Best of the Week
Most Popular
1.UK General Election BBC Exit Polls Forecast Accuracy - Nadeem_Walayat
2.UK General Election 2017 Seats Final Forecast, Labour, Conservative Lib-Dem, SNP - Nadeem_Walayat
3.UK General Election 2017 Forecast: Conservative 358, Labour 212 Seats - Nadeem_Walayat
4.Theresa May to Resign, Fatal Error Was to Believe Worthless Opinion Polls! - Nadeem_Walayat
5.UK House Prices Forecast General Election 2017 Conservative Seats Result - Nadeem_Walayat
6.The Stock Market Crash of 2017 That Never Was But Could it Still Come to Pass? - Sol_Palha
7.[TRADE ALERT] Write This Gold Stock Ticker Down Now - WallStreetNation
8.UK General Election Results Map 2017 vs 2015 vs Opinion Polls - Nadeem_Walayat
9.Orphaned Poisoned Waters,Severe Chronic Water Shortage Imminent - Richard_Mills
10.How The Smart Money Is Playing The Lithium Boom - OilPrice_Com
Last 7 days
Grenfell Fire: 600 of 4000 Tower Blocks Ticking Time Bomb Death Traps! - 22nd Jun 17
Car Sales About To Go Over The Cliff - 22nd Jun 17
LOG 0.786 support in CRUDE OIL and COCOA - 22nd Jun 17
More Stock Market Fluctuations Along New Record Highs - 22nd Jun 17
Understanding true money, Pound Sterling must make another historic low, Euro and Gold outlook! - 22nd Jun 17
Green Party Could Control Sheffield City Council Balance of Power Local Election 2018 - 22nd Jun 17
Ratio Combo Charts : Hidden Clues to the Gold Market Puzzle - 22nd Jun 17
Steem Hard Forks & Now People Are Making Even More Money On Blockchain Steemit - 22nd Jun 17
4 Steps for Comparing Binary Options Providers - 22nd Jun 17
Nether Edge & Sharrow By-Election, Will Labour Lose Safe Council Seat, Sheffield? - 21st Jun 17
Stock Market SPX Making New Lows - 21st Jun 17
Your Future Wealth Depends on what You Decide to Keep and Invest in Now - 21st Jun 17
Either Bitcoin Will Fail OR Bitcoin Is A Government Invention Meant To Enslave... - 21st Jun 17
Strength in Gold and Silver Mining Stocks and Its Implications - 21st Jun 17
Inflation is No Longer in Stealth Mode - 21st Jun 17
CRUDE OIL UPDATE- “0.30 risk is cheap for changing implication!” - 20th Jun 17
Crude Oil Verifies Price Breakdown – Or Is It Something More? - 20th Jun 17
Trump Backs ISIS As He Pushes US Onto Brink of World War III With Russia - 20th Jun 17
Most Popular Auto Trading Tools for trading with Stock Markets - 20th Jun 17
GDXJ Gold Stocks Massacre: The Aftermath - 20th Jun 17
Why Walkers Crisps Pay Packet Promotion is RUBBISH! - 20th Jun 17
7 Signs You Should Add Gold To Your Portfolio Now - 19th Jun 17
US Bonds and Related Market Indicators - 19th Jun 17
Wireless Wars: The Billion Dollar Tech Boom No One Is Talking About - 19th Jun 17
Amey Playing Cat and Mouse Game with Sheffield Residents and Tree Campaigners - 19th Jun 17
Positive Stock Market Expectations, But Will Uptrend Continue? - 19th Jun 17
Gold Proprietary Cycle Indicator Remains Down - 19th Jun 17
Stock Market Higher Highs Still Likely - 18th Jun 17
The US Government Clamps Down on Ability of Americans To Purchase Bitcoin - 18th Jun 17
NDX/NAZ Continue downward pressure on the US Stock Market - 18th Jun 17
Return of the Gold Bear? - 18th Jun 17
Are Sheffield's High Rise Tower Blocks Safe? Grenfell Cladding Fire Disaster! - 18th Jun 17
Globalist Takeover Of The Internet Moves Into Overdrive - 17th Jun 17
Crazy Charging Stocks Bull Market Random Thoughts - 17th Jun 17
Reflation, Deflation and Gold - 17th Jun 17
Here’s The Case For An Upside Risk In The Global Economy - 17th Jun 17
Gold Bullish on Fed Interest Rate Hike - 16th Jun 17
Drones Upending Business Models and Reshaping Industry Landscapes - 16th Jun 17
Grenfell Tower Cladding Fire Disaster, 4,000 Ticking Time Bombs, Sheffield Council Flats Panic! - 16th Jun 17
Heating Oil Bottom Is In.(probably) - 16th Jun 17
Here’s the Investing Reason Active Funds Can’t Beat Passive Funds—and It Worries Me a Lot - 16th Jun 17
Is There Gold “Hype” and is Gold an Emotional Trade? - 16th Jun 17
The War On Cash Is Now Becoming The War On Cryptocurrency - 15th Jun 17
The US Dollar Bull Case - 15th Jun 17
The Pros and Cons of Bitcoin and Blockchain - 15th Jun 17
The Retail Sector Downfall We Saw Coming - 15th Jun 17
Charts That Explain Why The US Rule Oil Prices Not OPEC - 15th Jun 17
How to Find the Best Auto Loan - 15th Jun 17
Ultra-low Stock Market Volatility #ThisTimeIsDifferent - 14th Jun 17
DOLLAR has recently damaged GOLD and SILVER- viewed in MRI 3D charts - 14th Jun 17
US Dollar Acceleration Phase is Dead Ahead! - 14th Jun 17
Hit or Pass? An Overview of 2017’s Best Ranked Stocks - 14th Jun 17
Rise Gold to Recommence Work at Idaho Maryland Mine After 60 Years - 14th Jun 17
Stock Market Tech Shakeout! - 14th Jun 17
The #1 Gold Stock of 2017 - 14th Jun 17

