Who Runs the World ? – Network Analysis Reveals ‘Super Entity’ of Global Corporate Control

By definition, this seems like a conspiracy to me, a conscious effort to conspire power to a smaller and smaller group.

In the first such analysis ever conducted, Swiss economic researchers have conducted a global network analysis of the most powerful transnational corporations (TNCs). Their results have revealed a core of 787 firms with control of 80% of this network, and a “super entity” comprised of 147 corporations that have a controlling interest in 40% of the network’s TNCs.

147 corps and 40%? Only need 11 more % to rule the world no? This could happen easily it seems.


Strongly Connected Component (SCC); layout of the SCC (1318 nodes and 12,191 links). Node size scales logarithmically with operation revenue, node color with network control (from yellow to red). Link color scales with weight.
We have heard that there is someone behind the curtains, pulling the strings, and controlling the controllers, so to say, and this recent analysis certainly supports an effort and establishment. Whether the intention is nefarious or not will be left up to the reader.

"We present the first investigation of the architecture of the international ownership network, along with the computation of the control held by each global player. We find that transnational corporations form a giant bow-tie structure* and that a large portion of control flows to a small tightly-knit core of financial institutions. This core can be seen as an economic “super-entity” that raises new important issues both for researchers and policy makers.” [emphasis added]

* This “bow tie” structure is similar to the structure of the WWW (analyzing for most influential/most trafficked websites); see diagram below.

“As a result, about 3/4 of the ownership of firms in the core remains in the hands of firms of the core itself. In other words, this is a tightly-knit group of corporations that cumulatively hold the majority share of each other.”
In examining the details of this core, the analysis also showed that only 737 top holders accumulate 80% of the control over the value of all TNCs (in the analyzed network). Further,
“despite its small size, the core holds collectively a large fraction of the total network control. In detail, nearly 4/10 of the control over the economic value of TNCs in the world is held, via a complicated web of ownership relations, by a group of 147 TNCs in the core, which has almost full control over itself. The top holders within the core can thus be thought of as an economic “super-entity” in the global network of corporations.” [emphasis added]
Concerning the implications of this super entity, the researchers asked two fundamental questions: First, what are the implications for market competition, and, second, what are the implications for economic stability?
-It is clear just from the history of anti-trust laws in this country (the U.S.) that concentrated ownership stifles free market competition and innovation, reduces over-all employment, and leads to excessive pricing.

In regards to the second question, the researchers note that “the existence of such a core in the global market was never documented before and thus, so far, no scientific study demonstrates or excludes that this international ‘super-entity’ has ever acted as a bloc.“
However, there is historical data — such as within the airline, auto and steel industries — supporting this possibility.
“…top holders are at least in the position to exert considerable control, either formally (e.g., voting in shareholder and board meetings) or via informal negotiations.”

Zoom on some major TNCs in the financial sector. Some cycles are highlighted. Note: data for this analysis comes from the 2007 Orbis database -- prior to the 2008 financial crisis, thus, firms such as Bear Stearns and Lehman Bros. are included.

