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«THE “BUSINESS” OF STATE-BUILDING: THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON STATE DEVELOPMENT IN EQUATORIAL GUINEA By JOSEPH R. KRAUS A ...»

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THE “BUSINESS” OF STATE-BUILDING:

THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON STATE

DEVELOPMENT IN EQUATORIAL GUINEA

By

JOSEPH R. KRAUS

A DISSERTATION PRESENTED TO THE GRADUATE SCHOOL

OF THE UNIVERSITY OF FLORIDA IN PARTIAL FULFILLMENT

OF THE REQUIREMENTS FOR THE DEGREE OF

DOCTOR OF PHILOSOPHY

UNIVERSITY OF FLORIDA

© 2010 Joseph R. Kraus To my family

ACKNOWLEDGMENTS

The ideas outlined in this dissertation benefited tremendously from the insights, comments, and suggestions of my dissertation committee: Abe Goldman, Staffan Lindberg, Ido Oren, Benjamin Smith, and Leonardo Villalón. A special thank you to Staffan Lindberg, who provided a much needed boost to this project when it was still trying to get off the ground. I wish to extend a very special thank you to Leonardo Villalón, whose thoughtfulness, generosity of spirit, boundless enthusiasm, compassion, and acceptance provided priceless inspiration, motivation, and above all, the freedom to take risks. It is not for me to decide whether the final product lives up to the high regard Leo constantly maintained for my abilities and the potential of this research project;

what I can calculate, and most likely never adequately repay, is the sizable debt of gratitude I owe Leo for his endless faith in me and this study. I would also like to thank Goran Hyden, who graciously and skillfully guided me through the formative years of my graduate education, and more importantly, provided an example of what it means to be both a gentleman and a scholar. All of these individuals helped to improve the quality of this study, and any shortcomings or flaws are entirely the result of my own willfulness, mindlessness, or senselessness.

I wish also to extend a very heartfelt thank you to the University of Florida, and in particular the Department of Political Science, for providing me with four years of fellowship funding as well as several grants in support of fieldwork and conference travel, and for providing an excellent learning environment in which to broaden one’s intellectual horizons. Thank you to the faculty and staff of the Department of Political Science for providing a pluralistic and supportive environment in which to hone one’s academic and intellectual tools. Very special thanks go to Sue Lawless-Yanchisin, Debbie Wellen, and Andrew Blaire, whose creativity, persistence, and resourcefulness in helping to solve any number of crises big and small were instrumental in guiding me through a multitude of administrative and bureaucratic hurdles over the past seven years. Without their tireless efforts and reliably cheery dispositions, the UF Political Science Department would be a less supportive and effective place. Thanks also to Anca Grigore and Patricia Root for their helpful support.

I owe a debt of gratitude to my entire family, most especially my parents Donna and Joe Hirt, and Jim Kraus, and siblings—Barbara, Joanne, Karen, Dawn, and John— for their constant love and support, even across the great geographical barriers I frequently erected between us. I would like to give special thanks to my sisters Karen and Joanne. A woefully inadequate “thank you” goes to Karen, for alternating between being lighthouse, life raft, anchor, accountant, postmaster, safe harbor, ship therapist, and vicarious stowaway on the voyage of my life. Without your support, advice, and cheerleading it would have been far less enjoyable, fulfilling, plausible, and meaningful.

Thanks go to Joanne for unquestioningly and uncomplainingly going out of her way to provide support, even when it wasn’t always deserved. To my Mom, who has always loved me fiercely and demonstrated an inner strength that personifies courage in action, I owe a debt of gratitude too large to ever fully repay. I may have mustered the mix of courage and foolishness it takes to travel the world, but the courage and fortitude my mother has repeatedly shown in the face of true adversity are the real deal. I owe a special thank you to Joe Hirt, a man whose greatness I appreciate a little more each day. He was a study in how to lead by example and to bear one’s burdens in silent dignity, art forms I’ll spend my life seeking to emulate. I would also like to thank Joe Schulte and Wally Schumer for their boundless patience and generosity.

