Sessional Working Group on the Working Methods and Activities of Transnational Corporations: Impact of Transnational Corporations on the Realization of Human Rights

President-Rapporteur, El Hadji Guisse, presided over the meeting. He discussed the negative impact of transnational corporations on the realization of human rights. "Transnational corporations," (TNCs), he stated, "may not be ready to respect the right of development." Mr. Guisse referred to some transnational companies' monopolistic control over technological assistance. For example, developing countries utilize transnational corporations for technological assistance. Furthermore, such countries depend on these corporations with human rights development. These countries then have to negotiate, "usually under duress," and ultimately accept uncomfortable conditions. This, according to Mr. Guisse, aptly illustrates these corporations' escape from internal and international law. It also shows the violation of the states' right to sovereignty. It becomes an "order made up of antagonistic interests." Guisse explained that the TNC's interests are that of their own profits, not the development of these countries.

The President- Rapporteur then charged the transnational corporations with the violation of the states' right to a healthy environment. Transnational corporations can "submit the environment to stress." He then made mention of particular examples such as the endemic nuclear threat, pollution, and toxic waste. Mr. Guisse used the 1986 disaster at Chernobyl as an example of the nuclear threat. For pollution, he informed that it leads to the destruction of the Ozone layer, provoked global warming, increased floods, and to the rising of the seas. For toxic waste, he referred to the spillages as a result of its transportation. TNCs produce large amounts of toxic waste that is costly to dispose of. As a result, they rid their waste at a cheaper cost by transporting it to developing countries (e.g. southern Latin American or African countries) where the environmental laws are less strict.

Next, President- Rapporteur Guisse discussed the TNCs aggravation of unemployment, stating that TNCs often violate the rights of workers through layoffs, which are often "immediate reactions." It is expected, he said, that these corporations should be a "driving force" for employment, however the ILO shows that one third of the working population are currently underemployed or unemployed. These corporations worry about their own profits, as they subcontract at low costs, "flouting domestic laws that protect workers."

Finally, Mr. Guisse brought up the issue of TNC's hold over technology, causing developing countries to remain underdeveloped. He then talked about pharmaceutical TNCs exploiting and controlling meds and equipment, using and manipulating the needs of developing countries. Difficult access to pharmaceutical goods violates the right to health, he affirmed.

In the end, he declared that TNCs should be forced to obey both national and international rules. These rules should be binding for all invested parties. It is also important, he said later, that the transnational corporations and the states are responsible for the protection of the people's rights. "The right to life is a trap if responsibilities are not taken care of." He then opened the floor.

The Indian Movement "Tupaj Amaru" took the floor. It announced that text will not put an end to "blind activities," and called for the production of urgent and binding norms. Its representative stated that "TNCs are above the states" as they exploit the people. He gave the example of the pharmaceutical company, Novartis, which creates obstacles (usually through patents) over the protection of generic medicines for profits. The representative called for addressing how to regulate binding norms in order to regulate TNCs.

Next, Pax Romana took the floor. Its representative responded, saying that TNCs should have an obligation to international law.

At this point, President- Rapporteur Guisse advised that thought should be given towards privatization. The purchase of economic resources from a people by a private group has a negative impact. An example he gave was that of the privatization of water in Africa. The water there often does not meet the needs of the people, and usually smells of oil, as it shares the same pipes. This causes the water to be toxic, causing health issues. In the end, the water is expensive, scarce, and undrinkable. Next, Guisse told of the ecological effects of the privatization of waste management in Africa, which often involves improper dumping into the high seas in order to avoid fees of designated dumping sites. This harms the marine life and thus the food, health, and security of the people. He stressed that work should be continued and popularized within this context. Privatization is supported by the World Bank, WTO, and IMF, and people, he stated, should have the "courage" to say it.

At the end of the session, Professor Sorabjee suggested that criminal liability be accounted for. He was answered by Guisse, who divided the responsibility into a bilateral condition: a penal side for the heads of states, and a civil side for the transnational corporations.

By: Ashley Faulkner

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