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Voice of Access: The People’s Foundation

Voice of Access: The People’s Foundation

By: Andrew Gavin Marshall

Originally published in: The Spanda Journal, Vol. 5, No. 1, Innovation & Human Development, 2014, pages 69-80

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The Voice of Access: The People’s Foundation is a new initiative to establish a counter-hegemonic foundation – built upon an understanding of the hegemonic foundations that have been so pivotal in the construction and maintenance of the present social order – to effectively challenge and help to make obsolete the existing social order. Through the formation of new educational, research and media initiatives and organizations, the construction and dissemination of knowledge, connecting people and ideas from activists, intellectuals and groups around the world, The People’s Foundation hopes to aid in the multi-generational struggle of constructing a new – and fair – world order, to help lay the foundation for a future worth striving towards.

‘Voice of Access: The People’s Foundation’ is an initiative of myself and three other friends and associates, forming it as a non-governmental organization to act as a facilitator – and, when possible – a patron of organizations, activists, knowledge and social movements that seek to challenge and change the world order under which humanity now lives and struggles. From our backgrounds in research, writing, publishing, media, computer science and technology, and our experience with non-governmental organization and think tanks, we are seeking to channel our efforts into the operations of an organization dedicated to facilitating and supporting the efforts of others around the world. While we hold opposing views and philosophies to those that pervade the hegemonic foundations, our understanding of them and their successes in shaping the present global order helps us focus on methods with which we can challenge and seek to change that order.

In discussing the ways in which ‘The People’s Foundation’ would seek to operate and work toward achieving its objectives, it would first be useful to briefly outline some of the ways in which the major dominant foundations have operated in working toward their own objectives. As a case in point, I will focus on the Rockefeller Foundation, founded in 1913 by John D. Rockefeller “to promote the well-being of mankind,” as its original mission statement postulated.

The Rockefeller Foundation: Social Engineering for Social Control

In the late 19th and early 20th centuries, the United States – and much of the industrializing world – was in the midst of profound transformation and turmoil. Successive economic crises created growing uncertainty among an increasingly distrustful middle class, as the rich ‘Robber Baron’ industrialists (Rockefeller chief among them) grew ever more rich and powerful. Social unrest by the poor, workers, immigrants and others was threatening the prevailing social order. Those who sat atop the social hierarchy – notably, the ‘Robber Barons’ themselves – grew increasingly nervous at the prospect of the threat of revolution from below, as well as the growing restlessness of the middle classes. Actions and initiatives needed to be taken to safeguard powerful financial, economic, political and social interests.

It was a time not only of economic and social crises, of growing unrest, revolutionary fervor and industrial and financial consolidation into huge concentrations of economic power, but, simultaneously, was also a period of increasingly expansionist and imperialistic foreign policies. These were most notably on the part of the United States, which was extending its hegemony throughout the Caribbean and Central America, and reaching across the Pacific, with the most noteworthy example being in the Philippines, and with growing interests in China and Japan.

Changes in technology and communication were facilitating the spread of more information to more people than ever before, and the concept of ‘the public’ – and specifically, how to manipulate the public – moved to the forefront of elite intellectual discussion. It was an era that gave birth to the modern university, the advertising and public relations industries, the consumer society, and the modern philanthropic foundations.

The foundation functioned – and continues to function – as an institution dedicated to the process of social engineering with the objective of social control. In short, the foundation’s purpose was to identify major issues and areas of contention in the existing social order, and to subsequently find methods of promoting ‘reform’ and changes so as to manage the process of adaptation, undermine radical efforts at transformation and promote more moderate forces, integrating them within the existing social hierarchy and order. The goal, ultimately, was to maintain the social hierarchy itself.

Foundations would achieve these objectives by acting as major patrons of universities and the social sciences, to seek to find ‘scientific’ solutions to social problems, which were seen as technical – not structural; channeling intellectual efforts into finding ways to reform and adapt the social order instead of opposing or challenging it; sponsoring research organizations and think tanks, which bring together prominent individuals from academia, politics, finance, industry and the media in an effort to promote consensus between society’s dominant institutions and those who run them; and providing funding to social movements and initiatives so as to gain significant financial leverage over the direction of social movements, increasing support for reform-oriented and legalistic approaches to resolving social issues, and thus undermining and ostracizing more radical alternatives.

Foundations sought to manufacture ideology and consensus between elites, to institutionalize these ideologies within the existing and evolving dominant social structures, and to ‘engineer the consent’ of the governed. Over the course of the 20th century, major foundations – with the Rockefeller Foundation being perhaps the most prominent – exerted an immense, if not largely unknown, influence on the development and evolution of the United States. By virtue of the United States being an outwardly expansive and imperialistic society, that influence extended to much of the world.

Early on in their development, the U.S. Congress investigated the major foundations with a wariness of the intentions and functions they established under their extremely powerful and wealthy ‘Robber Baron’ patrons. In 1914, the Walsh Commission was formed, noting that the establishment of the Rockefeller Foundation – among others – “was the beginning of an effort to perpetuate the present position of predatory wealth through the corruption of sources of public information” and that if these foundations were left unchecked, they would “be used as instruments to change the form of government of the U.S. at a future date, and there is even a hint that there is a fear of monarchy,” noting that many of the foundations represented the interests of powerful industrial and financial dynasties. In the final report of the Walsh Commission in 1916, it was concluded that foundations represented so “grave a menace” to society that “it would be desirable to recommend their abolition.” Obviously, this did not take place.

As anthropologist David Nugent documented, the development of the modern social sciences by Rockefeller and Carnegie foundations (and later, with other foundations joining) was directly linked to the expanding global interests of the United States in becoming an imperial power and in managing domestic unrest at home. Foundation boards consisted not only of the dominant industrial and financial interests, but also of prominent intellectuals and foreign policy figures, all of whom together were well aware of the effects that industrialization and imperialism were having on people at home and abroad, and sought to find new ‘scientific’ ways of managing these changes without undermining their own social positions. This required a very careful, incremental and adaptive approach to social engineering. As a top Rockefeller philanthropy official, Wicliffe Rose, wrote in 1923, “All important fields of activity… from the breeding of bees to the administration of an empire, call for an understanding of the spirit and technique of modern science,” which “determined the mental attitude of a people, affects the entire system of education, and carried with it the shaping of civilization.”

The Rockefeller Foundation sought to establish “institutional centers of social research” in key nations around the world, facilitating exchange and collaboration between these various institutions which would ultimately “serve as a model for the development of the social sciences generally.” The initial focus was in the United States and Europe, aiming – in the 1920s – to establish roughly 12-15 major centers of social science research, one of the most important of which was the London School of Economics. Through fellowship programs sponsored by foundations, students from around the world would be taken to schools in the United States where the foundation influence over the development of the social sciences had already become significant.

Edmund Day, who ran the Rockefeller Foundation’s Social Sciences Division, wrote in 1930 that the social sciences were to engage in “human engineering” and that, “the validation of the findings of social science must be through effective social control.” Over the following years, the Foundation increasingly looked to establish within the social sciences a greater emphasis on ‘International Relations’ as well as – in the wake of the stock market crash and the start of the Great Depression – a greater emphasis on “the planning and control of economic structures and economic process.”

Max Mason, the president of the Rockefeller Foundation, wrote in 1933 that the policies of the Foundation “were directed to the general problem of human behavior, with the aim of control through understanding,” noting specifically that the “social sciences, for example, will concern themselves with the rationalization of social control,” whereas the natural and medical sciences would be concerned with “personal understanding and personal control.” Control, it seemed, was always the ultimate objective.

Concurrent with the development of the social sciences and major universities in the United States and Europe, Rockefeller and Carnegie philanthropies, among others, sought to construct an ‘educational’ system for black Americans in the South, which was deemed so successful that it was exported to several British colonies as a means of exerting colonial domination over subject populations. Beginning with a series of conferences between Wall Street bankers and northern industrialists in the late 19th century, an educational system for southern black Americans was sought in such a way as to ensure that the hierarchy which slavery had established between races would remain relatively unchanged. As one conference participant put it at the time, “the white people are to be the leaders, to take the initiative, to have direct control in all matters pertaining to civilization and the highest interest of our beloved land.” Conference participants agreed, on the other hand, that “the negro” was “best fitted to perform the heavy labor in the Southern states,” as, it was suggested, “he will willingly fill the more menial positions, and do the heavy work, at less wages.”

These conferences concluded with the establishment of what was known as the ‘Tuskegee educational philosophy,’ agreed upon in 1901, where attendees agreed on the need to “train a Negro leadership cadre” as “a strong professional class,” requiring a strengthening of certain ‘Negro colleges’, while the majority of education for black Americans was to remain “vocational and agricultural in focus… to be directed toward increasing the labor value of his race.” In time, the major foundations became involved in this endeavor, and the Phelps-Stokes Fund in particular took up this objective with a great deal of fervor, establishing schools dedicated to training black men in vocational and agricultural trades and black women in “home economics.”

In 1917, the Phelps-Stokes Fund published a two-volume survey on Southern Negro education, in which they maintained that academic and literary education was “dysfunctional for the black man” because it would create unrealistic expectations for black Americans in a segregated society. It claimed furthermore that would not provide the skills deemed necessary to become a “productive” worker, and, ultimately, it would undermine white dominance of society itself.

British colonialists took note of the success of the Tuskegee educational philosophy, and missionary educators from British colonies in Africa began cooperating with the American foundations and schools in replicating the Tuskegee educational system in several British colonies, including in Kenya and even South Africa, where it helped in the construction of the apartheid system. The education of black South Africans, in the words of a prominent Phelps-Stokes Fund official, was to keep the blacks as “junior partners in the firm.”

Not unrelated, in the early 20th century, the major American foundations – and the vast fortunes of ‘Robber Barons’ – contributed to the acceptance, institutionalization, and exportation of the eugenics movement (sometimes referred to as ‘scientific racism’). Eugenics was an extremely dangerous and destructive pseudo-science (or, rather, in truth, a religious orthodoxy in search of legitimacy) which was focused on the objective of refining the social engineering of the species, itself, to take ‘evolution’ into their own hands. This philosophy suggested that concepts such as poverty, crime, race, disabilities, mental suffering and lack of intelligence were products not of social conditions – or the social order and its devastating effects – but rather, they were inherent, genetic ‘defects’ experienced by the ‘unfit’. As a corollary, those who had risen to the top of the social hierarchy, the rich, white men of property and privilege, were considered to be the most intelligent, the racially superior, the “fit.” Thus, it was not avarice, crime, manipulation, expropriation, enslavement, theft and domination that made them their riches; it was their ‘genetic superiority’. This – conveniently – was an ideology which justified the enormous wealth and power held by a small minority, presenting it with scientific language that aimed to ground the social order as being one constructed through “natural selection” and evolution. As such, it was considered ideal for the “fit” to breed with each other (and thus, in theory, create a type of super-species), while the “unfit” were to be encouraged to stop breeding altogether.

