Korten’s book provides a powerful critique of the role of corporations in the modern world. After working in academia, business and international development institutions for over 35 years, he became increasingly disenchanted with corporate life. He argues that economic globalisation has moved power away from governments to a corporate elite. He uses the analogy of a spaceship to suggest that we inhabit a finely balanced life support system, yet we practise cowboy economics where we assume that everything is there for the taking! He contends that:

• there is a decline in trust in government institutions
• there is deepening poverty, social disintegration and environmental destruction
• resources are transferred from the poor to the rich
• the rights and freedoms of corporations are placed above those of individuals
• the fabric of non-market social relations are being torn apart

His solution is to create localised economies that empower communities within a system of global co-operation. Korten argues that society and the market economy need a moral foundation based on trust, co-operation, compassion and individual integrity. He endorses the regulated economy rather than the market economy pursuing unlimited economic growth.

Corporations encourage managed competition which limits competition amongst themselves, but encourages it amongst others. They also rely on a concentration of a core of highly paid staff and workers at the periphery on cheap hourly rates (incidentally a recurring theme in the writings of Charles Handy). Rather more worryingly, Korten argues that the materialist values of corporations are reproduced through control of the media and the schools. He argues for a democratic pluralism that balances the state, market and civil society.

He suggests that we are seeing corporate colonisation, facilitated by international institutions such as the World Bank and the IMF:

"If measured by contributions to improving the lives of people or strengthening the institutions of democratic governance, the World Bank and the IMF have been disastrous failures – imposing an enormous burden on the world’s poor and seriously impeding their development. In terms of fulfilling the mandates set for them by their original architects – advancing economic globalization under the domination of the economically powerful – they both have been a resounding success." (p171)

The book is strong on analysis but weaker on prescription. Nevertheless it is a powerful message and will resonate most with those who have protested against the corporatisation of our lives. Regular readers of the Guardian will find George Monbiot pursuing similar themes.

However, a key issue is how to persuade corporations to give up power. Korten suggests that corporations can be controlled through removing tax exemptions, limit political advocacy and the use of anti-trust legislation. The downside may be less consumer choice and some prices might be higher. He proposes a number of principles for the 21^st Century:

• of Environmental Sustainability
• of Economic Justice
• of Biological and Cultural Diversity
• of Peoples Sovereignty
• of Intrinsic Responsibility
• of Common Heritage

These principles are thus concerned with the use of resources, the distribution of power and rewards, cultural diversity, the importance of civil society, appropriating costs to those who are responsible for them and recognition that resources are part of our common heritage.

(Earthscan Publications Ltd., London) pp 374 ISBN 1-85383 –434-3

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