Power Hungry

In this comprehensive report, relief organization ActionAid International argues that large food corporations have become too powerful and are undermining the global fight against poverty. Currently, one transnational company controls 80 percent of Peru's milk production, five companies' control 90 percent of the world grain trade, and six corporations control three-quarters of the global pesticides market. According to the report, transnational companies use and abuse their market power, draining wealth from poor communities by collectively setting prices so low that producers are unable to provide adequate wages. Similarly, corporations are widening the gap between farm and retail prices, choosing to widen already swollen profit margins rather than transferring depressed prices to needy consumers. For these and other human rights and environmental violations, corporations are largely unaccountable, since domestic laws in developing countries are rarely enforced. Likewise, workers lack the resources to seek justice in the countries in which corporations are based. Though some corporations are increasing their efforts to improve their social and environmental performance, these gestures alone are insufficient. As this ActionAid report concludes, NGOs and foreign governments must act to improve the exploitive dynamic between corporations and the poor farmers of the developing world. – YaleGlobal