When the eugenics movement reached the United States from Britain in the late 19th and early 20th centuries, it garnered the attention of elites in America. And very quickly, the vast fortunes of the Harrimans, Carnegies and Rockefellers – among many others – were mobilized to support the movement. As the foundations were established, eugenics became a major area of interest for their operations. The eugenics movement was arguably more successful in the United States than any other nation in the early 20th century, and in fact, it was from the United States that it was exported around much of the industrialized, western world. Eugenics affected the development and evolution of major institutions and ideologies of the era, such as the educational system, mental health, hygiene, medicine, psychology and psychiatry, migration, the criminal justice system, biology and the natural sciences. Between 1907 and 1927, twenty-three U.S. states enacted eugenic sterilization laws for the “genetically unfit,” ultimately leading to the forced sterilization of tens of thousands of people.

In fact, with the help of the Rockefeller Foundation, eugenics was exported to Weimar Germany, pouring hundreds of thousands of dollars into institutions dedicated to studying “race biology” and psychiatry. The German eugenics movement proved to be very successful, and when the Nazis came to power in 1933, eugenicists found a political movement espousing and embracing their ideas of racial inferiority and superiority. The Rockefeller Foundation continued its funding for Nazi ‘race science’ and psychiatry until the outbreak of World War II in 1939, by which time the impact had been profound. In fact, one of the most notorious Nazi war criminals, the “Angel of Death” – Dr. Josef Mengele, the infamous Auschwitz concentration camp doctor – had previously done research which was funded by the Rockefeller Foundation, whose money supported experimentation done at various concentration camps.

Of course, following World War II, the eugenics movement had been largely discredited after the world witnessed the repercussions of such institutionalized and ideological hatred and racism, as revealed by the extent of atrocities in the Holocaust – as well as those committed by the Japanese in the Pacific. Thereafter, the major proponents and patrons of the eugenics movement sought to rebrand themselves in various forms. In fact, a 1943 edition of Eugenical News – the most widely-read publication of the eugenics movement – published an article by one of the ‘fathers’ of the eugenics movement, Charles Davenport, who advocated a vision of “a new mankind of biological castes with master races in control and slave races serving them.” A 1946 edition of Eugenical News stated that following the War, “population, genetics, [and] psychology, are the three sciences to which the eugenicist must look for the factual material on which to build an acceptable philosophy of eugenics and to develop and defend practical eugenics proposals.”

One of the more prominent efforts at rebranding eugenics emerged as the ‘population control’ movement. Largely an initiative of the Rockefellers, John D. Rockefeller III established the Population Council in 1954, designed to “provide solid science to guide governments and individuals in addressing population questions.” Six of the ten founding members of the Population Council were well-known eugenicists. Matthew Connelly has written the most definitive account of the origins and evolution of the population control movement, based largely upon the internal records of the various international and private organizations involved in promoting population control, including the Rockefeller Foundation and Population Council. The primary fear of the elites behind the population control movement was the great mass of civilization that fell outside the western world: the largely non-white, poor populations of the world, seeking to toss off the chains of colonialism and chart their own way in the world.

The population control movement – with the Population Council as its “nexus” – relied on extensive funding from the Rockefeller and Ford Foundations, and became quickly institutionalized in United Nations organizations, as well as in the ideology of ‘development’ for the ‘Third World’. The result was measures designed to encourage population control becoming embedded within ‘aid’ agencies and development agencies. During the Eisenhower presidency, the issue of population had become “a national security issue” in the mind of the foreign policy establishment. The Population Council, Ford and Rockefeller Foundations, and UN agencies began working with USAID, the World Bank and other organizations in placing population control as a central element of U.S. and Western foreign policy concerns and actions, especially in countries like India, with large and largely poor populations.

As the population control movement was exported around the world, it resulted in a great deal of tragedy and repressive actions by governments, such as in India and China, where forced abortions and forced sterilizations had become rampant at various times. The movement had, however, garnered significant opposition from many countries and regions around the world, and its institutional and ideological structure experienced major setbacks going into the 1990s. However, it has never wandered far from the minds of the super-rich oligarchs and patrons of major foundations.

In 2009, a secret meeting was organized among some of the world’s richest billionaires, organized by David Rockefeller, Bill Gates and Warren Buffet. Invited guests included billionaires such as Ted Turner, George Soros, Michael Bloomberg, and even Oprah Winfrey. The meeting was designed to discuss the future of philanthropy, “what motivated their giving, the areas of focus, lessons learned and thoughts on how they might increase giving going forward.” Each guest was given 15 minutes to discuss and promote their personal favourite ‘cause,’ but after a great deal of discussion, they sought to establish an “umbrella cause” which could “harness their interests.” Apparently with Bill Gates leading the call, the billionaires agreed that “overpopulation was a priority… in which population growth would be tackled as a potentially disastrous environmental, social and industrial threat.”

Out of this meeting, a new effort was begun – largely driven by Bill Gates and Warren Buffet – to encourage billionaires and the super-rich around the world to join in giving their enormous ill-gotten wealth to ‘philanthropy’, in what is referred to as ‘The Giving Pledge’, to try to get the rich to pledge 50% of their net worth to charity during their lifetimes or after death.

At the end of World War II, the United States emerged as the dominant global power, and its institutions became oriented toward finding ways to use, maintain and extend that power. Foundations played a key role in the development of think tanks and the educational system, with a focus on creating consensus among elites on the need for empire and in training future managers of the imperial system.

The Rockefeller Foundation played a key role in transforming the United States into a global empire. One of the most influential think tanks in the United States is the Council on Foreign Relations (CFR), founded in 1921. Early on, the CFR relied upon Rockefeller Foundation funding for a great deal of its operations. Between 1927 and 1945, the Rockefeller Foundation provided the Council on Foreign Relations with more than $443,000 in funding for “study group” research, which would subsequently be implemented in official policy of the U.S. government. The Council has extensive ties to the foreign policy establishment of the United States, most notably with the U.S. State Department. In fact, during the early years of World War II, the CFR established a “strictly confidential” project in cooperation with the U.S. State Department to plan for U.S. entry into the war as well as to outline a post-war blueprint for a U.S.-dominated world. The project was entirely funded by the Rockefeller Foundation.

The results of the project outlined the areas of the world which the United States would need to control in order to maintain and expand its global power, referred to as the ‘Grand Areas’, which included, “Latin America, Europe, the colonies of the British Empire, and all of Southeast Asia.” The world was divided into four main blocs: the U.S.-dominated Western hemisphere, the British Empire and its colonies, a German-dominated continental Europe, and a Japanese-dominated East and Southeast Asia. As the war went on, slowly the ‘Grand Area’ plans changed to the point where U.S. planners decided that America ultimately had to dominate all of these regions, noting that, “as a minimum, American ‘national interests’ involved free access to markets and raw materials in the British Empire, the Far East, and the entire Western hemisphere.”

The Rockefeller Foundation took it upon itself to develop educational systems at elite universities which would be dedicated to the study of ‘International Relations’ and ‘Area Studies’ programs. Along with the Carnegie Corporation and the Ford Foundation, the Rockefeller Foundation helped to establish Soviet Studies and Area Studies programs at multiple universities around the country, focusing on providing an education which could inform the application of policy. The Ford Foundation – with considerable financial resources – moved to the forefront of this endeavor. In 1967, a survey by the U.S. State Department noted that out of 191 university centers of foreign affairs research in the United States, 107 depended primarily upon funding from the Ford Foundation. Between 1950 and 1973, the Ford Foundation contributed roughly $278 million to the development of ‘area studies’ programs at major American universities. While ‘International Relations’ was designed to focus on the study of a “realistic” approach and understanding of power (and how to apply it), ‘area studies’ programs focused on the study of the non-Western world.

The large foundations also provided financing and networking connections to aid in the establishment of other large international think tanks, such as the Bilderberg Group – which was founded in 1954 as a forum for Western European and North American elites to meet privately on an annual basis – as well as the Trilateral Commission in 1973, to bring the Japanese elite into the fold of the Western European and North American hegemonic class.

So while the major foundations were shaping the education of elites, socializing them in think tanks where they sought to establish consensus with domestic and international elites in other powerful nations and to manufacture and institutionalize dominant, imperial ideologies, they also worked to try to manage the ‘unwashed masses’ of the world. Just as these foundations had constructed an education to keep black Americans and Africans as “junior partners in the firm” in the early 20th century, in the latter half of the 20th century they sought to export the Western-style educational system – and notably the foundation-influenced social sciences – to other regions and nations around the world in order to help develop domestic elites within those societies that would ultimately serve the interests of Western hegemony and empire.

Foundation officials were extremely concerned about changes taking place across the developing world, where revolutionary and radical movements were attempting to rid their societies of European colonial domination. Foundation officials worked with members of the business and financial elite, alongside the foreign policy establishment, to attempt to manage the process and objectives of change in the ‘third world’. While acknowledging that the era of formal colonialism was at an end, these individuals were not eager to see people and nations chart their own individual paths to independence and freedom. Instead, formal colonial structures needed to be replaced with informal imperial structures. A consensus was formed between the foreign policy-makers, business class and foundation-academic officials that changes in places like Africa “must be evolutionary rather than revolutionary.” As a top Carnegie Corporation official noted: “American industry could ill-afford the loss of cheap sources of raw materials which could only be secured in the nations of Africa, Asia, and Latin America.”

With this in mind, the Rockefeller, Carnegie and Ford Foundations undertook ambitious programs in Africa, Asia and Latin America which sought to create prominent universities and programs of social science research “in areas considered of geo-strategic and/or economic importance to the United States.” These would include the training of public administrators, teachers, the development of curriculums, and exchange programs that would have young academics in these nations come to the United States to receive training and education at prominent U.S. schools like Harvard or Yale. The objective was to channel the intellectual talents of these nations away from support for radical ideologies and revolutionary movements, and push them instead into the social sciences and the construction of domestic, technocratic elites that would see social problems as ‘technical’ issues requiring reforms and slow, evolutionary change. As noted in the book Philanthropy and Cultural Imperialism:

The power of the foundation is not that of dictating what will be studied. Its power consists in defining professional and intellectual parameters, in determining who will receive support to study what subjects in what settings. And the foundation’s power resides in suggesting certain types of activities it favors and is willing to support. As [political theorist and economist Harold] Laski noted, “the foundations do not control, simply because, in the direct and simple sense of the word, there is no need for them to do so. They have only to indicate the immediate direction of their minds for the whole university world to discover that it always meant to gravitate to that angle of the intellectual compass.”

As political scientist Joan Roelofs wrote, foundations exert their influence in multiple ways:

[By] creating ideology and the common wisdom; providing positions and status for intellectuals; controlling access to resources for universities, social services, and arts organizations; compensating for market failures; steering protest movements into safe channels; and supporting those institutions by which policies are initiated and implemented… [F]oundations like Carnegie, Rockefeller, and Ford have a corrosive influence on a democratic society; they represent relatively unregulated and unaccountable concentrations of power and wealth which buy talent, promote causes, and, in effect, establish an agenda of what merits society’s attention.

Further, foundations play a role in providing extensive funding for social movements and non-governmental organizations (NGOs). Their funding for such social movement organizations typically follows years of organic and slow development of social movements from the ground up. Foundations typically move in to provide funding when a social movement is seen as a potential threat to the prevailing social order. Their funding subsequently focuses on supporting the more reform-oriented, legalistic and ‘evolutionary’ (as opposed to revolutionary) organizations, with an objective of helping them to become the dominant organizations in the movement and steer social movements in directions safe for those who own and operate the foundations themselves (representing the political, industrial and financial elites).

With this in mind, it is noteworthy that the Ford, Rockefeller and Carnegie foundations all provided extensive funding to many civil rights organizations in the 1960s and 1970s, “as a response to the threat posed by the generation of a mass-based social movement.” These foundations channeled their funding into support of “moderate civil rights organizations.” Foundation funding for civil rights groups did not become common until the early 1960s, some five years after the Birmingham bus boycott, and the peak of foundation support was in the early 1970s, roughly five years following the assassination of Martin Luther King, Jr. As more militant movements emerged in the later 1960s, such as the Black Power movement and the Black Panther Party, among many others, the foundations increased their support for more moderate organizations like the NAACP and the National Urban League.

This strategy of co-optation also explains the heavy funding and support by major foundations for the environmental and conservation movements, which originally – and still in their more radical arms – represent very direct, fundamental threats to the existing social order. Thus, today the environmental movement is dominated by large institutions like the World Wildlife Fund, Conservation International, Resources for the Future, World Resources Institute, the International Union for Conservation of Nature and Natural Resources (IUCN), and the Nature Conservancy, among others. Most of these institutions at some point depended upon financial support from major foundations, and today their boards are largely dominated by representatives from the corporate and financial world. Most of their funding comes from corporations, with whom they engage in “strategic relationships.”

Such has also been the relationship between major foundations and the so-called ‘anti-globalization’ movement. As globalization became the dominant force of the world from the 1990s onward, new movements began to spring up all around the world, opposing various policies, programs, institutions and ideologies embedded within the process of globalization. Major targets for anti-globalization activists and organizations had been the World Trade Organization, the G7/G8 meetings, the World Bank and IMF, among others. Major protests at the annual gathering of these institutions – notably at the 1999 World Trade Organization meeting in Seattle – began to strike fear into the minds of the global elite. As The Economist noted in 2000, despite the differing views and backgrounds of activists and protesters in Seattle, what they “have in common is a loathing of the established economic order, and of the institutions – the IMF, the World Bank and the WTO – which they regard as either running it or serving it.” This ‘new kind’ of protest, noted the magazine, “is more than a nuisance: it is getting in the way.”

A reaction to this development was seen in the formation of the World Social Forum, an annual meeting of NGOs and various civil society organizations acting as an alternative to more radical, protest-oriented and revolutionary movements and advocacy, and instead promoting the discussion of “reforms” to globalization. Funding for the World Social Forum has been provided by many governments and political parties, and, notably, the Ford Foundation. As Lisa Jordan of the Ford Foundation explained: “Government, business and civil society cannot solve problems separately. There must be dialogue between and amongst these three groupings. The WSF is an attempt to support a vast and complex array of public space for an integrating world.” Again, the objective is to ‘integrate’ the opposition to the existing social order within the social order, to give the ‘rebels’ a seat at the table, and thus, undermine the rebellion itself.

While reforms and evolutionary change can produce good and real results, they do not keep pace with the ever-expanding militarism, war, environmental degradation, economic and financial destruction, corporate colonization, manipulation and devastation of biodiversity, impoverishment and exploitation of the world’s masses, and the ever-growing concentration of wealth and power in the hands of very few institutions and individuals at the global level. The human species – and the planet itself – do not have the time to await the slow changes begrudgingly afforded by the institutions of empire, exploitation and domination. Reform has its place, but radical – transformative – change is of the utmost necessity in order to not only challenge the existing order, but to create alternatives to it – and to help make the existing order obsolete, so that humanity may chart a path that does not lead to eventual extinction, as our current trajectory indicates.

This is where ‘Voice of Access: The People’s Foundation’ – and organizations like it – can play a much-needed role.

A ‘Voice’ for the People, a ‘Foundation’ for Change

The establishment of ‘Voice of Access: The People’s Foundation’ represents an attempt to create a counter-hegemonic foundation, to follow familiar patterns of facilitation, patronage, exchange and interaction, the formation of new organizations, the construction of knowledge, support for social movements, connecting intellectuals, activists and communities. The objective and methods of these efforts will counter those of the dominant hegemonic foundations, however, in a few pivotal ways.

First, the People’s Foundation does not have a substantial financial base upon which to leverage projects and steer the focus of other organizations. In fact – at present – the financial standing of the People’s Foundation is non-existent. Currently, it is still in the starting stages of constructing a legal entity, and those of us who are working to create the foundation are attempting to look into various methods of financing, including approaching the traditional grant procedures, as well as exploring alternatives for specific project financing via crowd-funding measures through social media, and also encouraging donations from supporters around the world. Financial considerations – at present – aside, The People’s Foundation does not expect to ever match the financial resources of the large foundations created and operated by the world’s financial oligarchs. As such, our focus is to be more on facilitation as opposed to funding, though we do hope to increase the amounts of money we can put into projects over time.

What is the role of a facilitator foundation?

To describe the role envisioned for the foundation, it would be best to give some examples of projects that are being planned over the coming years. One key project with which there is a great interest and necessity is in building connections around the world between activists and organizations seeking to promote transformative changes in the social order, whether domestically or internationally. An example of this type of engagement is a project to work with the Mpambo Afrikan Multiversity based out of Uganda.

The founding president of Mpambo Afrikan Multiversity is Paulo Wangoola, an indigenous scholar and intellectual in East Africa. As Wangoola wrote, “The Multiversity is a post-colonial concept of higher learning of the oppressed, by the oppressed and for the oppressed, in pursuit of their community cognitive autonomy and security,” further noting that, “when Europeans colonized the world, they also colonized other people’s knowledge,” which continues under the concept of the modern university (which, I might add, was exported to Uganda and East Africa through efforts by the Rockefeller and Ford Foundations). In contrast, the ‘university’ has extended from the West into Africa “as a colonial/neocolonial design” which has advanced Western hierarchical knowledge structures at the expense of “the total eclipse of Afrikan indigenous thought, scientific knowledge, philosophy, spirituality, wisdom and epistemology; that is, the knowledge base developed over millennia, by the Afrikan Black Nation, as a self-determined people.”

The concept of the ‘Multiversity’ – on the other hand – “is based on the proposition that the people of the world and their knowledges, cultures, language and epistemologies are horizontally ordered, such that each of the knowledges is valid in itself.” This understanding of people and knowledge “is derived from Afrikan spirituality, worldview, scientific thought and ontology; by which all being and phenomena, spiritual and material, natural and supernatural, manifests itself complementally in sets of twos, female and male… balance, harmony and reciprocity.” Thus, wrote Wangoola, “each one of the world’s knowledges deserves some ample and adequate space, and resources to be advanced to its farthest frontiers, as well as to be enriched by, as it itself enriches, other knowledges, through cross-fertilization.” The Multiversity is focused on “creating some democratic intellectual space and elbow room for oppressed peoples to make and demonstrate a case for a MULTIplicity of epistemologies, thought and knowledge to blossom, as a necessity to vitalize each of the world’s knowledges, as well as the totality of human knowledge as a whole.”

Mpambo Afrikan Multiversity, more specifically, “is a community-based institution of mother tongue higher learning, centered around persons who are considered by their peers and community to be compelling experts: wise men and wise women, philosophers, sages, scientists, scholars, innovators and the highly talented. They may be primarily indigenously trained or primarily Western-trained, but both are embedded in their community, have emerged out of their people’s struggles to be free… organic intellectuals, scholars and scientists.” The word Mpambo – in the Lusoga dialect spoken by the Basoga people at the Source of the Nile in Uganda – means ‘the best seed, the most potent seed selected at the time of harvest for safe custody, for propagation in subsequent good seasons’. Mpambo Afrikan Multiversity aims “to help raise and nurture a critical mass of a world class of itself of intellectuals and scholars to three principal goals: to create capacity for a people’s socially necessary knowledge to be created close to that people and amidst themselves; to help render people to be both creators and consumers of knowledge; and to build effective capacity for Afrikan peoples to learn from themselves, and on that basis to learn intellectually, philosophically, scientifically and technically from and with the other world’s spiritual, philosophical, scientific and academic traditions and practices.”

I was fortunate enough to have spent a little time in Uganda with Mpambo Afrikan Multiversity roughly seven years ago, when I was given the responsibility by Paulo Wangoola of recruiting some young Westerners to return to Uganda in order to study and work with Mpambo, and to build up connections between the young, emergent leadership of Mpambo, so that these connections may last for generations to come. This is where there is great potential for The People’s Foundation to engage in facilitation and the construction of new knowledge networks, to provide a forum and means of exchange. Our initial project is to go to Uganda and spend roughly two months learning from the organization, documenting and discussing the activities, objectives, and establishing a means for advancing future cooperation and interaction between Mpambo and The People’s Foundation.

Unlike hegemonic foundations, which approach social movement organizations and centers of knowledge with an objective to steer such organizations in a specific direction, to act as patron and paterfamilias, the People’s Foundation approaches Mpambo Afrikan Multiversity with an objective to learn, to receive guidance, to listen, and to mutually discuss and agree upon methods and purposes of future cooperation and support. This represents a horizontal approach to facilitation and support, as opposed to the vertical (and hierarchical) approach undertaken by hegemonic foundations. We will of course be approaching Mpambo with ideas of potential cooperation – including the possibility of facilitating exchanges between African and Western intellectuals and other Indigenous peoples and communities from around the world. Ultimately, this is the type of role as facilitator that the Foundation envisions for itself among many different organizations and communities.

Hegemonic foundations have achieved immense success in providing forums for the establishment of consensus between elites, both nationally and globally, so as to effect a more precise, permanent and stable system of domination and control. The counter-hegemonic People’s Foundation aims – in the long-term – to help facilitate interaction, communication, cooperation and coordination between groups of activists, intellectuals and other counter-hegemonic groups around the world.

The world is in the midst of powerful transformations and changes. Power is globalizing like never before, with more wealth than ever previously existed being concentrated in fewer hands than ever before, with structures and ideologies of dominance and governance being institutionalized not only at national, but also regional and global levels. A corollary of this process is that of the ‘globalization of resistance and revolt.’ From Tunisia to Egypt, Israel to Turkey, Greece to Spain, Indonesia to China, South Africa to Brazil, Chile and the Canadian province of Quebec, to the Indigenous movements across North and South America, Africa and Asia, to peasant and labour resistance and militancy, the world is in the early stages of forming a truly global resistance to the processes, institutions and ideologies of domination (which have, in no small part, been constructed and institutionalized through the efforts of hegemonic foundations).

While these protests, movements and methods of resistance around the world appear disparate and often disconnected, there is enormous potential for mutual understanding, cooperation, coordination and support. The People’s Foundation hopes to play a role in attempting to connect and facilitate interactions, exchanges, conferences, and creating supporting organizations to help turn the concept of ‘solidarity’ into a solid practice. For example, imagine the possibilities of holding an international conference of activists, intellectuals and organizations involved in resistance movements to meet, discuss their respective struggles and objectives, and to find meaningful possibilities of collaboration and coordination, to establish new organizations – think tanks, media centers, educational organizations, etc. – which would represent the combined interests and activities of these seemingly-disparate groups.

