U.S. corporations have $1.4tn hidden in tax havens, claims Oxfam report

The Guardian reports: US corporate giants such as Apple, Walmart and General Electric have stashed $1.4tn (£980bn) in tax havens, despite receiving trillions of dollars in taxpayer support, according to a report by anti-poverty charity Oxfam.

The sum, larger than the economic output of Russia, South Korea and Spain, is held in an “opaque and secretive network” of 1,608 subsidiaries based offshore, said Oxfam.

The charity’s analysis of the financial affairs of the 50 biggest US corporations comes amid intense scrutiny of tax havens following the leak of the Panama Papers.

And the charity said its report, entitled Broken at the Top was a further illustration of “massive systematic abuse” of the global tax system.

Technology giant Apple, the world’s second biggest company, topped Oxfam’s league table, with some $181bn held offshore in three subsidiaries. [Continue reading…]

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These days, the worst multinational corporations have names you’ve never heard

Michael Hobbes describes how Joyce Chachengwa, a farmer in Zimbabwe, lost the land upon which she, her daughters and grandchildren depended, after a corporate takeover turning the land over to sugarcane for ethanol production. He writes: You know where I’m going with this, right? I’m about to tell you that the company behind all this is Monsanto, or Shell, or Coca-Cola. That your car is running on the ethanol this plant is producing. That the U.S. government is funding or facilitating or failing to prevent what is taking place here.

But none of that is true. The company responsible for all this is called Green Fuel. It is headquartered in Zimbabwe, it isn’t listed on any stock exchange, it doesn’t sell any products in the United States, and it has no Western investors.

And it is, increasingly, the rule rather than the exception. When you think of the worst abuses in poor countries — land grabs, sweatshops, cash-filled envelopes passed to politicians — you probably think they’re committed by companies based in rich ones: Nike in Indonesia, Shell in Nigeria, Dow in Bhopal, India.

These are the cases you’re most likely to hear about, but they are no longer representative of how these abuses actually take place — or who commits them. These days, the worst multinational corporations have names you’ve never heard. They come from places like China and South Africa and Russia. The countries where they are headquartered are unable to regulate them, and the countries where they operate are unwilling to.

For the last 10 years, I’ve worked at an NGO dedicated to preventing multinational corporations from violating human rights. Here’s why every actor in the West that could have prevented what happened in Chisumbanje — the media, the international agencies, my own NGO — is becoming increasingly powerless to do so. [Continue reading…]

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Unlike the secrets exposed by the Panama Papers, big U.S. tax dodging is done in full public view

Quartz reports: Unlike in emerging markets and in Europe, the main US tax avoidance problem isn’t about individuals. Data on financial assets such as stocks and bonds, instruments in which affluent people tend to park their wealth, show a relatively small share of US money is kept offshore.

No, in the US, tax avoidance has more to do with corporations. And much of that dodging has increasingly been done in the clear, bright light of public view.

In his terrific recent book on what he calls the “scourge of tax havens,” Gabriel Zucman, an economist at the University of California, Berkeley, estimates that the artificial shifting of profits to low-tax locales such as Ireland, Switzerland, and the Bahamas reduces US corporate tax liabilities by $130 billion per year.

But the US Treasury Department is taking steps to address this. On April 4, it imposed new limits on so-called tax inversions, a type of deal in which a US company merges with a smaller firm in a foreign country where taxes are lower, adopts the foreign address, and takes advantage of the discrepancy in tax rates.

Such deals have been one of the most popular type of M&A transaction in recent years. The $160 billion deal between US drug giant Pfizer and Ireland-based Allergan is perhaps the most eye-popping example of this. [Continue reading…]

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Leaks reveal industrial scale bribery operation involving major U.S., European and Asian companies

oil-industry

Fairfax Media and The Huffington Post report: A massive leak of confidential documents has for the first time exposed the true extent of corruption within the oil industry, implicating dozens of leading companies, bureaucrats and politicians in a sophisticated global web of bribery and graft.

After a six-month investigation across two continents, Fairfax Media and The Huffington Post can reveal that billions of dollars of government contracts were awarded as the direct result of bribes paid on behalf of firms including British icon Rolls-Royce, US giant Halliburton, Australia’s Leighton Holdings and Korean heavyweights Samsung and Hyundai.

