A thousand years ago there was no country named the United States of America. An ocean away Europeans were minding their own business and are not fully aware of the implications that there are sophisticated civilizations in Asia such as in China and Japan. Yet, a few hundred years later Europeans were able to establish commercial and political relations with the people of the American continent, Asia and the Arab world.
When new means of transportation and communication were developed in the in the 18th century – that led to the Industrial Age – there was no turning back. In this century mankind experienced a different level of interdependence and interconnection. Truly, globalization is a force that is changing this planet. But who is leading the charge? Are multinational corporations the true leaders of the planet? The answer to this question has many implications and this is the focus of this study.
What is Globalization?
Many books have been written about this topic. There are also many experts when it comes to this subject matter but one thing is for sure there is no agreement as to what it truly means (Scholte, 90). Yet, even if there is no agreement as to the exact meaning of globalization as well as the main reason why it has come about, it can be argued that without technology and the adventurous spirit of ancient and medieval explorers this high-level of interconnectedness would have been impossible. Breakthroughs in telecommunication as well as the existence of more efficient means of travel are also one of the main driving forces of globalization.
Globalization is not a mystery but it is like a diamond with multiple facets. Others see the interconnectedness of people with different cultural backgrounds and religious orientation and yet able to transcend these differences through the use of modern technology such as the Internet. There are those who see globalization in the context of mobility, that a person can be a citizen of the UK, yet lives in New York and travels frequently to China. There are also others who argue that globalization is nothing more than a planet being partitioned into manageable pieces by multinational corporations that are now as powerful as nation states.
Rulers of the World
In the not so distant past nations are governed by those of royal blood. It does not matter if they took the crown by force or by diplomacy but there is usually one supreme ruler in a particular region. In the modern age there was a shift to a more democratic form of government especially in many of the world’s richest countries. Still, political power is given to a few people either through an electoral vote or a military takeover.
There can be many ways to ascend to the top but in each case the masses are involved. They are either part of a revolution, supported a coup attempt, or voted for their favorite presidential aspirant. In other words the masses are willing contributors. But this is not the case when it comes to multinational corporations. Thus, the assertion that they are the true rulers of this planet must not be ignored and there must be a clear understanding on the extent of the corporation’s power and influence.
The claim that multinational corporations are the true rulers of the world deserves a more in-depth examination simply because there is very little that an ordinary citizen can do to influence their decision-making process.
There is no electoral process that can be used to correct the abuses of multinational corporations. If it can be proven that multinational corporations are the ones that are controlling this planet then perhaps governments and their respective citizens can do something to lessen their influence. It is not the scope of this paper to dwell deeper on the strategies that can be adopted to lessen the negative impact of corporate leadership but it must be pointed out that if too much power is in the hands of a few CEOs then it is imperative to create some form of a check and balance that will mitigate the effects of greed and absolute power that may emanate from the boardroom of some of the world’s most powerful companies.
Upon closer examination, it can be said with conviction that there is little to fear when it comes to the exaggerated view that this planet is in the control of a few powerful tycoons. While it is true that multinational corporations are more influential today than they were a century ago it is also an overstatement to say that they are the true rulers of the world. On the other hand it must be clarified that multinational corporations can exert profound influence over the citizens of world.
Still, they could not be considered as the true rulers of this planet because of two major reasons. First, trade and industry is not the only reason why people go to war. Nations go to war because of differences in culture, religion, and ideology (Huntington, 36). This means that people are moved not primarily by the products and services that corporations are producing on the daily basis but they are moved by ideas of ethnicity, religious beliefs and national pride. Secondly, a corporation requires a stable political environment for it to thrive.
Corporations cannot stand on their own two feet, so to speak, without the assistance of governments. Without governments that agree to the ideals of democracy and free trade, multinational corporations are without an environment where they can grow. Without institutions such as the United Nations multinational corporations could not operate in many part of the world. It is no accident that many of the richest entrepreneurs are Americans, Germans, British, and Japanese.
These countries embrace capitalism and their laws favor businessmen who provide products and services that help enrich these countries. IBM computers benefited the United States as well as the corporate leaders of the company, who were able to sell them all over the world.
Comparing and contrasting 21st century China and North Korea strengthens this view. These two nation states are heavily influenced by the doctrines of communism. But the Chinese government was able to attract multinational corporations to set-up factories in mainland China while astute businessmen are wary to set-up shop in North Korea. It is therefore clear that the real power does not lie in the hands of CEOs but in those who control the minds of the people through religious movements (e.g. fundamentalism in Islam) as well as those who can sway them through talks about their identity as a nation and as a people.
The power of multinational corporations has been magnified by globalization but globalization is not simply the result of multinational corporations building factories all over the planet. Globalization is the end result from an accumulation of initiatives from individuals and organizations that include official institutions, firms, civic organizations, and small groups (Scholte, 91).