The other major aspect of the People’s Foundation – the Voice of Access – reflects a priority in making information readily available to the broadest possible audience, through collaboration and publication of texts in multiple languages, offering reduced rates to schools, community groups, low-income organizations and researchers and finding ways of distributing the information – particularly through digital formats – as well as in print. The ‘Voice of Access’ moniker and meaning reflects a focus on expanding and facilitating access to information, communication and interaction. This will necessitate an increasing focus on access to and utilization of technology itself. While we take for granted our information and communications technology in the West, much of the world continues to lack access to these materials. Voice of Access would seek to find ways of helping to improve and facilitate increased access to such forms of technology, let alone the information and communication they help facilitate.

Student activism and militancy has been on the rise across much of the world, including notable examples in recent years from Greece to the United Kingdom, Chile and Quebec. In each case, students have been mobilized in opposition to the ever-expanding process of the neoliberal restructuring of the educational system: increased privatization, corporatization, leading to increased tuition and debt for prospective students, which has the dual effect of making education harder to attain, and for those who do pursue education, the effect is to shackle them through debt servitude to the social order itself; focusing their energies – upon graduation – to getting jobs so that they can pay off their debt, instead of channeling their intellectual capacities and energies into finding alternatives to the existing system.

One long-term objective of The People’s Foundation would be to help facilitate the development of connections and coordination between student movements and struggles around the world. A good starting place would be to invite not simply leadership but also participants and supporters of various student movements to participate in a conference where they could discuss their respective experiences, successes and failures, prospects and potential. Through such interaction and the development of interpersonal relationships, new ground could be broken on building support between student movements around the world, new organizations could be established to promote the sharing and development of knowledge between students and youth movements, with cooperative thinks tanks, media centers and similar organizations with a focus on advancing understanding, public awareness, and coordination about and between youth/student movements.

The People’s Foundation would have an equal interest in promoting, supporting and encouraging similar processes for activists and movements around the world. Our objective is not to be at the center of these processes, nor to become a ‘hegemonic’ institution in its own right, but rather, to attempt these initiatives and projects – and to learn from their various successes and failures – in the hope that others may build upon this and attempt similar, parallel and mutually-supportive projects. In short, it would be far more effective and beneficial to all if there were a multiplicity of similar organizations to the Voice of Access pursuing similar and parallel objectives, as opposed to simply one. These are ultimately long-term objectives, and the reality of current non-existent funds means that our initial steps will have to be small and slow. Thus, our primary aims in this area will be toward establishing channels of communication and informal relationships with activists, intellectuals and social movements locally, nationally, regionally and globally, slowly and steadily.

The People’s Foundation will look to the world with a focus on attempting to understand and share knowledge regarding the true nature and structure of our global socio-political and economic order: the institutions and ideologies of power and domination, as well as the methods and movements of resistance. We will look to this situation with a focus on examining what appears to be missing, what appears to be needed, and to try to provide what we can to address these concerns. As such, the educational and media endeavours of the People’s Foundation are essential.

In this regard, there are two organizations that the People’s Foundation has an interest in helping to establish. One – tentatively named the General Research Association for the Study of Power (or GRASP) – would be focused on bringing together young scholars and intellectuals into a cooperative organization functioning like a think tank, which would be dedicated to the study of institutions and ideologies of power and domination: the State, corporations, banks, investment facilities, international organizations/bodies, hegemonic think tanks and foundations, universities/schools, the media, military, public relations/advertising industry, etc. GRASP would aim to undertake extensive and rigorous research and study of these and other institutions and the ideologies that pervade them, historically, presently, and with a focus on trends and transformations in their future development. We are, ultimately, a society dominated not by a single institution but by many, each with their own hierarchies, structures, histories, evolution and ideologies. Yet the institutions which dominate society as whole do so on a largely cooperative basis.

For example, the educational system supports the development of intellectuals who are channeled into think tanks and foundations, where they engage in the construction of knowledge, development of strategies, social engineering, and the formation of foreign policy; from there they are channeled into the state apparatus to enact policies. Corporations and financial institutions, in turn, dominate the governance structures of universities, think tanks and foundations, and participate in the development of strategies, policies and ideology. Thus, while theoretically these are separate institutions, functionally they are interconnected and interdependent. The purpose of GRASP and its research would be to study the historical evolution of these various institutions, and their interconnections and interdependencies with other institutions, including by mapping out their shared leadership with other institutions. The objective is to establish a think tank which may ultimately provide a source of knowledge-generation promoting a more comprehensive and coordinated understanding of our present global order.

The People’s Foundation would simultaneously seek to support the dissemination of knowledge produced by GRASP, through building connections with alternative media sources, as well as pushing the knowledge into the mainstream, or, if necessary, helping to establish new media organizations or groups dedicated to the dissemination of this knowledge. GRASP would be an incredibly useful resource for scholars, researchers, journalists and interested individuals and groups around the world. Its focus would primarily be on studying and understanding the principal Western institutions of domination, and thus provide a valuable source of knowledge for others to consult.

A parallel organization to this would be a similar think tank/research organization, which would be dedicated to the study and discussion of social movements and methods of resistance around the world, historically and presently. The aim, once again, would be to connect young scholars and intellectuals in a cooperative organization, which would initially establish a regional focus-approach to the study of social movements. For example, it would be the job of one (or a few) of the scholars to focus exclusively on analyzing the present social movements, rebellions, revolutions, riots and methods of resistance across sub-Saharan Africa; others would be focused on North Africa and the Middle East, Continental Europe, East and Southeast Asia, North and South America, etc. Monthly reports could be prepared by the young scholars, examining the current state of a ‘world of unrest.’ Such an organization could become an immensely useful resource for researchers, intellectuals, journalists and interested individuals, seeking to provide a single source whose primary focus is on studying the various social/resistance movements around the world.

This is a needed resource in the world today. There are several media and research groups that focus exclusively on studying social/resistance movements, but the focus is often inconsistent, and the sheer scope of global unrest and resistance is monumental. However, an organization with a focus on studying not simply what protests are ‘popular’ and in the press more frequently than others, but rather, on examining the multiplicity of resistance movements around the world, is a needed resource to both expand understanding of the current state of global unrest, as well as supporting those social and resistance movements. How can the people of the world – especially those actively engaged in resistance – support each other if they don’t even know about each other’s respective struggles? This organization would be dedicated to the construction and dissemination of knowledge regarding the methods and movements of resistance taking place around the world, presently and historically. Here, the Voice of Access could play a part in helping to provide a voice for those who frequently go unheard in the Western world.

Such an organization would greatly help our understanding of resistance and revolution itself. With such a large focus and source of knowledge, we would be able to see larger patterns and processes, gain a better understanding of the conditions and ‘sparks’ that lead to differing social movements; to better understand the successes and failures of resistance movements; and through the raising of public awareness – to encourage active and future support for resistance movements.

For both GRASP and the as-yet unnamed research organization focused on studying global resistance, the objective for the People’s Foundation would be to bring different scholars, activists and related organizations together, in a cooperative and horizontal (i.e. non-hierarchical) structure, with a focus on undertaking extensive and rigorous research (held to academic standards), to produce research reports, articles for dissemination, books, host meetings/conferences, media consultations, educational seminars and gatherings, providing a source of important and needed knowledge to be shared as widely as possible, to undertake the dual task of advancing human understanding of the social order which dominates our world, and of the people around the world who are resisting that order’s various manifestations.

For ‘Voice of Access: The People’s Foundation’, the methods would be geared towards reaching out to young scholars and interested individuals and organizations, to begin a process of communication and consultation on the formation of these two organizations, to connect these individuals and organizations and hopefully – if possible – to provide the initial funding needed to establish the organizations.

Problems and Prospects

There are, of course, many present barriers to all the current objectives – short and long-term – of Voice of Access: The People’s Foundation. The most obvious is the financial impediment. While the People’s Foundation ultimately seeks to function as a counter-hegemonic presence with an aim towards building alternatives to the existing global social order (making present power structures obsolete), the Foundation must still operate within the existing social order. That means that, internally and legally, it must establish itself as a non-governmental organization (NGO), with its own internal hierarchy and legal structure, and, more problematic, it must seek to accumulate funds to support projects, as well as to build up a financial base capable of supporting the Foundation’s staff itself, so that we may dedicate our time and resources to the activities of the Foundation. These are obstacles which we have yet to overcome in any meaningful sense, but, through the articulation of some of our short and long-term goals and objectives, we hope to encourage support – both material/financial and otherwise – to helping Voice of Access: The People’s Foundation establish itself and begin its important work in the world.

The major hegemonic foundations have been essential and effective institutions in the process of shaping education, constructing knowledge, disseminating information, creating institutions, establishing consensus between elites – nationally and globally – and institutionalizing ideology for the benefit of the hegemonic financial and corporate interests of the world. They have operated through long-term social engineering projects to try to establish social control: to connect elites, to co-opt and deflect resistance, to promote reform and slow adaptation, so as to ultimately secure the stability of the existing social order, and the hierarchies of inequality and oppression which dominate it.

The counter-hegemonic People’s Foundation hopes to become an effective organization for the purpose of finding new means and processes of education, the construction and dissemination of new forms of much-needed knowledge, to connect people and communities – activists, intellectuals, individuals and groups – not elites, to support the growth and interconnections (and radicalization) of social movements – not to co-opt, but to cooperate – with the ultimate objectives of challenging the prevailing social order, and sowing the seeds for future generations to construct a new order, making the existing one obsolete. These are large objectives, but as with any goal, it all begins with small and slow steps in the right direction.

With an understanding of the role that has been played by hegemonic foundations in the preservation and propagation of the existing social order, it seems that there is a needed place for counter-hegemonic foundations seeking to challenge and make obsolete that same social order, until such a point where the Foundation itself may be made obsolete. Revolution is a process, not an event, and it requires one to operate within an existing social system while simultaneously challenging that social system. This is a multi-generational process, and we must begin thinking and acting with a focus on the short- and long-term.

Voice of Access: The People’s Foundation hopes to take such a short and long-term focus on encouraging and supporting social transformation for the benefit of humanity and the world as a whole, not simply the powerful few who rule over it. This requires building connections and facilitating support with groups and people around the world, to advance access to technology, communication and interaction, to be a ‘voice’ for those who go unheard, a foundation for people, a foundation for change.

To read the full report with citations and footnotes, please download the original from the Spanda Journal here.

Andrew Gavin Marshall is an independent researcher and writer based out of Montreal, Canada. He is Project Manager of The People’s Book Project, Chair of the Geopolitics Division of the Hampton Institute, Research Director of Occupy.com’s Global Power Project and the World of Resistance Report, hosts a weekly podcast at BoilingFrogsPost.com, and is a co-founder and Vice President of Voice of Access: The People’s Foundation.

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Austerity Revisited: How Global Financiers Rigged the Bank Bailouts of the 1980s

Austerity Revisited: How Global Financiers Rigged the Bank Bailouts of the 1980s

By: Andrew Gavin Marshall

Originally posted at Occupy.com

20 May 2014

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In the first part of this Global Power Project series, I examined the origins and early evolution of the International Monetary Conference, an annual meeting (to be held June 1-3 in Munich) of several hundred of the world’s most influential bankers who gather in secrecy with the finance ministers, regulators and central bankers of the world’s most powerful nations. The second part looked at the role of the IMC in the lead-up to the 1980s debt crisis. Now, in Part 3, we examine the role the IMC played throughout that debt crisis which began in August of 1982.

At the 1982 International Monetary Conference, bankers noted that they had been cutting back extensively on loans to developing countries, with some leading bankers warning that the lending cut-backs could result in “aggravating the problems of countries already in economic difficulties and threatening to throw them into default” – which is exactly what happened a couple of months after that’s year’s conference.

A. W. Clausen, former CEO of Bank of America, spoke at the IMC in 1982 as then-president of the World Bank, and told the assembled bankers it was “an honour to be the first President of the World Bank to address the International Monetary Conference,” noting that, “themes of partnership and interdependence have repeatedly been at the center of our IMC meetings.” It was the subject Clausen wanted to address, “the tightening interdependence between the developed and the developing nations,” announcing “a new era of partnership between the World Bank and international commercial banks for helping the economies of the developing countries.”

Clausen told the bankers that “in order to develop a closer partnership with you, we intend to expand the International Finance Corporation [the investment arm of the World Bank] to explore the possibility of a multilateral insurance scheme for private investment, and to develop new mechanisms for attracting commercial bank co-financing.”

He also noted that the “fundamental objective of the World Bank” was “to help raise the standard of living of people, especially poor people, in the developing countries,” and argued that “people in developing countries will benefit from a closer partnership between the World Bank and international commercial banks.” Clausen was speaking roughly three months before Mexico announced its debt repayment problems, sparking the debt crisis, though he acknowledged that the developing world was experiencing a “balance-of-payments disequilibrium and debt-servicing difficulties.”

In addition, Clausen noted that the affiliate organization of the World Bank, the International Finance Corporation, had a special purpose which was “to encourage productive private enterprises in developing nations” whose loans do not have to be guaranteed by governments, and which can take equity (or shareholdings) in corporations. Clausen noted that together with the IMF and the General Agreement of Tariffs and Trade (GATT), the World Bank “has helped to build an interdependent global economy,” adding: “International commercial banking depends on the relatively integrated, dynamic, and peaceful world economy that these official institutions have nurtured.”

Thus, he suggested, “we should now develop the complementarity between the World Bank and international commercial banks into a closer relationship of collaboration,” and recommended “greater collaboration between [the] IFC and commercial banks,” which “has great potential for stimulating commercial investment in the developing countries.” All of the initiatives Clausen proposed revolved around the basic objective of increasing “the collaboration of the international banking community” with the World Bank, in order “to assist poor nations to better manage their economies through the establishment of economic policies that are conducive to economic growth and development” and thus “bringing them fully into the global economy.”

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The Debt Crisis

In the first full year of the international debt crisis that tore Latin America and other developing countries into financial ruin – with entire populations pushed overnight into poverty through austerity measures that were demanded by the IMF and the global banks, in return for additional loans and debt rescheduling – the more than 200 global bankers at the International Monetary Conference met in Belgium where they were “treated like royalty,” met at the airport by “special hostesses” and were then chauffeured in Mercedes limousines to the Hyatt Regency Hotel.

The bankers attended a cocktail party at the Palais d’Egmont and hosted the King of Belgium for an afternoon lunch. It was in this “fairy-tale atmosphere,” as the New York Times described it, that the world’s top bankers met with government officials and central bankers and enjoyed “the luxury of thinking about the grand problems of world finance, unfettered by the real world’s concerns.”

The bankers at the 1983 conference agreed that the major debtor countries, in particular Brazil and Mexico, would need time to reshape their economies, with estimates ranging from three to seven or eight years of austerity, and various “structural reforms” designed to enforce neoliberal economic policies upon those entire populations. James Wolfensohn, a former partner at Salomon Brothers who started his own consultancy (and later went on to become President of the World Bank), delivered a popular speech at the IMC recommending that there could be no one solution to the debt crisis, but that each country would have to be handled on a case-by-case basis.

The banker William S. Ogden, a former vice chairman of Chase Manhattan, presented another popular speech at the IMC in which he explained that what was needed to resolve the debt crisis was “sustained world economic growth, avoidance of protectionism, increased government aid to the third world and more disciplined economic policies among the developing countries.” In other words, harsh austerity measures.

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That very same year, Ogden was in the midst of creating a unique organization of international banks and bankers to represent their collective interests as a global community in the face of the debt crisis. That organization came to be known as the Institute of International Finance, itself the subject of a previous set of exposés in the Global Power Project.

At the 1984 meeting of the International Monetary Conference (IMC), a special meeting occurred among some of the top banks that held a large percentage of Mexico’s debt. They participated in a “closed meeting” with major central bankers and finance officials, including representatives of the IMF, who recommended that the banks lower their interest rates on loans to Mexico in order to reduce pressure on the country. Walter B. Wriston, chairman of Citicorp, who had previously opposed any concessions to the impoverished nations in crisis, at this point appeared willing to adhere to some reductions in interest rates for Mexico.

The closed meeting was also attended by Willard C. Butcher, Jr., the chairman of Chase Manhattan; John F. McGillicuddy, chairman of Manufacturers Hanover Trust Company; Lewis T. Preston, chairman of J.P. Morgan & Company; Walter V. Shipley, chairman of Chemical Bank; Wilfried Guth, managing director of Deutsche Bank; Guido R. Hanselmann, executive board member of Union Bank of Switzerland (UBS), and Sir Jeremy Morse, chairman of Lloyds Bank of London.

The following day, the international banks announced that they would agree to negotiate a long-term debt solution for Mexico. Included in the decision as well was the IMF managing director, Jacques de Larosiere; the chairman of the Federal Reserve, Paul Volcker; and a special representative of the banks, Citibank Vice Chairman William R. Rhodes, who announced the decision to negotiate on behalf of the banks and who was personally responsible for chairing multiple “bank advisory committees” that negotiated debt rescheduling with various countries in Latin America.

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Three years later, in 1987, Mexico was still caught in a painful crisis and the world’s bankers were still meeting for the IMC in luxurious surroundings, partaking in opulent social events to discuss the issue of world debt problems. The more than 200 bankers at the meeting expressed their frustration with the problems of the global monetary system, the instability of the floating exchange rate system, and currency crises. William Butcher, that year’s chairman of the IMC, warned that the global monetary system would not “correct itself” and instead the search for a new and more stable system “must be intensified.”

The most popular speech at the IMC that year was delivered by Japan’s vice minister of finance for international affairs, Toyoo Gyohten, who proposed the establishment of “some international mechanism” which would be responsible for managing international monetary crises, and would be required “to have at least several hundred billion dollars in order to influence the financial markets.”

At the next year’s meeting of the IMC, then-Chairman of the Federal Reserve, Alan Greenspan, spoke to the assembled bankers, explaining that further declines in the U.S. Dollar would not help American exports. His comments led to a rise in the Dollar, “greeted positively in the financial markets,” and stock and bond prices rose on Wall Street. The heads of the central banks of other major industrial nations, such as West Germany and Britain, were also present at the conference where collectively the central bankers “reiterated the need to keep inflation down as a way to continue worldwide economic growth” – a position met with great approval by the bankers present at the meeting.

At the 1989 meeting of the IMC, many of Mexico’s largest international lenders attended a special meeting after which they announced a $5.5 billion “aid” package (aka bailout) for Mexico in cooperation between Japanese banks, the IMF and the World Bank. But the so-called “aid packages” handed out by Western banks and international organizations to the crisis-hit developing nations were, in fact, bailouts for the major banks: the funds were given to the countries explicitly to pay the interest that they owed to the banks, while at the same time forcing those governments to implement strict austerity measures and other economic reforms.

William R. Rhodes, Citibank’s main official responsible for debt rescheduling agreements, was present at the meeting, which was also attended by Angel Gurria, the chief debt negotiator for Mexico. Rhodes stated that the meeting at the IMC “set the stage for rapid progress.” In the final part of the Global Power Project series on the International Monetary Conference, I examine the continued relevance of the IMC from 1989 to the present – including the bankers who composed its leadership, as well as a review of leaked documents pertaining to the 2013 meeting of the IMC in Shanghai.

Andrew Gavin Marshall is a 27-year-old researcher and writer based in Montreal, Canada. He is project manager of The People’s Book Project, chair of the geopolitics division of The Hampton Institute, research director for Occupy.com’s Global Power Project and the World of Resistance (WoR) Report, and hosts a weekly podcast show with BoilingFrogsPost.

How the International Monetary Conference Helped Fuel the 1980s Debt Crisis

How the International Monetary Conference Helped Fuel the 1980s Debt Crisis

By: Andrew Gavin Marshall

Originally posted at Occupy.com

14 May 2014

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Last week, in Part 1 of the Global Power Project’s investigations into the machinery behind the International Monetary Conference, I examined the history and evolution of the IMC from its founding by the American Bankers Association in 1954 to the global financial and monetary disruptions of the late 1970s.

The IMC, happening June 1-3 in Munich, brings together hundreds of top bankers with leading finance officials and central bankers from the world’s industrial powers to discuss major economic, financial and monetary issues of the day – and to form a consensus on policies for managing the world economic order. In part 2 of the series, I look at the role of the IMC in the lead-up to the 1980s debt crisis.

What Fueled the Debt Crisis?

The 1980s debt crisis erupted when Mexico announced in 1982 that it could no longer service its debts to Western, and primarily American, banks. This resulted in a crisis that quickly spread across Latin America, Africa and parts of Asia. The oil price rises of the 1970s had led to a surge in revenues for oil-producing nations, which had invested their surplus oil wealth in Western banks that then lent the money to poor, developing nations requiring oil in order to finance their industrialization.

Then, following the 1979 oil shocks, the Federal Reserve in the United States decided to dramatically increase interest rates. The result: interest payments on “third world” debts skyrocketed, ultimately forcing Mexico and other nations to seek bailouts in order to pay their interest to the world’s major banks.

At the 1980 International Monetary Conference meeting, two years before the debt crisis erupted, some of the world’s top bankers – particularly Wilfried Guth, the managing director of Deutsche Bank – warned that a “safety net” may be needed to bail out the major banks that lent money to the developing world. Chase Manhattan Chairman David Rockefeller, who also attended the meeting, agreed that such a “safety net” for the banks was “well worth considering.”

Other leading bankers warned that since the world’s major banks were big lenders to each other, there was “a danger that if one large institution were to fail, a chain reaction could be started that would topple other banks around the world.” (“A ‘Safety Net’ for Banks is Proposed,” New York Times, June 3, 1980).

An Exclusive Event

The June 1980 meeting of the IMC took place in New Orleans, to which The New York Times reported that “only the most elite of the world’s financiers are invited.” American participants at that year’s meeting included Treasury Secretary G. William Miller and Federal Reserve Board Chairman Paul A. Volcker, as well as the chairmen of America’s three largest banks: David Rockefeller (Chase Manhattan), A.W. Clausen (Bank of America) and Walter Wriston (Citibank). The New York Times noted that the IMC “has been a forum where the heavyweights of world finance often take off their gloves.” (“Bankers Meet in Discord,” New York Times, 2 June 1980).

The bankers who attended the conference to discuss issues of debt and poverty were greeted at the New Orleans airport by police officers who provided them with security and doubled as “porters and chauffeurs,” driving the bankers in unmarked police cars to their hotels. The IMC, which is presided over by a 15-member board that decides who gets invited to the yearly meetings, admits banks based upon their size and the scope of their international operations.

