When Corporations Rule the World

Rating:
Summary: Thank you David Korten
Review: No book or university course has provided me such a concise description with compelling examples, measures and details of the workings and history of the global economy.

The title could have been simply "Corporations Rule the World".

First and foremost, the book provides a foundation for thinking about sustainable business, ones' role in society, day-to-day habits and our collective need to create a future for our children.

Take note, however, that the book is worth a read in a very pragmatic and personal way, as a primer for investors.

I was given the book on Aug 17 '98 and finished it by the 22nd. In recent years, I had placed all of my hard earned cash, and some inheritence from hardworking grandparents -- for convenience sake -- in the hands of fund managers dealing in "blue chip" companies in the global equity markets. Understanding something from Kortens' book, and his apt description of the world now around us...I sold all of those equities and funds on the 24'th. The markets collapsed on the 25'th. I'll go back to directing my own investments with the cash I've saved -- thanks to a timely reading of Korten's informative book.

Kortens' work is as brilliant as a Hitchcock movie -- providing space for the reader to fill in the "gaps", to "get" his global picture in a personal way. Korten avoids confronting readers with the simple statement that WE ARE corporations. We ARE government and we ARE civil society -- however healthy or sick...

Having said that, Korten's book is entertaining and frightening because he is fact-based and truthful.

Unlike other Amazon.com book reviewers, I generally accept and enjoy pondering Korten's ideas.

I volunteer and commit to spend my rare time on this planet to forward Korten's kind of agenda for people-centered development. There's no point having kids and no way to sleep at night, without wisdom and change.

I'll invest in new forms of global business opportunity, based on Korten's wisdom and call for change. I'll start by changing myself, to make my actions consistent with my words, to make my words consistent with such wisdom as Korten's and to make my business work towards a healthy tomorrow.

Thank you, David Korten.

Rating:
Summary: Read it and pass it on
Review: I mainly want to reply to [e-mail]'s (1 star) review: Korten DOES address the problem of population growth. One of the main premises, outlined early on, is that the world is "full." Plenty of research has calculated how much land-use is required to support the quality of life enjoyed by Americans. And guess what - it's physically impossible to give all six billion citizens of Earth that type of consumerist lifestyle! Yet we preach, nay FORCE, the religion of economic growth and our economic system (via the IMF, WTO and World Bank) upon the overpopulated, undeveloped nations. I have to wonder if tf1 even read the book.

More and more, intelligent minds are coming around to the realization that economic "growth" at all costs is taking us down a dangerous road. Terrorism is just one of the dimensions of the backlash facing us if we don't start changing NOW. This book contains deep insights into the problem and good suggestions for action. Read this book, and better yet, sell off that mutual fund, stop buying into a 401K, and invest in yourself.

Rating:
Summary: The Long Road to Democracy
Review: By far, the most comprehensive, well-researched, incisive documentation of systemic corporate abuse available. When Corporations Rule is not simply a litany of profligate corporate excess, though. Korten explains the dysfunctional logic of our system, outlines the horrendous consequences for community and environment, and provides clear, cogent plans of action to create real democracy and awaken culturally.

We always harangue socialism as an "extreme ideology," but as Korten makes clear capitalism is also an extreme ideology. Socialism concentrates power in a centralized government, creating unsupportable social and environmental costs. Capitalism concentrates power in huge private institutions (the modern multinational corporation), which also have enormous social and environmental costs. Both advance the concentration of rights of ownership without limit, to the exclusion of the needs and rights of the many who own virtually nothing. And as Korten shows, the impoverished many are growing.

As of 1992, the richest 20 percent of the global population received as much as 82.7 percent of the total world income. The poorest 20 percent received 1.4 percent. These figures indicate growing economic inequality, which is has become even more pronounced in the last decade. In 1998, the world's top three billionaires totaled more assets than the combined GNP of all the least developing countries and their 600 million people. Of the world's 6 billion people, 2.8 - that is, nearly half - were living on less than 2 dollars a day. Some 1.2 billion of that half lived on less than a dollar a day.

