Three Swiss researchers recently dissected the global network of multinationals, using an OECD database (for Economic Cooperation and Development Organisation) of over 30 million market economic actors. Scientists have reached a synthesis by combining form a network of 43,060 multinationals. Their mutual power relations were also reconstructed by the corner of the property: a company with more than 50% of the shares of another is considered as having control.
The network that appears has a fairly common general structure in natural systems: some actors are points of convergence of power, while others are only in the periphery and has little control over others. This phenomenon known as "the rich get richer" did not surprise researchers. A big economic player necessarily attracts newcomers. What most impressed them was the discovery of another phenomenon called the "club of the rich". At the heart of the network, in 1318 enterprises appear more strongly connected to each other and form a central core. This proves cores hold the majority (60%) of the global industry by the play of the stocks. Worse, 147 companies are even more interconnected and "direct" the kernel. These 1% of the total world market alone control nearly 40% of the heart of the current economy. But who are they? What do they produce? And although they do not produce anything physically. These are only financial intermediaries. It includes well-known names in these times of crisis: Barclays, JP Morgan, Goldman Sachs, ...
The question posed by this scientific work was originally to determine whether there was a "head" to the current financial system. The kernel discovered by researchers there looks great. However, they warn against the idea of seeing a conspiracy. For them, these companies are only actors guided by the laws of the market and who found themselves in this configuration without necessarily consciously coordinate with each other. So no conspiracy, just a failed economic system. While this architecture benefits a few, it makes the whole economy increasingly unstable. This concentration of 147 companies was false epileptic focus tunes. What to do? Our researchers propose to start regulating this hyper-connectivity through transnational taxes. However, beyond calling for such regulation, these results demonstrate the systemic dimension of the crisis. No more trying to explain the chaotic fluctuations of the stock market from the facts provided by the news. It is now time to step back and understand why the economic system, in its very structure, demand change.
Find the original article here Stefania Vitali, James B. Glattfelder, Stefano Battiston (English)