Silent Coup

1. Corporate justice systems threaten democracy globally

Will the rights of private investors be enforced, he asked, 'against the wishes' of these people?

Investor-state dispute settlements. This system allows corporations to sue governments in private tribunals for policies that impact their profits. It effectively gives companies power over democratic decision-making on issues like environmental protection and public health. The system originated in the 1950s, championed by German banker Hermann Abs, and has since expanded globally through thousands of trade agreements.

Cases against governments. Examples include:

• Pacific Rim mining company suing El Salvador for $250 million after being denied a permit due to environmental concerns
• Vattenfall suing Germany for billions over nuclear power plant closures
• Philip Morris suing Australia and Uruguay over cigarette packaging laws

Chilling effect on policy. The mere threat of expensive lawsuits can deter governments from enacting public interest regulations. This "regulatory chill" undermines democracy by prioritizing corporate interests over the will of citizens.

2. International aid often benefits corporations more than the poor

'We are the world's biggest NGO ... The only difference is, we're making money so we are sustainable.'

Aid-funded business. Much foreign aid never reaches poor countries directly. Instead, it flows through a network of contractors and subcontractors, often benefiting companies from donor countries. In the UK, over 90% of aid contracts went to British companies in 2014.

Corporate welfare. Development finance institutions like the World Bank's International Finance Corporation (IFC) provide loans and investments to private companies, ostensibly to spur development. However, many investments support projects with questionable development impacts:

• Luxury hotels and shopping malls
• Private hospitals catering to elites
• Expanding operations of multinational corporations

Aid tied to corporate interests. Historical examples like the Pergau Dam scandal in Malaysia show how aid has been used to advance business interests rather than poverty reduction. Though policies have changed, corporations still heavily influence aid spending priorities.

3. Special Economic Zones carve out corporate-controlled territories

'We are living the conflict,' she told us, 'and the threats we receive from paramilitaries are always for this, that they're going to kill us because we're working with campesinos, because we're training them to defend their land, for these kinds of things'.

Proliferation of zones. Over half the world's countries have established Special Economic Zones (SEZs) - areas where normal business and trade laws don't apply. These zones offer tax breaks, lax regulations, and cheap labor to attract foreign investment. An estimated 66 million people work in over 3,500 zones globally.

Corporate governance. Many SEZs are privately owned and operated, effectively ceding government authority to corporations. Some even have their own security forces and legal systems. Examples include:

• Shenzhen SEZ in China
• Aqaba Special Economic Zone in Jordan
• Honduran ZEDEs ("model cities")

Social and environmental costs. While touted as drivers of development, SEZs often displace local communities, exploit workers, and circumvent environmental protections. They represent a alarming trend of corporations carving out territories beyond democratic control.

4. Private security forces expand corporate power and influence

'It is extremely difficult', wrote other academics from the University of Leicester in the UK, 'to grasp either the activities or the true scale' of this industry due to a 'veil of secrecy around its activities that is only occasionally lifted'.

Booming industry. The global private security market was worth an estimated $180 billion in 2015, projected to reach $240 billion by 2020. In many countries, private security personnel outnumber police officers.

Privatization of force. Corporations increasingly rely on private military and security companies (PMSCs) to protect their interests, especially in unstable regions. This blurs the line between corporate and state power. Notable examples:

• G4S, world's largest security company, employs over 500,000 people
• Blackwater (now Academi) infamous for role in Iraq War
• DynCorp contracted to train Liberia's entire army

Lack of accountability. PMSCs operate with limited oversight and regulation. Their activities are often shrouded in secrecy, making it difficult to hold them accountable for human rights abuses or other misconduct.

5. Nuclear weapons programs perpetuate corporate control

These privatisations reflected broader trends as states outsourced a widening variety of activities and responsibilities.

Privatized nuclear complex. Much of the US nuclear weapons infrastructure is now run by private contractors under a "GOCO" (Government Owned, Contractor Operated) model. Key facilities include:

• Los Alamos National Laboratory (managed by Bechtel-led consortium)
• Lawrence Livermore National Laboratory
• Y-12 National Security Complex

Profit-driven management. Critics argue that private management prioritizes profit over safety and science. Issues include:

• Cost overruns and mismanagement
• Safety violations and accidents
• Retaliation against whistleblowers

Perpetuating nuclear threats. Private contractors have a vested interest in maintaining and expanding nuclear weapons programs, regardless of public opinion or strategic necessity. This corporate influence shapes nuclear policy and undermines democratic control over these existential threats.

