Transnational Corporations TNCs Corporations that operate in multiple

Transnational Corporations (TNCs) • Corporations that operate in multiple countries • Often seek out nations with lax environmental regulations to keep costs minimized and profits maximized

The Niger River Delta

Background • Niger Delta is one of world’s largest deltas and mangrove forests • 1956 – Oil discovered in Nigeria • 1960 – Independence from Britain Federal Republic of Nigeria • Discovery harms rural economy—poor farming and fishing • Petroleum World = 13 th, OPEC = 6 th

Actors Involved • Nigerian Government - federal - 36 states - 600 local governments • Transnational Oil Companies - Shell - Total - Exxon. Mobil - Chevron - Agip • Minority Ethnic Groups - Ogon - Ijaw • Grassroots Organizations - MOSOP - MEND - NDVF • Non-Governmental Organizations - ERA - Oil Watch - ND – HERO • International Community - American Oil consumers - EU - OPEC - UN

Overview of Policy Brief Impact on Environment Role of Government Ethnic Groups Shell Policy Prescriptions

Environmental Degradation of Delta Loss of livelihood for farmers/fishermen Polluted water source Public Health Impacts Destruction of wildlife habitat

Impacts of Oil Destruction of Fisheries Oil Spills "We never had fish brought in from outside. We had no idea what frozen fish meant. There were rumors that this fish was kept in a mortuary…Today, there is not a single person in my community you could describe as a fisherman. We depend almost totally on frozen fish. " - Isaac Osuoka Up to 1. 5 million tons of oil have been spilled in this area over the past 50 years, making it one of the most polluted places on the planet

Government and Oil Industry “We are not a poor country. We have oil, we have resources. But it is the management of those resources that has been lacking. They have been hijacked. And then we come to vote them out of office for their misdeeds, they hijack that as well. ” – Adhama • 1971 - Nigerian government ‘nationalizes’ oil industry • $380 billion lost – “the institutionalized looting of national wealth”

Government and Unrest Three main responses to anti-oil protests 1 - grant concessions 2 - depend on public relations 3 - use security measures

Corruption in Government • 1999 - Transition from military dictatorship to ‘democracy’ • Political violence and rigged elections • Government officials + Corporation CEOs = Revolving Door Syndrome • Corruption on all government levels: federal state local

Ethnic Groups & Internal Organizations • More than 250 ethnic groups • Hausa and Fulani: 29%, Yoruba: 21%, Igbo: 18%, Ijaw: 10% • Basic human rights for minority ethnic groups ignored by federal government • Ethnic strife (lack of local-local connections) • Racism; marginalization of minority ethnic groups

“Those who make peaceful revolution impossible will make violent revolution inevitable. ” - John F. Kennedy

Movement for the Survival of the Ogoni People (MOSOP) "The Ogoni struggle is an archetypal 'David and Goliath' story with a seemingly powerless minority ethnic group taking on one of the world's largest and most powerful transnational companies. ” (Wheeler et al. 2007)

Niger Delta People's Volunteer Force (NDPVF) - 2004: Armed force begins "bunkering" oil lines - Predominately Ijaw, rival with neighboring Itsekiri Movement for the Emancipation of the Niger Delta (MEND) - 2006: Violent force employed against oil barons, government officials - Remain unidentified - guerilla tactics - Goals: undermine authority of Nigerian State and stop Nigeria's oil exports

Shell: Masking Corporate Responsibility • Promised to increase social and environmental responsibility after execution of Ken Saro. Wiwa • Focused attention on the interconnectedness of business, the natural environment and human rights • Reinvented corporate strategy in line with principles of sustainable development • Shell created image of corporate social responsibility

“…where [Adam] Smith's colonists earned their record profits by seizing what he described as 'waste lands' for 'but a trifle, ' today's multinationals see government programs, public assets and everything that is not for sale as terrain to be conquered and seized. ” - Naomi Klein, The Shock Doctrine.

