domestic product of countries such as Austria, Greece, Denmark, Iran, South Africa, Argentina, or any of 150 other countries. Its revenues are equivalent to those of the 25th largest country in the world. ExxonMobil’s 2007 revenues were $371.8 billion, more than the gross domestic product of 155 countries, equivalent to the 27th largest country in the world. Transnational corporations, by virtue of their wealth, their control of physical capital and real property, and their ability to generate jobs, have unparalleled political power in virtually all nations in which they operate. Impelled by World Bank and IMF policies designed to attract private capital to, and stabilize fiscal...

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