6. Historical roots of corporate empires trace back to colonialism

'Because we were born here and grew up here, we're used to having guns around', one young woman who we met in town told us. 'You realise that it is a strange place to live only when you leave … in many cases these weapons kill people.'

Colonial legacy. Many modern multinational corporations have direct links to colonial-era enterprises:

• Unilever traces back to palm oil plantations in Belgian Congo
• De Beers diamond company founded during British colonization of South Africa
• United Fruit Company (now Chiquita) notorious for exploiting Central America

Transition strategies. As formal empires crumbled, corporations and allied government officials developed new strategies to maintain economic control:

• International legal systems to protect foreign investors
• Aid and development programs tied to corporate interests
• Special economic zones to preserve business-friendly enclaves

Ongoing exploitation. Though methods have changed, many argue that the fundamental dynamic of extracting wealth from poorer countries continues through these corporate empires.

7. Resistance movements challenge expanding corporate power

'This is a struggle not only in Bolivia, or Latin America, but throughout the world,' he argued. 'Who do natural resources belong to? The people under the control of their state? Or are they privatised under the control of transnationals so they can plunder our natural resources?'

Grassroots opposition. Communities around the world are organizing to resist corporate encroachment on their land, resources, and democratic rights. Examples include:

• Protests against mining projects in El Salvador
• Indigenous movements opposing oil pipelines in North America
• Campaigns for water rights in Bolivia

Policy changes. Some governments are pushing back against corporate power:

• Ecuador and Bolivia enshrining rights of nature in constitutions
• South Africa reviewing and cancelling investor protection treaties
• El Salvador banning metal mining nationwide

Alternative models. Social movements are also developing alternative economic models that prioritize community control and environmental sustainability:

• Worker-recuperated factories in Argentina
• Community-owned renewable energy projects
• Food sovereignty movements promoting local, sustainable agriculture

8. Media fails to adequately expose corporate takeover of democracy

Many newspapers have correspondents focused on national supreme courts but there are few journalists that so closely cover the international investor-state tribunals that function as a global supreme court.

Limited coverage. Mainstream media often fails to report on the systems and strategies expanding corporate power globally. Key issues receive little attention:

• Details of investor-state dispute cases
• Aid money flowing to corporations
• Privatization of security and military functions

Financial barriers. Much reporting on these topics is confined to specialty publications behind paywalls, inaccessible to the general public.

PR and lobbying influence. Corporate interests actively shape media narratives through:

• Advertising spending
• Sponsorship of "native content"
• Think tanks and lobbying groups providing "expert" commentary

Need for investigative journalism. The authors argue for more robust, independent reporting to expose how corporations are undermining democracy and shaping global governance.

9. Long-term corporate planning outpaces democratic processes

'The main guidelines, the amount of conservation, how wide the buffers have to be, all of that is already approved and set … as I understand it, the damage is done.'

Multi-decade strategies. Corporations and allied think tanks develop long-range plans spanning decades, far beyond typical election cycles:

• 1950s San Francisco conference planning global corporate expansion
• Mont Pelerin Society's long-term promotion of neoliberal ideology
• Corporate scenario planning for climate change impacts

Policy lock-in. Trade agreements and investor protections can bind future governments to corporate-friendly policies for decades:

• NAFTA's 20-year phase-out period
• 50-year land leases in Special Economic Zones
• Energy Charter Treaty's 20-year survival clause

Democratic deficit. Citizens and even elected officials often have limited ability to influence these long-term corporate strategies once set in motion.

10. Corporate welfare systems protect profits at public expense

Crises of faith or lacking trust in democratic institutions from parliaments to the media make sense. Democracy and independence are largely buzzwords that feel hollow – because they were made hollow, over generations with strategic planning, lobbying campaigns and new infrastructure.

Bailouts and subsidies. Governments routinely provide financial support to corporations, particularly during economic crises:

• 2008 bank bailouts
• Ongoing fossil fuel subsidies
• Tax breaks for corporate relocations

Socialized risks, privatized profits. Public money often underwrites corporate risk-taking while profits remain private:

• Nuclear power plant liability limits
• Export credit guarantees for risky overseas investments
• Pandemic vaccine development funded by taxpayers

International institutions. Bodies like the World Bank and IMF promote policies favoring corporate interests:

• Structural adjustment programs pushing privatization
• Loans contingent on investor-friendly reforms
• Technical assistance promoting corporate-led development models

Last updated: May 20, 2025