Who's Who of the
New Ruling Elite
By SUSAN BRYCE-In the post cold war era, a New World Order is evolving by economic, as
much as political means. As the aggressive scramble for global wealth
unfolds, international banks and corporations are anxious to play a direct
role in shaping financial structures and “policing” economic reforms. The
old institutions of ‘shadow government’ – the Trilateral Commission, the
Bilderberg Group, the Club of Rome and the CFR, have been usurped by a new
economic elite. This article looks at several of these elite groupings and
their effects on the international political and economic landscape.With a relentless drive to control the productive assets, labour,
natural resources and institutions of sovereign nations, the new economic
elite no longer cower behind closed doors. Their agendas are no longer a
shadowy secret. Their activities are openly reported. Their policy papers
are embraced by governments. Their members are the respected ‘leaders’ of
transnational corporations (TNCs). Collaboration between them occurs at the
highest level. The new economic elite use esteemed groupings such as the
World Economic Forum and bodies such as the World Trade Organisation to
achieve their singular goal: profit maximisation through economic
globalisation.
THE WORLD ECONOMIC FORUM
The World Economic Forum (WEF) is arguably one of the most influential
elite groupings. It is a membership-organisation which promotes interaction
among leaders from government, business, academia and the arts with the
vague objective of ‘improving the state of the world.’
Membership of the WEF is comprised of over 800 chief executives, some 200
government leaders, numerous high ranking officials from regional and
international organisations, some 300 experts, scientists, artists and
representatives of the media. Major firms from all sectors of business and
industry are represented.
The World Economic Forum organises high-level meetings and summits, the
largest and best-known of which is its Annual Meeting held in the ski
resort of Davos in eastern Switzerland. This week-long meeting, informally
known as the Davos Symposium, brings together the leaders of transnational
corporations to discuss their positions and meet politicians at the highest
level. World Trade Organisation issues feature often on their agenda and
have informally influenced WTO policy-making through discussions regarding
global issues and business contracts. At the beginning of the eighties, the
WEF played a major role in launching the Uruguay Round.
The World Economic Forum is arguably a world government in waiting. It not
only is a forum for the development of economic policy, but is also a
political arena. In 1988 the prime ministers of Greece and Turkey,
attending the annual meeting, signed the “Davos Declaration,” thereby
moving their countries back from the brink of conflict, and in 1994,
Israeli Foreign Minister Shimon Peres and PLO Chairman Yasser Arafat
reached a draft agreement in Davos on Gaza and Jericho.
The Foundation of the WEF encourages “the creation of economic regions as
pillars of the world economy.” The Foundation organises and runs regional
and national meetings around the world. Such meetings include the 1994
Europe/East Asia Economic Summit in Singapore, the 1995 Southern Africa
Summit, and the 1994 Middle East/North Africa Summit held in Casablanca,
Morocco, which was convened in partnership with the Council on Foreign
Relations, and which proposed mechanisms to support the peace process in
the Middle East. The World Economic Forum also organises annual national
meetings in a number of countries including Germany, India, China and the
United States.
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CORPORATE PARTNERS OF THE NEW WORLD ORDER
It was at the 1999 WEF in Davos, that United Nations Secretary General,
Kofi Annan, announced the UN’s “compact for the new century” with
transnational corporations.
During his speech to assembled delegates, Annan stated “at a global level,
corporate control of the political and economic landscape is being achieved
by a new partnership forged with the United Nations (UN). The business
community is fast becoming one of the United Nations’ most important
allies. A fundamental shift has occurred in the UN-business relationship.
The United Nations has developed a profound appreciation for the role of
the private sector: its expertise, its innovative spirit, its unparalleled
ability to create jobs and wealth. At the same time, business and industry
are recognising the many virtues of the Organisation’s work for political
and social stability and for a predictable, rule-based environment for
trade and investment. In a world of common challenges and common
vulnerabilities, the United Nations and business are finding common
ground.”
“The dialogue between the United Nations and the business community is
based on the conviction that expanding markets and human security and
well-being go hand in hand. That is why the Organization’s doors are open
to you as never before.”
The UN Secretary General then went on to elaborate upon the ways that a
‘creative partnership’ between the UN and the private sector could
flourish. “The goals of the United Nations and those of business can,
indeed, be mutually supportive,” he said.
He described human rights abuses, dwindling labour standards and
environmental degradation as “legitimate concerns…but restrictions on
trade and impediments to investment flows are not the best means to use
when tackling them… instead, we should find ways to achieve our proclaimed
standards by other means.”
Discussing these “other means”, Kofi Annan advised that one way would be
through the international policy arena. “You (the World Economic Forum
membership) can encourage States to give us the multilateral institutions,
the resources and the authority we need to do our job.”
Evidence of this new corporate alliance within the UN is growing steadily.
