Alcoa on the island : a case study of a multinational and its impact in a Brazilian community

This thesis investigates the expansion of multinational corporations (MNCs) in developing countries and their impact on three areas of concern: environment, the host communities and the local labor force. The theories employed in addressing the research questions are dependency theory and the new international division of labor. This thesis employs a qualitative research approach. It uses case study as the main research technique for data collection and analysis. This method included direct field observation, interviews, and archival research. The multinational Aluminum Company of America (ALCOA) was used to illustrate the patterns of MNCs behavior. The geographical site for the case study is the island of Sao Luis, in the northeastern state of Maranhao, Brazil, where ALCOA has operating an aluminum .plant since 1984. ALCOA received many incentives from the Brazilian government to locate in Southeast Brazil. Later, when the big projects were taking place in North Brazil, Alcoa also received governmental incentives to open a aluminum refinery and smelting plant in Sao Luis, Maranhao. The impacts of ALCOA on the three areas of concern were found to be negative. About 20,000 people were removed from their communities to make way for the ALCOA plant. Many displaced residents migrated to urban areas and are chronically unemployed. The environmental impact was negative with the significant increase of pollution in the rivers nearby the plant and a severe problem of waste storage on the island soil.