The Sovereign State of ITT
Encyclopedia
The Sovereign State is a book by Anthony Sampson
that uses the example of ITT
(International Telephone and Telegraph) to make a broader point about the weakening of the authority of traditional national governments by the multinational corporation
s.
, the chief executive of ITT from 1959 until 1977. Geneen was a legendarily hands-on manager, who believed it necessary to penetrate through layers of "false facts" to get to the "unshakable facts" about any of the markets or divisions of his conglomerate.
In terms of its broader themes, though, this book was one of a spate of early-70s books that promoted the thesis that multinational corporations were taking over the traditional prerogatives and functions of national governments.
In a review of Sampson's book in the (London
) Sunday Telegraph
, Sir Frank McFadzean, Vice Chairman of Royal Dutch/Shell
, took issue with that thesis. Such corporation
s are "prisoners of their past investments," he wrote, because "even the most puny government can nationalize
, and the only redress is to seek compensation."
Although as Sampson's book shows ITT has used other means of redress to defend its own business interests from nationalisation, that have not been confined to the courts. These have ranged from supporting the 1930's military takeover by General Franco in Spain, investing in Hitler's war machine throughout WWII and funding a CIA backed coup led by General Pinochet in Chile 1973.
Anthony Sampson
Anthony Terrell Seward Sampson was a British writer and journalist. He was educated at Westminster School and Christ Church, Oxford and served with the Royal Navy from 1944-47. During the 1950s he edited the magazine Drum in Johannesburg, South Africa...
that uses the example of ITT
ITT Corporation
ITT Corporation is a global diversified manufacturing company based in the United States. ITT participates in global markets including water and fluids management, defense and security, and motion and flow control...
(International Telephone and Telegraph) to make a broader point about the weakening of the authority of traditional national governments by the multinational corporation
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...
s.
Plot
In part it was a portrait of Harold GeneenHarold Geneen
Harold "Hal" Sydney Geneen , was an American businessman most famous for serving as president of the ITT Corporation.-Biography:...
, the chief executive of ITT from 1959 until 1977. Geneen was a legendarily hands-on manager, who believed it necessary to penetrate through layers of "false facts" to get to the "unshakable facts" about any of the markets or divisions of his conglomerate.
In terms of its broader themes, though, this book was one of a spate of early-70s books that promoted the thesis that multinational corporations were taking over the traditional prerogatives and functions of national governments.
In a review of Sampson's book in the (London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
) Sunday Telegraph
Sunday Telegraph
The Sunday Telegraph is a British broadsheet newspaper, founded in February 1961. It is the sister paper of The Daily Telegraph, but is run separately with a different editorial staff, although there is some cross-usage of stories...
, Sir Frank McFadzean, Vice Chairman of Royal Dutch/Shell
Royal Dutch Shell
Royal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...
, took issue with that thesis. Such corporation
Corporation
A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...
s are "prisoners of their past investments," he wrote, because "even the most puny government can nationalize
Nationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...
, and the only redress is to seek compensation."
Although as Sampson's book shows ITT has used other means of redress to defend its own business interests from nationalisation, that have not been confined to the courts. These have ranged from supporting the 1930's military takeover by General Franco in Spain, investing in Hitler's war machine throughout WWII and funding a CIA backed coup led by General Pinochet in Chile 1973.
Official information
- Stein and DayStein and DayStein and Day, Inc. was an American publishing company founded by Sol Stein and his wife Patricia Day in 1962. Stein was both the publisher and the editor-in-chief...
, US publisher (1973)