The investigation centres on a Monaco company called Unaoil, run by the jet-setting Ahsani clan. Following a coded ad in a French newspaper, a series of clandestine meetings and midnight phone calls led to our reporters obtaining hundreds of thousands of the Ahsanis’ leaked emails and documents.

The trove reveals how they rub shoulders with royalty, party in style, mock anti-corruption agencies and operate a secret network of fixers and middlemen throughout the world’s oil producing nations.

Corruption in oil production – one of the world’s richest industries and one that touches us all through our reliance on petrol – fuels inequality, robs people of their basic needs and causes social unrest in some of the world’s poorest countries. It was among the factors that prompted the Arab Spring.

Fairfax Media and The Huffington Post today reveal how Unaoil carved up portions of the Middle East oil industry for the benefit of western companies between 2002 and 2012. [Continue reading…]

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Google: Big bets on future tech are sign of an empire bidding for immortality

By Robert MacIntosh, Heriot Watt University

We have got used to Google as a massive global success story. But sometimes the detail is more interesting than the top line. On February 1 an announcement by the firm’s holding company Alphabet gave investors their first real insight into the relative performances of its different parts. And it revealed a lot about a section of the operation of which we previously knew very little – the large number of investments into technologies that are some distance from the core businesses.

We now know that these “moonshots”, as they have come to be known, produced an operating loss of $3.6bn (£2.5bn) in 2015. They lost $1.9bn in 2014 and $527m in 2013. You may have heard about the wearable technology or the driverless cars, but it goes much further than that. There is fibre-optic broadband, Indian railway wifi, thermostats, IP video cameras and solar-powered drones. Then there is Google’s X-lab. Initially shrouded in secrecy, it is now known to be working on everything from contact lenses for diabetics that can monitor glucose levels in tears, to nano-particles that will be able to predict disease.

The revelation about the losses didn’t stop Alphabet from replacing Apple as the most valuable company on the planet the day after the announcement. So what can we infer from its seemingly voracious appetite for newness?

[Read more…]

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Report: Fossil fuel industry benefits from $20 billion in subsidies in the U.S.

Desmog reports: A new joint investigative report by Oil Change International and the Overseas Development Institute reveals that, in the United States alone, the fossil fuel industry has benefited from over $20 billion per year in government subsidies between 2008-2015.

The percentage of subsidies has skyrocketed during the two terms of the Obama Administration, growing by 35 percent since President Barack Obama took office in 2009. The findings are part of a broader report on subsidies given to G20 countries ahead of the forthcoming G20 Leaders Summit in Antalya, Turkey, set to take place November 15-16.

“Since the initial G20 commitment in Pittsburgh six years ago, US subsidies have increased dramatically in [the Obama] Administration, in line with the increase in US oil and gas production,” said Steve Kretzmann, executive director of Oil Change International. “The President can and must do more to eliminate subsidies at home and to keep carbon in the ground in the time he has left.” [Continue reading…]

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Lawmakers get $83,000 from pipeline company, then rush a bill favoring pipeline construction

David Sirota writes: The fossil fuel industry had already managed to shape a bill moving rapidly through Congress last summer, gaining provisions to ease its ability to export natural gas. But one key objective remained elusive: a measure limiting the authority of local communities to slow the construction of pipelines because of environmental concerns.

Then, U.S. Rep. Fred Upton, a Michigan Republican who chaired the House Energy Committee, gave the industry an opportunity to amplify its influence. Joining forces with Sen. Lisa Murkowski, the Alaska Republican who chaired the Senate Energy Committee, he launched a so-called joint fundraising committee, a campaign war chest that would accept donations from a range of contributors, with the proceeds divided between the two lawmakers.

Executives at one of the nation’s largest natural gas pipeline companies soon deposited more than $83,000 into the joint fund’s coffers. The very next day, Upton delivered on the industry’s aspirations: He rushed a bill through his legislative panel that would not only streamline the approval process for new pipelines but also empower federal officials to impose tight deadlines on state and local governments seeking to review their potential environmental impacts. [Continue reading…]

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Exxon sowed doubt about climate science for decades by stressing uncertainty

InsideClimate News reports: As he wrapped up nine years as the federal government’s chief scientist for global warming research, Michael MacCracken lashed out at ExxonMobil for opposing the advance of climate science.

His own great-grandfather, he told the Exxon board, had been John D. Rockefeller’s legal counsel a century earlier. “What I rather imagine he would say is that you are on the wrong side of history, and you need to find a way to change your position,” he wrote.

