What%20are%20Transnational%20Corporations?%20(TNCs)

1
External Forces Affecting Jamaica
2
The Caribbean Basin
Jamaica
3
Jamaica
4
Country Profile JAMAICA
Population 2,665,636 Capitol Kingston Major
cities Spanish Town, Montego Bay Colonial
power(s) Britain Date of Independence
1962 Primary language(s) English,
Creole GDP/capita 3,700 Expected population
20 yrs 2,937,530
30yrs 3,073,478 (http//www.cia.gov/cia/publica
tions/factbook/index.html)
5
CARICOMCaribbean Community and Common Market
The Standard of the Caribbean Community features
a blue background - the upper part being of a
light blue representing the sky and the lower
part of a dark blue representing the Caribbean
Sea. The yellow circle in the center of the
Standard represents the sun on which is printed
in black, the logo of the Caribbean Community -
two interlocking c's. The two c's are in the form
of broken links in a chain, symbolizing both
unity and the break with our colonial past. The
narrow ring of green around the sun represents
the vegetation of the Region.
6
Mission Statement of CARICOM
"To provide dynamic leadership and service, in
partnership with Community institutions and
Groups, toward the attainment of a viable,
internationally competitive and sustainable
Community, with improved quality of life for all."
Members of CARICOM
(a)     Antigua and Barbuda (b)     The Bahamas
(c)     Barbados (d)     Belize (e)    
Dominica (f)     Grenada (g)     Guyana (h)    
Haiti (i)     Jamaica (j)     Montserrat (k)    
St. Kitts and Nevis (l)     Saint
Lucia (m)    St. Vincent and the Grenadines
(n)    Suriname (o)     Trinidad and Tobago
The Bahamas is a member of the Community but
not the Common Market
7
CARICOM Objectives
1) Improved standards of living and work 2) full
employment of labor and other factors of
production 3) accelerated, coordinated and
sustained economic development and
convergence 4) expansion of trade and economic
relations with third States 5) enhanced levels
of international competitiveness 6) organization
for increased production and productivity 7) the
achievement of a greater measure of economic
leverage and effectiveness of Member States in
dealing with third States, groups of States and
entities of any description 8)enhanced
co-ordination of Member States' foreign and
foreign economic policiesand 9) enhanced
functional co-operation, including - (i)    
more efficient operation of common services and
activities for the benefit of its
peoples (ii)    accelerated promotion of
greater understanding among its peoples and the
advancement of their social, cultural and
technological development (iii)  intensified
activities in areas such as health, education,
transportation, telecommunications.
8
Organs and Functions of CARICOM
(a)     The Conference of Heads of Government
commonly called "The Conference" 1) The
Conference is the Supreme Organ of the Community.
It consists of the Heads of Government of the
member states and is the final authority of the
Community. 2) The primary responsibility of the
Conference is to determine and to provide the
policy direction for the Community. 3) It is
the final authority for the conclusion of
Treaties on behalf of the Community and for
entering into relationships between the
Community and International Organizations and
States. (b)     The Community Council of
Ministers commonly called "The Council"
The Council is the second highest Organ. It
consists of Ministers responsible for
Community Affairs and any other Minister
designated by Member States in their absolute
discretion. It is responsible for the development
of Community strategic planning and coordination
in the areas of economic integration, functional
cooperation and external relations.  
9
World Summit on Sustainable Development(WSSD)
Alternatively known as the World Summit on
Sustainable Development (WSSD) or simply the
Johannesburg Summit, WSSD will be a ten year
review of all progress (and setbacks!) since the
creation of Agenda 21 at the first Earth Summit,
held in Rio de Janeiro, Brazil in 1992. This
important event will assess the current state of
sustainable development, highlight obstacles, and
begin to define new solutions for the future.
(http//citnet.org/worldsummit/overview/orientati
on/whatiswssd.aspx)
10
Priorities of WSSD

• Corporate Accounts
• Earth Values
• Energy/Climate Change
• Human and Environmental Rights
• Forest and Fresh Water Concerns
• (http//wssd.info/)

11
What are Transnational Corporations? (TNCs)
12
In a nutshell

• TNCs operate outside the control of the nation in
  which it resides.
• TNCs principle reason for existence is to make
  profit for private economic gain.
• TNCs have control over a certain amount of goods
  and services also gives them control over
  national governments.

13
Whos the boss of TNCs?

• Corporations are controlled by the people that
  manage it Shareholders.

• Banks, other corporations, national governments,
  or individuals.

• Those shareholders that own 10-15 of the stock
  typically have individuals serve as a chairman of
  the board.

• Decisions are often made form corporate
  headquarters which are often thousands of miles
  away.

14
Where do profits come from?ExampleAlcoa

• Profit comes from developing a natural resource
  into a commodity
• Alcoa
• Vertical integration owns the equipment for
  every part of production.
• Production includes extraction of bauxite,
  smelting, refining, fabrication, shipment,
  marketing the aluminum.

15
Problems with TNCs

• Some consider TNCs the new form of Colonialism.
• People are expendable, profit is not.
• Cause countries to rely on IMF/WB.
• Goods needed for country are often exported
  leading to importation of goods at higher cost.

16
TNCs in Jamaica

• Numerous fast food organizations
• McDonalds, KFC, Burger King, etc.
• Alcoa
• Kaiser and Hydro Aluminum of Norway
• Glencore International AG (Swiss based)
• Mirant (Fortune 500 based in Atlanta, GA)
• Involved in the generation, purchase,
  transmission, distribution of electricity.

17
The Impact on the People of Jamaica
18
The Effects of Structural Adjustment

• Structural Adjustment has lead to the
  liberalization, privatization, and devaluation
  of the Jamaican economy (Mullings).
• Decrease in spending towards health care, social
  security, and education have hit the poor the
  hardest.
• Increase in tourism to aid development

19
(No Transcript)
20
Tourism Reform

• The proliferation of all-inclusive resorts
• Much of the income generated by these hotels is
  in the hands of a few large hoteliers. Small
  hoteliers are having a difficult time competing.
• The informal vendors are becoming increasingly
  marginalized less tourist income going directly
  to the community.

21
The Growth of the Sex Tourism Industry

• The growth of sex tourism has been inextricably
  connected to the policy choices of government and
  the impact of these policies on the social an
  economic opportunities open to the population, in
  particular, its poorest members (Mullings).
• More jobs focus on the formal tourist sector, but
  they are low-skill, low-wage jobs that offer
  little hope of mobility. Many men and women are
  entering into the sex tourism industry because it
  offers more money and easier work than
  traditional occupations.

22
Benefits and Implications of the Sex Tourism
Industry

• Sex tourism industry offers a better standard of
  living for men and women involved. However, it is
  seen by some as a threat to legitimate tourism.
• The body has become a form of international
  currency creating a space where the international
  and the personal converge (Mullings).

23
People and destinations have become products for
consumption commodities of the Third World
exported for consumption by the First World,
further perpetuating the power inequality between
the North and South.