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Bhopal
Introduction | Crucial elements | Alternative theories | Silver linings? | Find out more
Silver linings?
Tragically, there is no silver lining to the poisonous cloud that was the Bhopal gas disaster. Despite years of campaigning, the victims of the tragedy are still denied justice. Financial compensation for their losses has been derisory; current health programmes are inadequate. According to environmental groups, the Bhopal site remains contaminated with toxic waste, and studies have revealed the presence of poisonous chemicals in the water of community wells near the site of the Union Carbide factory.
Inadequate compensation
In 1986, a case filed against Union Carbide by the Indian government was moved from the US to India for jurisdictional reasons. This meant that any damage awards would be relatively low.
More than half a million people have injury claims before the compensation courts in Bhopal. Of those who have had their claims processed, 90% have been awarded a mere $400 for their personal injuries barely enough to cover five years of medical expenses. Nearly 200,000 people affected by the accident have yet to be compensated.
The cost paid so far has not made a significant impact on the value of Union Carbide. In 1989, when a settlement between the firm and the Indian government was reached, Union Carbide summed up its view of the price of Bhopal in its annual report. It told shareholders that compensation payments had cost them 43 cents a share; however, when the settlement was announced, the value of the firm's stock rose by $2 a share.
A lack of justice
In 1992, six years after the civil case between the Indian government and Union Carbide had been settled, a criminal case was launched in India against the firm and its former chief executive, Warren Anderson. It is still pending.
In 1999, a group of Bhopal survivors filed a lawsuit in New York against Union Carbide and Anderson. The case was dismissed, although the matter is subject to appeal. The fact that Union Carbide no longer exists as a corporate entity it merged with Dow Chemicals in 2001 is likely to complicate the legal process, since Dow refuses to accept that Union Carbide had outstanding criminal liabilities.
Multinational power
According to human rights groups, the outlook for workers and communities harmed by multinational companies remains bleak. Because they are not nation-states, such firms may not be liable under international law, including human rights law. The fact that many are richer and more powerful than most nation-states is ignored.
Victims who wish to bring multinational companies to justice under local law also face considerable obstacles. In many cases, the victims lack the funding to pursue legal cases through the courts, or they fail to pursue such cases because they fear persecution.
CorpWatch, a group that monitors the activities of corporations worldwide, says that even where codes of conduct for corporations do exist, they are difficult to enforce: 'In part, this difficulty stems from the transnational corporations' [TNCs'] rising economic and political power. More than 40,000 TNCs, with approximately 250,000 foreign affiliates, dominate the international economy accounting for two-thirds of global trade in goods and services.'
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Introduction | Crucial elements | Alternative theories | Silver linings? | Find out more
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