Corporatocracy

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Corporatocracy (from the Latin corpus "body", via the term " corporation ", and ancient Greek κράτος krátos " violence ", "power", "rule") today describes a form of rule in which political orders or political systems in which power and government emanate from corporations ( group rule ).

Concept history

This political science term to denote different forms of participation of certain social groups in political decision-making processes was coined by John Perkins in his book Confessions of an Economic Hit Man . Perkins translates it himself as "rule of corporations" and relates it to the influential interdependence between corporations, banks and governments: "The corporatocracy rests on three pillars: large corporations, international banks and initiated, subordinate, often puppet governments."

definition

Corporatocracy as a term is widely used by observers across the political spectrum to refer to a government in which power has been transferred from the state to large corporations.

In 1956 , the author Charles Wright Mills called this collective the “ power elite ”, the wealthy individuals who hold prominent positions in companies . They control the process of determining the economic and political policies of a society.

The concept was used to explain bank bailouts, excessive salaries for top managers , and complaints such as the exploitation of national treasuries, people and natural resources. It has been used by critics of globalization , sometimes in conjunction with criticism of the World Bank or unfair lending practices, as well as criticism of "free trade agreements".

properties

Unregulated capitalism inevitably and naturally leads to the development of corporate monopolies . Which encourages the spread of corruption as business leaders spend significant amounts of money to ensure the government does not interfere in their activities. Karl Marx described the action of the capitalist states: “feigning neutrality to maintain order, but serving the interests of the rich.” Government regulations, such as the Sherman Antitrust Act of 1890, were passed to ensure competition in the market.

During the neoliberal period, the weakening of such regulations, along with globalization and increasing financialization, increased the power of corporations at the global level - the global players - and the rise of what economist Joseph Stiglitz described as "global monsters" (mainly the USA ), such as Apple , Microsoft , Google , Amazon and Oracle . This development has been accompanied by a surge in economic inequality and a global race to the bottom that Ramaa Vasudevan, Associate Professor of Economics at Colorado State University, calls the "relentless search for cheap labor."

Edmund Phelps published an analysis in 2010 in which he proposed that the cause of income inequality is not free market capitalism, but the result of increasing corporatization. From this point of view, corporatization is the opposite of free market capitalism. It is characterized by semi-monopoly organizations and banks, large employers' associations that often work with complicit government institutions and impede (or block) the natural processes of a free economy. The main effects of corporatization are the consolidation of economic power and prosperity, which ultimately leads to a decrease in entrepreneurial dynamism and the dynamism of the free market.

In his follow-up book, Mass Flourishing , corporatization is further defined by the following attributes: Distribution of power between government and large corporations (in the US, using the example of the expansion of government power in areas such as financial services, health care, energy, law enforcement / correctional systems and the military through regulation and outsourcing ), an expansion of lobbying and campaign support for companies in exchange for reciprocity between governments, an escalation in the growth and influence of the financial and banking sectors, an increased consolidation of the corporate landscape through mergers and acquisitions (with subsequent increases) in Corporate executive compensation, increased potential for corruption and misconduct by corporations and governments, and a lack of entrepreneurial and small business development, resulting in lethargic and stagnant economic conditions.

The privatization processes of public companies are usually the first impetus for this form of government, as the state loses its regulatory power in the economy and public services and companies have a greater influence on its decisions.

See also

literature

Web links

  • Thomas Schulz: White-collar crime: Confessions of a killer . In: Der Spiegel . No. 13 , 2005, pp. 86 ff . ( online ).

Individual evidence