Special thanks are due my niece Katie and nephew Michael, for harassing me to dedicate this dissertation to them (since they are family, technically I did), for guarding “The Mug,” and for being all around great people who consistently keep me laughing.

Katie, ever her witty self, put the PhD experience into perspective when I mentioned that it’s taken seven years to finish: “seven years... man... let’s see… first year I was 12… that would be like sixth grade… so I graduated from elementary school, and high school, and now two years of college. In addition, I have traveled to 14 new states, had two sets of dogs, gone through three cars, five boyfriends, and moved twice… while you ‘worked for your PhD.’" Thanks to my nephew Jon for reminding me of the fun associated with throwing a baseball and discussing the minutiae of sports trivia. I would like to thank my nieces and nephews Mary, Alex, Matt, Jason, Tiffany, Angela, Brandon, and Jasmine for being wonderful people that inspire me, each in their own way, and for not forgetting the uncle who always lives somewhere over the horizon.





A very special thank you to Jennifer Forshee for helping to unleash, nurture, and inspire my intellectual curiosity. I can think of few greater gifts. None of this likely would have happened without it. A thank you to Jennifer as well for printing and delivering a copy of my dissertation to the Editorial Office as I attempted to navigate the final hurdles of dissertation submission deadlines from 1000 miles away.

Thanks also go to Ashley Leinweber for being the type of caring and supportive friend who—in addition to all her other outstanding qualities—agrees to print, bind, and hand deliver a long-distance dissertation on short notice in the midst of her own hectic semester. I would also like to thank Laura Graham for reading an earlier draft of this manuscript and making several insightful comments that helped to improve it.

Thank you to the “Upton-ites”—Elana, Lea, Nadia, Rachel, Tina, Toby, and Tracy—for being incredibly smart, compassionate, and funny individuals who bring out the best sides of me, provided an environment where I felt comfortable just being myself, and for finding that person funny.

To Steve Miller (in no way associated with the band of the same name) for helping to inspire and nurture my interest in learning to play guitar, for giving a destination-less wanderer a place to call home, and for introducing me to a wonderful group of friends who shaped my life in innumerable ways. To Jason Bishop, Terry Bontraeger, Kathryn Hendershot, Doug McGregor, Brian Sailer, and Chad Walker for giving me countless laughs, great stories, and a group of friends who will always be near to my heart, even when time, distance, and different life journeys conspire to keep us apart. I am indebted to this group in countless ways, but perhaps most importantly, for helping me to define and develop my identity, a quirky sense of humor, and an appreciation for the random and seemingly inconsequential things in life.

I am deeply indebted and grateful to all those individuals and institutions that made my three research trips to Equatorial Guinea possible and successful. My experience was both enriched and enlightened by the kindness, generosity, and friendships I enjoyed in Equatorial Guinea. I would like to express a special thank you to the Equatoguineans who helped me to better understand the context of their country and to all the individuals, of various nationalities, who agreed to be interviewed for this study.

Special thanks to Heidi Ruffler, Sandrina, Deme, Samuel Boco, and Mark Andrews for making my time in Equatorial Guinea more enjoyable. I also wish to extend a thank you to Benita Sampedro and Tutu Alicante, who provided useful background and contacts for my research.

The Center for African Studies at the University of Florida helped support my research both financially and intellectually. It is a first rate institution that supplies students with a deep set of resources and networks for increasing their understanding of the African continent. Thank you as well to the Hunt & Jeanne Davis Fund for their generous support of my pre-dissertation field research in Equatorial Guinea.

A very special thank you goes to the Center for International Business Education & Research (CIBER) at the University of Florida for funding a significant portion of my fieldwork in Equatorial Guinea. The insights in this study would have been fewer and less interesting without their generous grant that enabled me to return to Equatorial Guinea and conduct research between December 2009 and February 2010. In particular, I would like to thank Dr. Carol West and Isabelle Winzeler for their much appreciated support.

Over the course of three research trips to Equatorial Guinea I was fortunate enough to befriend a man who made my experience in his country both more enjoyable and more educational. For security reasons, he shall remain anonymous here, but not in my heart. He generously helped a disoriented and green researcher find his way around a new country, and spent many hours talking with me about life, politics, and language while we people-watched on the balcony. Those times will always remain among the fondest of my memories of Equatorial Guinea. Cuídate amigo mío.

