Bayer company issue: Global capitalism is a paradigm change away from national economies, in which individual countries oversaw and owned production processes under state capitalist regimes, and towards the integration of “national circuits” into new global production and accumulation circuits.
As a result, global capitalism has given rise to a new breed of global capitalists whose interests extend far beyond national borders, as they pursue global circuits of production and accumulation, typically aided and sheltered by supranational institutions such as the World Bank, IMF, and United Nations. Within the global systems, a new transnational state has emerged, whose obligation is not to assemble manufacturing and acquisition within the environs of state capitalism, but rather to expedite globalism processes by creating an enabling environment to prefer global capitalists in the name of TNC’s.
TNCs play crucial roles in the global capitalist social framework, influencing the political and social agendas of both their home and host countries. However, their responsibilities in delivering finance, technology, and technical skills in the global system are being contested. There is substantial evidence in the literature that TNCs exploit employees in their host nations in their quest of global capitalism.
Supreme Court favors Soybean farmers
A recent example of this is the case of the German company Bayer. The multinational company has been ordered by Brazil’s Supreme Court to return royalties charged for GMO soybean seed, the Intacta RR2 Pro, to Brazilian soybean farmers. The seed was created by Monsanto, which was later acquired by Bayer company.
The verdict is the latest chapter in a long dispute between the agricultural research firm and Brazilian farmers, who have filed numerous legal challenges against the company.
In 2017, Mato Grosso farmers sued Monsanto over the same genetically engineered seed, arguing that it did not contribute any technological advance and should have its patents revoked. Additionally, soy producer associations from ten Brazilian states joined the lawsuit two years later.
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According to the ruling, Bayer company will now have to deposit 1.3 billion reais ($252 million) in an escrow account to return royalties paid by farmers going back to 2018.
One of the concerns highlighted by many ordinary Brazilians is that fines are rarely imposed on foreign multinational firms that violate their country’s national labor code. Corrupt government authorities typically ignore the unethical practices of Western corporations. Many Brazilians are thus encouraged by the current decision. Once they see their government taking action against fraudulent Western businesses, they will undoubtedly build rapport and creditability.
Read More: Lula sets the trajectory for Brazil’s blazing growth
Previously, it was common to observe how vulnerable most developing governments were to MNC influence. Most multinational corporations (MNCs) conducting business in South America frequently participated in hostile acts in host countries that violated the rules and regulations that regulate their operations. The burning of the Amazon and the darkening of the skies from Sao Paulo, Brazil, to Santa Cruz, Bolivia, have captured global attention. However, recent examples of countries such as Brazil regulating business activities would not only prohibit the servitude of its people by these firms but would also play a crucial role in preserving the developing world’s vital sovereignty.
