Power Shift Paradigm
As we all understand, USA has dominated world economy since 1940′s. Since the middle of 17th century to 1940′s the world economy was dominated by Europe. And if we go back further in history, the dominance was between the Arab countries, India or China at different points of time. As we enter the 21st century people have started speculating this is going to be the century of China’s rebirth. This speculation is grounded on solid performance demonstrated by China in past several decades. Chinese economy is growing at 10% every year and is poised to overtake US economy by 2020. At the same time though there are many supporters of the belief that China’s economy would never be able to over take US economy because it is way too dependent on the external demand rather than internal demand. Another issue with China currently is that it is not a true democracy which poses a big threat in the long-run in terms of overall stability of the country if the leader decides to lose his mind 
A new era of power concentration is emerging
At CompareBroker we believe that 21st century would be dominated by a completely new entity that was not even known in History. 21st century power house will not be any country but it will belong to the pool of large multinational corporations. Recently Coca Cola, the most recognized brand in the world, reported its first quarter earning. The net income attributable to share holders went up to $ 1.57 billion from 955 million mostly because of increase in sales in India and China. Further developing the idea of true global organization whose dominance is more widespread than any country alone. The Japanese foreign minister criticized the CEO of Toyota Motors recently for not ensuring the quality of their goods and hence harming the image of a country.
What is a multinational corporation?
It is a entity that belongs to over millions of investors with no limits on country boundaries and race or gender. Such a corporation usually has presence in almost every single country on the planet. Each of the investors have voting rights in the corporation just like voting right in a country. They can decide the CEO of the corporation (the president), the CFO (Chief Finance Offiicer) etc. These corporations have huge budgets, sometimes larger than several countries. The market caps of top three corporations of the world are above $400 billion (Exxon Mobil, Petro China and GE). This makes them bigger than the economies of about 180 countries in the world. Among them these companies own and have access to the most critical resources like Oil and most critical technologies like nuclear technology. Their presence is global, their influence in deciding policies is unmatched for. Their demise cannot be afforded as we saw in last financial crises where governments had to bailout Citi and GM.
So Same Question Again: Who is the new World Economic Leader?
So who would dominate the 21st century, would not be decided by nations but by multinational corporations. They have been talks of corporate social responsibilities of these organizations as they become bigger and bigger. I think by 2050 the sizes of these organization would be bigger than both US economy which is currently $ 13 trillion and Chinese economy which is currently $ 9 trillion. We would then begin the era of not dominance by US or China but by GE or PetroChina. Economy/money is going to be the new superpower in the 21st century.