I spent the summer of 2005 living in eastern Uganda with some wonderful people who taught me far more than I taught them. They helped me to realize how much we all have in common despite our numerous superficial differences. They also provided me with a better perspective of what development does and does not mean, and helped me better understand both the challenges to and potential solutions for successful development. Those three months will always hold a cherished spot close to my heart.

Among many others, I would like to thank the Watoya family, in particular Betty and Mikey, Stephen Kutosi, Andrew Yiga, Sam Nange, and the other American interns who helped to make the experience deeply rewarding and highly entertaining.

Life is sometimes what happens when you are thinking about something else.

Over much of the seven years that I lived in Gainesville I dreamed of being somewhere else. A silly way to live life, that. I eventually came to appreciate the life that I carved out in Gainesville, and a number of people I was fortunate enough to befriend along the way are a big part of that. My time in Gainesville (and beyond) was enriched by the following cast of characters (not already mentioned elsewhere): Avani, Polly Beckington, Thomas Biebricher, Katie Corson, Matt DeSantis, Jamie Hilde, Steve Marr, Sara Messer, Marilyn Ochoa, Juliana Peters, Bec Prince, Austin Scott, Shari Wellen, and Jessica York.

Special thanks go to Eric Corcoran, for always having a story and knowing how to use it. And more importantly, for being a great guy and a generous friend who also happens to enjoy doing some of my favorite things simultaneously: eating wings, drinking beer, watching sports, and discussing life, love, and politics.

A special thank you to Jonathan Wadley, for being one of the funniest people I’ve had the pleasure of knowing, for understanding the complex and seemingly irrational motivations that inspire a sports fan to faithfully carry on the thankless task of following the daily (mis)deeds of a frustratingly bad baseball team, and for inviting me along for the musical journey. Although we may have fallen short of rock stardom, we created some great music and fond memories along the way.

I would like to thank the students in my 2007-2008 Introduction to Comparative Politics courses, my Spring 2009 African Politics course, and my Fall 2009 and Summer 2010 Developing Nations courses for forgiving the mistakes of a rookie instructor, for challenging and inspiring me to be a better teacher, and for helping me to realize that the opportunity to inspire and to share one’s knowledge of the world with others is truly a privilege, responsibility, and gift.

Like all humans, I too am a study in contradictions, some of which I am still sorting through, an endeavor I expect (and hope?) will never quite be complete. Despite my propensity for cynicism and, what my friends have tactfully labeled, “realism”, I am a hopeless romantic. So I’m giving a shout out to the life partner that I have yet to meet, because that is the type of silly sentimental gesture any serious romantic might do. May the Higher Power help you (or our relationship) if you actually read this entire manuscript, but know that, even though it doesn’t define me, it is a part of me and thus represents part of the confluence of countless factors that conspired to conjoin our destinies.

Now let’s go do something fun.

–  –  –

ACKNOWLEDGMENTS

LIST OF TABLES

LIST OF FIGURES

LIST OF ABBREVIATIONS

Abstract

CHAPTER 1 MULTINATIONAL CORPORATIONS AND DEVELOPMENT PROJECTS............. 21 Introduction

Why Study Corporate Social Responsibility?

Why Equatorial Guinea?

The Structure of the Study

2 CORPORATE SOCIAL RESPONSIBILITY

Introduction

Key Characteristics of CSR

The Proliferation of CSR

The Evolution of Corporate Philanthropy

A Transformation in the Business-Society Relationship

Catalysts for the Expansion of CSR

CSR’s Move to the Mainstream

MNCs’ Motivations to Engage in CSR

Improved Reputation and Brand

Company Tradition and Values

Competitive Advantage

Cost and Risk Reduction

The “Business Case” for CSR

CSR in Developing Countries

3 EQUATORIAL GUINEA: ANALYSIS OF AN OIL RICH STATE

Introduction

Colonial Rule

Macías Nguema and the Reign of Terror, 1968-1979

The Economy

Political and Human Rights Abuses



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