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13 August, 2002The accumulation of such power is dangerous for democracy and development says the IMF.
GLOBAL: According to a new list published by Unctad (the United Nations Conference on Trade and Development), 29 of the world's 100 biggest economic entities are transnational companies (TNCs). The Unctad survey ranks countries and TNCs on the basis of value added, a measure used to calculate countries' gross domestic product. (Unctad defines value added as the sum of salaries, pre-tax profits and depreciation and amortisation.)
Among metalworking TNCs which ranked highest in the world economy for value added were General Motors, Ford Motor, DaimlerChrysler, General Electric, Toyota Motor, Siemens and Volkswagen. GM, with value added of US$56 billion, is just smaller than the economy of Pakistan ($62 bn) but larger than Peru ($53 bn). Ford ($44 bn) and DaimlerChrysler ($42 bn) are bigger than the economy of Nigeria ($41 bn), with GE following closely at $39 bn.
Commenting on the Unctad survey, the general secretary of the International Metalworkers' Federation, Marcello Malentacchi, said it was not acceptable for so much power to be concentrated in so few hands. "The accumulation of economic power by TNCs shown in this survey," stated Malentacchi, "is dangerous for democracy and development, as it reaches beyond the control of governments and democratically-elected parliaments."
"This is one aspect. The other one, making the situation even worse," he added, "is the fact that this group of TNCs is responsible for most of the daily transfer of capital which takes place through the stock market, producing an enormous wave of speculation, and not many jobs."
The IMF general secretary said that the recent scandals with Enron, World.com, various international accounting firms, ABB, Ebner, etc. were but a few examples of how laws are bypassed, ignored and deliberately violated just because TNCs rule the market, and politicians worldwide, in the name of neo-liberalism, have given up their right to exert control over capital.
"Once again," added Malentacchi, "so-called free market forces have proved to be useless for the people. Fifteen of the 29 TNCs concerned are operating in our sectors, and our top priority must be to negotiate Code of Conduct agreements with all the 15 as soon as possible. A Code of Conduct can at least guarantee a minimum standard wherever the TNC is operating."
(Note: See also Marcello Malentacchi's website opinion column on TNCs of August 19, 2002.)
Among metalworking TNCs which ranked highest in the world economy for value added were General Motors, Ford Motor, DaimlerChrysler, General Electric, Toyota Motor, Siemens and Volkswagen. GM, with value added of US$56 billion, is just smaller than the economy of Pakistan ($62 bn) but larger than Peru ($53 bn). Ford ($44 bn) and DaimlerChrysler ($42 bn) are bigger than the economy of Nigeria ($41 bn), with GE following closely at $39 bn.
Commenting on the Unctad survey, the general secretary of the International Metalworkers' Federation, Marcello Malentacchi, said it was not acceptable for so much power to be concentrated in so few hands. "The accumulation of economic power by TNCs shown in this survey," stated Malentacchi, "is dangerous for democracy and development, as it reaches beyond the control of governments and democratically-elected parliaments."
"This is one aspect. The other one, making the situation even worse," he added, "is the fact that this group of TNCs is responsible for most of the daily transfer of capital which takes place through the stock market, producing an enormous wave of speculation, and not many jobs."
The IMF general secretary said that the recent scandals with Enron, World.com, various international accounting firms, ABB, Ebner, etc. were but a few examples of how laws are bypassed, ignored and deliberately violated just because TNCs rule the market, and politicians worldwide, in the name of neo-liberalism, have given up their right to exert control over capital.
"Once again," added Malentacchi, "so-called free market forces have proved to be useless for the people. Fifteen of the 29 TNCs concerned are operating in our sectors, and our top priority must be to negotiate Code of Conduct agreements with all the 15 as soon as possible. A Code of Conduct can at least guarantee a minimum standard wherever the TNC is operating."
(Note: See also Marcello Malentacchi's website opinion column on TNCs of August 19, 2002.)