A R C H I V E S
Madinat al-Muslimeen Islamic Message Board
| Nestle and Ethiopia |
|---|
| jannah |
| 01/11/03 at 14:37:45 |
| Subject : Nestle and Ethiopia Date : Thu, 19 Dec 2002 Nestle claims £3.7m from famine-hit Ethiopia Charlotte Denny Thursday December 19, 2002 The Guardian The multinational coffee corporation, Nestle, is demanding a $6m (£3.7m) payment from the government of the world's poorest state, Ethiopia, as the country struggles to combat its worst famine for nearly 20 years. The money is compensation for an Ethiopian business which the previous military government nationalised in 1975. It could feed 1 million people for a month, according to Oxfam. The cash-strapped Ethiopian government has offered to pay $1.5m to settle the claim, but yesterday Nestle, which bought the firm's German parent company in 1986, was standing by its demand, insisting it was a "matter of principle". "In the interest of continued flows of foreign direct investment which is critical for developing countries, it is highly desirable that conflicts are resolved according to international law and in a spirit of fairness," a spokesman for the company said. Nestle's chief executive, Peter Brabeck-Letmathe, acknowledged three years ago that the company had responsibilities beyond its bottom line. "We are going to be asked: what have you done to fight hunger in developing countries?" he said. Last month Ethiopia's prime minister Meles Zenawi said that 6 million people in his country needed emergency food aid and that the number could rise to 15 million within months. The famine, brought on by the failure of rains for the third year in a row has been intensified by a collapse in the price of coffee which supports a quarter of the country's population. Nestle, the world's largest coffee processor made $5.5bn in profits last year. Aid agencies have reacted furiously to the company's demand. "At the very least Nestle ought to be accepting the settlement offered by the Ethiopian government," said Sophia Tickell, a policy analyst at Oxfam. "But frankly they should be thinking about how the money could be spent on famine relief and drop the claim altogether." Ethiopia has the lowest income per head in the world, with the average person surviving on $100 a year. More than a tenth of its children die before their first birthday. Aid agencies are worried that the crisis could be even worse than the 1984 disaster in which a million people died. "Drought is threatening many farmers with the prospect of famine," Ms Tickell said. "Nestle, by contrast continues to thrive. The company does not need $6m. It is a highly profitable company which could easily live up to its commitment to 'help fight hunger in developing countries' by writing off this claim." The World Bank has stepped in to negotiate, but there were few signs yesterday that the company was preparing to back down. "This is a question of principle. The negotiations are ongoing and it would be rash to predict an outcome at the moment," Francois Perroud of Nestle said. In 1986 Nestle bought a German company, Schweisfurth Group which had a majority share in the Ethiopian Livestock Development Company (Elidco) seized by the Ethiopian government more than 25 years ago. The government sold Elidco to a local firm for $8.7m four years ago. Although the exact size of Schweisfurth's share in Elidco is uncertain, the Ethiopian government is willing to pay$1.5m - just over half the value of the company at the time of nationalisation including interest. But Nestle is insisting it convert the payment at 1975 exchange rates, adding a further $4.5m to the bill. "It is perfectly appropriate to try and find a solution to a conflict which has existed since 1975," Mr Perroud said. "We are the owners of a claim against the Ethiopian government." |
| Re: Nestle and Ethiopia |
|---|
| panjul |
| 01/11/03 at 17:04:21 |
| [slm] Agh! That really sickened me. No nestle products for my family. I would feel too guilty. >:( >:( >:( >:( >:( >:( >:( >:( |
| Re: Nestle and Ethiopia |
|---|
| sofia |
| 01/12/03 at 21:09:48 |
| As-salaamu 'alaikum wa rahmatullah, [Disclaimer: this has nothing to do with any particular fatwa. Actually, I haven't even heard/read any regarding this topic, although I'm sure they're out there. This is not what this topic is about.] I know some people have issues with the term "boycott," so insh'aAllah I won't use it. Forgive me for my lack of a good thesaurus. One of the websites that called for a, uhh, cease in buying items from certain companies had Nestle on that list. http://www.inminds.co.uk/boycott-brands.html Ignore the b-word. Just click on the company brands/FAQs to see why they're on the list. There have been many lists of companies going around, but I would disregard the ones that don't specifically point out what's wrong with the companies listed. If you don't happen to think there's anything wrong with the views of any particular brand/company's CEO/Chairperson, then by all means, continue to support them with your $. If you do have a problem with the ideology these folks support, than thank God that you live in the Capitalist Capital of the world (if you're in the US), where you have waaay too many choices when it comes to brand names (let alone generic labels). Even compared to Europe, you won't see as many brands of say, shampoo, as you will here. Personally, I've never felt pressed about dropping a few brand names, given this embarrassing amount of choices we have. This message is not about a ban of all-things-Western (that's a somewhat separate issue). Just by living in the US (if you do), we basically accept a government that not only condones, but supports certain things we're against (like occupation), and uses our tax $ to support it. We all know this, and may Allah forgive us. What I am suggesting is thinking about where we put our $ voluntarily ("voluntary" being a relative term here). I wouldn't suggest it if we didn't have other choices. What makes the world go 'round for Capitalists? Um, that would be your $$$. And I'm fine with that under "normal circumstances," but I'm also pro-informed consumerism. Important note: A "suspension" does not mean that a company has to experience a 100% loss in order for it to be considered a successful "suspension." Especially during this time (ie, there's sort of an economic crisis going on), every dollar counts for companies. And on a personal level, just because we can't be perfect in doing any one act we believe is right, does not mean we should do away with doing that act all together. The "cease" in buying from certain companies (and other economy-related issues) has already had an affect on even the biggest companies on the list, with or without our "collective effort." Laa hawla wa laa quwwata illa billaah. Forgive me if I've offended, there is no compulsion, obviously. Just some food for thought. "Gandhi, the Indian freedom fighter who preached against violence, employed a boycott of British goods as a weapon against the British Empire. He showed the British that they were more dependent on their colony then the colonized were on them, and he became one of the first leaders of a country freed from imperialism. Perhaps the most famous boycott is that imposed over forty years on the racist regime in South-Africa, economically, culturally, politically. That boycott eventually resulted in the mobilization of political factors the world over which finally overthrew the apartheid regime. (2) The American 1960s civil rights movement started with a boycott by African- Americans of the Alabama busing system. Suddenly the same system that imposed their oppression, forcing them to the back, discovered itself crippled by its dependency on black customers." http://listproc.ucdavis.edu/archives/twf/log0210/0108.html Coke competitors on the rise (looks like there's already a desperate surge in new Coke ads) http://news.bbc.co.uk/2/hi/middle_east/2640259.stm Downward trends for some brands http://moneycentral.msn.com/content/CNBCTV/Articles/Dispatches/P31817.asp |
| NS |
| 01/12/03 at 21:13:49 |
| sofia |
Madinat al-Muslimeen Islamic Message Board |