My Peace City | nonviolence & social change

With capitalism, moneymaking is the sole consideration. The “bottom line” supersedes any other factor in the pursuit of wealth. It is this detached approach that allows the corporate heads to make those hard decisions. For example, moving a corporation from one area to another in a quest of a cheaper labor market and fewer environmental restrictions makes perfect business sense, but the ramifications it has on the communities involved are overlooked. Instead of wrestling with their conscience, they are able to make decisions based on the calculated accumulation of capital.

In Leslie Sklair’s book, Sociology of the Global System, the practices of Transnational Corporations are analyzed economically, politically, and cultural-ideologically. Sklair discusses the interconnectedness of these three components. Understanding how these practices relate and rely on each other to promote the hegemony is crucial to discerning their collective impact on community.

The primary economic goal in a capitalist society is to produce a product in a manner that maximizes income. Transnational Corporations are astute in obtaining the locations and materials to ensure profit. In fact, Transnational Corporations are courted by some developing countries that wish to enter the global market. Unfortunately, there is a definite imbalance in the benefits to these two “partners”. While the Transnational Corporations enjoy the incentives of low taxes, cheap labor, bargain materials, and feeble environmental laws; the host country reaps few and fleeting benefits. Jobs are the principal premise for a host country to open up to Transnational Corporations. However, the quality of the work and the long-term effects of the division of labor provide examples of the negative impact of Transnational Corporations

Technology is another reason given by Transnational Corporations to establish themselves in developing countries. Not only will they be providing jobs but they also will be introducing these “backward” people to the technology of the future. In reality the training is usually in assembly, not technology. In fact, many Transnational Corporations are reluctant to share their technological knowledge with the host country. Sklair gives an example of a tire manufacturing Transnational Corporation in Nigeria. Though the Transnational Corporation utilized the Nigerians in technical and managerial positions, they arranged it so that when the Transnational Corporation left Nigeria their mode of production went with them. Sklair states that “…the Transnational Corporations protected their monopoly in technique while appearing to transfer the technology to local people” (Sklair: 120).

The politics of a developing country only becomes a chief concern when the capitalist class has a financially vested interest. If there is political unrest that unrest may have a disruptive effect on production which in turn may interrupt profit. When a hegemonic country decides it is imperative that they must intervene in a developing country it is often under the guise of humanitarian aid. Closer examination reveals the motive and the motive has little to do with humanity. As Sklair writes, “The objective interest of all capitalist classes whether regional, indigenous, national, foreign or transnational is the private accumulation of capital” (Sklair: 139). The capitalists’ classes are united across national boundaries in their desire to perpetuate the global capitalist system. While hegemonic governmental agencies are somewhat accountable for their international dealings, Transnational Corporations are able to conduct their business under less scrutiny.Arguably, there are instances of Transnational Corporations disreputable practices being revealed, but for the most part, they are unchallenged by the capitalist controlled media.

The capitalist controlled media is highly effective in fixing the cultural ideology. Sklair states, “ Capitalism depends on both the reality and illusion of choice…”(Sklair: 99). The media’s role is critical in informing the global masses on what they must consume. Acting on behalf of the Transnational Corporations, the media determines which products are desirable. The cultural ideology is based on creating lifetime consumers who are consumed with consumption. Once these consumers are hooked on the ideology, they are susceptible to whatever the Transnational Corporations offer. The cultural ideology ensures that the Transnational Corporations will always have a market for their products.

There are many reasons why capital and community contradict each other. The harm caused to communities far outweighs the merits of capital. However, I also realize that capital is firmly entrenched and as the cultural ideology expands globally, capital becomes even more powerful. I believe our only defense is recognition and accountability. Being an active member of the community is vital to sustaining some degree of balance.

Sklair, Leslie. Sociology of the Global System second edition. (1995).

Baltimore, Maryland: The John Hopkins University Press.