Study shows powerful corporations really do control the world’s finances

Bob Yirka
PhysOrg
August 23, 2011

(PhysOrg.com) — For many years conventional wisdom has said that the whole world is controlled by the monied elite, or more recently by the huge multi-national corporations that seem to sometime control the very air we breathe. Now, new research by a team based in ETH-Zurich, Switzerland, has shown that what we’ve suspected all along, is apparently true. The team has uploaded their results onto the preprint server arXiv.

Using data obtained (circa 2007) from the Orbis database (a global database containing financial information on public and private companies) the team, in what is being heralded as the first of its kind, analyzed data from over 43,000 corporations, looking at both upstream and downstream connections between them all and found that when graphed, the data represented a bowtie of sorts, with the knot, or core representing just 147 entities who control nearly 40 percent of all of monetary value of transnational corporations (TNCs).

In this analysis the focus was on corporations that have ownership in their own assets as well as those of other institutions and who exert influence via ownership in second, third, fourth, etc. tier entities that hold influence over others in the web, as they call it; the interconnecting network of TNCs that together make up the whole of the largest corporations in the world. In analyzing the data they found, and then in building the network maps, the authors of the report sought to uncover the structure and control mechanisms that make up the murky world of corporate finance and ownership.

  • A d v e r t i s e m e n t

To zero in on the significant controlling corporations, the team started with a list of 43,060 TNCs taken from a sample of 30 million economic “actors” in the Orbis database. They then applied a recursive algorithm designed to find and point out all of the ownership pathways between them all. The resulting TNC network produced a graph with 600,508 nodes and 1,006,987 ownership connections. The team then graphed the results in several different ways to show the different ways that corporate ownership is held; the main theme in each, showing that just a very few corporations through direct and indirect ownership (via stocks, bonds, etc.) exert tremendous influence over the actions of those corporations, which in turn exert a huge impact on the rest of us.

The authors conclude their report by asking, perhaps rhetorically, what are the implications of having so few exert so much influence, and perhaps more importantly, in an economic sense, what the implications are of such a structure on market competitiveness.

More information: The network of global corporate control, Stefania Vitali, James B. Glattfelder, Stefano Battiston, arXiv:1107.5728v1 [q-fin.GN] http://arxiv.org/abs/1107.5728






 
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15 Responses to “Study shows powerful corporations really do control the world’s finances”

  1. Well now…we all know that…
    So why isn’t anyone doing anything about it?
    If there are no laws, so be it…
    Why can’t we walk into any Bank of America and stuff a shit load of money into our duffle bags?
    That’s what they’re doin’ to us!
    This door has to swing both ways right?

  2. Wow….so many comments from poeple wanting to know who these top o’the pyramid corporations are…who cares….I want to kow who the hell controls these corporations so criminal investigations can be undertaken and arrests that lead to drumheads and with summary convictions can be made.

    This is a case where the paraphrased quote of Arnaud Amalric is truely appropriate…

  3. Really ? You needed to conduct a study to conclude that powerful corporations control the worlds finances ?? Where has this person been, living in a cave with the Taliban ??

    You can also add to your lame study, that the powerful corporations also control governments.

    Veritas vos Liberabit

  4. So, who exactly is the biggest and most powerful of them all? Who is the biggest threat?

  5. August 23, 2011
    Creeping Sharia Reports:

    “As a result of pent-up demand, the United States has experienced a mosque-building boom in recent years. The number of U.S. mosques grew 57 percent between 2000 and 2010, according to a forthcoming University of Kentucky study.”

    I’m curious… is there anything out there that can claim a 57% growth over a ten year period?

    That is huge!

    Also curious… where does Islam get all this money to build Mosques all over the place?

    Ahh… but don’t worry folks… what are the chances actual terrorists would gather at a mosque in your neighborhood?

    • What does your rant have to do with the article ?

      • It was the closest article I could find in relation to world economic growth.

        I tried in advance, to inform Infowars to put articles up that would allow me to do what I wanted… but to no avail. Do you think I’m too pressing?

        Maybe you have the power to tell them to appease me and create articles that will fit what I need to post.

        Would ya do that for me? While you’re at it ask them to delete your registration too… I don’t like Junge… it’s nasty when it’s spilled on the carpet.

  6. We need major restrictions on corporations one of which is to disallow one corporation from owning any shares of any other corporation.

    With national will this certainly can and should be done. Such ownership networks are presently so convoluted any accountability which a single corporate entity once had has been diminished to the point of nonexistence.

    Corporations are an even less “necessary” evil than governments. Humanity could do well if they were abolished altogether.

    .

    • And who would build your car…drill for the oil you love…build your house…run your supermarket…entertain you with your always on TV etc etc etc etc ???

      It is far too late my friend.

      • China… I hear they can do anything.

      • All those things have been done and are still being done by family owned companies.

        We do NOT need corporations. They need us and exist according to our permission as defined by law. People do not need laws to exist. Corporations do.

        .

  7. Yeah, some what off topic, or maybe not … do you remember when ‘Jesus’ cleared the money-changers from the Temple in Jerusalem? He made a statement against the international money-changers of this own time … this is why they tried to kill him and the reason why Rome was so interested in this little piece of land because there was so much money and riches there … Rome had a nose for money, and Jerusalem was where it was at. Many Jews as children from Israel all over the world, but had to come to Jerusalem every year or two for worship and sacrifice, but you had to convert money and buy sacrifice into Temple coin, because money or sacrifice from other places was ‘unclean’ … what better way to make a lot of money from this ‘religious’ loop-hole’?

    Help me out with this one ‘Sir Baby De Porky’:

    Jesus in India? — BBC Documentary

    Uploaded by 10374d on Mar 12, 2011

    Jesus in India? — BBC Documentary
    Category:

    Science Technology
    Tags:

    Jesus
    in
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    Documentary
    swiderski
    Krishna
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    fiction
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    history
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    License:

    Standard YouTube License
    Leonard Melton

    = htt*://www.youtube.com/watch?v=yiy5uY3Iw2s

    * = p

    • -and-

      Philosophy and the Matrix: Return to the Source [FULL DOCUMENTARY]

      Uploaded by QuantumLeap365 on Feb 21, 2011

      This is one of the two feature-length documentaries on the Ultimate Matrix Collection. It goes over many philosophical concepts that inspired, and are presented in, the trilogy.

      htt*://www.youtube.com/watch?v=9q1jHx29C70

      * = p

    • do you people read the articles or just log on to rant ?

    • “Help me out with this one ‘Sir Baby De Porky’…”

      I see there hasn’t been a reply yet…

      I think you may have to try the old Tony Orlando approach… knock three times on the ceiling…

      PS. However; I’m sure he’s not answering because he feels you’re a big boy now a need to be tossed out the nest and learn to fly on your own.

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