Market Oracle FREE Newsletter

The MRI 3D Report

Meet the Global Corporate “Supra-Government”

Politics / Social Issues Jan 30, 2013 - 01:05 PM GMT

By: Andrew_G_Marshall

Politics

We live in a corporate culture, where most of us have worked or currently work for corporations, we spend our money at corporate venues, on corporate products, watch corporately-owned television shows and movies, listen to corporate-sponsored music; our modes of transportation, communication and recreation are corporately influenced or produced; our sports stadiums and movie theaters are named after car companies and global banks; our food is genetically altered by multinational conglomerates, our drinking water is brought to us by Coca-Cola, our news is brought to us by Pfizer, and our political leaders are brought to us by Exxon, Shell, Goldman Sachs and JP Morgan Chase.


In this global corporate culture it is often difficult to take a step back and look at transnational corporations, beyond what they represent in our culture, and see that they are, in fact, totalitarian institutions with power being exercised from the top down, with no democratic accountability, legally bound to be interested only – and exclusively – in maximizing quarterly short-term profits, often to the detriment of the environment, labor, human rights, democracy, peace and the population as a whole.

In this first of a three-part series on the reaches of global corporate power, we'll look specifically at the size and network influence of the world’s largest corporations. This is especially important given that the world's population faces increasing challenges with over 1 billion people living in slums, billions more living in poverty, hunger and increasing starvation; with unemployment increasing, austerity and "adjustment" programs demanding that even those in the once-industrialized West dramatically reduce their living standards; as the environment is plundered and pillaged, and as governments give corporations more state welfare and subsidies while cutting welfare and social services for the poor.

Corporate culture creates, over time, a totalitarian culture as this dominant institution seeks to remake society in its own image - where people are punished and impoverished as corporations are supported, rewarded and empowered.

The network of global corporate control, in numbers

In the year 2000, of the world’s 100 largest economies, 51 were corporations, while only 49 were countries, based upon national GDP (gross domestic product) and corporate sales. Of the top 200 corporations in 2000, the United States had the largest share with 82, followed by Japan at 41, Germany at 20, and France at 17.

Of the world’s 100 largest economic entities in 2010, 42% were corporations; when looking at the top 150 economic entities, 58% were corporations. The largest corporation in 2010 was Wal-Mart, the 25th largest economic entity on earth, surpassed only by the 24 largest countries in the world, but with greater revenues than the GDP of 171 countries, placing it higher on the list than Norway and Iran.

Following Wal-Mart, the largest corporations in the world were: Royal Dutch Shell (larger than Austria, Argentina and South Africa), Exxon Mobil (larger than Thailand and Denmark), BP (larger than Greece, UAE, Venezuela and Colombia), followed by several other energy and automotive conglomerates.

In 2012, Fortune published its annual Global 500 list of the top 500 corporations in the world in 2011. The top 10 corporations in the world, as determined by total revenue, are: Royal Dutch Shell, Exxon Mobil, Wal-Mart Stores, BP, Sinopec Group, China National Petroleum, State Grid, Chevron, ConocoPhillips, and Toyota Motor.

Among some of the other top 100 are: Total (11), Gazprom (15), E.ON (16), ENI (17), ING Group (18), GM (19), General Electric (22), AXA (25), BNP Paribas (30), GDF Suez (33), Banco Santander (44), Bank of America (46), JP Morgan Chase (51), HSBC Holdings (53), Apple (55), IBM (57), Citigroup (60), Société Générale (67), Nestlé (71), Wells Fargo (80), Archer Daniels Midland (92), and Bank of China (93).

The 10 largest corporations in Canada include: Manulife Financial, Suncor Energy, Royal Bank of Canada, Power Corporation of Canada, George Weston, Magna International, Toronto-Dominion Bank, Bank of Nova Scotia, Onex, and Husky Energy.

The 10 largest corporations in Britain are: BP, HSBC Holdings, Tesco, Vodafone, Barclays, Lloyds Banking Group, Royal Bank of Scotland, Aviva, Rio Tinto Group, and Prudential.

The 10 largest conglomerates in France are: Total, AXA, BNP Paribas, GDF Suez, Carrefour, Crédit Agricole, Société Générale, Électricité de France, Peugeot, and Groupe BPCE.

