The Exploitation of Mexico's Water Resources, People, and Government

International commercial corporations have incredible amounts of power to influence people worldwide, both culturally and financially. Although the effects of their presence vary depending on the country or region, they are usually harmful. The Coca Cola Company is one business that has taken the size of their bottom line to the extreme. Since its establishment in Mexico, the Coca Cola Company has abused its monopolistic power and exploited the Mexican people and Mexico’s natural resources.  The detrimental effects that Coca Cola has yielded upon Mexico has, over the past two decades, established a national health problem and crippled soft drink competitors, as well as cheated the Mexican government and Coca Cola employees out of millions of tax dollars.  

Due to the fact that potable water is limited in Mexico, it has always been difficult to supply every citizen with water. This issue has been exacerbated by Coca Cola’s greed as it privatizes as many water sources as possible by pressuring Mexico to manipulate its zoning laws (The Alternative Report). It takes at least two liters of water to produce one liter of soda. Since Coca Cola has reduced the abundance of water sources, there is an even greater need than ever before, with twelve million people [about eleven percent of the population] without access to drinkable water (The Alternative Report). “The impact that Coca-Cola has had on the water supply in Mexico, and more specifically in Chiapas, is astounding, and has created a crisis that shows no sign of improving” (Wooters). It is obvious that many Mexicans have resorted to one of the only sources of clean drinking water: soft drinks. Unfortunately, many Mexicans are unaware of how unhealthy, even dangerous, it can be to regularly drink large amounts of soda. As an example of how influential Coca Cola is that “struggling people, unaware of the ill effects of the soft drinks, will sell the healthy things that they grow on the land, like corn, beans and eggs from chickens to buy cola, which they eventually become addicted to” (Coke's Crimes). This resource monopolization simultaneously creates a scarce water supply and a conveniently abundant Coke supply. It is estimated that one in ten Mexicans have developed chronic health problems such as obesity, diabetes, or high blood pressure from excess consumption of products such as Coca Cola, which contains high fructose corn syrup. Problems such as these are not easily remedied and will negatively influence the health of the Mexican people for decades to come.   

            Coca Cola has not only been a hindrance to the health of Mexican citizens, but also financially impacted the government and their own employees. Mexico has a law stating that corporations must distribute ten percent of their profits among their employees. In order to avoid distributing millions of dollars in profits to their Mexican workers, Coca Cola found a more lucrative solution:

The Coca-Cola Export Corporation created a new company in 1986. This new company, a wholly owned subsidiary of The Coca-Cola Export Corporation was named Integrated Services Management and Senior Management (SIAAGSA). The Coca-Cola Export Corporation then fired all its employees in Mexico and hired them back immediately into SIAAGSA. SIAAGSA will always show little to no profit. (Coke's Crimes)

Absurd and callous actions such as these have seriously hindered Mexico’s economy. The millions of tax dollars and profit percentages that Coca Cola has withheld from the Mexican government and Coca Cola employees through the past twenty-five years would have given Mexico the boost it had needed to recover from the severe recession in the 1980s. Additionally, such funds would have made it possible for the Mexican government to establish more civil services and citizen benefits. The loss of tax revenue and some citizens has negatively impacted Mexico’s economy to the point where monopoly powers such as Coca Cola are more powerful than the government in some areas. If Coca Cola continues to gain power and influence over Mexico's government in order to cheat the people out of their money, the company will financially ruin Mexico in the near future.

           

            Aside from diminishing Mexico’s revenue, Coca Cola also undermines weaker competitors. This corporation is unjustly monopolizing the market by preventing independent and small chain soft drink producers from making a profit. When a small soft drink chain named Big Cola began stocking local stores with their products in 2002, Coca Cola reacted aggressively. “Coca-Cola decided to kill off this upstart business by unleashing an aggressive and illegal marketing effort - providing incentives for shop owners to remove competing brands and threatening to punish them if they didn't” (Coke's Crimes). This type of explicit abuse is deplorable because it discourages small businesses and promotes monopolies such as Coca Cola. Marketing is a necessary aspect of business, but ensuring sales by removing other brands in thousands of stores throughout Mexico is plainly illegitimate. Coke's sales force would order shop owners to remove Big Cola or else lose all promotional gifts and offers and eventually lose their coolers and be cut off from renewing supplies of Coke” (Coke's Crimes). Coca Cola is a huge, monopolistic monster that undermines the business endeavors of competitors by illegal means. It will stop at nothing to reach its goal of making the largest profit possible. This indicates that entrepreneurs and small bussiness owners must either side with Coca Cola or be financially ruined. The Coca Cola monopoly will destroy anyone who stands in its way and that will eventually be Mexico altogether.

            The Coca Cola Company has ruthlessly exploited the Mexican land and people for more than two decades. By taking advantage of Mexico’s limited water supplies and scheming to prevent their precious profits from being distributed fairly among their hardworking employees, Coca Cola is destroying a nation’s natural resources and its economy. Although it is impossible to determine how severely Coca Cola has negatively impacted Mexico through its selfish exploitation, it is clear that this company cares only about their overall profit and not about its detrimental impact in countries with weak economies and governments, such as Mexico. Despite the severity of these issues, it appears that Coca Cola will continue taking advantage of the Mexican people, who will suffer from these health and economic effects for many decades to come. Unfortunately, by the time the Mexican people realize how detrimental Coca Cola is for them, for their health and economy, the company will have done permanent damage. Unless the Coca Cola monster is tamed immediately, Mexico will experience a long downward spiral, and at the bottom will be the end of Mexico and Coca Cola will continue monopolizing other countries across the globe.  

"Coca-Cola: The Alternative Report." War on Want. N.p., 30 Nov. 2005. Web. 5 May 2011. <www.waronwant.org/attachments/Coca-Cola%20-%20The%20Alternative%20Report.pdf>.

"Coke's Crimes in Mexico." Killer Coke. N.p., n.d. Web. 5 May 2011. <killercoke.org/crimes_mexico.php>

Wooters, Monica. "Coca-Cola and Water Resources in Chipas." CASA. N.p., n.d. Web. 4 May 2011. <www.casacollective.org/story/newsletter/coca-cola-and-water-resources-chiapas >.

Liz Newton