At this gathering, eight of the 15 board members were Americans, including Walter B. Wriston, chairman of Citibank; Willis W. Alexander, executive vice president of the American Bankers Association, and leading figures representing First National Bank of Chicago, Wells Fargo, Mellon Bank and Chemical Bank, among others (“The Talk of New Orleans: Agonies of World Banking,” New York Times, 8 June 1980).

Though official sessions of the meeting were closed to the press, in briefings afterward the bankers warned that some developing nations were having increasing difficulty paying interest on their debts to the big banks – and that although the situation had not yet reached crisis proportions, they were wary of what was to come. David Rockefeller declared an urgency “for official organizations, such as the International Monetary Fund, to increase their lending to oil-consuming countries,” and suggested that “private banks and the international institutions should work more closely together.”

Likewise, Wilfried Guth of Deutsche Bank presented a 35-page paper in which he stated that the global financial system was “fairly under control for 1980,” but warned that “critical developments are feared for 1981 and later” when many developing nations “will find it extremely difficult to raise the money they need to pay for oil and other essential imports, including food.” Powerful bankers and monetary officials at the conference widely supported Guth’s paper and presentation, with David Rockefeller warning that international loans given by commercial banks had already surpassed $1 trillion.

The global bankers noted that the underlying issue was “the huge transfer of wealth from the oil-consuming nations to the oil-producing nations,” and warned that “economic stability can be achieved only if the oil-consuming countries accept declines in their living standards” and “an indefinite recession” (“Oil Payment Worries Grow,” New York Times, 7 June 1980).

Meanwhile, the most popular person at the conference that year was a specially-invited guest named Milton Friedman, the University of Chicago economist known for his promotion of neoliberal economic orthodoxy. As the New York Times noted, “It seemed that just about everyone wanted to sit at Mr. Friedman’s lunch and dinner tables.” Friedman had been invited to the IMC to preside over a debate on nothing less than “how monetary policy should be designed and implemented.”

The 1980 IMC meeting seemed to bear formal fruition when Ronald Reagan assumed the presidency in January of 1981, as his new economic policies won “praise from at least one important foreign group – bankers.” The New York Times noted that the several hundred of the world’s top financiers from the IMC meeting “expressed understanding and support of even the most controversial of American monetary policies – the record interest rates that have strengthened the dollar and battered most foreign currencies as a result.”

It was the very same interest rate hikes that led to highly-indebted poor countries finding themselves unable to pay the increased interest on their loans – which pushed them into bankruptcy and the need for bailouts. But for global bankers, there was nothing but praise. Sir Jeremy Morse, chairman of Lloyds Bank of London one of those in attendance at the IMC, stated that, “In general, most people feel that high interest rates are appropriate to the inflationary position of the Western world, and are appropriate to the United States position.”

The only issue of bankers’ “irritation” with the Reagan administration, it seemed, was the fact that incoming Treasury Secretary Donald T. Regan – the Chairman and CEO of Merrill Lynch from 1971 to 1980 – had cancelled his trip to the IMC at the last minute. As many at the conference noted, it was “tradition” to have “a formal address by a senior American economic official.” The President of Wachovia, John G. Medlin Jr., commented, “I think he should have come … I don’t think he understood the importance of this group.”

In the absence of Regan, the responsibility of explaining official American economic policies fell to Federal Reserve Chairman Paul Volcker, himself a former official at Chase Manhattan where he had worked for David Rockefeller. Volcker stood up to the challenge and “was a great success among the bankers [at the IMC], many of whom expressed support for him.”

In the next installment of this series investigating the International Monetary Conference, I examine the role of the IMC throughout the 1980s debt crisis and its position as an important, influential forum that helped to articulate and definitively shape consensus around neoliberal Western economic policy.

Andrew Gavin Marshall is a 26-year-old researcher and writer based in Montreal, Canada. He is project manager of The People’s Book Project, chair of the geopolitics division of The Hampton Institute, research director for Occupy.com’s Global Power Project and the World of Resistance (WoR) Report, and hosts a

A Teaser to ‘The Empire of Poverty’: The First Volume of The People’s Book Project

A Teaser to ‘The Empire of Poverty’: The First Volume of The People’s Book Project

By: Andrew Gavin Marshall

slum

The following is a little teaser to some of the ideas, approach and perspective being pursued through the research and writing of the first volume of The People’s Book Project, ‘The Empire of Poverty.’ Please consider donating to the Project to help these efforts come to fruition.

It’s important to try to understand the global economic and financial system – the banks, corporations, central banks, economic policies (and effects) of governments, trade agreements, the creation and value of currencies, the function of the oft-heard ‘markets’ – as daunting as the task may seem. One might think that they need a degree in Economics in order to understand the complexities of the global economy, to comprehend the correct choices and policies which achieve the desired results. One might think that this is true, but it isn’t. The truth is that if most economists understood the global economy, and knew the ‘correct’ choices to make, we wouldn’t be where we currently are.

Economics – both theory and practice – is an illusion. There are no concrete rules on which to base economic thought; there is no ‘gravity’ to its physics. Economics is not science, it’s sophistry; the sleight of hand, the quick and slick tongue, the wave of the wand, the theatrics of the stage set for all to see, and the effects – as destructive as they may be to the real world and all life within it – are largely hidden from view; the illusion keeps the population enraptured in awe, aspiration, and fear.

This is not to say that there cannot be anything real produced or given growth by what we call ‘economics’: there are of course exchanges made, resources used, products created, lives benefitted, and entire societies and peoples changed. The effects are very real. However, they have a disproportionately destructive, oppressive, and dehumanizing effect upon the vast majority of humanity: they bestow upon a tiny fraction unparalleled power, and thus, dehumanization in another form; while creating a comparably minimal buffer of generally satiated and malleable middle classes, educated well-enough to work and survive the horror show that is the global economic order, but consumed by a culture lacking in substance and meaning, and thus, left morally, psychologically, and intellectually lobotomized, physically paralyzed, and thus, once again, dehumanized.

So our global economic order has the effect of generally dehumanizing all who are subject to its whims and whammies; which is to say, almost everyone, everywhere. Those peoples and societies that are not integrated into the global economy tend to be bombed, invaded, overthrown or droned. Those who remain are doomed to slow death: one in seven people on earth live in urban slums[1] – more than the combined populations of Canada, the United States, and the European Union – while the majority of humanity lives in deep poverty, in hunger, and malnutrition; with 18 million people being killed from poverty-related causes every year, including over 9 million children.[2] Every year.

During the Holocaust, approximately six million Jews were killed. Take that number, add 50% to make 9 million, and just think: this is how many children die every year from poverty. Every year a new Holocaust.

These deaths are preventable. Truly. It has been estimated that less than the yearly Pentagon budget would lift the poorest 3 billion people of the world out of extreme poverty. In fact, in the twenty years following the end of the Cold War in 1991, there were roughly 360 million preventable deaths caused by poverty-related issues, more than the combined deaths of all of the wars of the 20th century.[3]

But this is not our priority. Our priority is that banks and corporations make as much profits as possible, because this – by some unknown and unseen magic – will (it is said) benefit everyone else. It is propagated and believed that this system, as it exists, or even with the proper tinkering and toiling, can represent the totality of life and being on this world; to be humanizing, and to represent ‘human nature’ at its best. But if this system were ‘human nature,’ why would it be so dehumanizing? How many organisms grow by destroying that which their existence depends upon? Parasites, cancers and various diseases can kill the host before transferring to another.

We have no other host to go to. Those who sit atop the global structure know this, which is why they express such an interest in finding new planets to escape to (and presumably, plunder and destroy). The billionaires have given up pretending to care for the world’s billions of people suffering, which is why they are looking to space travel, mining asteroids, and searching for hospitable environments elsewhere.[4] Their long-term ‘exit strategy’ is to abandon ship, not to change the direction we currently traverse.

Are we – as a species – a cancer upon the earth? Looking at the big picture, it may often seem that way. But it is in the small moments, the single acts, exchanged emotions, interacting individuals, in the every day life – those moments of joy, love, wonder – in which we find our own personal meaning, in which we discover that humanity – and human nature – can be so much more than destructive, petty, and pestilent behaviour. We are told we are a society of ‘individuals’ – that we are free, democratic and equal. If that were the case: why are we so isolated? We are individuals, yes, in the physical sense: but we are disconnected from the collective, separated from the species as a whole.

We think and act individually, but do so ignorantly, and arrogantly. Our thoughts and feelings are collected and collated by our commanding culture of irrelevance. The immense gift of a human mind – with all of its possibilities and capabilities, both known and unknown – is largely squandered on pop culture, sports, celebrities, consumer items and entertainment. So long as we remain distracted by the ‘celebration of irrelevance’, we are lobotomized of our meaning.

Is this how you see yourself as an individual? As the world you live in? It’s not an appealing thought. So why, then, do we live in a world in which as individuals we may act morally, purposefully, passionately, and proudly; though as a collective species, we are petty, parasitic, power-mad, pathological, and pretty much evil?

Is it ‘human nature’ that our personal values and priorities are not reflected in the collective – institutionalized – expression of humanity? Or, is it that the way in which our society is constructed, the institutions and ideologies, the policies, programs, priorities and effects of the way in which our world is ordered and altered, is inherently counter to ‘human nature’? In other words: is human nature inherently self-destructive; or, is our constructed human ‘society’ (our global social, political and economic order) inherently destructive to human nature? Does human nature pervert the effects we have upon the world, or do the structures of world order – and power – pervert human nature?

It is this vast disconnect between our personal values and the form they take at the global – collective – level of the species, which is ultimately so dehumanizing. Because power is centralized at the top, and for such a tiny fraction of the species – so much so that there has never been a more unequal and vast ‘Empire of Poverty’ in all of human history, the ‘great inequality’ is not of wealth, but of power.

Wealth is an illusion: a manufactured means to power, a collective delusion. Power is central to human nature. Every person needs power: they need autonomy over their own lives, thoughts, feelings, and decisions. It is central to maturity, it is central to leaving adolescence and becoming an adult, and it is central to finding a sense of self-worth. Understanding oneself is to empower oneself. Power is about possibility, personal fulfillment, passion and purpose. It has individual and social representations. It can be seen – or not – in your own life, but also in the world around us.

A pre-requisite for power is freedom. The process of achieving freedom is, itself, empowering. Once (and if) achieved, it is of immense responsibility to use your new power of freedom wisely, for the effects that it may have upon others and the rest of the world are endless. Power is freedom, quite simply, because slavery is the opposite of both freedom and power: it is the most un-free and the most disempowering personal position to be in.

Freedom is power; power is freedom. If we were actually free, we would have significantly more power. But we don’t. We barely have any control over our own individual lives, let alone the world around us. We leave all that to the others, to those with the proper degrees, the ‘expertise,’ the politicians, the pundits, the ‘right’ people… because they’ve obviously done such a great job of it so far. We remain – as a species, and very often as individuals – neutered from the necessities of individual empowerment, subjected instead to the very-often-arbitrary abuses of power over others.

So if we are not free, what are we? Certainly, we are not slaves, for we have no shackles, bear the brunt of no whips, serve no visible masters. We are, perhaps, slaves of another kind. We are financially, reflexively, intellectually, emotionally and hopelessly and very often spiritually enslaved to the system, as it exists. We are slaves to money. We serve the masters of money, with our time, with our labour and efforts, with our interactions, exchanges, interests, intelligence and aspirations. We are slaves to money.

