Thomas P.M. Barnett :: Weblog

ARTICLE: "Multinationals 2.0," by James M. Pethokoukis, U.S. News & World Report, July 31, 2006 [page TBD].

You remember the article from IBM's CEO. I blogged it and so did Steve. The U.S. News & World Report journalist, who now reads both our blogs, contacted Steve for an interview, yielding the great paragraph here. Of course, you're always reduced to a single sentiment, but Steve's basic idea here is both sound and great to be identified with--including the follow-on Bono reference!

In his satirical new book Rome, Inc.: The Rise and Fall of the First Multinational Corporation, Stanley Bing humorously makes the case that the proto-capitalistic Imperium Romanum--with its bold takeovers, power-mad CEOs, and compelling brand--was the beta version of the globe-spanning Microsofts, General Electrics, and IBMs of today. Or perhaps more accurately, the Enrons and WorldComs of yesterday. While Rome Inc. had a great multicentury run, eventually it went out of business. One wonders if the feckless Emperor Honorius, watching the Visigoths coming over the seventh hill in A.D. 410, truly realized that the Roman Empire was about to fall.

Granted, IBM CEO Samuel Palmisano doesn't have to contend with Visigoths, Vandals, and other pesky barbarians. But like any modern CEO, he does have to deal with flash mob protests by antiglobalization advocates, company-bashing websites, protectionist legislation, and a high-velocity, Internet-connected world where the burgeoning Chinese and Indian economies spawn both profitable market opportunities and lethal competitors.

Here's the even bigger vision: As more and more countries--particularly the developing ones in Africa, Latin America, and the Middle East--become more interconnected and dependent, it will result in a safer, more orderly world. "The business world has this enlightened self-interest in integration," says Steve DeAngelis, CEO of Enterra Solutions, a software solutions company that helps global companies integrate far-flung operations. "Look at China and the United States. Look at all the economic bridges we are building. Each one we build is a step away from military conflict." So while multinationals have traditionally been stereotyped as corporate villains--for polluting the environment or attempting to overthrow unfriendly Third World governments--the new organization would supposedly make the planet a better place.

Yet given all this Bono-friendly talk about corporate responsibility and global economic development...