Multinational Corporations, Rentier Capitalism, and the War System in Colombia

Abstract

This article focuses on the role of multinational corporations in the Colombian conflict, particularly how they contributed to the escalation of land conflicts and to the violent transformation of the rural economy into one based on rentier capital. It also explores how these companies helped in fomenting and financing the war system, an element that could partly explain the protracted persistence of the Colombian conflict.

Entrepreneurial Activity in the Context of Violent Conflict: Business and Organized Violence in Colombia1

“…As elsewhere, the private sector has been accused of promoting or, at the very least, profiting from violence. Structural arguments illustrate how the capitalist status quo is functional to the interests of the private sector (Revéiz, 1997;Richani, 2005). Armed Forces' interventions in local and regional communities have been shown to protect private sector interests (Silva Colmenares, 1978;Cepeda and Rojas, 2008).…”

Why do poor countries suffer costly conflict? Unpacking per capita income and the onset of civil war

“…Colombia's civil war is perhaps a good example. Although it may have started out as a grievance-based struggle based on leftist ideology-and while it "continues to be politically and ideologically driven at its core" (Guáqueta, 2003: 74)-the main groups responsible for the fighting soon evolved into true criminal business entities whose growth was largely attributable to an extraordinary ability to generate revenue through kidnappings, extortion, acts of sabotage and drug production (Richani, 2005). Furthermore, in both the opportunity-cost and the grievance frameworks individuals will not resort to arms unless the perceived probability of success is large, the latter being a function of state capacity (Oyefusi, 2008: 543-4).…”

Multinational Corporations and Local Communities: A Critical Analysis of Conflict

“…The limited research on business and community conflict focuses on community responses to the negative outcomes of business activities rather than on the dynamics of the business and community relationship itself (Hook and Gangly, 2000;Ikelegbe, 2005;Richani, 2005;Webersik, 2005). As conflict between MNCs and communities is not a wellstudied phenomena, it is necessary to borrow concepts from the literature on group conflict within organizations.…”

“…For example, Hook and Ganguly (2000) study three cases of increased ethnic conflict in countries where MNCs undertake resource extraction activities -Shell in the Niger Delta, Bougainville Cooper in Papua New Guinea, and Freeport McMoran in Indonesia. Richani (2005) examines how the presence of MNCs, especially those in the extraction industries, contributed to intensified land conflicts in Colombia. Ikelegbe (2005) studies a similar situation in Nigeria and concludes that MNCs fueled the struggle for resources among local factions and between poor communities and elite groups.…”