Environmental Degradation Economic Impoverishment Civil Unrest Military Repression Insurgency

Environmental Degradation Economic Impoverishment Corporate Social Responsibility Civil Unrest Ethnic Strife / Tribalism Military Repression Insurgency

Environmental Degradation Economic Impoverishment Corporate Social Responsibility Civil Unrest Ethnic Strife / Tribalism Military Repression Insurgency Weak Ecological Modernization - Technological solutions - Corporatist style of policy-making -distancing of socio-political failures from economic circumstances

Lack of Corporate Responsibility Lax Environmental Regulations Paralysis of Federal Govt. Environmental Degradation Reduced Quality of Life for Locals Reliance on Foreign Help Increasing Debt Corruption of Local Govt. Economic Impoverishment Ethnic Strife

Prescriptions • Root out corruption - international regulation of the "revolving door” • Tax foreign multinationals • Increase environmental regulation • Increase social spending • Nationalize resources • Use aid to fund creation of localized clean-up jobs • Promote development of environmental cleanup industry

Works Cited K. K. Aaron, “Perspective: Big Oil, Rural Poverty, and Environmental Degradation in the Niger Delta Region of Nigeria”, Journal of Agricultural Safety and Health, 2005, 11, 2, 127 -134. Osuji, Leo and Augustine Uwakwe. “Petroleum Industry Effluents and Other Oxygen-Demanding Wastes in Niger Delta, Nigeria”, Chemistry & Biodiversity, 2006, Vol. 3, 705 -717. Jike, V. T. , “Environmental Degradation, Social Disequilibrium, and the Dilemma of Sustainable Development in the Niger. Delta of Nigeria”, Journal of Black Studies, Vol. 34, No. 5 (May, 2004), pp. 686 -701. Ikelegbe, Augustine, “Civil society, oil and conflict in the Niger Delta region of Nigeria: Ramifications of civil society for a regional resource struggle”, The Journal of Modern African Studies, 2001, 39, 3, 437. Adams, W. M. , “Indigenous use of wetlands and sustainable development in West Africa”, The Geographical Journal, Vol. 159, No. 2, July 1993, pp. 209 -218. Osuji, Leo; Benjamin Ndukwu, Gordan Obute, and Ikechukwu Agbagwa, “Impact of four-dimensional seismic and production activities on the mangrove systems of the Niger Delta, Nigeria”, Chemistry and Ecology, Vol. 22, No. 5, October 2006, 415424. Frynas, George J. “Corporate and State Responses to Anti-Oil Protests in the Niger Delta. ” African Affairs. 2001. <http: //afraf. oxfordjournals. org/cgi/reprint/100/398/27>. O’Neill, Tom. “Curse of the Black Gold: Hope and Betrayal in the Niger Delta. ” National Geographic. February 2007. <http: //ngm. nationalgeographic. com/ngm/0702/feature 3/index. html? fs=www 3. nationalgeographic. com&fs=plasma. nation algeographic. com>. Polgreen, Lydia. “Corrupt Nigerian election a setback for democracy. ” International Herald Tribune. 23 April 2007. <http: //www. iht. com/articles/2007/04/23/news/africa. php? page=1>. “Criminal Politics: Violence, ‘Godfathers’ and Corruption in Nigeria. ” Human Rights Watch. Vol. 19, No. 16(A). October 2007. <http: //hrw. org/reports/2007/nigeria 1007 webwcover. pdf>. Gore, C. , Pratten, D. (2003). "The Politics of Plunder: the Rhetorics of Order and Disorder in Southern Nigeria. " African Affairs: 102, 407. p. 211 -240.

Manby, B. "The Price of Oil: Corporate Responsibility and Human Rights Violations in Nigeria's Oil Producing Communities. " New York: Human Rights Watch, 1999. 202 pp. O'Rourke, D. (2005). "Market Movements: Nongovernmental Organization Strategies to Influence Global Production and Consumption. " Journal of Industrial Ecology: 9(1 -2). Pretty, J. , Ward, H. (2001). "Social Capital and the Environment. " World Development: 29(2). 209 -229.

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