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By Andrew Newton on 12 Jan, 2010 - 13:56 UTC

US Secretary of State Hillary Clinton held a dinner last week for the tech industry's key leaders. It looks to me like the consolidation of a trend.


I attended a talk a few years back and I am struggling to recall where it was. It was either in Boston or in Washington. Anyway the talk was given by a recently retired general counsel of a mahor corporation - perhaps IBM, perhaps GM. The main argument of the talk was that corporations need a foreign policy. I thought the idea was instantly exciting and terrifying.

 

Exciting because back then I had recently written a paper on "Legitimacy risks and peacebuilding opportunities for businesses in post-conflict Iraq". The fact is that businesses have presence, relationships and power and they will have an impact on communities and even nations whether they have a policy or not.
 

Terrifying because, as that paper had tried to make clear, legitimacy was key, and in the Iraq situation the absence of inclusiveness and accountability pretty much assured that the reconstruction effort would lack local goodwill. Think about how the reconstruction contracts were allocated, the absence of community involvement in allocation, the lack contract winners of Iraqi origin, then the failure of firms that undertook the work to do so from the outset with a solid local outreach and inclusion approach.

 

There are plenty of extractive industry firms with a substantial involvement in foreign affairs, too often with dubious and opaque relationships supporting regimes run by corrupt elites.

 

It is the global technology firm - particularly though not exclusively the internet-based firms - that is new to the art of running aground on foreign policy issues in most recent years. So I was very interested to hear about a small private dinner hosted by Hilary Clinton last week with Google CEO Eric Schmidt, Twitter Co-Founder Jack Dorsey, Microsoft Chief Research and Strategy Officer Craig Mundie. The subject under discussion: how technology can be used to meet the nation’s foreign diplomacy goals.

 

It is a topic I touched on here during the first major upheavals in Iran when twitter played such a role: Iran, business models and the right to tweet speech. The basic argument of that post - that access to twitter is crucial to freedom of speech - has been echoed in a State Departent blog post which said the agency wanted to use twitter in a contest as a:

 

"worldwide platform in which people can discuss the meaning of democracy and exchange ideas from diverse perspectives."

 

My thoughts/questions are these:

 

1/ Is corporate foreign policy simply an alternate name for existing corporate responsibility issues with a global hue, like climate change or, in the internet company case privacy issues? Or is it - and I believe it is - something more, where corproations are taking on a responsibility to consider their impact on human rights within their sphere of activity in a more accountable, thus perhaps quasi-public way?

 

2/ how do we assure legitimacy? How can we bring the right kind of transparency and inclusivity to corporate statecraft to ensure that it is just?

 

3/ global corporations are based in dozens of countries. Is there a question of to which foreign policy it needs to align its own?

 

Do you have any views?

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Chopard's Uzbekistan problem
By A P Newton on 26 Mar, 2009 - 11:46 UTC

Swiss jewelry maker Chopard is launching a new line created by Gulnara Karimova, oligarch and daughter of brutal Uzbek dictator/president "Boil 'em Alive" Islam Karimov.  Proceeds from the line are supposed to go to benefit...wait for it... Uzbek children's charities.  Could the Karimov family be working to burnish their image in light of US pressure to clean up their act, so it can reopen its military base there?

 

Slate: "On Feb. 3, Kurmanbek Bakiyev, the president of the Central Asian country of Kyrgyzstan, announced that he would close a U.S. air base that the United States opened in October 2001 to supply the campaign in neighboring Afghanistan. Two days after the Kyrgyz announcement, the AP reported that Washington is looking to reopen its air base in neighboring Uzbekistan, which had been shuttered in 2005, to take up the slack.

 

The question of reopening the U.S. base in Uzbekistan is no small matter. The U.S. State Department calls Uzbekistan an authoritarian state whose human rights record is poor and getting worse; Islam Karimov, president since the country's independence from the Soviet Union in 1991, holds power through a combination of arbitrary arrest, torture, and forced psychiatric treatment. A number of political prisoners have died in custody, including two members of a religious sect who were boiled to death in 2002. There is no freedom of the press or religion, no right to free assembly. By any measure, the regime is among the world's most oppressive."

 

So, to recap, from Uzbekistan, we have:

These are the people Chopard are getting into bed with in the name of "giving back".  Looks like "blood diamonds" can come from anywhere. 

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Researchers Christian Barry and Matt Peterson argue that the pharma giant's announced initiatives on developing world drugs are less than they seem.

In an essay on the Policy Innovations Commentary blog, Barry and Peterson examine each of three strands of Andrew Witty's announcement.

"1. To reduce the price of medicines it sells in fifty least-developed countries (LDCs) to at most 25 percent of American and British prices;

2. To reinvest 20 percent of the profits it makes in those fifty poor countries into health-care infrastructure in those countries; and

3. To support a patent pool for neglected diseases."

Their responses are essentially:

25% of developed world prices means little to people who even in the wealthiest of the fifty LDCs to benefit (Uzbekistan) earn 98.4% LESS than the average U.S. income. Drastically greater reductions are possible when a drug comes off patent.

The profits GSK makes in those countries are miniscule, and 20% of miniscule is, well, probably rather less than Andrew Witty draws as an annual salary.

On the patent pool point, Barry and Peterson repeat the criticism levelled by Médecins Sans Frontières that the pool expressly excludes AIDS/HIV treatments, even though innovations are needed in developing nations for those conditions too.
The Human Rights Alliance of Uzbekistan are suing the Uzbek Education Ministry for damages for school children and teachers forced to pick cotton.

The action seeks 100 million sums ($70,800) and relates to last autumn's cotton harvest. The government had previously pledged not to use child labour.

The activists are hoping to use any damages awarded to fight against illegal child labour in the next harvest.

The embedded video here shows children harvesting cotton in the Spring 2008 harvest.
CPC oil pipeline leaks in Kazakhstan
By Andrew Newton on 01 Mar, 2009 - 09:50 UTC
The Caspian Pipeline Consortium's oil pipeline has a leak in the Kazakh portion of the pipeline.

The Kazakh Emergencies Ministry reported the incident on Friday 27 February.

The pipeline is owned 50:50 by a state consortium and by a private oil consortium led by Chevron.

No details have been published regarding the location or extent of the leak, and whether oil is spilling into the already degraded and fragile environment of the Caspian Sea.
Kazakhstan ratifies the Kyoto protocol
By Andrew Newton on 01 Mar, 2009 - 08:34 UTC
The last remaining unratified signatory to the Kyoto protocol has now ratified the agreement, releasing the country to start selling emissions permits.

Japan is a likely buyer, having already bought permits from 10 eastern and central European countries in the last two years.

Kazakhstan is a major oil exporter and has a largely mineral-based economy.

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