Preface

Transnational Corporations and their impacts on forests and forest peoples

THIS REPORT is one in a series which focuses on the social, environmental, economic and political impacts of transnational corporations (TNCs) on forests and forest peoples. The reports present case studies of particular sectors, countries or regions and examines key companies' activities, political connections and modus operandi. The reports also examine the capacity of the main actors—national governments of both the home and host countries; civil society; relevant intergovernmental institutions and TNCs themselves—to mitigate the negative impacts of TNCs' operations. The selection of the case studies is based on:

§ requests for information from affected local communities;

§ particular current importance of the issue or sector;

§ relevance to national and international debates and policies on forests and forest peoples.

The question of how to control transnational corporations is not a new one and is of fundamental significance to the emerging international agenda on how to achieve environmentally and socially appropriate development. Recently, the discourse of regulation of industry has been eroded in favour of self-regulation through mechanisms such as industry-developed codes of conduct, which are increasingly being put forward as a means to achieve sustainable development. This change manifested itself most clearly in the early 1990s, with the effective closure of the UN Center on Transnational Corporations, a body established to monitor the activities of TNCs, and at the 1992 Earth Summit in Rio, when a draft chapter on the environmental responsibilities of TNCs was removed from the agenda following pressure from the business community and Northern governments.

Whilst states should represent the best interests of their citizens, all too often it is the relatively few economically powerful voices within a state, such as TNCs and their subsidiaries, which exert the strongest influence. And whilst TNCs can be important contributors to a state's economic, social and environmental health, this is not necessarily the case, in fact it is frequently the opposite. Accordingly, the need for control of TNCs has to be addressed.

The challenge is how to create the best framework within which transnational corporations can carry out their corporate activities in a mutually beneficial relationship with host and home countries and civil society. It is our hope that this series of reports will make a significant contribution to the debate on how to achieve a balance between economic interests, the state and civil society, a balance which is geared more closely to realising sustainable and equitable forest use and management. With this objective in mind, these reports aim to:

§ Raise awareness within industry of its impact on forests and forest peoples.

§ Inform policy and decision makers of the potential dangers of unsustainable development, especially in those countries which are encouraging foreign investors, or are under pressure to liberalise their economies or to offer incentives to investors who do not adhere to strict social and environmental standards.

§ Be a resource guide for local environmental and social NGOs working on issues raised by the industry sectors and companies mentioned in the report series.

§ Bring the issue of TNCs' operations and their impacts on forests to the agenda of intergovernmental processes dealing with forests, particularly the Intergovernmental Forum on Forests.

It is envisaged that occasional papers will be produced as the series progresses focusing on themes which emerge from the research and data presented in the case studies.