Monday, July 26, 2010

Globalization and tobacco control

One of my older cousins, born in the Philippines but now a retired American soldier and citizen, complained in an email about how globalization was causing job losses in the US in favor of cheaper labor in China. Definitely not a good thing for Americans, but not necessarily a good thing for the Chinese either. Why should the Chinese or anyone else be paid considerably less than what an American would earn for similar work? Who actually wins in this case? It's the large transnational corporations whose sole objective is to make huge profits, taking advantage of the cheap labor costs in low and middle-income countries (LMICs), as well as trade disparities that put LMICs at a disadvantage. We've also all heard stories about how the US trade representative has applied pressure on some Asian governments (probably true elsewhere in the world) on behalf of US companies just so that those companies could do business as they wished in those foreign countries; who cares if the locals are at the losing end?

Tobacco companies like Philip Morris are the worst of this kind. Example: pictorial warnings on cigarette packs. For several years now, Philip Morris has been producing in the Philippines packs with pictorial warnings for export to Thailand. In Indonesia, Sampoerna (bought by Philip Morris in 2005) also produces packs with pictorial warnings for export to other countries. Yet, Philip Morris refuses to print the same kinds of warnings for the domestic markets in Indonesia and the Philippines. Do Filipinos and Indonesians merit less information on tobacco harms than citizens of other countries? Are Filipino and Indonesian lives worth less than others?

Very recently, the Philippine Department of Health (DOH) issued an administrative order requiring tobacco companies to print graphic health information on tobacco packages. What happened? Before it could be implemented, Fortune Tobacco Corporation, the country's largest domestic tobacco company, filed a lawsuit against DOH to stop it from implementing its order. The case was filed in Marikina City, where Fortune Tobacco's facilities are based, and Fortune won a homecourt decision: a temporary injunction was granted by the Marikina trial court.

Currently, DOH is also facing another lawsuit on the same issue, this time filed by Philip Morris. Obviously this is forum shopping, and the injunction granted by the Marikina court makes this case moot and academic. A company like Philip Morris, which can afford to hire very smart lawyers (but with questionable moral compasses), should know better. Again, another bullying tactic by a company that pretends to be "socially responsible".

Readers should also be aware that earlier this year, Philip Morris and Fortune Tobacco formed a new company: Philip Morris Fortune Tobacco Corporation (PMFTC), that combines PM's 25% market share with FTC's 65% market share, creating a virtual monopoly of the domestic market. Another globalization "success".

People often talk about free trade, but what about fair trade? If there's anything that globalization should be doing, it's equalizing the opportunities for all peoples: every man, woman, and child having adequate food, shelter, clothing, and access to healthcare and education.

This is one of the lessons of yesterday's Gospel reading. Jesus teaches his disciples how to pray, telling them to call God "Father". If God is our Father, then we are all his children, and hence we are brothers and sisters who should treat each other accordingly. Unfortunately, big businesses such as tobacco companies bow to a different god.


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