Addressed to chairman Lee Raymond on the letterhead of the United States Global Change Research Program, his September 2002 letter was not just forceful, but unusually personal.

No wonder: in the opening days of the oil-friendly Bush-Cheney administration, Exxon’s chief lobbyist had written the new head of the White House environmental council demanding that MacCracken be fired for “political and scientific bias.”

Exxon was also attacking other officials in the U.S. government and at the UN’s Intergovernmental Panel on Climate Change (IPCC), MacCracken wrote, interfering with their work behind the scenes and distorting it in public.

Exxon wanted scientists who disputed the mainstream science on climate change to oversee Washington’s work with the IPCC, the authoritative body that defines the scientific consensus on global warming, documents written by an Exxon lobbyist and one of its scientists show. The company persuaded the White House to block the reappointment of the IPCC chairman, a World Bank scientist. Exxon’s top climate researcher, Brian Flannery, was pushing the White House for a wholesale revision of federal climate science. The company wanted a new strategy to focus on the uncertainties. [Continue reading…]

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For decades, Exxon has understood the role of fossil fuels in climate change

InsideClimate News reports: At a meeting in Exxon Corporation’s headquarters, a senior company scientist named James F. Black addressed an audience of powerful oilmen. Speaking without a text as he flipped through detailed slides, Black delivered a sobering message: carbon dioxide from the world’s use of fossil fuels would warm the planet and could eventually endanger humanity.

“In the first place, there is general scientific agreement that the most likely manner in which mankind is influencing the global climate is through carbon dioxide release from the burning of fossil fuels,” Black told Exxon’s Management Committee, according to a written version he recorded later.

It was July 1977 when Exxon’s leaders received this blunt assessment, well before most of the world had heard of the looming climate crisis.

A year later, Black, a top technical expert in Exxon’s Research & Engineering division, took an updated version of his presentation to a broader audience. He warned Exxon scientists and managers that independent researchers estimated a doubling of the carbon dioxide (CO2) concentration in the atmosphere would increase average global temperatures by 2 to 3 degrees Celsius (4 to 5 degrees Fahrenheit), and as much as 10 degrees Celsius (18 degrees Fahrenheit) at the poles. Rainfall might get heavier in some regions, and other places might turn to desert.

“Some countries would benefit but others would have their agricultural output reduced or destroyed,” Black said, in the written summary of his 1978 talk.

His presentations reflected uncertainty running through scientific circles about the details of climate change, such as the role the oceans played in absorbing emissions. Still, Black estimated quick action was needed. “Present thinking,” he wrote in the 1978 summary, “holds that man has a time window of five to ten years before the need for hard decisions regarding changes in energy strategies might become critical.”

Exxon responded swiftly. Within months the company launched its own extraordinary research into carbon dioxide from fossil fuels and its impact on the earth. Exxon’s ambitious program included both empirical CO2 sampling and rigorous climate modeling. It assembled a brain trust that would spend more than a decade deepening the company’s understanding of an environmental problem that posed an existential threat to the oil business.

Then, toward the end of the 1980s, Exxon curtailed its carbon dioxide research. In the decades that followed, Exxon worked instead at the forefront of climate denial. It put its muscle behind efforts to manufacture doubt about the reality of global warming its own scientists had once confirmed. It lobbied to block federal and international action to control greenhouse gas emissions. It helped to erect a vast edifice of misinformation that stands to this day. [Continue reading…]

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The Coca-Cola conspiracy

The New York Times reports: Coca-Cola, the world’s largest producer of sugary beverages, is backing a new “science-based” solution to the obesity crisis: To maintain a healthy weight, get more exercise and worry less about cutting calories.

The beverage giant has teamed up with influential scientists who are advancing this message in medical journals, at conferences and through social media. To help the scientists get the word out, Coke has provided financial and logistical support to a new nonprofit organization called the Global Energy Balance Network, which promotes the argument that weight-conscious Americans are overly fixated on how much they eat and drink while not paying enough attention to exercise.

“Most of the focus in the popular media and in the scientific press is, ‘Oh they’re eating too much, eating too much, eating too much’ — blaming fast food, blaming sugary drinks and so on,” the group’s vice president, Steven N. Blair, an exercise scientist, says in a recent video announcing the new organization. “And there’s really virtually no compelling evidence that that, in fact, is the cause.”