Top 50 Control-Holders Ranking:
[source: the following is quoted directly from the research paper]
This is the first time a ranking of economic actors by global control is presented. Notice that many actors belong to the financial sector (NACE codes starting with 65,66,67) and many of the names are well-known global players.
The interest of this ranking is not that it exposes unsuspected powerful players. Instead, it shows that many of the top actors belong to the core. This means that they do not carry out their business in isolation but, on the contrary, they are tied together in an extremely entangled web of control. This finding is extremely important since there was no prior economic theory or empirical evidence regarding whether and how top players are connected.
Shareholders are ranked by network control (according to the threshold model, TM). Columns indicate country, NACE industrial sector code, actor’s position in the bow-tie sections, cumulative network control. Notice that NACE codes starting with 65,66, or 67 belong to the financial sector.
Rank , Economic actor name, Country, NACE code, Network Cumul. Network position, control (TM, %)
1 BARCLAYS PLC GB 6512 SCC 4.05
2 CAPITAL GROUP COMPANIES INC, THE US 6713 IN 6.66
3 FMR CORP US 6713 IN 8.94
4 AXA FR 6712 SCC 11.21
5 STATE STREET CORPORATION US 6713 SCC 13.02
6 JP MORGAN CHASE & CO. US 6512 SCC 14.55
7 LEGAL & GENERAL GROUP PLC GB 6603 SCC 16.02
8 VANGUARD GROUP, INC., THE US 7415 IN 17.25
9 UBS AG CH 6512 SCC 18.46
10 MERRILL LYNCH & CO., INC. US 6712 SCC 19.45
11 WELLINGTON MANAGEMENT CO. L.L.P. US 6713 IN 20.33
12 DEUTSCHE BANK AG DE 6512 SCC 21.17
13 FRANKLIN RESOURCES, INC. US 6512 SCC 21.99
14 CREDIT SUISSE GROUP CH 6512 SCC 22.81
15 WALTON ENTERPRISES LLC US 2923 T&T 23.56
16 BANK OF NEWYORKMELLON CORP. US 6512 IN 24.28
17 NATIXIS FR 6512 SCC 24.98
18 GOLDMAN SACHS GROUP, INC., THE US 6712 SCC 25.64
19 T. ROWEPRICE GROUP, INC. US 6713 SCC 26.29
20 LEGG MASON, INC. US 6712 SCC 26.92
21 MORGAN STANLEY US 6712 SCC 27.56
22 MITSUBISHI UFJ FINANCIAL GROUP, INC. JP 6512 SCC 28.16
23 NORTHERN TRUST CORPORATION US 6512 SCC 28.72
24 SOCIÉTÉ GÉNÉRALE FR 6512 SCC 29.26
25 BANK OF AMERICA CORPORATION US 6512 SCC 29.79
26 LLOYDS TSB GROUPPLCGB 6512 SCC 30.30
27 INVESCOPLCGB 6523 SCC 30.82
28 ALLIANZSE DE 7415 SCC 31.32
29 TIAA US 6601 IN 32.24
30 OLD MUTUAL PUBLIC LIMITED COMPANY GB 6601 SCC 32.69
31 AVIVAPLC GB 6601 SCC 33.14
32 SCHRODERSPLC GB 6712 SCC 33.57
33 DODGE & COX US 7415 IN 34.00
34 LEHMAN BROTHERS HOLDINGS, INC. US 6712 SCC 34.43
35 SUN LIFE FINANCIAL, INC. CA 6601 SCC 34.82
36 STANDARDLIFEPLCGB 6601 SCC 35.2
37 CNCE FR 6512 SCC 35.57
38 NOMURA HOLDINGS, INC. JP 6512 SCC 35.92
39 THE DEPOSITORY TRUST COMPANY US 6512 IN 36.28
40 MASSACHUSETTS MUTUAL LIFE INSUR. US 6601 IN 36.63
41 INGGROEP N.V. NL 6603 SCC 36.96
42 BRANDES INVESTMENT PARTNERS, L.P. US 6713 IN 37.29
43 UNICREDITO ITALIANO SPA IT 6512 SCC 37.61
44 DEPOSIT INSURANCE CORPORATION OF JP JP 6511 IN 37.93
45 VERENIGING AEGON NL 6512 IN 38.25
46 BNPPARIBAS FR 6512 SCC 38.56
47 AFFILIATED MANAGERS GROUP, INC. US 6713 SCC 38.88
48 RESONA HOLDINGS, INC. JP 6512 SCC 39.18
49 CAPITAL GROUP INTERNATIONAL, INC. US 7414 IN 39.48
50 CHINA PETROCHEMICAL GROUP CO. CN 6511 T&T 39.78

Source

Who needs to hide behind closed doors when ultimately the monopoly becomes the only game to play? Just break down into various companies, but send all the money to single interests. I am trying to honestly decide if this is just circumstantial or intentional. I know, I know, but still....

Perspective
spec

Good find, good post, good experiment to conduct. Its ultimate point is a bit dog-bites-man news-wise but in terms of solid documentation and the ability to not only connect but visually manifest the connections of these ultra-powerful entities it's golden.

This is a really good productive thread, I'm very impressed.

I wondered alot if these could be precisely nailed down. I had questioned to myself, if it was old money European families, UK Royalty, the Federal Reserve, The Rockefellers or Liechtensteins,..........etc

Star and Flag.

reply to post by simone50m


Thanks, and I am now wondering if the Vatican has any ties to these co's? I will dig a bit.

reply to post by speculativeoptimist


Thank you for this thread. A lot of (food for thought). In reading the list (Bank of America) stood out to me because as it is being sued by many home owners and the Federal Government.

reply to post by caladonea

Hey caladonea, I hear ya but the sad thing is, these banks obtained protection from lawsuits recently because people were suing and winning. One bank was successfully foreclosed on by a civilian couple. A moving truck was sent to the bank and everything. Link
Another story
After that, a new law went into effect to protect the banks.
LINK

(Reuters) - State attorneys general are negotiating to give major banks wide immunity over irregularities in handling foreclosures, even as evidence has emerged that banks are continuing to file questionable documents.

