The neo-liberal argument that our economy is a market place utopia, where the invisible hand will dish out wealth to those deserving of it and pull the rest from poverty has repeatedly been exposed for the lie that it is. But what many fail to recognize in the world of corporate capitalism, is the role of the state in encouraging this cycle of accumulation and ecological destruction.
That entity that many believe has no place in interfering with the market, in fact plays an essential role in ensuring corporations have room to operate free from pressure from environmental and human rights groups, those dispossessed by corporate activity and any sort of resistance to their activities. A number of recent cases have shown the state to be nothing more than a bodyguard for corporate interest, while simultaneously eroding its own legitimacy and public responsibility.
The case of the KI6 in Ontario demonstrates clearly the lengths the Canadian state is wiling to go in order to protect the interests of capital. The residents of KI had suffered under then hand of colonialism and residential schools, and when they tried to assert their treaty rights and protect their land they realized they were still under the colonial hammer. The speed and length with which the McGuinty government imprisoned the KI6 for protest activity is unprecedented in Canadian law. Mining in Ontario is big business, and the McGuinty liberals will give them the room they need to rake in million dollar surpluses.
Another, perhaps more recent, example is the case of the Exxon Valdez court case in the US this week. The Supreme Court handed corporate America a major victory when it sharply reduced the amount of money Exxon Mobil has to pay in punitive damages for the 1989 Exxon Valdez oil spill in Alaska. An Alaskan jury had initially ruled Exxon should pay five billion dollars in punitive damages but in 2006, the 9th U.S. Circuit Court cut the award of punitive damages in half. On Wednesday, the Supreme Court cut the amount of punitive damages again and ordered Exxon Mobil to pay just $500 million in punitive damages – one tenth of the original jury’s ruling. The EV oil spill was one of the worst ecological disasters in US history, 11 million gallons of crude oil spilled into the fishing waters of Prince William Sound.
Through a variety of court mechanisms and adherence to international trade policies like NAFTA, states are integrally tied to the neo-liberal model. After casting off the yoke welfare state in the early 80s, many states actively sought alliances with international capital, including Bretton Woods institutions to not only secure their spot in an economy based of growth, but to help corporations secure the space and capital needed for exploitation.
One of the largest ecological catastrophes of our time will surely be the continued development of the Alberta Oil Sands. Not only has this development been allowed to expand with little government monitoring and review, but the dramatic environmental and health impacts caused by the oil sands have been denied by the Tory government. Tory Leader Ed Stelmach derided a new report that calls Alberta’s oil sands “the most destructive development on earth.” In a later conversation with Chief George Poitras of Mikisew Cree First Nation, a community with a cancer rate 29% higher than the non-indigenous population, Poitras accused Stelmach of dismissing the health concerns expressed by those living close to the oil sand developments “We’re not dismissing any claims,” the Tory leader replied. “Health is very important to my government.”
But not only has Stelmach denied the environmental impact of the oil sands, his government have repeatedly ignored study after study that links the oil sands to cancer in place like Fort Chipewyan. I recently spoke to George Poitras and he asked me “why would government want to recognize the health impact, that would just be an impediment to the multi-million dollar growth of these companies?”
By doing nothing at all, states are essentially giving corporations the handshake to go ahead with whatever destruction and exploitation they need to remain competitive. As I have outlined above, this often entails states allowing corporations to get-away-with destructive ecological practices.
Chris Webb is an activist and journalist living in Winnipeg. He is currently publishing assistant at Canadian Dimension. Read other posts by Chris Webb.