Health experts say this message is misleading and part of an effort by Coke to deflect criticism about the role sugary drinks have played in the spread of obesity and Type 2 diabetes. They contend that the company is using the new group to convince the public that physical activity can offset a bad diet despite evidence that exercise has only minimal impact on weight compared with what people consume.

This clash over the science of obesity comes in a period of rising efforts to tax sugary drinks, remove them from schools and stop companies from marketing them to children. In the last two decades, consumption of full-calorie sodas by the average American has dropped by 25 percent.

“Coca-Cola’s sales are slipping, and there’s this huge political and public backlash against soda, with every major city trying to do something to curb consumption,” said Michele Simon, a public health lawyer. “This is a direct response to the ways that the company is losing. They’re desperate to stop the bleeding.” [Continue reading…]

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What happens when policy is made by corporations? Your privacy is seen as a barrier to economic growth

Evgeny Morozov: With all eyes on Greece, the European parliament has quietly passed a non-binding resolution on the Transatlantic Trade and Investment Partnership (TTIP), the controversial trade liberalisation agreement between the United States and Europe. Ironically, it did so a few hours after lecturing Alexis Tsipras, the Greek leader, about the virtues of European solidarity and justice.

If enacted, TTIP, along with two other treaties currently under negotiation– the Trade in Services Agreement (TISA) and the Trans-Pacific Partnership agreement (TPP) – will considerably limit the ability of governments to rein in the activities of corporations; all three treaties have predictably triggered much resistance.

The European parliament’s resolution seeks to eliminate the main point of contention between the US and Europe. While many Europeans object to the very idea of creating an international tribunal, where corporations can sue governments for passing business-unfriendly laws, the European parliament has proposed to turn this tribunal into a public European institution. Some such institutions do have teeth – consider the recent “right to be forgotten” judgment from the European court of justice – but this can’t be taken for granted. [Continue reading…]

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World Bank’s business-lending arm backed palm oil producer amid deadly land war

ICIJ and the Huffington Post report: Glenda Chávez walks between the orange trees of her family’s grove, approaching a low wire fence that divides her property from Corporación Dinant’s Paso Aguán plantation. On Dinant’s side of the fence, rows of spiky palm oil trees stretch for miles across the green landscape of northern Honduras.

“Here,” she says in a soft, determined voice, pointing to a spot on her side of the fence where a search party found the last traces of her father’s life.

Gregorio Chávez, a preacher and farmer, disappeared in July 2012. Hours later, men from their peasant community found the machete he’d taken with him to tend to his vegetables. The men also found drag marks in the dirt leading toward Dinant’s property, Glenda says.

Four days after Gregorio Chávez disappeared, searchers discovered the preacher’s body on the Paso Aguán plantation, buried under a pile of palm fronds. He had been killed by blows to his head, and his body showed signs that he may have been tortured, according to a government special prosecutor investigating his death. Glenda and the other villagers immediately suspected he had been killed for speaking out from the pulpit against Dinant, their adversary in a battle over ownership of land that the company long ago incorporated into its vast palm oil operations.

“These plantations are bathed in blood,” Glenda Chávez says. “Not only has my father died, but more than 100 peasants have died in defense of the land.”

Special prosecutor Javier Guzmán says security guards employed by Dinant are “the leading suspects” in Gregorio Chávez’s killing, but no one has been charged in the case. The company vigorously denies it had anything to do with his death.

The preacher’s death was one of 133 killings that have been linked to the land conflicts in Honduras’ Bajo Aguán valley, according to Guzmán, who was appointed by the federal government to investigate the wave of violence that has ripped through the area in recent years. The circumstances of these deaths remain fiercely disputed in a struggle that has pitted Dinant and other large corporate landholders against peasant collectives, with both sides involved in violence that has at times turned gruesome.

The conflict has drawn international scrutiny in part because Dinant, one of its central protagonists, has been financed by the World Bank Group.

Dinant was backed by the International Finance Corporation, an arm of the World Bank conglomerate that lends to private companies. The IFC supported Dinant, one of Central America’s biggest palm oil and food producers, throughout the recent land conflicts. It provided $15 million directly to Dinant in 2009 and later channelled $70 million in 2011 to a Honduran bank that was one of Dinant’s largest financiers.

