Anglo-American and the finance sector: exporting abuse

We need to be aware of the impact our government’s policies have well beyond our shores.

 

The helicopters that hovered over London on Wednesday during Thatcher’s funeral had the best birds-eye view of her staggering legacy, including the City of London and Canary Wharf, the latter which she described as being one of the most exciting projects she had ever known.

Julian Coman in the Guardian describes how within six months of her election, exchange controls were lifted and foreign capital flooded into Britain, while the  deregulation of the Stock Exchange in 1986 set in motion the type of unfettered capitalism we know today, with London at its heart.  

But those exchange controls didn’t just lead to foreign capital flooding Britain – it enabled her policies to flood the world in a grand de-regulated tsunami, with British capital riding the wave, often causing undue harm half-way around the world.  

Friday sees the AGM of British mining giant Anglo-American, perfectly facilitated by such policies which enabled the company to ride rough-shod over human rights and the environment. Last month Anglo-American signed a $5bn loan agreement with 28 banks, including the five biggest UK banks: Barclays, HSBC, Lloyds TSB, RBS and Standard Chartered. With the company’s annual revenue almost reaching $33bn last year, this new injection of cash will increase Anglo American’s destructive capacity by 15 per cent.

Anglo-American, alongside BHP Billiton and Xstrata, owns Latin America’s biggest coal mine, the Cerrejón mine in Colombia. The mine was established on the land of indigenous and Afro-Colombian people without their consent, and the residents of several villages were evicted without compensation. Cerrejón continues to pollute the land of people living in the area, destroying their livelihoods, health and well-being. The company was recently forced to shelve plans to expand the mine and divert the region’s only major river following protests by local people and by mine workers. Coal mining projects such as Cerrejón also cause huge carbon emissions.

In South Africa, where Anglo-American has mined gold for many decades, with almost complete impunity, the company is currently facing three separate legal cases brought by miners suffering from the lung disease silicosis.  

The oxygen that mining companies like Anglo-American rely on is the finance provided by the high street banks and our pension funds in which most people in this country invest their money. Through our Thatcher-inspired aspirations of growth and competitiveness, we are unwittingly funding the eviction of indigenous people, the destruction of miners’ health, and the perpetuation of an unsustainable high carbon economy.

Coming to the belly of Thatcher’s beast, representatives of both the South African miners and the Colombian communities affected by the Cerrejón mine are in London to attend the Anglo-American AGM today (Friday), to speak to its shareholders directly about their plight. Will Thatcher be listening from her grave?

We’ve been quite reflective in the UK about the decline of the welfare state, sparked by Thatcher’s legacy. But we also need to be aware of the impact her government’s policies had well beyond our shores, policies that we blindly allow agents working just steps from the doors of St Paul’s Cathedral to continue. If we are to tackle the abuses of companies abroad, we have to continue our pressure to reign in the power of one of Thatcher’s greatest “achievements” – the finance sector as we know it today.

Deborah Doane is director of the World Development Movement

 

Trucks loading coal at the Cerrejon coal mines. Photograph: WikiCommons
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Donald Trump's inauguration signals the start of a new and more unstable era

A century in which the world's hegemonic power was a rational actor is about to give way to a more terrifying reality. 

For close to a century, the United States of America has been the world’s paramount superpower, one motivated by, for good and for bad, a rational and predictable series of motivations around its interests and a commitment to a rules-based global order, albeit one caveated by an awareness of the limits of enforcing that against other world powers.

We are now entering a period in which the world’s paramount superpower is neither led by a rational or predictable actor, has no commitment to a rules-based order, and to an extent it has any guiding principle, they are those set forward in Donald Trump’s inaugural: “we will follow two simple rules: hire American and buy American”, “from this day forth, it’s going to be America first, only America first”.

That means that the jousting between Trump and China will only intensify now that he is in office.  The possibility not only of a trade war, but of a hot war, between the two should not be ruled out.

We also have another signal – if it were needed – that he intends to turn a blind eye to the actions of autocrats around the world.

What does that mean for Brexit? It confirms that those who greeted the news that an US-UK trade deal is a “priority” for the incoming administration, including Theresa May, who described Britain as “front of the queue” for a deal with Trump’s America, should prepare themselves for disappointment.

For Europe in general, it confirms what should already been apparent: the nations of Europe are going to have be much, much more self-reliant in terms of their own security. That increases Britain’s leverage as far as the Brexit talks are concerned, in that Britain’s outsized defence spending will allow it acquire goodwill and trade favours in exchange for its role protecting the European Union’s Eastern border.

That might allow May a better deal out of Brexit than she might have got under Hillary Clinton. But there’s a reason why Trump has increased Britain’s heft as far as security and defence are concerned: it’s because his presidency ushers in an era in which we are all much, much less secure. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.