The 10 largest conglomerates in Germany are: Volkswagen, E. ON, Daimler, Allianz, Siemens, BASF, BMW, Metro, Munich Re Group, and Deutsche Telekom.

The 10 largest conglomerates in the United States are: Exxon Mobil, Wal-Mart Stores, Chevron, ConocoPhillips, General Motors, General Electric, Berkshire Hathaway, Fannie Mae, Ford Motor, and Hewlett-Packard.

In October of 2011, a scientific study about the global financial system was released, the first of its kind, undertaken by three complex systems theorists at the Swiss Federal Institute of Technology in Zurich, Switzerland. The conclusion of the study revealed what many theorists and observers have noted for years:

“An analysis of the relationships between 43,000 transnational corporations has identified a relatively small group of companies, mainly banks, with disproportionate power over the global economy.” As one of the researchers stated, “Reality is so complex, we must move away from dogma, whether it’s conspiracy theories or free-market... Our analysis is reality-based.” Using a database which listed 37 million companies and investors worldwide, the researchers studied all 43,060 trans-national corporations (TNCs), including the share ownerships linking them.

The mapping of "power" was done through the construction of a model showing which companies controlled other companies through shareholdings. The web of ownership revealed a core of 1,318 companies with ties to two or more other companies. This "core" was found to own roughly 80% of global revenues for the entire set of 43,000 TNCs.

And then came what the researchers referred to as the “super-entity” of 147 tightly-knit companies, which all own each other, and collectively own 40% of the total wealth in the entire network. One of the researchers noted, “In effect, less than 1 per cent of the companies were able to control 40 per cent of the entire network.”

This network poses a huge risk to the global economy, noted the researchers: “If one [company] suffers distress... this propagates.” The study was undertaken with a data set established prior to the economic crisis, thus, as the financial crisis forced some banks to fail (such as Lehman Brothers) and others to merge (such as Merrill Lynch and Bank of America), the “super-entity” would now be even more connected, concentrated, and thus, dangerous for the economy.

The top 50 companies on the list of the “super-entity” included (as of 2007): Barclays Plc (1), Capital Group Companies Inc (2), FMR Corporation (3), AXA (4), State Street Corporation (5), JP Morgan Chase & Co. (6), UBS AG (9), Merrill Lynch & Co Inc (10), Deutsche Bank (12), Credit Suisse Group (14), Bank of New York Mellon Corp (16), Goldman Sachs Group (18), Morgan Stanley (21), Société Générale (24), Bank of America Corporation (25), Lloyds TSB Group (26), Lehman Brothers Holdings (34), Sun Life Financial (35), ING Groep (41), BNP Paribas (46), and several others.

In December of 2011, Roger Altman, the former Deputy Secretary of the Treasury under the Clinton administration, wrote an article for the Financial Times in which he explained that financial markets were “acting like a global supra-government,” noting:

"They oust entrenched regimes where normal political processes could not do so. They force austerity, banking bail-outs and other major policy changes. Their influence dwarfs multilateral institutions such as the International Monetary Fund. Indeed, leaving aside unusable nuclear weapons, they have become the most powerful force on earth."

Altman continued, explaining that when the power of this “global supra-government” is flexed, “the immediate impact on society can be painful – wider unemployment, for example, frequently results and governments fail.” But of course, being a former top Treasury Department official, he went on to praise the “global supra-government,” writing that, “the longer-term effects can be often transformative and positive.”

Ominously, Altman concluded: “Whether this power is healthy or not is beside the point. It is permanent,” and “there is no stopping the new policing role of the financial markets.”

So, this small network of dominant global companies and banks, many of which are larger than most countries on earth, with no democratic accountability, are also acting independently as a type of “global supra-government” forcing even our dysfunctional and façade-like “democratic” governments to collapse if they do not do as “financial markets” say - such as the recent cases of democratically-elected governments in Greece and Italy whose officials were forced out and replaced with unelected bankers.

In any other situation that’s called a coup d'état. But as Altman’s view reflected, powerful government officials will not oppose this network, whether or not the power is good for human lives and human communities - which is, in Altman’s words, “beside the point.” After all, in his view, “it is permanent.”

Unless, of course, the people of the world decide to have a say in the matter.

Part 2 of this series will appear on Thursday.

Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada, writing on a number of social, political, economic, and historical issues. He is also Project Manager of The People’s Book Project. He also hosts a weekly podcast show, “Empire, Power, and People,” on BoilingFrogsPost.com.

I am a 24 year old independent researcher and writer based out of Montreal, Canada. I have written dozens of articles, essays, and reports online and in print on a wide array of social, economic, and political issues, always from a highly critical perspective. My writing can be found on my blog, www.andrewgavinmarshall.com. I am Project Manager of The People's Book Project (www.thepeoplesbookproject.com), an initiative through which I am attempting to write a comprehensive book on the institutions and ideas of power in our world, and what we can do about it.

© 2012 Copyright Andrew Gavin Marshall - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife