Global Economic Concentration Leaves 147 Corporations in Charge

Study uncovers just which companies are the one per cent of the global economy.

A new analysis of just who owns what in the global economy found that of the 43,000 or so transnational corporations in the world, 40 per cent of all those company's revenues belong to just 147 corporations, most of which were financial institutions such as Goldman Sachs and Barclays. The study, undertaken by complex systems theorists in Switzerland, found that the "core" of the global economy is a group of 1,318 companies that are highly connected to one another through shared ownership.

Via New Scientist:

"Each of the 1318 had ties to two or more other companies, and on average they were connected to 20. What's more, although they represented 20 per cent of global operating revenues, the 1318 appeared to collectively own through their shares the majority of the world's large blue chip and manufacturing firms - the "real" economy - representing a further 60 per cent of global revenue."

The team found that of those 1,318 firms, 147 form a "super-entity" of companies whose ownership is shared among the rest of the 147. Analysts are concerned that the 147, which again, control some 40 per cent of all revenue in the global economy, are too interconnected. Another financial crisis could send shockwaves through that super-entity, so the research team hopes that such analyses can help pinpoint threats to the global economy and how to stop crises from spreading throughout the financial sector.

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