Making Peace With Power:
 The United Nations is trying to regain credibility by
fawning to big business
31st August 2000
Pity the United Nations, for it is not powerful enough even to be hated. 
While other global bodies are widely reviled, the UN has become little 
more than a joke
Ignored and undermined, its treaties unratified, its fees unpaid, the 
sometime saviour of the world has sunk towards irrelevance. The General 
Assembly is permanently sidelined. The Security Council is heeded only
when its decisions don't interfere with the plans of any of its members. 
Next week's Millennium Summit, the biggest meeting of heads of state in
the history of the world, is likely to be just another scene in an ever 
more ludicrous pantomime.
UN officials have long been aware of their problem. They have spent much 
of the past ten years desperately seeking to be taken seriously by the 
world's great powers. They are in danger, as a result, of exchanging the 
role of clown for the role of villain.
The UN's metamorphosis began at the Earth Summit in 1992. The United 
Nations Centre on Transnational Corporations, which tried to help weak 
nations to protect themselves from predatory companies, had recommended 
that businesses should be internationally regulated. The UN refused to 
circulate its suggestions. Instead the summit adopted the proposals of a 
very different organisation: the Business Council for Sustainable
Development, composed of the chief executives of big corporations.
Unsurprisingly, the council had recommended that companies should 
regulate themselves. In 1993, the UNCTC was dissolved.
In June 1997, the president of the General Assembly announced that 
corporations would be given a formal role in United Nations 
decision-making. Kofi Annan, the UN Secretary General, suggested that he 
would like to see more opportunities for companies - rather than 
governments or the UN - to set global standards. At the beginning of 
1998, the UN Conference on Trade And Development revealed that it was 
working with the International Chamber of Commerce to help developing 
countries "formulate competition and consumer protection law" and to 
facilitate trade. The UN, which until a few years before had sought to 
defend poor countries from big business, would now be helping big
business to overcome the resistance of poor countries. The ICC repaid 
the favour, by asking the world's richest nations to give the UN more 
money.

In January 1999, Mr Annan launched a new agency, called the "Business 
Humanitarian Forum". It would be jointly chaired by the UN High
Commissioner on Refugees and the president of a company called Unocal. 
Unocal was, at the time, the only major U.S. company still operating in 
Burma. It was helping the Burmese government to build a massive gas 
pipeline, during the construction of which Burmese soldiers tortured and 
killed local people. "The business community," Annan explained to
Unocal, Nestle, Rio Tinto and the other members of the new forum, "is 
fast becoming one of the United Nations' most important allies ... That 
is why the organization's doors are open to you as never before."
Two months later, a leaked memo revealed that the UN Development 
Programme had accepted $50,000 from each of 11 giant corporations. In 
return, Nike, Rio Tinto, Shell, BP, Novartis, ABB, Dow Chemical and the 
other companies would gain priveleged access to UNDP offices, acquiring, 
in the agency's words, "a new and unique vehicle for market development 
activities", as well as "world-wide recognition for their cooperation 
with the UN". The UNDP would develop a special UN logo which the 
companies could put on their products.
After fierce campaigning by human rights groups, this scheme was 
suspended. But in July this year, Mr Annan launched a far more ambitious 
partnership, a "Global Compact" with 50 of the world's biggest and most 
controversial corporations. The companies promised to respect their 
workers and the environment. This, Annan told them, would "safeguard 
open markets while at the same time creating a human face for the global 
economy." The firms which signed his compact would be better placed to 
deal with "pressure from single-issue groups". Again, they would be 
allowed to use the UN's logo. But there would be no binding commitments, 
and no external assessment of how well they were doing.
The UN, in other words, appears to be turning itself into an enforcement 
agency for the global economy, helping western companies to penetrate 
new markets while avoiding the regulations which would be the only 
effective means of holding them to account. By making peace with power, 
the United Nations is declaring war upon the powerless.