Textbook Notes (368,312)
Canada (161,807)
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SOC 203 (38)
Chapter 2

Chapter 2 - Corporate Canada, Globalization and Neoliberal Democracy.docx

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SOC 203
Tonya Davidson

Chapter 2- Corporate Canada, Globalization, Neoliberal Democracy • Corporate power is Janus-faced and rooted in economic relations of advanced capitalism o Capitalism- organization of life around a system of commodity production and exchange I which giant corporations and pools of money concentrate enormous social power in control of capital class’s top tier placing workers. o Corporate class must struggle to reach hegemony- domination over the lower tier o Fred Block’s claim- the ruling class does not rule because they control the political processes and its outcomes o Corporate elite must achieve and maintain social cohesiveness, an internal basis of soliditary with a shared perspective on what is to be done. Concentration of Economic Power • Approx. 1million businesses in Canada and 25 enterprises account for 41.2% of all business assets • In Canada capital has been highly concentrated with a small amount of elite with considerable economic power • Geographic concentration of corporate head offices- mainly Montreal and Toronto o The centralization of strategic control over capital in the form of large multidivisional corporations in which plant specific management were subordinate to local corporate strategies issuing from metropolitan head offices o In a globalizing world, concentration of economic power cuts across national borders o Transnational investment is means through which capital becomes concentrated. Most powerful corps are TNC’s (transnational) o By end of 2oth century, domestically controlled TNC’s outnumbered purely Canadian companies and Canadian direct investment abroad outweighed foreign direct investment in Canada o Canadian network has become recentered around surrounding sector of Canadian based TNC’s. o By mid 1990s advanced capitalist countries were the source of 92% of world FDI. o Most TNC’s take the form of cross penetration of capital among developed national economies. Strategic Control • Major shareholders- wealthy families- have continued to make a huge fraction of the corporate elite and family control at ultimate level increased after 1976 as more capitalist families restored to intercorporate ownership as means of control. • In Scott’s view, depersonalization of control was one sign of a transition to “disorganized capitalism”. • Despite neoliberlism’s efforts get gov’t off of Canadian corporations’backs, the state has continued to exercise agency in control of corporate capital with lower profile after privatization Corporate Governance Reform • Government has sought to pulverize traditional elite practices in service of “higher morality” that above all portends even fatter financial returns • Deregulation has led not only to a more concentrated yet less socially integrated financial sector dominated by universal banks, but to increased involvement of institutional investors in equity markets augmenting the power of funds in controlling constellations Vectors of Corporate Power • There is a westward drift of corporate power • Calgary rose from obscurity to become an important command center for the energy/ petrochemical center • Toronto and Montreal were the financial capitalist cites • Corps rely heavily on networked business processes which Schiller and Mosco identify with cybercapitalism • Increased interlocking b
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