Saturday, December 3, 2011

The network of global corporate control

Good morning everyone,
I want to share with you a study regarding the concentration of corporate finance and how the structure the control network of transnational corporations affects global market competition
and financial stability.
It is a mathematical analyzes of the global financial network and what is surprisingly to discover is that we are talking about a very high concentrated industry. About 80% of the control of network is concentrated on a limited number of transnational companies, There is a large ‘core’, containing 1347 corporations each of whom owns directly and/or indirectly shares in every other member of the core. On average, each member of the core has direct ties to 20 others; as a result, about 3/4 of the ownership of firms in the core remains in the hands of firms of the core itself.
The study was made before the crash of Lehman Brothers, but nothing changed fundamentally since then. Please look to the diagram from page 4 with the core of this invisible network wrapping around the world. Do you see any connection with the new social movement “Occupy Wall Street”?



http://www.infocon.ro/wp-content/uploads/2011/08/The-network-of-global-corporate-control.pdf

1 comment:

Christopher Tunnard said...

This is the paper from the article I showed you when I first cam into class. Interesting nonetheless!