Reference no: EM133151485
People in West African countries, among the poorest in the world, survive on $1 U.S. dollar a day and have a life expectancy of 46 years. But in 2004, Equatorial Guinea had a GDP of $4,472 U.S. dollars per person, the highest in West Africa.
In 1995, Equatorial Guinea found oil off its coast, and by 2004, ExxonMobil, Amerada Hess, and Marathon Oil - all U.S. oil companies - were helping that West African country produce $4 billion of oil revenues a year. Equatorial Guinea's inexperienced government agreed to give 80 percent of these revenues to the oil companies that drilled the oil for them, although oil companies in developing nations usually take about 50 percent of revenues from oil projects.
The oil companies channel - through Riggs Bank, a 2004 Senate report revealed - hundreds of millions of dollars to Equatorial Guinea's president, T. Nguema, and his family for "land purchases," "security services," and "office leases." Furthermore, a Department of Energy report says that because Nguema and his family run the government, the 20 percent of oil revenues that go to the government are spent on "lavish personal expenditures," and so most oil money is "concentrated in the hands of top government officials while the majority of the population remains poor." If Nguema had not been paid, of course, the Equatorial Guinea government would never have approved the oil project.
ExxonMobil says it has spent "4 million" and Marathon Oil and Amerada Hess claim to have "invested millions of dollars" on schools, libraries; programs for the eradication of malaria, polio, and AIDS; health clinics, bridges, waterways and electricity. However, a U.S. human rights report says Equatorial Guinea's government violates its citizens rights of free speech, of press, of assembly, of due process, of association, of religion, and of movement and uses torture, beatings, and other physical abuse against political opponents.
Questions:
Q1. Discuss business activities of ExxonMobil, Amerada Hess, and Marathon Oil in Equatorial Guinea from the perspectives of Act-Utilitarianism & the Formula of Universal Law of Nature respectively.
Q2. Discuss business activities of ExxonMobil, Amerada Hess, and Marathon Oil in Equatorial Guinea from the perspectives of Rule-Utilitarianism and the Formula of Humanity respectively.
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