Inside America - the global economic trendsetter - this growing inequality that we see between nations is mirrored in microcosm. In fact, inequality and hardship is even more exaggerated in the Land of the Free. The wealthiest 10 percent now own almost 90 percent of all business equity, 88.5 percent of all bonds, and 89.3 percent of all stocks. In 1999, the total compensation of U.S. corporate CEOs was 475 times the average production worker's pay; and 29 percent of all U.S. workers were in jobs paying poverty level wages, defined as an hourly wage too low to meet the needs of a family of four. Moreover, with each new mega-merger and corporate takeover, more capital, power and control are concentrated in these already mammoth institutions. What ever happened to the anti-trust laws?

These are just a few of the statistics sited in the book, but When Corporations Rule offers more than statistical analysis. With laser precision, Korten essays economic and political history, uncovering the reasons for these global trends: including the illusion of growth, the loss of governmental oversight in the affairs of corporations, the rise of the Newtonian mechanical worldview and its subsequent devaluation of spiritual values, etc. His critique of globalization is absolutely stunning: including the effects of NAFTA, and the general policies of the WTO, the WB and the IMF. Finally, his call for localism, activism, spiritualism and an ecological awakening are inspiring and timely.

Not a stone goes uncovered. The failure of development strategies for the Third World (his stated specialty), critical discussion of traditional economic theory, the rise of PR, global poverty, currency speculation and corporate raiding, downsizing, contracting labor, automating, the loss of the small farm, the effects of Walmart and the like, ecological collapse, the coming Ecological Revolution, sustainability, socially responsible investment, systems theory, urban design, history of the current globalization protest movement, a detailed agenda for democratic change - these and so many other important issues are weaved together in a remarkable argument that will shock, sober and move you. I cannot think of a more important book for those who still have faith in the global economy. This troubled planet needs more Kortens. Bravo!

Rating:
Summary: Read it and pass it on
Review: I mainly want to reply to [e-mail]'s (1 star) review: Korten DOES address the problem of population growth. One of the main premises, outlined early on, is that the world is "full." Plenty of research has calculated how much land-use is required to support the quality of life enjoyed by Americans. And guess what - it's physically impossible to give all six billion citizens of Earth that type of consumerist lifestyle! Yet we preach, nay FORCE, the religion of economic growth and our economic system (via the IMF, WTO and World Bank) upon the overpopulated, undeveloped nations. I have to wonder if tf1 even read the book.

More and more, intelligent minds are coming around to the realization that economic "growth" at all costs is taking us down a dangerous road. Terrorism is just one of the dimensions of the backlash facing us if we don't start changing NOW. This book contains deep insights into the problem and good suggestions for action. Read this book, and better yet, sell off that mutual fund, stop buying into a 401K, and invest in yourself.

Rating:
Summary: Pulling the props from under the propaganda
Review: This very succinct and very clear account of global capitalism run wild does the job where most leftist accounts of their subject too often suffer addled brain syndrome due to Hegelian brain rot. All it takes is a few pokes. Gosh, I had no idea the limited liability joint stock corporation was a problem, like the now passe institution of monarchy. The regime of mass media is so constant in its effect that we are already filled with sound bite refutations of the obvious facts of the case. And conventional economists are usually in recovery from their neo-classical college degree. At first sight the treatment appears lightweight and the text doesn't seem to amount to much, but within a few pages the relatively loose argument does its job. Take as a vitamin supplement for couch potato syndrome, or the daily newsspeak. Nice.

Rating:
Summary: It's not When, they do. Good overview of the concerns.
Review: The fact that transnational corporations and their agendas have come to dominate cultural, political, and economic life on a global scale can hardly be disputed. These powerful corporations have used national governments and government-created international bodies to create a legislative and institutional regime that accedes to and actively promotes and implements a "free-market" ideology. This book is largely concerned with detailing the tremendous costs to the political, economic, and social fabric of the entire global community as corporations have become ever more capable under this ideological regime in extracting wealth and generating huge profits on a worldwide basis. The author sees poverty, social and political disintegration, and environmental degradation as the main consequences of this global corporate ascendance.

The ability of corporations to penetrate the political and cultural sectors of our society is hardly a late twentieth century phenomenon. Despite the founders' efforts to contain corporations by explicit and revocable state charters, emerging industrialists in the post-Civil War era became powerful enough to sway legislators and the judiciary to act in their behalf. Not only did corporations generally gain rights to perpetuity, but the Supreme Court declared corporations to be legal persons entitled to the same rights as ordinary citizens, in addition to limited liability. By the late 1920s capitalism had largely emerged triumphant over worker and community interests. Consumerism was instilled as the only legitimate avenue for realizing individualized "freedom."

According to the author, a form of democratic pluralism existed among the civil, governmental, and market sectors of society in the post-WWII era, but any such sectorial accommodation was mostly an aberration that came about only because of the necessity to solve the twin crises of the Great Depression (caused by corporate-led economic excess) and WWII. Any social accord that may have existed was shredded as corporations, backed by the Reagan administration, renewed their assault on the working class and relentlessly pursued self-interested global strategies. Over the last two decades, middle-class jobs have been lost, median pay has stagnated, and austerity has been imposed on the less fortunate as a profound upward redistribution of wealth and income has occurred.

Globally, the structural adjustment measures forced upon developing nations by the World Bank and the IMF to qualify for loans, ripped the fabric of those societies and have actually increased indebtedness to First World bankers. Trade agreements and administrative bodies, such as the NAFTA and the WTO, are designed to eliminate local restrictions on investments by international firms and barriers to the free movement of goods between nations. The freedom for capital to move freely among nations has also fueled rampant financial speculation unrelated to productive investment. Unconscionably, American taxpayers have been forced to bailout those engaged in extracting wealth from the developing world.

Free market ideology is used to justify the gutting of the social and legal structures of nations. But it is a disingenuous view. Free market activities posited by Adam Smith involve local, individual economic actors, none of whom have the power to control the marketplace. Unregulated market activities by huge economic entities can result in market coercion. For example, monopolistic firms can externalize costs, that is, they are powerful enough to force societies to pay for the social and environmental side-effects of their activities. For example, labor and environmental regulations are often ignored with impunity with society picking up the pieces.

The impact of corporations acting as legal persons cannot be overemphasized. Corporations overwhelm actual citizen political participation and free speech by the extent and intensity of their political lobbying and media controlling efforts. Corporations and the rich, in a form of legalized bribery, basically fund political campaigns. They also heavily sway public opinion through public relations front organizations, conservative think-tanks, and the control of the major media. The dependency of the media on advertising dollars virtually guarantees presentation of views that are compatible with corporate interests, not to mention the fact that the huge media empires are themselves transnational corporations with no interest in harming broader corporate interests.

As the author indicates, corporations have largely "colonized" the common culture. Television is the main media outlet for the inculcation of business-friendly values, which emphasizes the avid pursuit of consumption. Even political activity has become mostly the marketing of pleasing candidates. The message is incessantly and subtly delivered that a free market system is self running and stabilizing and needs little or no political interference. Of course, the reality is far different. Corporations have infiltrated government at all levels with the sole purpose of ensuring that governments take an active role in supporting the corporate agenda, or pro-business regulation. In addition, governments are left to deal with the unprofitable aspects of society or side-effects of corporate actions. The net effect is a democracy hardly worthy of the name.

The author's principal approach to this regime of corporate hegemony is to call for a rollback to self-sustaining local communities. Such recommended measures as land reform (breaking up corporate farms) and urban agriculture seem almost quaint. The author confuses his message of a return to pre-consumption-dominated life by calling for high tech solutions, such as video-phones, to link local communities. Where does he think high tech products come from other than corporate development labs? A hard-hitting analysis seems to be getting waylaid by some fuzzy spirituality.

But the most practical approach is contained in the book. Free market propaganda has to be countered and a regime of regulating big business through governmental controls must be instituted. Is there any hope for this? The Seattle protest and other citizen demonstrations show that the democracy-killing initiatives of the WTO have not gone unnoticed. In addition, it has been claimed that 25 percent of the population belongs to a cultural grouping called "Cultural Creatives," who can be expected to oppose insensitive corporate agendas. And the author takes no note of minority interests that are generally opposed to the conservative business agenda. The author wants to see a cultural transformation, but a heightened awareness of class will be needed to combat the class warfare being perpetrated on the non-elites of the world.

Rating:
Summary: Excellent Primer on Dangers of Transnational Influences!
Review: It should come as no surprise to well-read students of the late 20th century that the goals, ethos, and practices of transnational business corporations are oblivious and often inimical to the needs of specific cultures and particular nations. But what is even more alarming is the extent to which these corporations persist in behaving as though the consequences of their activities and practices are either accidental or unavoidable. Thus, "When Corporations Rule the World" helps to inform, enlighten and prepare us as to what mischief these relatively new and potentially revolutionary forms of organizations are doing to societies, cultures, and the environment.

They act in their own best interests, and the way in which they perceive these interests is narrow, self-serving, and quite shortsighted. The fact is that transnational corporations have successfully trumped ordinary citizens in terms of their power, influence, and ability to determine the laws, regulations, and social conditions under which they operate in any particular polity, so that even in the so-called social democracies such organizations seem able to act with near absolute impunity. As a result, their actions are increasingly at odds with those of the society itself, and increasingly ordinary citizens are coming to recognize that the political lobbies created by such organizations have captured the strings of power for their own uses. As H. L Mencken said almost eighty years ago in reference to the U. S Congress, "We have the best Congress money can buy". Some things never seem to change.

Author Korten lays out a virtual panorama of ways in which such transnational corporations rule, and shows how the benefits of such practices seem to be progressively narrowing the basis of the so-called "good-life" to an ever-decreasing portion of the citizens of post-industrial society. In this sense, Korten does a handy job of deftly highlighting the ways in which the world's many environmental and social problems are interconnected and related. Moreover, he contends, the trend of this unhealthy and undemocratic combination of bad habits, narrowly focused corporate values, and profligate ideologies combine to produce the likelihood of a very negative future. Yet, as Korten is quick to point out, it is not all necessarily bleak and unchangeable. He draws out scenarios in which a more sustainable future that would be more palatable to everyone within the modern post-industrial society, including the most conservative business elements among us.

Yet, even as he attempts to paint a more positive possibility for the future, he is left ruminating over the many ways in which transnational corporations continue to run amok, beyond the reach of national laws or meaningful regulation, motivated more by greed and short-term profit orientations than by any meaningful ties to a broader ethos which includes elements of social responsibility or cultural appreciation. Today, as we see the ways in which the post-industrial societies have surrendered to the leitmotif of the transnational corporations, in a world run increasingly for the convenience and interest of large commercial business interests, it is difficult to see how the kinds of happier times he hopes for can come to pass. This is an excellent primer for anyone interested in learning more about the scope of transnational corporations and the many ways in which they have encroached on the rights, prerogatives, and benefits of citizens in particular societies such as our own, and the dangers they pose for our continuing liberties and well being. Enjoy!

Rating:
Summary: Best "buyer beware" information since Ralph Nader
Review: The book dissects the gritty and often dire consequences of consumer patterns, economic and legal policies, and gives insights on how to "leave the camp ground cleaner than when we found it."

It explains why we need to alter our current modus operandi because currently, we are heading towards disaster as in famines, the AIDS epidemic, war, environmental impasse (meaning that drinking tap water and eating any type of food could be increasingly toxic because more pesticides and chemicals are contained in the foods as we have taxed our earth in a way that it can barely produce for us).

I often hear how mass globalism can destroy local culture-like why a Wal-Mart can drastically impact a local economy. It is extremely informative, well researched-and is a call to action!

