Workshop on International Law, Natural Resources and Sustainable
Development
Holding Multinational Companies Accountable in the Midst of State Fragilities: Towards a
Global Legal Framework
Savior Mwambwa
Tax Justice Network, Nairobi
Multinational Companies (MNCs) have increasingly become significant actors in the politicaleconomics of nation states world over. Governments more so in developing countries are
increasingly opening up their trade and investment regimes with a view to attracting MNCs
induced Foreign Direct Investment (FDI). Most developing countries have seen positive
flows in the volumes of investment flows attributed to MNCs. However MNCs activities in
developing countries and elsewhere are not fraught with controversies including questions
around negative environmental as well as human rights violations in communities where
they operate.
This paper discusses the effectiveness and limitations of current international regulatory
mechanisms in effectively holding MNCs accountable for their negative social, political and
economic consequences in countries and communities they operate in. Using real life case
studies from Zambia, the paper will demonstrate that state-ist approaches and existing
isolated international mechanisms to regulating activities of MNCs are ineffective.
The paper proposes a Global Legal Framework for Regulating MNCs as the solution to
effectively holding MNCs accountable for the Environmental, Social and Political
consequences of their actions. The paper will explore the various options of how such a
global legal framework can come to fruiting using existing institutions and mechanisms as
possible building blocks.