'Silent Coup'—How corporations rule the world w/Matt Kennard | The Chris Hedges Report

The Real News Network・2 minutes read

Corporations have seized power in the US through a slow coup, using tactics like weakening labor laws and funding private militias to suppress movements. The infiltration of corporations into politics globally has led to consequences like privatization of essential services and a lack of accountability, perpetuating extreme wealth disparities and eroding democracy.

Insights

  • Corporations have systematically undermined democracy both domestically and internationally by leveraging legal systems, weakening labor laws, and utilizing private militias to suppress dissent, ultimately consolidating power and eroding the rights of workers and local communities.
  • The intertwined relationships between corporations, nonprofits, and media outlets have created a pervasive system of influence that stifles dissent, with examples like SABMiller's funding of The Guardian illustrating how corporate interests can manipulate public perception, highlighting the need for increased transparency and accountability in corporate-government interactions.

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Recent questions

  • How have corporations impacted democracy?

    Corporations have orchestrated a slow corporate coup d'etat, leading to inverted totalitarianism. They have taken over power internally while upholding the facade of democracy, eroding labor laws, weakening workers' rights, and funding private mercenary militias to suppress labor movements. This subversion of democracy abroad mirrors the erosion of democracy at home, with governments granting environmental permits out of fear of being sued by corporations, impacting local communities negatively. Free trade agreements contain legal mechanisms allowing corporations to operate without hindrance, and investor-state dispute settlement systems enable multinational corporations to sue states, posing significant challenges to democracy.

  • What is the role of nonprofit organizations in corporate influence?

    Nonprofit organizations have aligned with corporations for profit over justice, contributing to the promotion of corporate interests globally. This partnership corrupts the altruistic image of NGOs like Oxfam, leading to a lack of pushback against corporate control. The report exculpated SABMiller of wrongdoing in Nejapa, with the Oxfam America logo, showcasing how corporations influence media narratives. Activists worldwide face dangers and challenges fighting against corporate rule, with instances of successful activism demonstrating the potential for positive change against corporate power.

  • How do corporations impact global policies?

    Corporations have infiltrated the political system globally, influencing government policies to serve their interests. They have used an international legal system to exploit resources in developing countries, leading to a lack of pushback against their control. The World Bank, funded by public money, has invested in private corporations, enforcing corporate rule under the guise of development and aid. This corporate influence has led to the privatization of essential services like healthcare, mirroring the American healthcare system and impacting global policies.

  • What are the consequences of the corporate coup d'etat?

    The consequences of the corporate coup d'etat include extreme wealth disparity, erosion of democracy, and the rise of private security forces. Corporations have subverted democracy both domestically and abroad, weakening labor laws, eroding workers' rights, and funding private militias to suppress dissent. The secretive nature of investor-state dispute settlement systems poses challenges to accountability and transparency, allowing corporations to sue states and impact policies. The corporate influence on global policies has led to the privatization of essential services and a lack of pushback against their control.

  • How do corporations use legal mechanisms to their advantage?

    Corporations use legal mechanisms like investor-state dispute settlement systems to their advantage, enabling them to operate without hindrance globally. These systems allow multinational corporations to sue states, creating a policy chill effect that deters governments from implementing regulations that may infringe on corporate profits. The secretive nature of these mechanisms, with cases not held in open court, makes the system difficult to access and understand, posing challenges to accountability and transparency. Examples of significant financial impacts from these cases showcase the potential harm of these legal mechanisms on governments and local communities.

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Summary

00:00

"Silent Coup: Corporations Overthrow Democracy"

  • The US has experienced a slow corporate coup d'etat, leading to inverted totalitarianism.
  • Corporations have taken over power internally while maintaining the facade of democracy.
  • Claire Provost and Matt Kennard's book, "Silent Coup," details how corporations overthrew democracy.
  • The corporate coup involved using an international legal system to exploit resources in developing countries.
  • Nonprofit organizations have aligned with corporations for profit over justice.
  • Labor laws have been weakened, and workers' rights have been eroded by corporations.
  • Private mercenary militias have been funded by corporations to suppress labor movements.
  • The subversion of democracy abroad mirrors the erosion of democracy at home.
  • Matt Kennard discusses an international legal case involving Pacific Rim and El Salvador.
  • The International Center for the Settlement of Investment Disputes (ICSID) was created to enforce investor rights globally.

13:11

Corporate power and risks in global capitalism.

  • The system discussed in the text aims to protect against risks and de-risk capitalism for the global corporate transnational class.
  • The primary issue highlighted is the policy chill effect caused by the fear of governments being sued by corporations if policies infringe on corporate profits.
  • Governments, like in Guatemala, have granted environmental permits due to the fear of being sued by companies, impacting local communities negatively.
  • Free trade agreements, often mislabeled, contain legal mechanisms allowing corporations to operate without hindrance in countries.
  • Investor-state dispute settlement (ISDS) systems, present in various agreements, enable multinational corporations to sue states.
  • The secretive nature of ISDS, with cases not held in open court, is a significant concern, making the system difficult to access and understand.
  • Third-party financing, where firms invest in claims against governments, poses a corrupting element, with loans given based on potential case outcomes.
  • Examples of significant financial impacts from ISDS cases, like Occidental Petroleum winning billions from Ecuador, showcase the system's potential harm.
  • Activists worldwide, such as in El Salvador and Colombia, face dangers and challenges fighting against corporate rule, often with tragic outcomes.
  • Instances of successful activism, like in Bolivia where public outcry reversed water privatization, demonstrate the potential for positive change against corporate power.

26:18

Corporate Influence and Corruption in Global Politics

  • The report exculpated SABMiller of wrongdoing in Nejapa, with the Oxfam America logo, leading to a Guardian article funded by SABMiller.
  • An interview with SABMiller's Latin American division head on water issues in Latin America was published on The Guardian, funded by SABMiller.
  • SABMiller funded a section of The Guardian's website, leading to the author being banned from writing for The Guardian.
  • The corporate system controls the media, making it challenging to reveal the truth about corporate actions.
  • Activists successfully blocked a mining agreement in El Salvador, showcasing a rare victory against corporate influence.
  • Germany faced legal challenges from Vattenfall, a Swedish company, over decommissioning nuclear power plants and environmental permits.
  • Britain announced the opening of 13 free ports, resembling special economic zones, allowing corporations to avoid taxes and regulations.
  • The NHS in Britain is being privatized, mirroring the American healthcare system, due to corporate influence on government policies.
  • Corporations have infiltrated the political system globally, leading to a lack of pushback against their control.
  • NGOs like Oxfam partnering with corporations like SABMiller corrupt their altruistic image and contribute to promoting corporate interests globally.

39:44

Corporate Power: Wealth Disparity and Private Security

  • The World Bank, funded by public money, invested in private corporations like a diamond mine in Tanzania and a five-star hotel in Myanmar, enforcing corporate rule under the guise of development and aid.
  • The World Bank's aim to alleviate global poverty contradicts its policies that perpetuate poverty for the majority of humanity, often leading to governments being removed by the US military or NATO intelligence.
  • Private security now outnumbers police in many countries, with the privatization of the military also increasing, leading to a lack of accountability and potential for corporations to engage in warfare over resources.
  • The rise of private security forces and the elite walling themselves off from society due to corporate power creating a world of extreme wealth disparity and desperation, guarded by private security forces, is a symptom of the disease of corporate power.
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