Global Elites Professor Andrew Kakabadse Steve Macaulay Hello I’m Steve Macaulay and I am interviewing Professor Andrew Kakabadse about a book that he is co-authored and edited called Global Elites. Now Andrew, who or what are global elites and why are they important to business? Andrew Kakabadse Global elites are basically the people that control transactions and funds and the way they are used across the world. This is nothing new, this is a phenomenon that goes back to Rome to Ancient Athens, the British global elites ran the world for a long time, the French had a go at it, the Portuguese, the Spanish had a go at it, so this is no new phenomenon but it is a very powerful force that really determines the way we use finance and resources. Steve Macaulay Now as you said elites have existed for a long time I suspect global elites haven’t existed in the same way that they do today so what’s different today about these global elites? Andrew Kakabadse Their reach. We have had global elites since the Romans. The Romans reached Mecca, the Romans reached Hadrian’s Wall, the British were a global elite, the Spanish were a global elite, the Portuguese were in Japan more than anybody else and the Spanish were there before the British. So technology has not been a hindrance to global elites it’s been driven by trade and where the money is and where the trade takes place and where the resources are that is where you will find the people who have got the resources to excavate those resources and sell them and use them worldwide. Steve Macaulay Now perhaps a naïve question but how do I recognise these global elites? Andrew Kakabadse You don’t. You hardly see them. One of the most interesting things is that the nature of global elites is that they are opaque and most of them you will find in various networks, so you will find there is probably a network of CEOs, there is a network of Chairmen. In Europe there is a network of the Bilderbergers who’s the mixture of finance, business and politics so Peter Mandelson is one of the prominent players in the global elites. Some right wing politicians throughout Europe are part of the global elites and so are left wingers as well. Kissinger is the Chairman of the Bilderbergers so unless you are actually a member of these elite groups you don’t actually see them unless you watch them on television, unless you have to work with them in a company and unless you read the various reports and articles about them and their biographies. © Cranfield University 2012 www.cranfieldknowledgeinterchange.com 1 Steve Macaulay Now if I am sitting on a global board how am I likely to be impacted by these global elites? Andrew Kakabadse You may not know it because most of global elite work is driven by what the American diplomats call soft power or what the British academics called third level power which is a very subtle form of influence. Global elites are really operating at the level of business transaction we’re out there to get these resources but also at the level of mind-set which is helping shape thinking. They don’t tell you what to do but they help shape the thinking that forms particular attitudes that drives a pattern of thinking with the press and media, it often drives a pattern of thinking with the political system so long before we get into the thinking about legislation, the drafting of legislation, behind our Parliaments, behind our legislative processes there are networks that really are shaping the way thinking is going on in Europe, in the United States. Now if you wanted to find out more about them go onto the web and tap in one world government and you will find that there is a series of French global elites who really are, together with the Americans, trying to create a one world government based entirely on shareholder value and based entirely on some of the inequalities that shareholder value has created and they are quite open about it, so you will find on the website Bianca Jagger is one of the supporters, so people who come from different walks of life, I don’t know if they actually know what this group are actually doing but most of these elites are resource driven, very soft in their approach, shape the way you think about things so you don’t ask the awkward question. Steve Macaulay Conspiracy theorists would read all sorts into that kind of behaviour and it’s very easy to jump to the conclusion that there is a very self-interesting group of people that look after themselves and actually harm wider society. Now is there a case to say there is some good in global elites? Andrew Kakabadse There is a case to say they do harm and there is a case to say they do good. The conspiracy theory element is really people who are not used to policy design. If you take a look at the Roman Empire, people who have done history even at school, isn’t it amazing that the Romans has such a small military force and actually the majority of the soldiers in the Roman Empire were soldiers of other nations who kept their own people suppressed. So there you had a very smart policy design mechanism that went from one country to the next in the country structures of the time and it was based around one concept, citizenship, to become a Roman citizen was the ultimate goal of many individuals and if you read a lot about Roman history as a gladiator if you were going to die in the ring, which you were, to become stamped as a member of the brotherhood of the Roman gladiatorial group, that was another fantastic thing and if you look at it from today’s common sense, it doesn’t make sense, why would you put yourself in a ring to die quite deliberately to become a member of a brotherhood when you © Cranfield University 2012 www.cranfieldknowledgeinterchange.com 2 yourself had been suppressed and taken from your own home as a slave. So this is part of policy design, this is part of the way the international political processes interact with each other and sometimes they do harm to citizens but other times they prevent wars because if we didn’t have these interactions and negotiations taking place you could have uncontrolled conflict emerging. So at least in one sense through global elites conflict comes under some control. You will equally find with many global elites like many of the big business people of today there are funds created massive philanthropic funds to help. The negative side to global elites is ultimately their job is to present and preserve and to protect their resource base, their interests, and within that paradigm then they can be particularly philanthropic but unfortunately life doesn’t live within paradigms, things move on and that’s why you have conflicts often created by the elites themselves as they shift from one way of working to another. Steve Macaulay Now finally could we just have a look at the future of global elites because some people are saying, look the world of social media is with us, things are opening up a lot, the internet, communications is a lot greater, how do you see the future of global elites? Andrew Kakabadse We are at the stage of a major division between the elites and this division is what you might call shareholder value capitalism which we know as transactional capital and socialised capital which is more the investment in long term infrastructure projects. Now it’s interesting that have you noticed that with the press and the media they are taking a very right wing perspective, shareholder capitalism is okay. If you look at the data, the derivative debt that exists in the Western world is one quadrillion dollars, it’s more than the whole world economy. So what are we doing putting further and further investment into transactional short term high interest rate gain when that is becoming more difficult, putting it into debt that we won’t realise except it could collapse when our major concern is how we deal with our communities and develop them we need to be able to have water grids in Europe, we need to have new transport systems, we need to be able to prevent flooding, we need to be able to think about new types of grain crops that will feed a world population. We can actually feed twice the world’s population if we re-structure ourselves differently and that’s the point we reached. So the advent of new technologies, they are slowly being controlled, have you noticed with the British Government that in fact the Internet is going to be under greater scrutiny. Do you see how many press and media barons we have in the United States, actually we have five communication companies which control radio, television, books, journals, academic books, novels and they control about ninety six per cent of the market. How much of the British press is controlled by just one or two sources. So we are at the point of a major tension in the world and thinking that we have a free press and media is not the case. The press and media © Cranfield University 2012 www.cranfieldknowledgeinterchange.com 3 actually belong to two very separate camps and on the one hand you have the Anglo Americans and on the other hand you have the German socialised capital system together with the Chinese and it’s the Chinese that are really providing the challenge to the Anglo American shareholder value. Steve Macaulay So global elites are alive and well and thriving. Andrew Kakabadse Global elites are alive and well and thriving and divided and interestingly enough that is exactly what has happened in all of the world’s major evolutions. There has only been one country believe it or not where the elites did not create the revolution amongst themselves and that is Ireland. Ireland was working class revolution, Russia, France, Germany, Britain, all of the major revolutions, the American War of Independence, they were all of elites on elites, it was never the poor, it was never the middle level it was the top and the reason was, one set of elites wanted to use resources in a different way to the other set of elites and we have reached that point now but just simply on a bigger scale. Steve Macaulay Andrew, thank you very much. © Cranfield University 2012 www.cranfieldknowledgeinterchange.com 4