In doing so, the IFC aligned itself with one of the key players in a deadly civil conflict, staking its money and reputation on a powerful corporation with a questionable history. The IFC ignored easily obtainable evidence that should have warned it away from doing business with Dinant, the lender’s internal ombudsman later found. [Continue reading…]

Last December, Jeff Conant reported: As one of the fastest growing global commodities, palm oil has recently earned a reputation as a major contributor to tropical deforestation and, therefore, to climate change as well.

About 50 million metric tons of palm oil is produced per year – more than double the amount produced a decade ago – and this growth appears likely to continue for the foreseeable future. Because oil palm trees, native to West Africa, require the same conditions as tropical rainforests, nearly every drop of palm oil that hits the global market comes at the expense of natural forests that have been, or will be, burned, bulldozed and replaced with plantations.

With deforestation garnering headlines due to forests’ crucial role in regulating the climate, global commodity producers, from Nestle and Unilever in Europe, to Cargill in the United States to Wilmar International in Indonesia, are recognizing the need to provide products that are “deforestation-free.” Other corporate-led initiatives like the public-private Tropical Forest Alliance that promises to reduce the deforestation associated with palm oil, soy, beef, paper and pulp, and the recent New York Declaration on Forests signed at the UN Climate Summit in New York, suggest that saving the world’s forests is now squarely on the corporate sustainability agenda.

But what is being left behind is the other significant impact of palm oil and other agro-industrial commodities – namely human rights. Commitments to protect forests and conservation areas can, if well implemented, address environmental concerns by delimiting the areas of land available for conversion to palm oil. But natural resource exploitation is inextricably linked to human exploitation, and such commitments do little to address this.

A case in point is Grupo Dinant, a Honduran palm oil company that declared last month that it has been awarded international environmental certifications for its achievements in environmental management and occupational health and safety. Dinant has also been making overtures toward joining the Roundtable on Sustainable Palm Oil (RSPO), including hosting the RSPO’s 4th Latin American conference in Honduras in 2013. But, Dinant, which produces about 60 percent of the palm oil in Honduras, is at the center of what has been called “the most serious situation in terms of violence against peasants in Central America in the last 15 years.” [Continue reading…]

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How a corporate cult captures and destroys our best graduates

George Monbiot writes: To seek enlightenment, intellectual or spiritual; to do good; to love and be loved; to create and to teach: these are the highest purposes of humankind. If there is meaning in life, it lies here.

Those who graduate from the leading universities have more opportunity than most to find such purpose. So why do so many end up in pointless and destructive jobs? Finance, management consultancy, advertising, public relations, lobbying: these and other useless occupations consume thousands of the brightest students. To take such jobs at graduation, as many will in the next few weeks, is to amputate life close to its base.

I watched it happen to my peers. People who had spent the preceding years laying out exultant visions of a better world, of the grand creative projects they planned, of adventure and discovery, were suddenly sucked into the mouths of corporations dangling money like angler fish.

At first they said they would do it for a year or two, “until I pay off my debts”. Soon afterwards they added: “and my mortgage”. Then it became, “I just want to make enough not to worry any more”. A few years later, “I’m doing it for my family”. Now, in middle age, they reply, “What, that? That was just a student fantasy.” [Continue reading…]

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How to save jobs and destroy the planet

If I was invested with the powers of a dictator, I’d be especially ruthless in one particular way: I’d show no mercy to those guilty of crimes against language.

No, I wouldn’t be another Bryan Henderson — the Wikipedia editor who has a vendetta against the phrase “comprised of.”

The guilty, in my book, are not those who fail to bow in obeisance to the mythical gods of grammar. What I view as an inexcusable abuse of language is to regard it as nothing more than a tool of deception.

The people who specialize in this corrupt art, work in advertising, public relations, and politics, and they create things like this:

The American Progressive Bag Alliance.

Plastic bags — fluttering down windswept streets, getting caught in branches, blocking drains, choking animals, poisoning groundwater, and colonizing oceans — might seem to have a life of their own. Apparently they are now also demanding political rights and claim they are progressive.

It turns out, however, that APBA is not an alliance of bags, but instead (predictably) it represents the transnational corporate power and interests of the plastics industry:

  • Advance Polybag, Inc. – bag manufacturer
  • The Dow Chemical Company – resin maker
  • ExxonMobil Corporation – HDPE resin maker
  • Hilex Poly Co., LLC. – bag manufacturer, co-founder
  • Inteplast – bag manufacturer
  • NOVA Chemicals, Inc. – polyethylene manufacturer
  • Superbag Corporation – bag manufacturer
  • Total Petrochemicals USA – polyethylene manufacture
  • Unistar Plastics, LLC – bag manufacturer

I imagine that those came up with the name American Progressive Bag Alliance, have to drug themselves to sleep — and probably drug themselves at work, too. Either that, or through a self-administered lobotomization which cuts out principles for the sake of career, the conscience they were born with, withered away a long time ago.

