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27th October
2011
written by Bstefan

Revealed – the capitalist network that runs the world – physics-math – 19 October 2011 – New Scientist

Image: PLoS OneAn analysis of the relationships between 43,000 transnational corporations has identified a relatively small group of companies, mainly banks, with disproportionate power over the global economy.

The study’s assumptions have attracted some criticism, but complex systems analysts contacted by New Scientist say it is a unique effort to untangle control in the global economy. Pushing the analysis further, they say, could help to identify ways of making global capitalism more stable.

The study, by a trio of complex systems theorists at the Swiss Federal Institute of Technology in Zurich, is the first to go beyond ideology to empirically identify such a network of power. It combines the mathematics long used to model natural systems with comprehensive corporate data to map ownership among the world’s transnational corporations (TNCs).

“Reality is so complex, we must move away from dogma, whether it’s conspiracy theories or free-market,” says James Glattfelder. “Our analysis is reality-based.”

Read the full article at the NewScientist, enlightening. Having studied complexity theory and network theory myself I am not surprised. Without any dogma I agree with the authors “such structures are common in nature”. I would assume a classic Pareto or power law distribution in practice. Nevertheless as economy is a social construct and not a natural pattern, we might be able to design it, if we understand it.

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