These actors must work together to produce globalization but more importantly the thesis that corporations are the masters of the universe has been weakened. There must be another explanation that will explain the importance of global companies but at the same time pinpoint the real source of power that is holding this planet together, as well as inducing nation states to be in a constant state of flux in preparation for the next war.
America went through various stages of revolutions and transformations. It is also the home of many of the world’s richest multinational corporations but it would be easier to provoke a riot in the streets of Los Angeles or New York using issues of racism rather than by talking about the prices of shares in the stock market. The terrorists who destroyed America’s financial center in 2001 did not come from the corporate world but from an extremist group who carried the hurts and pains of an oppressed people. Huntington was right when he said that, “These differences where the product of centuries” (Huntington, 37). These differences are rooted in religion, ethnicity and nationalism.
It is easy to understand why many consider corporations as the true rulers of the world. For one, the presence of multinational corporations is evident in civilized society. It would be difficult to travel this planet and not find the logo of McDonalds; the discarded plastic wrappers of Procter & Gamble products; the gasoline stations funded by Dutch and American companies; financial institutions that are managed by English bankers; and many more. Global corporations are everywhere: they exert enormous influence on what people consume, what they drive, and what they carry around with them. But this influence is limited.
Global corporations cannot alter a person’s sense of identity. Corporations have no power over the person’s religious beliefs and how they perceive themselves when it comes to issues of race, culture and ethnicity. The one who controls these ideas, those who can manipulate the flow of information, they are the true rulers. This is best understood when looking at how religious extremists can transform an innocent young man into a suicide bomber. The best ad agency in the world could not create such an effect. Microsoft changed the way people do business but in a snap of a finger this company can be abandoned in favor of a better product. When a much better and much affordable operating system is available people will switch loyalties.
Therefore, products and services offered by multinational corporations can be likened to a trend. This seriously challenges the perception that they are rulers of the world because they can also be viewed as servants, controlled by the demands of the consumers. But the same could not be said of those who can expertly use concepts related to ethnicity, religion, and ideology. Those who can articulate these ideas, they are the true leaders of people groups. Men women and even children will gravitate towards them and they will do what they are told.
While it can be proven that multinational corporations do not have the kind of power to initiate World War III, it must be made clear that they exert enormous influence when it comes to other aspects of human behavior. Wal-Mart may not be able to dictate foreign policy but the fact that a mother will choose to shop there rather than in another business establishment is a clear proof that this corporation possesses an invisible power that can alter the behavior of many Americans.
One historian was able to illustrate the forces that are shaping the future and that it is a synergy between social forces and consumerism and he wrote, “Iranian zealots keep one ear tuned to the mullahs urging holy war and the other cocked to Rupert Murdoch’s Star television beaming in Dynasty, Donahue, and The Simpsons from hovering satellites. Chinese entrepreneurs vie for the attention of party cadres in Beijing and simultaneously pursue KFC franchises in cities like Nanjing … where twenty-eight outlets serve over 100,000 customers a day” (Barber, 29). Corporations may not be the rulers of the world but they are part of the movers and shakers of this planet.
Conclusion
There is not enough evidence to show that multinational corporations are the true rulers of the world. This can easily be ascertained by reading the recent headlines as well as studying the events of the last few decades. History makers are not only the world’s richest entrepreneurs but also the humble but rabid religious leaders who are hiding in the caves of Afghanistan or those who are preaching in Iran.
Americans may consider themselves as liberal minded but it is interesting to find out why they constantly try to improve their weapons as well as their ability to defend themselves from external enemies. This is not the work of a corporation. This is the byproduct of an ideology that says that countries like the United States, the United Kingdom, Japan, and Germany are nations that stand for freedom and democracy.
Unconsciously, there is a belief that they must be on top of the world, that democracy is the best ideology and that they have the duty to spread the good news to other countries that are not yet converted to the ideals of freedom and capitalism. These are ideas that unite the citizens of these countries and as long as their government stands on this ideology the people will willingly support them. Corporations do not have this kind of influence and power. But this does not mean that corporations are insignificant contributors. Looking at the big picture it is the politicians, religious leaders, as well as multinational corporations that rule the world.
Works Cited
Barber, Benjamin.. “Jihad vs. McWorld.” In The Globalization Reader. Ed. Frank Lechner & John Boli. New York: Blackwell, 2004.
Huntington, Samuel. “The Clash of Civilization.” In The Globalization Reader. Ed. Frank Lechner & John Boli. New York: Blackwell, 2004.
Scholte, Jan Aart. olte (2005, 2nd edition) Globalization: A Critical Introduction. 2nd ed. New York: Palgrave.