When Corporations Rule the World
Encyclopedia
When Corporations Rule the World is an anti-globalization
book by David Korten
. Korten examines the evolution of corporation
s in the United States and argues that corporate libertarians have 'twisted' the ideas of free market
economist Adam Smith
's view of the role of private companies.
Korten critiques current methods of economic development led by the Bretton Woods
institutions and asserts his desire to rebalance the power of multinational corporation
s with concern for environmental sustainability and what he terms “people-centered development”. He advocates a 50% tax on advertising
to counter-attack what he calls "An active propaganda machinery controlled by the world's largest corporations constantly reassures us that consumerism
is the path to happiness, governmental restraint of market excess is the cause of our distress, and economic globalization is both a historical inevitability and a boon to the human species."
Korten criticises consumerism, market deregulation
, free trade
, privatization
and what he sees as the global consolidation of corporate power. Above all he rejects any focus on money as the purpose of economic life. His prescriptions include excluding corporations from political participation, increased state and global control of international corporations and finance, rendering financial speculation unprofitable and creating local economies that rely on local resources, rather than international trade.
In an article entitled "A Corporate Believer's Turnabout" which appeared in the New York Times on November 25, 2001 writer Suzanne McCoy noted that Korten already practised what he preached in the book. "The Kortens live on Bainbridge Island, Wash., a spot in the Puget Sound near Seattle that Dr. Korten calls the 'land of ecotopia.' He can practice some of his suggestions here, he said, like buying wine from producers he knows personally."
In a review of the book in Left Business Observer #71 in January 1996, Doug Henwood observed that Korten "offers a vision of 'a market economy composed primarily, though not exclusively, of family enterprises, small-scale co-ops, worker-owned firms, and neighborhood and municipal corporations.' Much of this is desirable. But it would be impossible to run a complex economy on this scale only; it's easy to imagine furniture being made this way, but not trains and computers. If Korten means to do away with trains and computers, he should tell us."
Anti-globalization
Criticism of globalization is skepticism of the claimed benefits of the globalization of capitalism. Many of these views are held by the anti-globalization movement however other groups also are critical of the policies of globalization....
book by David Korten
David Korten
David C. Korten is an American economist, author, and former Professor of the Harvard Business School, political activist and prominent critic of corporate globalization, "by training and inclination a student of psychology and behavioral systems". His best-known publication is When Corporations...
. Korten examines the evolution of corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
s in the United States and argues that corporate libertarians have 'twisted' the ideas of free market
Free market
A free market is a competitive market where prices are determined by supply and demand. However, the term is also commonly used for markets in which economic intervention and regulation by the state is limited to tax collection, and enforcement of private ownership and contracts...
economist Adam Smith
Adam Smith
Adam Smith was a Scottish social philosopher and a pioneer of political economy. One of the key figures of the Scottish Enlightenment, Smith is the author of The Theory of Moral Sentiments and An Inquiry into the Nature and Causes of the Wealth of Nations...
's view of the role of private companies.
Korten critiques current methods of economic development led by the Bretton Woods
Bretton Woods system
The Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states in the mid 20th century...
institutions and asserts his desire to rebalance the power of multinational corporation
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...
s with concern for environmental sustainability and what he terms “people-centered development”. He advocates a 50% tax on advertising
Advertising
Advertising is a form of communication used to persuade an audience to take some action with respect to products, ideas, or services. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common...
to counter-attack what he calls "An active propaganda machinery controlled by the world's largest corporations constantly reassures us that consumerism
Consumerism
Consumerism is a social and economic order that is based on the systematic creation and fostering of a desire to purchase goods and services in ever greater amounts. The term is often associated with criticisms of consumption starting with Thorstein Veblen...
is the path to happiness, governmental restraint of market excess is the cause of our distress, and economic globalization is both a historical inevitability and a boon to the human species."
Korten criticises consumerism, market deregulation
Deregulation
Deregulation is the removal or simplification of government rules and regulations that constrain the operation of market forces.Deregulation is the removal or simplification of government rules and regulations that constrain the operation of market forces.Deregulation is the removal or...
, free trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...
, privatization
Privatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
and what he sees as the global consolidation of corporate power. Above all he rejects any focus on money as the purpose of economic life. His prescriptions include excluding corporations from political participation, increased state and global control of international corporations and finance, rendering financial speculation unprofitable and creating local economies that rely on local resources, rather than international trade.
In an article entitled "A Corporate Believer's Turnabout" which appeared in the New York Times on November 25, 2001 writer Suzanne McCoy noted that Korten already practised what he preached in the book. "The Kortens live on Bainbridge Island, Wash., a spot in the Puget Sound near Seattle that Dr. Korten calls the 'land of ecotopia.' He can practice some of his suggestions here, he said, like buying wine from producers he knows personally."
In a review of the book in Left Business Observer #71 in January 1996, Doug Henwood observed that Korten "offers a vision of 'a market economy composed primarily, though not exclusively, of family enterprises, small-scale co-ops, worker-owned firms, and neighborhood and municipal corporations.' Much of this is desirable. But it would be impossible to run a complex economy on this scale only; it's easy to imagine furniture being made this way, but not trains and computers. If Korten means to do away with trains and computers, he should tell us."
External links
- Stylus/Kumarian Press - When Corporations Rule the World 2001 Second Edition, 408 pp.