A UVM blog Costa Rica

Who is Pfizer, what are they doing in Costa Rica?

Pfizer is one of the worlds leading transnational biopharmaceutical companies. Their slogan is “We’re in relentless pursuit of scientific breakthroughs and revolutionary medicines that will create a healthier world for everyone”. Pfizer says their goal in being a multinational company is to establish a global presence that allows them to make a difference and deliver better medicine in local communities. However it should be noted that Pfizer is an American company that is publicly traded, how this might impact the companies ethics or partnerships is up for debate. They are in 42 countries and have 35 manufacturing sites located around the world that they invest ~$1 billion in annually.

Pfizers operations in Costa Rica actually began all the way back in 1950. But just in 2008 the headquarters in Costa Rica became the location for the Corporate Center for Central America and the Caribbean which serves 33 countries total. Costa Rica is the central point the operations in the Americas are being consolidated around. Pfizer is continuing to expand, as recently as the end of 2021/ beginning of 2022 where around 100 Human Resources, financial services and in the digital areas positions. Carlos Alvarado, the president of Costa Rica is strongly in favor of Pfizers role and expansion in the country being that the life science sector is their main source of exports, expected to exceed US$6 billion annually.

Pfizer SA is located in Escazu, San Jose. It was established in 1966 and currently has 229 employees. It falls under the  Pharmaceutical and Medicine Manufacturing Industry of the Pfizer company and produces $24.76 million in US dollars a year. While there are only 229 employees at the Escazu site, Pfizer has around 800 employees in Costa Rica total.

Impacts of Manufacturing?

There are both positive and negative impacts of having a manufacturing site like Pfizer in Costa
Rica. The actual company of Pfizer claims to be committed to the environment and has a goal to become carbon neutral by 2030. However they also say they encourage work through their global trade associations to reduce GHG emissions “voluntarily” and promotes use of “market-based regulations”. This use of green capitalism feels a little more like a way to appeal to the consumer who want Pfizer to be sustainable as opposed to actually committing, but still a good step. Regardless of the consciousness to be less detrimental to the environment, manufacturing is still bound to have pollution impacts. Being a biopharmaceutical company, Pfizer must have significant amounts of hazardous and medical waste that needs careful disposing of and wither needs to be shipped some where (high carbon emissions) or disposed in hazardous waste site (harmful to local community and environment).

Manufacturing does have positive economic impacts for Costa Rica. Pfizer employs lots of local Costa Ricans and generates a lot of revenue for the local economy each year. It also helps establish Costa Rica as a reliable and emerging source of economic power globally.

It is clear that manufacturing in Costa Rica can have some very positive impacts on the local community. It provides stable jobs for lots of costa ricans and from what I have read people generally love working at the company and local people feel it has provided a lot for the people. However Pfizer is a large company and its workers are in a way, disposable, so the treatment, wages, and rights of workers are important to be monitored and considered.

Neo-Colonialism in Costa Rica

I think the presence of Pfizer in Costa Rica is a representation of Neo-colonialism more so than Neo-liberalism. This is a great example of a seemingly more “developed” country indirectly controlling “lesser-developed” countries through something indirect such as a pharmaceutical company. However the presence of Pfizer in Costa Rica for over 70 years has caused the country to form a deep economic reliance on the company for the jobs and revenue it provides. This means the people of Costa Rica, more than 800 employees by Pfizer need the company to remain employed and support themselves and their families. Pfizer, a multi billion dollar company, with more than 78,500 employees, is an an advantageous position locating their Corporate Center for Central America and the Caribbean in Costa Rica, but would be able to survive, and likely still flourish without the country. However without the company the country would suffer. While Pfizer claims to be a company for the people with a goal to provide better medicines to more people, it is still a large for profit company in the notorious Big Pharma industry. It has had several lawsuits for defective drugs and products and even been charged by the US government for health care fraud. So while Pfizer can do a lot for the people and economy of Costa Rica it is still a large company seeking growth and control.

References:

Cinde. (2021, November 18). Cinde announces: Pfizer grows in Costa Rica to support its operations across the Americas. CINDE Announces: Pfizer Grows In Costa Rica To Support Its Operations Across The Americas. Retrieved February 7, 2022, from https://www.prnewswire.com/news-releases/cinde-announces-pfizer-grows-in-costa-rica-to-support-its-operations-across-the-americas-301428264.html 

Cinde.org. (2021, November 17). Pfizer grows in Costa Rica to support its operations across the Americas. cinde.org. Retrieved February 7, 2022, from https://www.cinde.org/en/essential-news/pfizer-grows-in-costa-rica-to-support-its-operations-across-the-americas 

Dun & Bradstreet, Inc. (n.d.). Pfizer SA Company Profile: Escazu, San Jose, Costa Rica: Competitors, Financials & Contacts – Dun & Bradstreet. Dun & Bradstreet – Accelerate Growth and Improve Business Performance. Retrieved February 7, 2022, from https://www.dnb.com/business-directory/company-profiles.pfizer_sa.ce025eba3a31830fcebdaa189dd8a173.html 