The United Nations Development Program, with a mission of serving the
world’s poor, has solicited funds from global corporations who are paying
$50 000 each for UNDP patronage privileges. In return, the corporations
receive special UNDP sanctioned logos. Their financial contributions are
held by the UNDP sponsored Global Sustainable Development Facility, an
entity which the contributors themselves manage. Sponsors benefit from the
advice and support of the UNDP through a special relationship which affords
corporations unprecedented access to the UNDP’s network of offices, high
level governmental contracts and reputation. Some of the transnationals
which have contributed to the GSDF include:
Dow Chemical (USA)
Rio Tinto PLC (Britain)
Novartis (Switzerland)
Ericsson (Sweden)
Owens Corning (USA)
Oracle Corporation (USA)
Asea (Sweden/Switrzerland)
Citibank (USA)
ABB Group (Sweden/Switzerland)
AT&T (USA)
Cultor Coproration (Finland)
ESKOM (South Africa)
Hennes and Mauritz (Sweden)
IKEA International (Sweden)
RWE (Germany)
Statoil (Norway)
Swedbank (Sweden)
Telia AB (Sweden)
The UN’s corporate agenda is continuing to gain momentum with the recent
announcement that the UN High Commissioner on Refugees is co-chairing a new
organisation – the Business Humanitarian Forum – with UNOCAL, a company
with one of the worst human rights and environment records in the world.
Sitting together on the Board of this new organisation, which has been
endorsed by Kofi Annan, are both UNICEF – an advocate for children’s
rights – and Nestle, a company which continues to violate a UN code of
conduct on infant formula designed to protect children.
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WORLD TRADE ORGANISATION
The World Trade Organisation (WTO) is itself another elite grouping of
economic powerbrokers. The WTO covers a wide range of sectors with
implications for most aspects of life. These include intellectual property
rights (including bio-technology), agriculture (food), the services
industry (transport) and telecommunications.
The interests of Transnational Corporations play a crucial role in WTO
negotiations. While it is the 132 member countries who are responsible for
decision-making across the WTO’s organisational bodies, it is the private
sector that increasingly influences the policy positions of member
countries. For the very large transnational corporations the WTO is an
important domain of trade jurisdiction and a crucial determinant of the
extent to which they are able to operate unhindered.
As feared, in every case brought before it to date, the WTO has ruled in
favour of corporate interest, striking down national and sub-national
legislation protecting the environment and public health at every turn.
When an industry-backed governmental challenge to a ‘disadvantageous’
national or local law is brought before the WTO, the contending parties
present their case in a secret hearing before a panel of three totally
unaccountable trade experts – generally lawyers who have made careers of
representing corporate clients on trade issues.
There is no provision for the presentation of alternative perspectives from
non-governmental organisations, and documents presented to the panel, and
the identification of the panelists who supported a position or conclusion,
remain secret. If the offending government fails to persuade the panel of
the offending law’s validity, it is legally and automatically bound to
bring its law into line with the lower international standard, or be
subjected to perpetual fines or trade sanctions. Theoretically, there is a
process of appeal, but this is only possible if all member countries vote
to stop the decision within 90 days. A procedure designed to ensure that
appeals are unlikely to succeed.
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BUSINESS AND INDUSTRY ADVISORY COMMITTEE
There are also organisations within organisations that are driving the
forces of globalisation. One example is the influential Business and
Industry Advisory Committee (BIAC) of the Organisation for Economic
Cooperation and Development (OECD), which often influences the position
that the richer countries adopt in the WTO. The International Chamber of
Commerce (ICC) and TNCs plays an important role in BIAC.
INTERNATIONAL CHAMBER OF COMMERCE
The International Chamber of Commerce (ICC) calls itself the World Business
Organisation for promoting international trade, investment and the global
market economy system, and rules governing the conduct of business across
borders. The ICC covers 7000 member companies and associations from over
130 countries and ensures that business concerns are brought to the
attention of governments in a coordinated way via its international
presence. Through its Secretariat in Paris, it has access to the highest
decision-makers and staff from the World Trade Organisation, the
Organisation for Economic Cooperation and Development and the UN. Many ICC
members are TNCs whose views predominate in the ICC’s policy positions.
The ICC has privileged access to the United Nations. In 1997, a delegation
of ICC members, including industry captains from Coca Cola, Unilever,
McDonalds, Goldman Sachs, and Rio Tinto Zinc made a joint statement with UN
Secretary General, Kofi Annan describing the “broad political and economic
changes that have opened up new opportunities for dialogue and cooperation
between the UN and the private sector.” The two sides committed themselves
to forge a “close global partnership to ensure greater business input into
the world’s economic decision making and boost the private sector in the
least developed countries.”
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THE INSTITUTE FOR INTERNATIONAL FINANCE
The Institute of International Finance (IIF) is a mouthpiece for the
world’s largest banks and investment houses. In April 1998, it proposed the
creation of a ‘Financial Watchdog’ – a so-called “Private Sector Advisory
Council” – with a view to routinely supervising the activities of the
International Monetary Fund (IMF).
In the wake of the Asian economic meltdown, the IMF was quick to response
to the IIF. The Fund called for concrete “steps to strengthen private
sector involvement” in crisis management in what might be interpreted as a
“power sharing arrangement” between the IMF and the global banks.
The agenda is to transform the IMF – from its present status as an
inter-governmental body – into a full fledged bureaucracy which more
effectively serves the interests of the global banks. More importantly, the
banks and speculators want access to the details of IMF negotiations with
member governments which will enable them to carefully position their
assaults in financial markets both prior and in the wake of an IMF bailout
agreement.
