Monday, October 24, 2011

Capitalism is now 147 Transnational Corporations

Behold the face of Global Capitalism Today!

The 1318 transnational corporations that form the core of the economy.
Superconnected companies are red, very connected companies are yellow.
The size of the dot represents revenue (Image: PLoS One)
In a study entitled The network of global corporate control by Stefania Vitali, James B. Glattfelder, and Stefano Battiston, they find that 1318 TNCs (Transnational Corporations) represent more than 60% of the world's revenue (out of 43,000 TNCs drawn from a database of more than 30 million economic actors).  As New Scientist reports,

The idea that a few bankers control a large chunk of the global economy might not seem like news to New York's Occupy Wall Street movement and protesters elsewhere. But the study, by a trio of complex systems theorists at the Swiss Federal Institute of Technology in Zurich, is the first to go beyond ideology to empirically identify such a network of power. It combines the mathematics long used to model natural systems with comprehensive corporate data to map ownership among the world's transnational corporations (TNCs). 
"Reality is so complex, we must move away from dogma, whether it's conspiracy theories or free-market," says James Glattfelder. "Our analysis is reality-based."
Being reality-based, the TeaOP will immediately dismiss it as a fiction.

But wait, it gets better...
When the team further untangled the web of ownership, it found much of it tracked back to a "super-entity" of 147 even more tightly knit companies - all of their ownership was held by other members of the super-entity - that controlled 40 per cent of the total wealth in the network. "In effect, less than 1 per cent of the companies were able to control 40 per cent of the entire network," says Glattfelder. Most were financial institutions. The top 20 included Barclays Bank, JPMorgan Chase & Co, and The Goldman Sachs Group.
And there are people who really wonder why the 99% are Occupying Wall Street?  Really?

We are all living in the world of Rollerball now...

The most powerful men in the world are the executives. They run the major corporations which fix prices, wages, and the general economy, and we all know they're crooked, that they have almost unlimited power and money, but I have considerable power and money myself and I'm still anxious.

What can I possibly want, I ask myself, except, possibly, more knowledge?

I consider recent history -- which is virtually all any-one remembers -- and how the corporate wars ended, so that we settled into the Six Majors: ENERGY, TRANSPORT, FOOD, HOUSING, SERVICES and LUXURY. Sometimes I forget who runs what -- for instance, now that the universities are operated by the Majors (and provide the farm system for Roller Ball Murder), which Major runs the universities? SERVICES or LUXURY?Music is one of our biggest industries, but I can't remember who administers it. Narcotic research is now under FOOD, I know, though it used to be under LUXURY.

Anyway, I think I'll ask Mr. Bartholemew about knowledge. He's a man with a big view of the world, with values, with memory. My team flings itself into the void while his team harnesses the sun, taps the sea, finds new alloys, and is clearly just a hell of a lot more serious.
Here's the Top 50 of the 147 Corporations that Rule The World:
1. Barclays plc
2. Capital Group Companies Inc
3. FMR Corporation
4. AXA
5. State Street Corporation
6. JP Morgan Chase & Co
7. Legal & General Group plc
8. Vanguard Group Inc
10. Merrill Lynch & Co Inc
11. Wellington Management Co LLP
12. Deutsche Bank AG
13. Franklin Resources Inc
14. Credit Suisse Group
15. Walton Enterprises LLC
16. Bank of New York Mellon Corp
17. Natixis
18. Goldman Sachs Group Inc
19. T Rowe Price Group Inc
20. Legg Mason Inc
21. Morgan Stanley
22. Mitsubishi UFJ Financial Group Inc
23. Northern Trust Corporation
24. Société Générale
25. Bank of America Corporation
26. Lloyds TSB Group plc
27. Invesco plc
28. Allianz SE 29. TIAA
30. Old Mutual Public Limited Company
31. Aviva plc
32. Schroders plc
33. Dodge & Cox
34. Lehman Brothers Holdings Inc*
35. Sun Life Financial Inc
36. Standard Life plc
37. CNCE
38. Nomura Holdings Inc
39. The Depository Trust Company
40. Massachusetts Mutual Life Insurance
41. ING Groep NV
42. Brandes Investment Partners LP
43. Unicredito Italiano SPA
44. Deposit Insurance Corporation of Japan
45. Vereniging Aegon
46. BNP Paribas
47. Affiliated Managers Group Inc
48. Resona Holdings Inc
49. Capital Group International Inc
50. China Petrochemical Group Company

1 comment:

  1. Yes, it is indisputably true there is a prominent group of companies which rule the world. Another major factor to consider is their stability being effective only in prosperous times and doing significant damage in the distress.