Our society is built and sustained upon it; and our species is being driven to extinction because of it. The cause and effect of money – or more aptly, debt – slavery, is the distribution of power among the species: too few have too much, and too many have too little. This imbalance of power within the species is leading to our self-destruction, our inevitable extinction if we continue along this path.

Money is both the means and very often – the reason – for continuing down this path, for maintaining this imbalance. While very few have all the money, everyone – and everywhere else – has all the debt. This is not the wondrous ‘free market’ capitalist utopia which is incessantly babbled about, but the very real global feudal dystopia, both cause and effect of the power imbalance and money-system. In feudalism, there is no freedom, only serfdom.

Welcome to our global economic order, serf!

Welcome to the Empire of Poverty.

But it’s not hopeless. The truth is both painful, but also full of possibilities. The truth is that we do have the ability to understand the world we live in, to comprehend our global economic order. We don’t need a degree; we just need honesty.

The illusion that is our economic system is built not upon technical knowledge, but rather, technical language, a highly political language, “designed to make lies sound truthful, murder respectable, and to give a feeling of solidity to pure wind,” as George Orwell defined the term. Our inability to communicate honesty, and thus effectively, about our economic – and indeed, political and social – system is an essential mechanism in maintaining that system.

To speak and ‘understand’ this language, at least at a superficial level, usually does require some ‘education’: economists must be trained, so too must political and other social scientists. The artificial separations in their knowledge – (as in, the notion that the economic world exists separate from the political and social world, and thus, must be studied separately) ensures that none who receive a ‘proper education’ achieve a profound understanding of the world. Some may, but they are few and far between, and usually weeded out or co-opted.

Such a ‘proper education’ will allow one to gain enough basic knowledge related to the sector of society in which they aim to explore and advance, and they are given just enough knowledge to do so, but not enough to honestly look at – let alone have the capacity to communicate – the reality of how our global political, social and economic order functions and evolves. They may see problems, make recommendations, propose policies, and they may even do some good, but ultimately – as we still remain on the path toward extinction – they have not, and cannot – do enough.

Few possibilities – few ‘solutions’ – or opportunities, are communicated to the populations that are effected under and by these societies, and by the decisions the few at the top make. People are generally given a small set of options from which to choose, like guessing what’s behind door number one or two, when both are ultimately terrible, and ineffectual (in a positive sense). We put ‘faith’ – however empty – into the hands of politicians, we consume the crap spewed in the media, or we lose ourselves in the vast vacancy that is the ‘substance’ of our culture; a culture of mythology, lies, fantasy, persuasion, punishment, entertainment and manipulation.

Our hope is first in honesty. We can – and must – look honestly at the world for what it is, not what we want or imagine it to be, but what it is. Then, we can – and must – communicate this message, and to do so honestly and directly. This is a human reality, and it must become a part of a collective human knowledge, a shift in understanding, and thus, a change in direction; away from the current-inevitably of extinction, and toward survival. What comes after is for future generations to determine. For now, we must aim to simply survive.

Our goal must first be to begin charting a new path toward survival; this must be the duty of our present living and younger generations, as challenging, demanding and terrifying a responsibility that may be, it is either that, or extinction. And this is not a matter of hundreds or thousands of years away; it could be as soon as decades. If you – like me – are between 18 and 45 – the coming few decades of the world in which you currently live and hope to survive will become increasingly dreadful, destructive, oppressive, and disempowering. We cannot afford to continue kicking the can down the road, delaying – and exacerbating – the inevitable.

There is always hope, not in myths and fantasy, but hidden in reality. In our actions, ideas, in us – as individuals – connecting, interacting, sharing, working and creating together, as collectives, as part of a larger human organism; beginning to act as if we don’t want to self-destruct as a species, creating a new society – a new order – to make the current one obsolete. This is our great challenge. How do we navigate through living within the present existing order, while simultaneously seeking to create a new and alternative order? Moreover, how do we achieve this if it takes nearly all our effort, time and energy to simply survive the present order? To put it as crudely (and honestly) as possible: how the fuck are we supposed to change the world?!

I don’t know the answers. But I think that the best way to get them is to ask honest questions, seek an honest understanding, and to communicate honestly – about ourselves and the world – personally, and globally. This book is my attempt to understand and speak honestly about the world, not to speak in a language that only economists and political scientists or other so-called ‘experts’ can understand, but to speak plainly and directly. This will require me to dedicate some focus in attempting to translate political language into English. I don’t have a degree, and you won’t need one to read this, or to understand it.

The hope, then, that I hold for this book – and the wider book project of which it is apart – is that it presents an accessible and usable collection of knowledge. It is not the book that asks every question, or has ever answer (no books do!), but it is an attempt at taking a different approach to asking and seeking answers to some rather important questions about our world: what is the true nature of our society? How did we get here? Where are we going? Why? And, what can we do to change it?

This is but an introduction to our world, by no means comprehensive or conclusive, simply accessible, honest, and (hopefully) useful.

Andrew Gavin Marshall is a 26-year old researcher and writer based in Montreal, Canada. He is Project Manager of The People’s Book Project, chair of the Geopolitics Division of The Hampton Institute, research director for Occupy.com’s Global Power Project and the World of Resistance (WoR) Report, and hosts a weekly podcast show with BoilingFrogsPost.

Notes

[1]       Mike Davis, Planet of Slums (Verso: London, 2007), pages 151-173.

[2]       Thomas Pogge, “Keynote Address: Poverty, Climate Change, and Overpopulation,” Georgia Journal of International and Comparative Law (Vol. 38, 2010), pages 526-534.

[3]       Ibid.

[4]       Dan Vergano, “Billionaires back ambitious space projects,” USA Today, 13 May 2012:

http://usatoday30.usatoday.com/tech/science/space/story/2012-04-25/space-exploration-billionaires/54866272/1

A Brief Message for Canadians: Get Over It!

A Brief Message for Canadians: Get Over It!

By: Andrew Gavin Marshall

CANADIANS: Be ashamed that this newspaper column is what passes for the “public discourse” in this country: a raving, ignorant, arrogant, idiotic and racist rant telling Indigenous people to “get over it” – referring to the state-sanctioned racism, genocide, and imperialism – all of which is still taking place.

Naomi Lakritz wrote a syndicated column for the Calgary Herald on July 31, that First Nations people “need to quit blaming the past” for the circumstances in which they live, because they “have nobody to blame but themselves.” First Nations people, suggested Lakritz, need to drop “the victimization mantle” and instead, start “with the concept of individual responsibility.” In other words: get over it!

No, instead of Canadians acknowledging our history as a nation – the violent destruction, exploitation, domination, murder and discrimination exerted against the indigenous peoples of the land we invaded and occupied – this “journalist” thinks that Indigenous people should “stop blaming their history.”

They are not blaming their history: they are pointing to their history so that we may learn our own. We have a ‘shared’ history, and it has led us to the present. If we – as Canadians – actually looked at our history, and traced its evolution up to the present, we would realize that our ‘colonial’ history has now evolved into a modern state-capitalist imperial present. Our historical injustices imposed upon Indigenous peoples have modern incarnations: the system of domination, exploitation, segregation, discrimination and – yes(!) – genocide, continues today.

If we learned about all that, we might want to change it. We might develop something called ‘empathy’ which can lead to something called ‘solidarity.’ These are very human characteristics, so I understand that they seem challenging to relate to in a deeply dehumanizing society; but remember, we have a shared history and we share the present. Our histories are intertwined and interdependent, and so too is our future.

We might look out at the fact that Indigenous people, not only in Canada but around the world, are rising up in rebellion against the rampant and accelerating destruction of the environment, which will lead the species to extinction. Indigenous people are on the front lines of the global struggle against human extinction and the preservation of the environment and earth we live on. If we looked at all that… we might join them.

Instead, we read articles like this gutter trash, intellectual abortion, which has been published in the Calgary Herald, The Province, Victoria Times-Colonist, and the Edmonton Journal. Interesting how in the two provinces of BC and Alberta where the Indigenous struggle against environmental destruction is currently very active, are the same provinces where this ‘article’ is published in the main newspapers for the four largest population centres… just in case you might get the ‘right’ idea.

Canada’s corporate-owned media wouldn’t want that, would it? Not when the corporation that owns all these newspapers – the largest newspaper company in Canada, Postmedia Network – has a board of directors who are reaping profits and power off of the destruction of the environment, sitting on multiple other corporate boards for banks, energy and oil companies.

Take Jane Peverett, on the board of Postmedia. Jane also sits on the boards of CIBC, the Northwest Natural Gas Company, and Encana, a major energy company. As recently as November, an Indigenous group in BC was taking action against the construction of a major pipeline project partly owned by Encana.

I’m not blaming Jane for this article; I think the author deserves the blame. But Jane – and her compatriots who sit on the boards of Canada’s highly concentrated media system – maintain and wield significant influence over a media institution which promotes articles like this as contributing to the ‘public discourse,’ when all it does is promote ignorance, propaganda, passivity, and protects the interests of the powerful who own it. It’s an institutional function. Jane is merely a cog in a much larger wheel, while Naomi Lakritz can barely be said to be cognizant.

It’s institutional propaganda. Just as the discrimination, exploitation, domination and destruction of Indigenous people is institutional to our society. For a population currently struggling against the rapacious ravaging of the environment, let alone for survival, being told to “get over it,” is another way of saying: “just die, already.” And because the struggle is against the extinction of our species if we continue along our current path, saying, “get over it,” is also like saying, “we’re all going to die, but I don’t want to do anything about it… and neither should you.”

So for those Canadians who think the article above presented a ‘reasonable’ argument (and I KNOW you exist), and for those Canadians who think Indigenous people should stop “blaming history,” take a piece of your own advice: get over it. Learn your history, know your world, find your brothers and sisters and join them in the struggle to save the species and the planet we live on.

When it comes to having people like Naomi Lakritz of the Calgary Herald lower the public discourse – or rather, maintain the public discourse at painful lows – it’s really time that we get beyond this. Naomi Lakritz also thinks pot is a “dangerous drug” and legalization a “bad idea” (because once again, “get over” history, don’t learn, just delude!), and who (shockingly) has problems with immigrants, and it’s too perfect: she wants them to “leave [their] history at home” when they come to Canada… the nation with no history, apparently.

Naomi ('no history') Lakritz

Naomi (‘no history’) Lakritz

The deranged attempts by Lakritz to support the status quo when it comes to matters of injustice cannot be left as the level of discourse in a country which boasts the title of “the most educated country in the world.” It’s time to start acting like it. So it’s time to stop listening to Lakritz and other ‘rebels against rationality’, and START listening to Indigenous people, who have a great deal that they are trying to teach us about our country, and are showing us ways that we can help change it for the better.

It’s only our fate as a people, species, and planet that is at stake… Get over it.

 

Andrew Gavin Marshall is a 26-year old researcher and writer based in Montreal, Canada. He is Project Manager of The People’s Book Project, chair of the Geopolitics Division of The Hampton Institute, research director for Occupy.com‘s Global Power Project, and hosts a weekly podcast show with BoilingFrogsPost.

