147 Corporations Run the World

Thom Hartmann: Clusters can be deadly in nature – but what about in an economy? I’ll break down a *new* scientific study which proves our global economy has clustered – and is now truly under the control of a few “bankster” puppeteers!

The article in the New Scientist that Hartmann was alluding to states that 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”.[1]

In the periodical ScienceNews, Rachel Ehrenberg succinctly summarises the argument developed by the researchers in their paper “The Network of Global Corporate Control”,[2]  as follows: “Conventional wisdom says a few sticky, fat fingers control a disproportionate slice of the world economy’s pie. A new analysis suggests that the conventional wisdom is right on the money. Diagramming the relationships between more than 43,000 corporations reveals a tightly connected core of top economic actors. In 2007, a mere 147 companies controlled nearly 40 percent of the monetary value of all transnational corporations, researchers report in a paper published online July 28 at arXiv.org”.[3]

And to illustrate the issue at hand, here is SERCO, the largest company you’ve never heard of or a network or cluster that combines an incredible numbers of services and industries on a truly global scale: ‘As well as thanking God for his success, Serco CEO Chris Hyman is a Pentecostal Christian who has released a gospel album in America and fasts every Tuesday. Coincidentally he was in the World Trade Centre on 9/11 on the 47th floor addressing shareholders. Serco runs navy patrol boats for the ADF, as well as search and salvage operations through their partnership with P&O which form Maritime Defence Services. Serco runs two Australian Jails already, Acacia in WA and Borallon in Queensland. They are one of the biggest companies in the UK for running electronic tagging of offenders under house arrest or parole. Serco are in one of the two favoured bid consortiums for the new Sydney metro rail line’.

On its website, the company presents itself as follows: ‘Serco improves the quality and efficiency of essential services that matter to millions of people around the world. The work we do for national and local governments involves us in the most important areas of public service, including health, education, transport, science and defence. Our private sector customers are industry-leading organisations in a wide variety of markets. We have nearly 50 years’ experience of helping our customers achieve their goals. Many want us to improve their productivity and service quality. Others need us to support their rapid growth. Government customers face crucial issues such as economic development, congestion, security and climate change. They value the innovation and passion we bring to these challenges, and the collaborative, flexible and imaginative way we work. Serco is a values-led company with a culture and ethos that is at the heart of everything we do. We give our people real responsibility, allowing them to put their ideas into practice and to truly make a difference for our customers and the public. Our approach has made us one of the world’s leading service companies and our vision is to be the world’s greatest. Our service ethos means that our customers come back to us again and again. These long-term relationships help us to meet their changing needs and to do what we do best . . . bringing service to life’.[4]  The Guardian’s Jane Martinson describes Serco’s CEO as an “Indian Pentecostal Christian from South Africa, Hyman is an unusual chief executive in many ways, not least his enthusiasm for what he calls the values of doing business. He gave a speech on the subject at the Business in the Community conference [in 2005] which made seasoned executives sit up and take notice, such was his enthusiasm for putting people first so that the rest – profits, investors, power – would follow”.[5]

 

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[1] Andy Coghlan and Debora MacKenzie, “Revealed – the capitalist network that runs the world” New Scientist (24 October
2011). http://www.newscientist.com/article/mg21228354.500-revealed–the-capitalist-network-that-runs-the-world.html.

[2] Stefania Vitali, James B. Glattefelder, and Stefano Battiston, “The Network of Global Corporate Control” PLOS ONE (2011). http://arxiv.org/PS_cache/arxiv/pdf/1107/1107.5728v2.pdf.

[3] Rachel Ehrenberg, “Financial world dominated by a few deep pockets” ScienceNews (24 September 2011). http://www.sciencenews.org/view/generic/id/333389/title/Financial_world_dominated_by_a_few_deep_pockets.

[4] “About Us” Serco. http://www.serco.com/about/index.asp.

[5] Jane Martinson, “Happy, touchy-feely and driven by God” The Guardian (24 February 2006). http://www.guardian.co.uk/business/2006/feb/24/columnists.guardiancolumnists.