Posts

Globalization: TNCs in Costa Rica

Procter and Gamble is a renowned American multinational consumer goods corporation with a rich history dating back to 1837.

They consist of a diverse product portfolio, emphasizing personal health, care, and hygiene. This organizes them into various segments, such as beauty, healthcare, fabric, in-home care, and family care. In 2014, the company, streamlined its operations, concentrating on 65 core brands that generated 95% of its profits. 

Costa Rica stands prominently in P&G’s global strategy, hosting a pivotal manufacturing facility. Acting as a center for international logistical planning, Costa Rica serves as a testament to P&G’s confidence in the nation’s talent and its ability to contribute significantly to the company’s overarching success.

P&G’s initiatives in Costa Rica show its dedication to positive social impact. Specifically addressing the gender gap in stem fields, the company actively champions, female, participation in information technology positions. Through programs like “Corina: Girls in Action,” P&G supports the early development of stem and artistic skills, reinforcing its commitment to societal advancement.

Economically, P&G’s presence translates into great job creation and economic stimulus. The decision to conduct international logistical planning from Costa Rica not only signifies confidence in local talent, but also promises a substantial contribution to the country’s economic growth.

Out of 32 cities in Central America being considered as the hub for P&G’s global business service center, San Jose was the chosen location, where it holds P&G’s largest GBS center worldwide with four 4-story buildings and over 1000 employees.

On a global scale, P&G has been criticized for its negative impacts on Canadian boreal forests and Indonesia and Malaysia’s tropical forests. Sammy Herdman, an author part of Environment America Research & Policy center, wrote, “P&G has been widely criticized for the company’s use of palm oil and palm kernel oil suppliers that fuel the deforestation of tropical rainforests. In both cases, the extraction of resources releases carbon stored in forest and peatland ecosystems into the atmosphere…As one of the largest tissue producers and palm oil users in the U.S., P&G is uniquely positioned to set a higher corporate responsibility standard amidst our current climate crisis.” I was surprised to come across this article after reading multiple articles from P&G boasting about their sustainable development practices. However, they may be preaching about these in terms of the community engagement and education sectors of sustainable development. Since then, shareholders have been called out for their greenwashing attempts, stated in an NRDC article by Shelley Vineyard: “In their shareholder rebellion, investors gave a clear directive: P&G must figure out how to address risk created by significant impacts of its sourcing of pulp from Canada’s boreal forest and palm oil from Southeast Asia, both of which are tied to human rights issues, deforestation, intact forest degradation, and threatened species loss. But more than five months after that historic vote, P&G appears to be responding to its investors’ urgent call with intransigence. The company’s new “Environmental, Social, and Governance (ESG) Platform” for investors indicates the company is choosing to ignore the impacts of its sourcing tissue pulp from intact forests in the climate-critical Canadian boreal and lag behind peers in action on palm oil. Instead of action, the company is doubling down on selling a myth of sustainability to consumers. In fact, though a recent Charmin ad touts the brand’s commitment to “Protect, Grow, and Restore” forests, P&G’s recent announcements and PR campaigns have more closely resembled a “Deflect, Distract, and Ignore” approach, once again choosing spin over meaningful action to protect climate-critical forests.” Costa Rica’s branch were not a direct cause of this, but to my knowledge and findings, their specific branch has not spoken out about the uncovered truths, either.

On the liberal front, P&G operates within market-driven principles, yet its focus on gender, equality, community engagement, and educational initiatives suggest a broader commitment to social responsibility. The company navigate to middle ground, blending market-oriented practices with a sincere focus towards social development, presenting a nuanced model that transcends into neo-liberalism.

