by Jerry Harris, SolidarityEconomy.net .Third World corporations on world stage Antoine van Agtmael, former World Bank official head of the Emerging Markets Growth Fund, says new Third World corporations are a better breed than their developed world peers. In his new book, The Emerging Markets Century he lists the 25 emerging multinationals set to dominate the world. Among them are Samsung and Hyundai from S. Korea, Embraer and  Aracruz from Brazil, Yue Yuen the athletic shoes manufacturer from Taiwan and Telmex from Mexico. To make Agtmael’s list companies need have a top three market share in enough markets to be global players and be competitive in quality, technology and design. The top ten in 2005 were at least ten times larger than the top ten emerging market corporations in 1990. .Chinese debate foreign investments China’s “open door” policy to foreign investors is coming under criticism and debate. The Financial Times in London blames “hardline Marxists, academics and bureaucrats.” But the greatest blame goes to president Hu Jintao who the FT sees as “less cosmopolitan and more skeptical of the role of the market than Jiang Zemin his predecessor.” Hu’s greatest concerns seem to be the widening income inequality among Chinese and growing social instability. The FTs answer is to let in more foreign money, but with China’s long experience with imperialism the debate is sure to continue. .India and Italy go to Latin America Tata Motors, India’s largest automaker is entering into partnership with Italian carmaker Fiat. This will open markets in Europe, Africa and south-east Asia. In addition the two will build pick-up trucks in Argentina’s auto center Cordoba turning out 20,000 vehicles a year. In turn Fiat is building engines and transmissions in India. Tata recently made world headlines by acquiring the British/Dutch steel corporation Corus for $12.2 billion, making Tata Steel the fifth largest in the world. Many saw the deal as a symbol of globalization and changing world relationships with the former British colony buying out Britain’s last remaining steel corporation. .Japan’s financial sector going global The Japanese government wants to make Tokyo a global financial center. Of all the developed countries Japan allows the smallest amount of foreign investment into their homeland. But now Yuji Yamamoto, financial minister, says “Japan should not rely on manufacturing alone but should nurture …financial services as pillars of the economic growth. That will be the new shape of Japan.” Yamamoto adds, “Foreign financial institutions have ideas … and business models that stem from a global perspective and that is where Japan’s revitalization lies. The model is London.”  Most foreign investment banks are building a large organizational presence in Japan as well as big private equity firms. In 1990 Japan’s equity markets were huge, comprising a third of the world’s $8,900 billion market capitalization. But today Japan has fallen to 10th as global market capitalization has surged to $49,000 billion. Since 1990 foreign listing on Japan’s stock exchange fell from 125 to just 25, and China has turned to London and New York to list their rapidly growing global corporations. China has listed 100 IPOs in London, 70 in New York and just one in Tokyo. .Yakuza adopts neo-liberal business model Japanese gangsters, the world famous Yakuza, have become more efficient than their legal corporate cousins. Yakuza part-timers now number 43,000 and for the first time outnumber the 41,500 regular Yakuza employees.  This according to Japanese statisticians who actually keep records of such employment data. In 1991 part-time gang members made-up just 33% of total membership, today that has risen to 51%. In the legal corporate world part-time employment has risen from 19% to 30% over the same time period. This has created a hot debate in Japan over creating an underclass of working poor, an issue of less importance to the Yakuza. The crime syndicate also has out performed their aboveground competition by pursuing a wave of hostile takeovers. The Yamaguchi syndicate now control 47% of all mobsters while the Fair Trade Commission blocks mergers that result in a market share grater than 35%.

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