Immunity Law

A coalition of all 50 states' attorneys general has been negotiating settlements with five of the biggest U.S. banks that would include payment of up to $25 billion in penalties and commitments to follow new rules. In exchange, the banks would get immunity from civil lawsuits by the states, as well as similar guarantees by the Justice Department and Department of Housing and Urban Development, which have participated in the talks.

State and federal officials declined to say if any form of immunity from criminal prosecution also is under discussion. The banks involved in the talks are Bank of America, Wells Fargo, CitiGroup, JPMorgan Chase and Ally Financial.

Crazy



Peace,
spec

Great post. Star and flag to you sir! This is the great conspiracy that is actually occurring everday, these transnational corporations are consolidating power. They have no loyality to any country only to the bottom lime and consolidating power. Why we as a conspiracy community try to link everything to Elenin, listening to hacks like Alex Collier and Alex Jones, these guys just laugh at us and go about their evil work.

reply to post by TheHistorian


Very true TH, the real conspiracies are much scarier than the far out these days.
Thanks for the reply.

spec

reply to post by TheHistorian

I need to jump in and defend Alex Jones. Firstly, Alex --refuses-- to tout planet X stuff, he is actually against such, and doesn't believe it, I heard him explain that, on air. He is just trying to save the US from these Transnationals imploding it. I just don't understand the hate against him, I thank God for him.

I found the original research. It includes their methodology.

The paper has not yet been peer reviewed.

Here's a gallery of 1211 billionaires from around the world at Forbes:

www.forbes.com...

And here's a page where you can filter the world's billionaires by country AND which sector (e.g. banks, energy, etc.):

www.forbes.com...

Now all we need is a page that can filter who has ownership in all the biggest corporations, how much, and what country they are from, and what % they own.

Great post, I've often felt there is no conspiracy, as that implies something secret. The influence of multinational corporations, and their negative influence on political, and cultural development has been obvious and overt.

If the big banks are too big to fail, does that mean the rest of us are too small to succeed?


Apperently it does!

reply to post by speculativeoptimist


Hmm...all the corporations that get bailouts are listed there. I notice the ones not listed there were forced to close shop and sell to one of the corporations listed.

I'd pay a dollar for the next layer of the onion:

Which Individuals/Dynasties Own controlling interest in the "Core" TNC's...I bet that would whittle it down to a very clear picture, one that we have hundreds of threads on already

reply to post by ExPostFacto


Cronyism and insider trading(ishness) perhaps? Good observation EPF, and somewhere some group is constantly making moves and putting teammates in positions of power for both gov and corps. I just wonder what there attitudes are sometimes. Is there any altruism, is it just business, or are they downright trying to maximize profit regardless of repercussions to people or environment? Whatever happened to viability? 'Never enough' it seems anymore.

spec

@crimsongod21 and R3N3G4D3, thanks guys and yea it was an intense 3 and a half hours watching it, and the build up was masterful. Of course the subject has a lot to do with it too, but the parallels of the conspiracy created mindset as a reactionary process to both uncertainty and instinct, were eerily relatable to many of us here at ATS, imo.

reply to post by speculativeoptimist


Big Business = Greed.



I work in an industry that was supported by many small manufacturers and retailed in small mom and pop shops.

The small manufacturers were bought by larger companies and now only a handful remain.

The mom and pop shops are being run out of business by larger retailers (one large retailer stated that it was their intention to run mom and pop out of business).

I have noticed that as the manufacturers get larger, they love to cut deals with the big retailers, and in the process they cut the small retailers off at the knees.

In the United States we see this with the family farm which is going by the wayside in favor of fewer and fewer people controlling farmland.





Is it a conspiracy...

or Piracy?

reply to post by dusty1

Is it a conspiracy...

or Piracy?

Conspired piracy!
Yea the purchasing power shift is certainly changing the way business is done, and in it's wake another part of the middle class decline.
Thanks for the comment.

spec