There has been a spate of allegations against multinationals in the last few months, numerous protests against their practices, in the last few months. Is this the case of overactive NGOs?

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While some have argued that the reason for this spate of protests is a hyperactive activist community targeting MNCs, the reasons are slightly more complex.

For years now, there has been a systematic transfer of technologies and processes banned in the USA or Europe to the underdeveloped south. This has become obvious in a variety of products sold in India that are banned in Europe. Numerous drugs sold in India are banned elsewhere. Pesticides such as Dursban that are limited to certain sectors in the USA are available freely and for domestic use in India. Technologies such as waste-to-energy that are deployed only in the presence extensive control systems are being rampantly used with no control systems in place. Defunct thermometer manufacturing plant using hazardous mercury was moved from the USA to Kodaikanal in India. In violation of the Basel convention banning movement of waste across international boundaries, waste continues to be dumped into India and other countries in the south.

The exploitation by MNCs is not limited to the environment. MNCs are able to produce goods at much cheaper rates than in the USA. This is partly owing to lower wages. In addition, they are able to get away with treating people in ways that would be unacceptable in the north. Thus, people are thrown out of their homes and communities without reasonable compensation � something that would be unimaginable in USA or in Europe. Working conditions are poorer than what is expected in the USA or Europe; safety regulations are minimal. MNCs thus systematically exploit poor regulations and law enforcement (where regulations do exist) to buttress their bottom line.

This spate of protests is the first sign of a community becoming aware of systematic exploitation of its resources and violation of its environment. Such protests are appropriate since they fulfill two objectives. They force the MNCs to act ethically � at least using standards that are closer to how they operate in the north. In addition, they put pressure on the government to promulgate laws that protect local environments from being exploited by the MNCs. In addition, they also begin to force the government to improve worker rights and workplace regulations.

The judicial system has also begun to recognize the systematic exploitation being wrought by the MNCs and has been active in pointing out unethical practices of MNCs. In fact, in a recent summit of judicial representatives from South Asian nations, it was resolved that the judicial bodies need to be proactive in protecting local environments and environmental right noting that the poor are most affected when the environment is exploited. This has also been a shot in the arm for those struggling to protect the rights of communities to their environment and their resources and limiting the exploitation by these MNCs.

Many have argued that it is all right for MNCs to exploit local resources given that they provide more jobs. This assertion has in fact been contested by numerous social scientists and bureaucrats who have in fact shown a rising unemployment during this period of increased investment. Others have also argued that MNCs continue to destroy livelihoods in the unorganized sector while providing paltry employment in the organized sector. For example, estimates suggest that over 1000 small hawkers selling local fruit juices have lost their livelihood in the neighborhood of a bottling plant where Coke claims to have provided 500 people with jobs (most of whom are daily laborers who are dismissed every 90 days so that they cannot get permanent employee benefits).

While this argument continues, what is irrevocable is that the environment cannot be pillaged and these movements have done a remarkable job in protecting that. On one hand they have forced Lever to retrieve dumped mercury and begin to remediate the environment under a Supreme Court monitoring group; on the other hand they have stopped rampant pilfering of water, dropping of water tables and distribution of solid hazards as fertilizers. Clearly, they deserve kudos for this. In addition, if they are able to achieve better working conditions and safety regulations, clearly after Bhopal, they must be on the right track.

- Sanat Mohanty