Reassessing policy paradigms: A comparison of the global tobacco and alcohol industries

Abstract

Tobacco is widely considered to be a uniquely harmful product for human health. Since the mid-1990s, the strategies of transnational tobacco corporations to undermine effective tobacco control policy has been extensively documented through internal industry documents. Consequently, the sale, use and marketing of tobacco products are subject to extensive regulation and formal measures to exclude the industry from policy-making have been adopted in the Framework Convention on Tobacco Control. In contrast to tobacco, alcohol is subject to less stringent forms of regulation, and the alcohol industry continues to play a central role in policy-making in many countries and at the global level. This article examines whether there is a sufficient rationale for such different regulatory approaches, through a comparative analysis of the political economy of the tobacco and alcohol industries including the structure of the industries, and the market and political strategies they pursue. Despite some important differences, the extensive similarities which exist between the tobacco and alcohol industries in terms of market structure and strategy, and political strategy, call into question the rationale for both the relatively weak regulatory approach taken towards alcohol, and the continued participation of alcohol corporations in policy-making processes.

Alcohol industry involvement in policymaking: a systematic review

“…For example, why did social aspects organizations begin proliferating when they did, and how are these developments shaped by the changing structure of the industry? This particular example draws attention to the currently limited consideration of the commercial interests underlying policy preferences, and developing understanding rooted in political economy [52] should help to rectify this, as will integrating the emerging evidence-base across corporate sectors [4].…”

Smoke screen? The globalization of production, transnational lobbying and the international political economy of plain tobacco packaging

“…A market with a HHI of 1,800 or more is considered highly concentrated. The HHI score for the tobacco industry in most countries in the world is 3,000 or higher (Hawkins et al 2016). Furthermore, recent figures from UNCTAD (2016) show that tobacco companies are amongst the most transnational firms.…”

Tobacco industry globalization and global health governance: towards an interdisciplinary research agenda

“…UNCTAD also compiles a “transnationality index” for the annual World Investment Report calculated as the average of three ratios: foreign assets to total assets; foreign sales to total sales; and foreign employment to total employment (UNCTAD, 2015). This measure has been comparatively applied to tobacco (Holden and Lee, 2009) and alcohol companies (Hawkins et al ., 2016). Fortune magazine also provides revenue data for the world’s largest 500 companies (Global 500) list (Fortune, 2015).…”

“…One potential indicator is the concentration ratio. Using the Herfindahl—Hirschman Index (HHI) 3 as the most commonly accepted measure of market concentration, Hawkins et al . (2016) show that the tobacco industry in almost all countries has a very high concentration ratio, often the most concentrated sector in an economy.…”

“…As described above, there are a broad range of industry-level indicators to measure its changing nature and dynamics amid globalization. This would especially benefit growing interest in comparative analysis of tobacco with other health-related industries including alcohol, food and drink, and pharmaceuticals (Wiist, 2010; Hawkins et al ., 2016; Kenworthy et al ., 2016). How does tobacco industry globalization compare with other industries in form, dynamics, trajectory and, from a public health perspective, regulatory needs?…”