I think it is worth stressing here, even in our age of massive mergers and (at least, before the pandemic) huge corporate profits, just how vast the gap in resources is between large states and the largest companies. The largest company by raw revenue in the world is Walmart; its gross revenue (before expenses) is around $525bn. Which sounds like a lot! Except that the tax revenue of its parent country, the United States, was $3.46 trillion (in 2019). Moreover, companies have to go through all sorts of expenses to generate that revenue (states, of course, have to go about collecting taxes, but that’s far cheaper; the IRS’s operating budget is $11.3bn, generating a staggering 300-fold return on investment); Walmart’s net income after the expenses of making that money is “only” $14.88bn. If Walmart focused every last penny of those returns into building a private army then after a few years of build-up, it might be able to retain a military force roughly on par with … the Netherlands ($12.1bn); the military behemoth that is Canada ($22.2bn US) would still be solidly out of reach. And that’s the largest company in the world!
And that data point brings us to our last point – and the one I think is most relevantly applicable for speculative fiction megacorporations – historical megacorporations (by which I mean “true” megacorps that took on major state functions over considerable territory, which is almost always what is meant in speculative fiction) are products of imperialism, produced by imperial states with limited state capacity “outsourcing” key functions of imperial rule to private entities. And that explains why it seems that, historically, megacorporations don’t dominate the states that spawn them: they are almost always products and administrative arms of those states and thus still strongly subordinate to them.
I think that incorporating that historical reality might actually create storytelling opportunities if authors are willing to break out of the (I think quite less plausible) paradigm of megacorporations dominating the largest and most powerful communities that appear so often in science fiction. What if, instead of a corporate-dominated Earth (or even a corp-dominated Near-Future USA), you set a story in a near-future developing country which finds itself under the heel of a megacorporation that is essentially an arm of a foreign government, much like the EIC and VOC? Of course that would mean leavening the anti-capitalist message implicit in the dystopian megacorporation with an equally skeptical take about the utility of state power (it has always struck me that while speculative fiction has spent decades warning about the dangers of capitalist-corporate-power, the destructive potential of state power continues to utterly dwarf the damage companies do. Which is not to say that corporations do no damage of course, only that they have orders of magnitude less capability – and proven track record – to do damage compared to strong states).
(And as an aside, I know you can make an argument that Cyberpunk 2077 does actually adopt this megacorporation-as-colonialism framing, but that’s simply not how the characters in the game world think about or describe Arasoka – the biggest megacorp – which, in any event, appears to have effectively absorbed its home-state anyway. Arasoka isn’t an agent of the Japanese government, it is rather a global state in its own right and according to the lore has effectively controlled its home government for almost a century by the time of the game.)
In any event, it seems worth noting that the megacorporation is not some strange entity that might emerge in the far future with some sort of odd and unpredictable structure, but instead is a historical model of imperial governance that has existed in the past and (one may quibble here with definitions) continues to exist in the present. And, frankly, the historical version of this unusual institution is both quite different from the dystopian warnings of speculative fiction, but also – I think – rather more interesting.
Bret Devereaux, “Fireside Friday: January 1, 2021”, A Collection of Unmitigated Pedantry, 2021-01-01.
September 17, 2024
QotD: “Megacorporations” in history and fiction
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