multinational corporations

The Indian State Falls Behind, and Indian Businesses Eagerly Take the Lead

The rail systems in India carry coal, but are too small and slow to bring in the quantity needed to make the kind of difference that Adani can. Photo: <a href="http://www.flickr.com/photos/malawirail/3114751093/sizes/m/in/photostream/">degahk (flickr)</a>
The rail systems in India carry coal, but are too small and slow to bring in the quantity needed to make the kind of difference that Adani can. Photo: degahk (flickr)

When the government fails to provide, the savvy entrepreneur fills the gaps—but not without criticism.

India’s government has long failed to keep up with its own rapid development, leaving rural regions without electricity despite abundant coal reserves. Gautam Adani, an Indian entrepreneur, stepped up to develop the much-needed electrical infrastructure that encourages India’s growth, says a recent New York Times article.

His operation is far from homegrown. His coal mines are based in Indonesia and Australia and his transport ship is Korean-made. His ability to tap into the global market allows him to do what the government can’t, faster and cheaper than it could.

This global approach allowed Adani to circumvent logistical and political barriers within India. The rail system is ill equipped to transport coal, the New York Times reported, and mining requires uprooting protected forest areas and tribal groups, something politicians are hesitant to permit.

But despite the development, local fishermen argue that Adani may have done more harm than good. He has brought in few jobs and is blamed for the depletion of sea life essential to the region's economy.

India’s rural poor may have electricity now, but many remain skeptical that it came at too high a cost.

Global Tobacco Treaty Mostly Ignored

Topics: Health
Tobacco Farm. Photo: <a href="http://flickr.com/photos/22030714@N05/2274939515/"> norsenut (flickr)</a>
Tobacco Farm. Photo: norsenut (flickr)

One of the most ambitious attempts to control tobacco in the world is being ignored.
The World Health Organization’s tobacco control treaty entered into effect almost exactly three years ago today. It was an unprecedented move by global leaders to target the harmful public health outcome of increased tobacco use, notable especially in the developing world.

According to the World Health Organization, if current trends in the expansion of tobacco use worldwide continue, especially in the developing world where currently half of the deaths due to tobacco occur, “seven out of every ten deaths due to tobacco will occur in the developing world by 2020.”

Three years from the day the treaty went into effect, many countries have made no progress toward minimizing this potential public health disaster, according to the editorial board of the New York Times. "With tobacco use declining in wealthier countries, tobacco companies are spending tens of billions of dollars a year on advertising, marketing and sponsorship, much of it to increase sales in these developing countries." This inundation, as well as the tax revenue governments in developing countries can obtain from tobacco companies, have discouraged many of the countries most crucially affected by tobacco use from pushing any harder to promote the changes of this treaty.

From the Archives

Like Wages for Chocolate

Previously filed under: Africa, Agriculture
Failing to pay living wages to African farmers growing cocoa runs the risk of turning them against the West.

From the Archives

The Testing Ground of Tax

Previously filed under: Global Economy
How multinational corporations have come to determine their own level of taxation.

Stories We're Watching

Biofuels goals 'may lead to food shortages'

Science and Development Network - Mon, 05/21/2012 - 02:00
A study finds that some developing countries may face significant food security impacts by 2020 if their ambitious biofuels targets are met.

Land grabbers: Africa's hidden revolution

The Guardian's Poverty Matters - Sat, 05/19/2012 - 16:05
Vast swaths of Africa are being bought up by oligarchs, sheikhs and agribusiness corporations. But, as this extract from The Land Grabbers explains, centuries of history are being destroyed.

Sustainable development is the only way forward

The Guardian's Poverty Matters - Sun, 05/20/2012 - 23:00
Development co-operation needs to shift focus from poverty eradication to a broader, more inclusive framework.

The Real Story on Charcoal for African Cookstoves

Triple Pundit - Sun, 05/20/2012 - 13:11
You may have seen pictures of women in Africa cooking their daily meals on a small cookstove. These cooking implements look remarkably similar to the portable charcoal grills an American family might bring to the beach for an afternoon of grilling hot dogs and hamburgers.

Could Glass-Steagall Have Stopped JPMorgan Loss?

NPR - Sat, 05/19/2012 - 15:13
The banking giant's $2 billion loss has many lawmakers and economists wondering what happened to the 2010 financial overhaul, which was supposed to prevent risky hedging. Many are also looking back further — to a Depression-era law, repealed in 1999, that separated commercial and investment bank activities.

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