If, like me, you’ve never heard of this alliance before, Bill Raden explains what they have done:

Just when Californians were getting used to the idea of living without getting free, single-use grocery bags at the supermarket checkout, Secretary of State Alex Padilla recently announced that a referendum effort aimed at rescinding the plastic bag ban signed into law by Governor Jerry Brown in September had qualified for the 2016 ballot. Pending the results of next year’s vote, the announcement effectively suspends the July 1 implementation of the measure, Senate Bill 270, which would have been the first statewide bag ban in the nation. (Citywide bans, such as those passed in Los Angeles and San Francisco, will remain in place.)

Padilla’s office says that a random sampling found that the measure’s supporters collected at least 555,236 valid signatures — more than the 504,706 needed. Ironically, Padilla had been a key force behind the passage of SB 270, when he was in the State Senate.

Californians currently use about 11 billion disposable plastic shopping bags annually with a market value that the plastic bag industry estimates at between $100 million to $150 million. Those sales will now be secure for an additional 15 months.

The effort to put the so-called “people’s veto” onto the ballot was mounted by the American Progressive Bag Alliance, the same industry consortium that bitterly fought passage of the ban.

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The East India Company: The original corporate raiders

William Dalrymple writes: One of the very first Indian words to enter the English language was the Hindustani slang for plunder: “loot”. According to the Oxford English Dictionary, this word was rarely heard outside the plains of north India until the late 18th century, when it suddenly became a common term across Britain. To understand how and why it took root and flourished in so distant a landscape, one need only visit Powis Castle.

The last hereditary Welsh prince, Owain Gruffydd ap Gwenwynwyn, built Powis castle as a craggy fort in the 13th century; the estate was his reward for abandoning Wales to the rule of the English monarchy. But its most spectacular treasures date from a much later period of English conquest and appropriation: Powis is simply awash with loot from India, room after room of imperial plunder, extracted by the East India Company in the 18th century.

There are more Mughal artefacts stacked in this private house in the Welsh countryside than are on display at any one place in India – even the National Museum in Delhi. The riches include hookahs of burnished gold inlaid with empurpled ebony; superbly inscribed spinels and jewelled daggers; gleaming rubies the colour of pigeon’s blood and scatterings of lizard-green emeralds. There are talwars set with yellow topaz, ornaments of jade and ivory; silken hangings, statues of Hindu gods and coats of elephant armour.

Such is the dazzle of these treasures that, as a visitor last summer, I nearly missed the huge framed canvas that explains how they came to be here. The picture hangs in the shadows at the top of a dark, oak-panelled staircase. It is not a masterpiece, but it does repay close study. An effete Indian prince, wearing cloth of gold, sits high on his throne under a silken canopy. On his left stand scimitar and spear carrying officers from his own army; to his right, a group of powdered and periwigged Georgian gentlemen. The prince is eagerly thrusting a scroll into the hands of a statesmanlike, slightly overweight Englishman in a red frock coat.

The painting shows a scene from August 1765, when the young Mughal emperor Shah Alam, exiled from Delhi and defeated by East India Company troops, was forced into what we would now call an act of involuntary privatisation. The scroll is an order to dismiss his own Mughal revenue officials in Bengal, Bihar and Orissa, and replace them with a set of English traders appointed by Robert Clive – the new governor of Bengal – and the directors of the EIC, who the document describes as “the high and mighty, the noblest of exalted nobles, the chief of illustrious warriors, our faithful servants and sincere well-wishers, worthy of our royal favours, the English Company”. The collecting of Mughal taxes was henceforth subcontracted to a powerful multinational corporation – whose revenue-collecting operations were protected by its own private army.

It was at this moment that the East India Company (EIC) ceased to be a conventional corporation, trading and silks and spices, and became something much more unusual. Within a few years, 250 company clerks backed by the military force of 20,000 locally recruited Indian soldiers had become the effective rulers of Bengal. An international corporation was transforming itself into an aggressive colonial power. [Continue reading…]

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