Pfizer: Company history, Products & Lawsuits, COVID-19 vaccine. Drugwatch.com. (n.d.). Retrieved February 7, 2022, from https://www.drugwatch.com/manufacturers/pfizer/ 

When a drug is manufactured at pfizer CentreOne, it is crafted with Pfizer’s scientific and manufacturing expertise. Global Manufacturing Network | Pfizer Manufacturing Locations | Pfizer CentreOne. (n.d.). Retrieved February 7, 2022, from https://www.pfizercentreone.com/manufacturing-network 

Material Basis of Spanish colonization:

The Incan empire was one of wealth and power, when Spanish conquistadors arrived in 1532 and began the process of overthrowing and acquiring the dynasty, they were able to thrive off the massive wealth and infrastructure that existed from the Inea (or Incan I have seen both) people. The empire was strong, but the Spanish came at a weak point following a brutal civil war essentially allowing them to be lucky in their conquest over the people.  The Incan people had a wealth of gold and silver that was distributed as loot following the fall of the Incan empire. From just the ransom of emperor Atahuallpa they acquired silver and gold worth today $50 million. Following his death Pizarro and his people raided Cuzco for its enormous wealth and gold as well as the numerous treasures in the Coricancha temple before looting other cities in the Andes. Once the Spanish colonizers were able to take over the Inca Empire, they subjected remaining indigenous peoples to enslavement, forced labor, and brutal conversion to Catholicism. The existing labyrinth like infrastructure and political design allowed the Spanish to take over rule without needing to establish much new infrastructure and instead was able to acquire wealth from the gold and treasures of the Incan empire, which was the main material basis of the Spanish colonization. In addition labor was done by an existing infrastructure of enslaved people so there was no need to invest much in that.

Political and Judicial basis of Spanish colonization:

Francisco Pizarro and the other conquistadors did not come to Peru with the intention to take over, but just to acquire treasure. However they acquired support from rebel people who had not integrated into the Incan society or where unhappy with their rule, as well as people from neighboring tribes who disliked the Incan empire. The Spanish king Charles V promised Francisco Pizarro that he could be governor to any new territory he discovered as long as crown got 1/5 of the discovered wealth. The reason the Spanish were able to take and keep power over the area is because the Incan empire was in a spot of weakness and relied on military and forced compliance of conquered tribes and states of people. Wayna Qhapaq the rulers death had parked a civil war with his two sons Waskar and Atahuallpa competing for power that left the country very weak. In addition to political weakness of country, the Spanish brought over diseases that killed 65-90% of different populations of people and severely weakened the Incan state. With those weaknesses existing, when Pizarro captured and held Atahuallpa captive, the Spanish were able to stake claim in Cuzco and Pachacamac. Pizarro acquired ransom for the king but still executed him, and the death Atahuallpa, revered as a living god to the people, was a significant moral blow for the community. The spaniards then went about conquering Cuzco followed by other cities with the help of local people who opposed the incans and supplies from Incan warehouses. Once Cuzco fell in 1533,  Pizarro begin to instate “puppet rulers” to instill optical control and organization while they ransomed the rest of the andes. They also took local people to use as slave labor and had lots of physical control over the people. There was still chaos from here with events like the puppet ruler Manqo Inka rebelling to gain power and the murder of Pizarro but Spanish rule persisted. The weakened state of the Incan empire definitely played a factor in this but it is also important to acknowledge the role disease played in allowing Spanish to keep their hold on the andes. By 1570 50% of pre-Colombian Andean people had died.

Ideological foundation of Spanish colonization:

It was easy to justify the destruction of the Incan people because the Incan empire also were colonizers who pushed religion and military control over indigenous Andes people. Due to this there was much turmoil and dislike of the Incan people within towns and locals. The Incan empire were already disliked by many neighboring indigenous tribes who actually sided with the Spanish justifying their fight and demolition of the Incan people. The Spanish were equipped with technology like horses and armor that proved superior to a lot of the Incan weaponry enforcing a superiority complex within the spaniards of being more advanced than the people in what we today call Peru and therefore responsible or entitled to modernizing and ruling the indigenous peoples. Atahuallpa, the last Incan emperor, refused to be baptized and converted to christianity. The Spanish conquistadors believed in the need to convert peoples to the “correct religion” Catholicism which they forced upon indigenous people using torture to make sure these peoples beliefs did not stray. In addition they built churches over all the important Incan worship and temple sites. They were able to justify a lot of their actions through religion and the idea that they were more advanced and superior to the people in Peru.

