Half of the world's 500 billionaires and a third of the 27 million millionaires call the USA their home. They have a compelling interest in maintaining the dominance of their "Safe Haven" - The USA Empire. They own controlling interests in most of the large corporations that dominate the economy.

Almost 48 percent of the largest companies and banks in the world are US and 30 percent are from the European Union (10 percent Japanese). In other words, the US and Europe control almost 80 percent of the corporations who dominate industry, banking and trade around the world. There is no sense behind those who claim we are in a new benign post-modern globalist world where multinational corporations have uncertain loyalties. The massive economic power of US and European Empire is founded on new and old forms of imperialist conquest and domination.

Within this imperial system, US power is dominant. Five of the top ten banks are US, six of the top ten pharmaceutical/biotech companies, four of the top ten telecommunications companies, seven of the top information technology companies, four of the top gas and oil companies, nine out of the top ten software companies, four of the top ten insurance companies and nine of the top ten general retail companies.

US imperial power is diversified across various economic sectors, but particularly the dominant force in finance, pharmaceuticals, biotech, information, software and retail trade. In other words, giant US companies have a powerful network of control over the major sectors of the "new economy", finance and trade. The concentration of economic power is even more evident if we look at the top ten companies in the world: 90 percent are US owned; of the top 25, 72 percent are US owned; and of the top 50, 70 percent are US owned. Within the inner circle of the biggest companies, the US has an overwhelming presence and dominance.

Africa and Latin America are absent from the list. And the so-called Asian Tigers have three companies among the top 500, less than 1 percent.

The argument that free trade will increase the "competitiveness" of third world economies is false, since there is such a lopsided concentration of economic power by the US and Europe. The concentration of power is not merely a product of efficiency, management and know-how but a direct result of US and European state policies. In May 2002, the US Congress approved a $183 billion subsidy for US agro-business, making a joke of Washington's "free trade" proposals.

World markets are not competitive but shaped by the US and EU. World markets are divided up among the 238 leading US and 153 European companies and banks - this concentration of power is what defines the imperial nature of the world economy, together with the markets they control, the raw materials they pillage (80% of the leading oil and gas companies are US and EU owned) and labor they exploit.

The US dominates global weapons sales, exporting more than the next 14 countries combined. These sales earn high profits and are used to payoff or buy up allies and the armed forces in strategic regions. The US spends more than $400 billion on defense - about half the world total.

The anti-globalization movement's pursuit of "another world is possible" must confront this monopolization or economic power and the imperial states which defend it. The US will only negotiate when confronted with the power of an overwhelming opposition.

The US economy depends on a massive flow of funds from overseas investors to sustain its external deficit. In other words, as empire grows, the 'republic' goes into deeper crises, stripped of its competitive enterprises and unable to limit its consumer imports. This contradiction cannot be easily resolved, because the political leadership is totally committed to empire building and the only concession it can make to the domestic economy is greater subsidies and greater protection - which in turn increases tension and conflicts with its imperial competitors in Europe and its client export regimes in the Third World.

The Latin American Free Trade Agreement (ALCA/FTAA) is an integral part of this strategy: by monopolizing Latin American markets the US can lower its trade deficits and capture lucrative financial and trade sectors. Plan Washington-Puebla-Panama is the proto-type of new imperial strategy of increasing US exports directly to Mexico, while US owned or sub-contracted maquiladoras move cheaper labor markets to China, Vietnam and India.

While it is clear that US imperial control over the world economy is still a reality, it is also clear that power is based on fragile foundations and a highly polarized global order. The emergence of mass anti-capitalist movements and a run against the dollar could lead to the fall of the empire.

Sources: Financial Times, May 2002; Forbes 500, July Report.