Sources:

  • https://www.cinde.org/en/essential-news/procter-gamble-inaugurates-its-modern-facilities-in-costa-rica-for-its-latin-american-supply-chain-planning-center
  • https://us.pg.com/blogs/national-stem-day/
  • https://www.glassdoor.com/Overview/Working-at-Procter-and-Gamble-EI_IE544.11,29.htm
  • https://www.nrdc.org/bio/shelley-vinyard/deflect-distract-ignore-pgs-greenwashing-continues
  • https://ticotimes.net/2016/08/12/bilingual-jobs-costa-rica

Colonization of India

From visiting England, France, Portugal, and India, including many historical sites and tours, I have learnt from many different perspectives on the colonization of India. In this post, I hope to offer some new perspective, or at least some history which may not be very well-known: 

Under the Moghul empire, India was the richest country in the world during the 15th and 16th century. It was the most desired country to be colonized and conquered by the European empire. Colonization attempts began with the Portuguese, then the French, who were content with purchasing cheap spices in the coastal areas of India, bringing them back to their homelands, and selling them at exponentially higher prices. 

The English had a different approach—to establish a long-term plan to extract agriculture and mining resources from South Asia for centuries. Unlike the Portuguese kings, who sent military naval expeditions in attempts to conquer India, the English first sent trader. Their names were Ralph Fitch and William Hawkins who visited Akbar’s court. Their successful visit with Akbar was followed by the English establishing a successful company called the East India company. In the 1850s, India became an official colony of the throne.

England saw India as a gold mine—both literally and figuratively. The colonial economy in India was deeply rooted in extraction and agriculture because India was rich in many resources that seemed foreign and luxurious to colonizers. During British rule, they focused on exploiting India’s minerals like gold and spices. India’s soil was extremely rich due to national water sources and climate conditions. This rich resource in farming was forced into cash crops such as indigo and cotton and became a rich resource in England.

Speaking of indigo and cotton, the cotton trade was so lucrative for the British that they reduced their import from the United States in the 1840s which was one of the many factors that eventually resulted in American Civil war.  This fact represents one example of how the colonization of one country impacted the domestic economy and politics of the U.S. as well as many other countries around the world. Local residents were the primary source of labor in this economy. India was so lucrative not just from natural resources, but human resources. 

One way the English established order was appointing and converting the local head of regions by providing them with Raja/Maharaja/Zamindar social statuses… but at the end of the day, they were mere tax collectors for the English. In many states such as Bengal, the tax collectors lease was auctioned. In return for their protection, the English provided them with military and police security. The structure was that the officers were primarily Irish and English, and the soldiers were Indians whose families could afford two square meals a day. The government ran through an effective and established judicial system which aligned with the British judicial system that worked. Judges were English. 

Additionally, the English appointed local administrators under the government payroll to supervise the Maharajas and Zamindars. Since this was a lucrative career, the English could hire the best and brightest from Cambridge and Oxford to take on these jobs. The head of the India State reported directly to Secretary of State for India in the British cabinet. This was the largest revenue generator for the English government. 

Unlike the Spanish, Portuguese, and French, the English did not convert all Indians into Christianity. This is primarily due to the fact that the King and Queen of England did not follow the Catholic church, and the British learnt from history that at this time conversion into Christianity would only add risk to govern India. 

The British empire believed they were providing Indians the institutions and tools necessary to hold together and run the union. Colonization of India resulted in it becoming one country from the conglomeration of princely states. The English established an effective railroad system and infrastructure of transportation, as well as an education system in which they shared English knowledge and language. The English also modernized India’s society by banning certain social practices (two harsh examples: the Victorian idea of a man marrying only one woman, or banning Sati, a practice where a woman burned herself in the fire of her husband’s funeral). 

Since there was a dearth of sufficient highly educated young men to administer the country locally, the English hired the most academically successful Indians to take positions as officers in the military as well as local administrations. This gave the British who migrated there a sense of making it feel like home for them because they had lucrative positions, servants, beautiful weather, access to luxurious resources, and most importantly, a feeling of power. 