Rating:
Summary: When Corporations Rule the World
Review: Author David C. Korten addresses some of the main issues affecting the global environment today. In my opinion, anyone who considers him/herself an environmentally conscious person should read this book to broaden his or her sense of environmental thinking. Korten touches upon the issues and concerns that have driven the thoughts and arguments of many people in the past that are concerned with the future. These are such things as human population numbers increasing at such a high rate, which Paul Erlich has written about in the past, to a new line of thinking dominated by the notion that corporations, and more importantly money, is at the root of all environmental problems.
He mentions that only the rich countries can focus on economic growth. I think there is a lot of truth to that. If you can put yourself in a poor and developing country and see what they see and do, and do what they do to survive, there is no way that your main concern is going to be economic growth when it is difficult just to put food on the table. Korten gets at the root of the problem by blaming corporations that are just seeking money. Many of the big global corporations today make most of the pollution today, especially in developed nations like those of Europe and the U.S. These developed and commercialized corporations produce their excessive amount of waste and force underprivileged nations and environmentally concerned citizens to clean it up because it is more economically advantageous to do so.
The leaders of these corporations are also in a tight spot. The CEOs of these big companies are put there for only one reason and that is to further the company by making as much money as they can for the board members and stockholders. If these CEOs fail to come up with new and innovative ways to make money they get fired and are out of luck. In a way the positions of the CEOs and citizens of poorer countries show an unusual similarity. The CEOs are considered some of the wealthiest people in the world but in their civil society they are doing what they have to in order to keep their job and maintain a certain way of life. The citizens of developing countries care about the environment but, in their situations, it is one of the only expendable things they have access to. They are also doing what they have to in order to survive in their respective civil society.
So if environmental problems like deforestation and overpopulation are to be solved, these two very different, but somewhat similar, civil societies must come to each other's aid and work together. Right now the only thing that is really happening is that poor nations are using up their natural resources and destroying ecosystems in order to supply companies like Chiquita Bananas with enough product to make a profit. While doing this, the workers of the poor nations barely get enough money to live off of and often times are forced to make their children work at a young age in order to eat. The idea of globalization is often thought of as a bad thing because people say that the rich countries are forcing their way of life on to others. That is true, but if globalization can be changed to mean that the entire globe works together to solve the environmental drama facing this planet today, it is a step in the right direction towards a healthy Mother Earth.

Rating:
Summary: Rural Sociology 248
Review: When Corporations Rule the World, by David C. Korten, is a literary guide of pressing social issues in our modern world. Major triumphs and successes have led us valiantly into the promising world of longer life expectancy, the prevention of potentially fatal diseases, and many other comforts of life that the "Amercican Dream" is so relentless at supplying. A multitude of lifestyle and institutional vital signs are presented modestly in Korten's book, but the essential insight he relays comes from his ability to amplify the contradictions of landmark issues.
The idea of the America's dream of economic stability and the security in life seems to be at jeopardy, but the problem has a way of masking itself. Since technology and globalization have increased dramatically our economy has skyrocketed, but Korten alludes to the point that although are economy is pulling in more money, that less of it is going to the poor and middle class.
Korten maps out loudly significant issues manifested by a power struggle with the rich getting richer by saying,

"Fewer and fewer people believe that they have a secure economic future. Family and community units and the security they once provided are disintegrating. The natural environment on which we depend for our material needs is under deepening stress. Confidence in our major institutions is evaporating, and we find a profound and growing suspicion among thoughtful people the world over that something has gone very wrong," (Korten 28).

Insecurities in such a holistic manner deteriorate the idea of a vital democracy where equity is sought. Economic growth can be a positive thing, but the more growth it seems the more uncertainty in earning a livable wage for the majority.
All of these problems point to the capitalistic institution lacking the necessary public goods and securities offered to everyone that enables any human to reach full capacity of self. Stressing the importance of economic growth weakens values of community and intensifies a selfish competitive "winner-take-all" approach to life.
I would really recommend reading this book if you are ready for a shockingly transparent look at our contemporary American society. Also this book gives an excellent look at avenues of change in realms of concentration in power to enhance a more vital democracy. This transformed institution would have the capability to serve the people, not specifically the corporations and special interest groups. This book is a great leap in bounds of a more sustainable approach to life, community, and natural resources.