The international banking community has also set up its own high level
“Steering Committee on Emerging Markets Finance”, integrated by some of
the world’s most powerful financiers including William Rhodes, Vice
Chairman of Citibank and Sir David Walker, Chairman of Morgan Stanley. The
global banks (pointing to the need for “transparency”) have called upon
“the IMF to provide valuable insights [on its dealings with national
governments].”
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EUROPEAN ROUND TABLE
Since its creation in 1983, the European Round Table (ERT) has fostered top
level cooperation between transnational corporations and governments, at
both national and European levels. It consists exclusively of the Chief
Executives (CEOs) of a number of TNCs based in Europe such as Philips,
Bayer, Unilever and Nestle. The ERT’s powerful constituency gives it
informal as well as formal access to the highest ranking decision-makers
including prime ministers and the German Chancellor.
It makes its views well heard at the national and European levels by means
of short and authoritative reports, position papers and face-to-face
discussions. The ERT claims to have contact with the EC, the Council of
Ministers and the European Parliament, as well as many international
organisations such as the WTO. Every six months, the ERT meets Ministers of
the government holding EU presidency. At the national level, each Member
keeps in personal contact with decision-makers, parliament, business
colleagues, industry organisations and the press. It also works with the
ICC, and the Transatlantic Business Dialogue (TABD). Research into the ERT
demonstrates the considerable influence on European policy and
decision-making, and further, that its adopted position on the WTO is
reflected in EU trade policy.
TRANSATLANTIC BUSINESS DIALOGUE
The TABD, the Transatlantic Business Dialogue, describes its function as an
informal process whereby European and American companies and business
associations develop joint EU-US trade policy recommendations. Working
together with the European Commission and US Administration, they help
shape US-EU trade policy including in the WTO. It is a unique process,
driven by business leaders, because of the personal involvement of CEOs
working closely with the highest levels of government from the EU and US.
It is not an organisation, but a framework drawing on the resources of
existing companies and organisations, to deliver joint industry messages.
The results are considered much more efficient than the traditional
structures for government-business consultation.
The United States and EU businesses form working groups and produce reports
which are then used to inform policy-makers. The Working Group on Global
Issues addresses matters arising in the WTO such as, services negotiations,
the Information Technology Agreement (ITA), government procurement,
intellectual property, investment and competition. ITA meetings are chaired
by representatives from Olivetti and Compaq.
Further consultation and lobbying occurs at a yearly conference which bring
together CEOs and senior-level government representatives, including the
highest level decision-makers such as the WTO Director-General and the EC
Commissioner for Trade. This combination of CEOs and senior government
representatives have proved to provide an unprecedented opportunity to
achieve breakthroughs on challenging issues. The US and EU co-chairs of the
TABD participated in the EU-US Summit in The Hague in May 1997 with US
President Clinton, European Commission President Santer and Dutch Prime
Minister Kok. The TABD representatives formally presented the 1997 TABD
Priorities Paper which the political leaders regarded as useful building
blocks and inspiration to explore further possibilities of liberalising
trade and investment flows.
UNITED STATES COUNCIL FOR INTERNATIONAL BUSINESS
The United States Council for International Business (USCIB) has a
membership of over 300 multinationals, law firms and business associations.
It constitutes a special pressure group that promotes the interests of US
TNCs to intergovernmental organisations including the OECD, the WTO, and
different UN bodies, with which its international affiliates have official
consultative status. It is the American affiliate of the International
Chamber of Commerce (ICC) and the Business and Industry Advisory Committee
(BIAC) to the OECD. The USCIB formulates its positions in over forty
committees and other working bodies composed of corporate and other experts
drawn from its membership.
THE GLOBALIST AGENDA
The groupings discussed in this paper are collective policy arms of
transnational corporations. As governments increasingly fear the response
of world markets to their policies, they look towards the new economic
elite, not their own constituents, to provide direction. This ‘direction’
– so far – has resulted in massive economic breakdown in some nations,
insecurity in all nations, unprecedented hardships for millions of people,
growing unemployment and dislocation in all regions, direct assaults on
environmental and labor conditions, loss of wilderness and biodiversity,
massive population shifts, increased ethnic and racial tensions, and other
disastrous results.
Through elite economic forums, companies are finding new ways of limiting
the power of states. Instead of alienating governments, important actors,
and institutions – transnational corporations have co-opted them. Just as a
series of regional trade groupings gave way to the World Trade
Organisation, the 21st century will no doubt see a further consolidation in
the power of elite economic policy and advisory groups as the corporate
partners of the New World Order are unmasked.
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Susan Bryce is an investigative journalist and researcher. Her interests
include democracy and freedom, the technologies of political control,
environmental health and global politics. She can be contacted at PO Box 66
Kenilworth Qld Australia 4574, or on +61 0754 723060. email:
[EMAIL PROTECTED]
http://www.newdawnmagazine.com.au/Articles/Globalisation%20and%20Ruling%20Elit
e.html
The above article appeared in
New Dawn No. 57 (November-December 1999)