References:

Cartwright, M. (2016, July 1). Pizarro & the Fall of the Inca Empire. World History Encyclopedia. https://www.worldhistory.org/article/915/pizarro–the-fall-of-the-inca-empire/

(2020). Conquest and Colony of Peru | Discover Peru. Discover-Peru.org. http://www.discover-peru.org/conquest-and-colony-of-peru/

https://www.facebook.com/thoughtcodotcom. (2019). 10 Facts About the Conquest of the Inca Empire. ThoughtCo. https://www.thoughtco.com/conquest-of-the-inca-empire-facts-2136551

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Cacao

When researching cacao on the Osa Peninsula, multiple plantations came up. Cacao is an important community in the local agriculture economy of the Osa Peninsula. It is the main economic crop of Finca Kobo. Once grown and harvested, cacao fruit has to be fermented, dried, and then the beans are roasted before being turned into pure chocolate. This process adds significant value to the plant. At small farms like Finca Kobo cacao is grown and processed to be sold locally to visitors and residents of the plantation. The plantation offers more than just the product but also tours and lodging, however the members of said tours and residents of said lodgings are who the cacao is sold to.

Mena, A. R. (n.d.). Agriculture at Finca Köbö. Finca Kobo. Retrieved January 22, 2022, from http://www.fincakobo.com/finca_agri.html 

Vanilla

Vanilla planifolia is the species of vanilla grown across Costa Rica and on the Osa Peninsula. It grows as a vine, needing a tree to act as a host and provide support for the plant. When in bloom, the vanilla flower is only open fro 24 hours and needs to be manually pollinated or the plant will die and the plant will be unusable. Once pollinated and harvested vanilla can go through a few steps of processing to be a more valuable product on the market. The steps are known as dipping; dipping bean pods in hot water, sweating, drying, and conditioning. Being such a labor intensive and high demand crop, Vanilla farming provides a huge economic opportunity for the Osa. Organizations like Osa Conservation are working to establish vanilla farms on the southern part of the peninsula which would provide stable jobs for many Costa Rica citizens. Growing vanilla is both and economic and conservation opportunity for the Osa.

Mould, L. (2017, June 14). The unexpected values of vanilla. Osa Conservation. Retrieved January 22, 2022, from https://osaconservation.org/unexpected-values-vanilla/ 

Holmes, C. | Published Oct 3. (2016, October 3). This Costa Rican family farm is working to save vanilla from its own success. Saveur. Retrieved January 22, 2022, from https://www.saveur.com/how-vanilla-is-grown/ 

Gold

The Osa peninsula has a historic economy in gold mining. Gold was found along the peninsula in the 1930s causing a huge migration of people into the area and industry to form. The industry began to slow in the 1980s but provided a significant amount of jobs and was culturally significant. The gold was found in both sedimentary and nugget forms. To add value to the sedimentary forms is had to be separated from sand and gravel in a laborious process known as gold panning. Gold can then be refined in an intensive process involving crushing and leaching the ore. The Tigre River was the most intensive spot to mine for gold, and both artesian locals and large mining companies flocked to it. Today the country has moved away from gold mining, so you cannot find places where it is sold. However, there is still illegal mining that takes place on the peninsula and, once laundered, both smaller and commercial gold companies buy the gold as well as it being imported into neighboring countries like Venezuela.

Corcovado El Tigre dos Brazos de Rio Tigre Gold Mining Hitory. Corcovado El Tigre. (n.d.). Retrieved January 22, 2022, from https://www.corcovadoeltigre.com/gold-mining-history  

Palm oil

For the entire country of Costa Rica, palm oil is a large factor of their export economy accounting for over $125 million. The majority of palm farming in the Osa Peninsula is done on land that has previously been cleared for farm land and often difficult to cultivate other crops due to damage in soil from banana agriculture. Once palm trees produce fruit it is harvested and transported to be processed. They just go through a refining, bleaching and deodorizing process until they become valuable marketable palm oil. Palm oil is not really a domestic product, but instead exported and sold to countries abroad. Palma Tica is the company responsible for buying palm oil from farms in Costa Rica and in return provides farmers with stable contracted work.

NeJame, J. (2019, September 24). Redefining an industry: Costa Rica’s alternative model for Palm Production. HEADWATERS MAGAZINE. Retrieved January 22, 2022, from https://uvmheadwaters.org/redefining-an-industry-costa-ricas-alternative-model-for-palm-production/ 

Ecotourism

The largest and perhaps most popular commodity of the Osa Peninsula is the ecotourism industry. Because the peninsula alone holds 2.5% of all biodiversity, conservation has been prioritized but the Costa Rican government and heavily funded after the damage caused by gold mining and logging. Natural areas like the Corcovado National Park and the Tigre River attract people for their raw beauty and immense abundance of species. Ecotourism has created significant stable and developing jobs for local people on the Osa peninsula in industry like eco-lodging and tours. There isn’t much value to add to the actual natural areas, besides jobs in upkeep and protection, but the value comes in those jobs like leading tours and helping to cultivate appreciation for tourists. Companies like Caminos De Osa are the leading sustainable tourism organizations in the area and help provide information and opportunities for those looking to visit the Osa Peninsula.

Rahim, S. (2018, July 23). Ecotourism in the Osa Peninsula: A catalyst for social, economic, & Environmental Development. Medium. Retrieved January 22, 2022, from https://medium.com/@rahimsa/ecotourism-in-the-osa-peninsula-a-catalyst-for-social-economic-environmental-development-e29e5f3ebf4b