Swiss Federal Institute of Technology has taken on a new project, a unique attempt to untangle the issue of control in global economics. And what they found wont really sit well with the protestors of Occupy Wall Street but it will act as healthy evidence. An analysis of the relationships between 43,000 transnational corporations (TNCs) identified that a relatively small group of companies hold a disproportionate power over global economics.
43, 060 TNCs were pulled from a database that holds over 37 million companies and investors. They constructed a model of which companies controlled others through share holder networks. It revealed that of this number, 1318 companies had interlocking relationships. Each one had ties to over two or more other companies and on average were connected to 2o or more. Further untangling of the web found that most of this power traced back to a super entity of 147 tightly knit companies.
This means that only one % of the companies were able to control 40 % of the entire network (Yep thats correct we are the 99%). These findings are not actually a bad thing and don’t necessarily lend to corporate greed or power struggles. It can enable economists and the like to gain insights into economic sustainability. Problems lie in tight interconnection, if one company suffers or is in distress than others close to it are affected. By identifying the architecture of global economic power, analysis could help it become more stable and suggest measures to prevent future collapses.