A picture of Red Fort – a flag at the Red Fort symbolizes who rules the country. First flew the Moghul flag, then the British flag, and now the India flag. This is a place that signifies a symbol of power dating all the way back to the reign of Shah Jahan and it has witnessed the change in Indian history to British rule.

THE ECONOMY OF THE OSA PENINSULA

Coconut Oil

Coconut oil is known for its versatility in cooking and healthcare containing hundreds of health benefits. There are multiple oil extraction methods, but all consist of pressing coconut meat to extract coconut milk, followed by separating the water from the milk. Its popularity emerged in the early 20th century when it was processed and sold to passing steamships. Today, one example of a coconut oil business is OsaNatural. They are located in Puerto Jimenez on the Osa and are a family business of organic cosmetic products derived from coconut oil. They make their products by hand with coconut oil in small rounds daily. 

https://www.osatourism.com/osa-natural-products/

https://www.hsph.harvard.edu/nutritionsource/food-features/coconut-oil/#:~:text=Coconut%20oil%20is%20made%20by,not%20regulated%20with%20coconut%20oil.

Palm Oil

Palm oil is derived from the oil kernels of African palms, a tree native to west and southwest Africa. It was introduced to Costa Rica for many reasons, one being the high demand for palm oil in food, cosmetic, and biofuel industries. It became known to be a lucrative business opportunity for many small-scale farmers due to its crop efficiency being cheaper with a high yield compared to other oils. It is important to note that palm oil’s expansion in Costs Rica also led to displacement of indigenous populations and deprivation of ancestral lands, which in turn contributed to the marginalized status of indigenous groups as they face unequal power dynamics. After an African palm is planted, it take about three years to produce palm fruit, and bunches are transported to factories after harvesting. Oil is extracted by mechanical pressing and refined thereafter. One example of a palm oil plantation in Costs Rica is the Palma Tica plantation.

 https://www.valleyjournals.com/2024/01/02/478054/small-costa-rican-farm-is-an-inspiration-for-a-better-food-system

https://growjungles.com/costa-ricas-african-palm-oil-dilemma-unraveling-the-ecological-catastrophe/

Bananas

Bananas are one of the most popular fruits grown on the Osa. They are grown in bunches on trees and are harvested (usually during nighttime) by cutting fruit off of trees. Bananas are a great source of income for the Osa’s economy. This is because many grow on one bunch and have a durable peel, and do not require further processing post-harvest, which makes them easier to harvest and transport compared to other fruits. Many farms locally grow their bananas and distribute to larger fruit companies, but Finca Kobo is one example of where bananas are grown and distributed to locals and visitors. Bananas have also shown to be a great source of employment for small communities. http://www.fincakobo.com/finca_agri.html

Gold

Gold was a rich resource which European colonists found the most fascinating along the coast of the Osa peninsula upon arrival. Large-scale gold mining progressed in the early 19th century, and slowed until the Osa’s gold rush that began in the 1930s. This rush brought hundreds of people to the area in hopes of employment. Its impacts on Costa Rica’s rich biodiversity caused the government to place protection on much of their land, for example, the Corcovado national park. This elimination of gold mining caused a grand negative economic impact on local economies. Today, gold mining is illegal in most areas due to the harm it causes on the environment, but gold mining tours are still available in Dos Brazos as a rural tourism project to inform the public of mining history and impacts.https://growjungles.com/gold-mining-impacts-on-the-osa-peninsula-costa-rica/

Pineapple

Pineapple grows on shrubs and is harvested by cutting the stalks in an out and downward motion, or cutting fruit of the mass of stalk. Similar to bananas, there is no processing done before selling pineapples. They are grown on various farms on the Osa and are exported to both local and large companies. On the Osa Peninsula, pineapple is exported out of areas surrounding Finca Kobo to local kitchens and restaurants such as Blue Osa Yoga Retreat and Spa, where they make piña coladas!

wAndering through the woods

Explore our network of trails that lead through a variety of woodland habitats and observe the diverse flora that call this area home.

Skip to toolbar