Egypt Under Empire, Part 3: From Nasser to Mubarak

Egypt Under Empire, Part 3: From Nasser to Mubarak

By: Andrew Gavin Marshall

Originally published at The Hampton Institute

Egyptians Prepare In Tahrir Square For The First Anniverary Of The Revolution

Part 1: Working Class Resistance and European Imperial Ambitions

Part 2: The “Threat” Of Arab Nationalism

Between 1952 and 2011, Egypt was ruled by three military dictators: Nasser, Sadat, and Mubarak. Nasser placated labour unrest and imposed many social programs that benefited the population. Sadat subsequently began to break down the ‘social contract’ with Egyptian society, and when Mubarak came to power in 1981, the following three decades witnessed the imposition of a neoliberal order, complete with crony-capitalists, corrupted bureaucracies and a repressive police force. Three decades of increased poverty, polarized wealth and power, and increased labour unrest all laid the groundwork for the 2011 popular uprising.

As Nasser came to power in Egypt in 1952, he successfully crushed labour militancy in the country, and even executed two labour leaders as a symbol of the new regime’s lack of tolerance for radical labour actions. Nasser engaged in a power struggle for a brief period, before assuming complete power in 1954, at which point independent political organizations were banned and he “ushered in a populist-corporatist pact between labour and the state,” in which “the state controls the bulk of the economic, political, and social domains, leaving little space for society to develop itself and for interest groups to surface, compete, and act autonomously.”[1]

Labour groups were organized “into a limited number of singular, compulsory, non-competitive, hierarchically ordered and functionally differentiated categories.” In 1957, the government created the General Federation of Egyptian Trade Unions (GFETU), monopolizing labour unions under the government, purging the radical leaders and co-opting the moderates. Since this period, “trade unions have functioned as an arm of the state rather than as democratic representatives of workers.” Thus, labour activism and actions largely subsided throughout the 1950s and 60s.[2]

Despite violent repression of independent political organizations, communists and militant labour groups, Nasser became incredibly popular both within Egypt and across the wider Arab world. He established a one-party state and a large security apparatus “to crush any and all dissent.” However, his articulation and actions related to Arab nationalism and Arab socialism – the twin pillars of his ‘revolution’ – sought to free Egypt and the Arab world from imperial domination, and to undertake a social revolution domestically as “part of an informal social contract where the population accepted constraints on its political freedom in exchange for the promise of higher living standards and a stronger nation.”[3]

A large network of social services was established, which “provided employment, education and healthcare, as well as subsidized transportation and food.” This program also entailed “spending large sums of money on the military, which was seen as the protector of the nation from external enemies.” These social programs helped to “create a modern middle class” in Egypt.[4] The allegiance of the middle class to the authoritarianism of the regime was secured by the government guaranteeing state employment to all university graduates.[5]

Nasser also implemented major agrarian reforms, which between 1952 and 1961, “redistributed about one seventh of the country’s cultivable land from large landowners… passed on to the landless and near landless fellahin rather than kept for direct use by the state.” This led to an “improvement of rural incomes and agricultural production,” and attempted to undermine the influence of the large landowning class of Egyptians.[6]

With the defeat of Egypt in the 1967 Arab-Israeli War, Nasser’s government suffered a humiliating defeat, and Nasser’s death in 1970 led to the emergence of a new dictator, Anwar Sadat, also emerging from the military, who ruled the country from 1970 until 1981. Undertaking a policy of ‘de-nasserisation,’ Sadat sought to undo many of Nasser’s more progressive policies, earning him the favour of the West. Among such policies were to return the “confiscated” land to the large landowners within Egypt by employing an ‘open door’ market-oriented program called infitah. The intifah helped to create the conditions for a real estate and credit boom, ultimately adding to Egypt’s foreign debt as the country became increasingly dependent upon foreign financing and ‘investment.’[7]

The infitah – or “opening” – wrote Hibbard and Layton, “offered an alternative vision of economic development to that of Arab socialism;” beginning a process of liberalization and an influx of Western capital, “to integrate Egypt into the Western capitalist system.” Sadat’s policies also oversaw the gradual elimination of Nasser’s social programs and “the abandonment of Nasser’s anti-imperialism.” The country quickly became more trade dependent, having to import staple foods, and foreign financing was limited to non-productive sectors of the economy. Egypt increasingly exported its labour to the Persian Gulf, which helped to reduce the problems of unemployment at home, and increased the country’s reliance upon remittances from its foreign workers sending their wages back home. In 1974, labour remittances, oil exports, tourism, foreign aid and the Suez Canal accounted for nearly a third of Egypt’s foreign income, a number that exploded to 75% in 1980. A new commercial elite developed with extensive ties to the state, while economic inequality between the rich and the rest of society accelerated.[8]

Such policies did not occur without resistance, however, with opposition emanating from academics, state bureaucrats and workers, with strikes and “popular unrest” occurring throughout the mid-1970s, with a major transport worker strike in 1976 and large bread riots in 1977. Sadat responded to the labour unrest and food riots by sending in the military to crush the protests. Sadat oversaw the construction of an alliance between the large landowning class, the business class, and the conservative religious elite, and even sought to build ties with the Muslim Brotherhood. Further, Sadat rebuilt ties with the United States, and even established an alliance and peace treaty with Israel, negotiated by the Carter administration in the U.S. as the 1979 Camp David Peace Accords. With that, Sadat lost a great deal of popular support, and Egypt’s Islamists rejected him. Sadat was ultimately assassinated by an Islamist group in 1981.[9]

In 1981, Hosni Mubarak then took control of Egypt, also emerging from within the military and continuing the trend of maintaining the military dictatorship established since 1952, and deepening the economic ‘reforms’ begun under Sadat. Under Mubarak, the military and economic elites became more closely integrated, and with the imposition on the Emergency Law following Sadat’s assassination, Mubarak wielded more authoritarian power, suspending the constitution and dismantling the rights of citizens, also allowing for “detention without charge, press censorship and other restrictions on civil liberties.” A new – parallel – legal system was constructed, relying upon military courts, purportedly for use against ‘terrorists’ but used to persecute any and all forms of political opponents.[10]

Mubarak oversaw – during the 1980s and 1990s – a massively expanded entrenchment of neoliberal economic and social reforms in Egypt. Mubarak also pursued a major campaign against Islamists, who were making political gains with segments of the population by capitalizing on the poverty and popular anger toward the government, largely brought on as a result of the economic reforms. Mubarak’s Egypt thus became a major human rights violator, all the while receiving immense financial and military aid from Western governments, namely, the United States. The role of the security services – in particular the police forces under the control of the Interior Ministry – became more predominant throughout Mubarak’s rule, with torture and other abuses widespread.[11]

The military plays a very large role in the economy as well, and under Mubarak, military officials were appointed as regional governors, village chiefs and put in charge of state-run companies. The military itself has undertaken large land expropriations, runs companies and factories, giving it a major role to play in manufacturing, agriculture, construction, gas and consumer industries. The military, however, keeps most of its economic activities secret, and does not pay taxes while often using “conscripted labourers” for its workforce.[12]

Mubarak began to implement further ‘reforms’ to the agrarian sector along neoliberal lines during the 1980s. The Agriculture Minister Yusuf Wali began implementing agriculture sector liberalization policies in 1986, working “hand in hand with USAID and the World Bank.” The U.S. stressed “market-oriented” reforms and promoted export-led growth, as USAID invested $1.26 billion in the agricultural reforms. These reforms continued over the 1990s, and resulted in widespread dispossession of small farmers and a further alliance between economic and military-political elites.[13]

The major neoliberal reforms in Egypt arrived under Mubarak with the signing of a 1991 Economic Restructuring and Adjustment Program with the IMF, demanding liberalization of trade and prices, privatization, and labour ‘flexibility,’ as well as the removal of several social safety net measures.[14]

The ‘new economic elite’ that emerged in Egypt as a result of the IMF’s programs of the 1990s were closely tied to the ruling party, the National Democratic Party (NDP), and Mubarak’s son, Gamal, who headed the NDP. Prominent businessmen became more influential in policy-making circles and “the number of businessmen elected to Egypt’s parliament increased from 8 in 1995 to 150 by 2005.”[15] Public spending on social services was dramatically cut, state-owned industries were privatized and employees fired, resulting in “staggering hardships for the majority.”[16]

As labour was under sustained attack, they fought back, with twice as many labour protests in the 1990s than took place during the 1980s. With the 1991 IMF program, Egypt was firmly entrenched in a neoliberal ‘order,’ which would accelerate over the following two decades. Fifteen years following the IMF program’s beginning – by 2006 – Egyptian workers had been subjected to continuous hardships and exponentially increased their resistance to it.[17]

The privatization program led to the unprecedented plundering of the Egyptian economy into the hands of relatively few economic elites. Out of 314 state-run companies, 209 were privatized by 2005, “leading to a massive displacement of public sector workers, and with it a further weakening of the struggling labour movement.” The number of workers employed by public sector companies was cut in half between 1994 and 2001. The IMF praised the privatization program in 2006 for having “surpassed expectations.” Wealth and power was concentrated “in the hands of a tiny layer of the country’s elite,” and a few large conglomerates dominated the major sectors of the economy. As Henry Veltmeyer wrote, “Mubarak – and the Egyptian state as a whole – represented an entire capitalist class.”[18]

Neoliberal reforms were further implemented under Prime Minister Ahmed Nazif (2005-2011), which saw businessmen take a more direct role in managing the state, with six major government ministries being run by six major businessmen in the areas of trade and industry, housing, transportation, health, agriculture and social welfare. Taxes were dramatically cut for corporations and elites and dramatically increased for the rest of the population. Corruption and embezzlement of public funds was rampant as the privatization programs effectively subsidized “the private sector at the expense of the nation as a whole.”[19]

The costs of food, fuel and transportation skyrocketed, while Prime Minister Nazif instructed protesting Egyptians to “grow up.” Thus, in 2006, Egypt witnessed a new wave of labour unrest.[20] Independent forms of worker organization re-emerged and in 2006 alone, “there were 220 major strikes involving tens of thousands of workers in the largest strike wave that Egypt had seen in decades,” and which were increasingly linking up with peasant movements protesting against the large landowners.[21]

In 2006, a three-day strike of workers at a weaving and spinning factory in El-Mahalla was “a major turning point in the history of the Egyptian workers’ movement,” marking a total work-stoppage and for a much longer duration than strike action prior and helped in the formation of new workers associations with more democratic accountability, directly challenging the state monopoly over unions.[22]

The strike was “the largest and most politically significant industrial strike since a dispute in the same workplace in 1947,” having roughly 24,000 workers participating, with over 10,000 occupying the factory for three days and nights, and on the fourth day the government granted a concession by offering a 45-day bonus. This set off a wave of worker protests and strikes across the country over the following years. Between 2006 and 2009, an estimated 1.7 million workers participated in protest actions, including private and public industrial workers, postal workers, educational administrators, workers in transportation, tax collection, healthcare, and other sectors. The recent years of labour unrest has been referred to as “the largest social movement in over half a century” taking place within Egypt.[23]

Between 2006 and 2008, Egypt recorded annual growth rates of 7%, and in 2009 – while much of the world was experiencing negative growth – Egypt recorded a 4.6% growth rate. However, between 2008 and 2009, poverty in Egypt increased from 20% to 23.4%, while roughly 40% of Egyptians live on less than $2 per day, one-third of the population is illiterate, and youth make up roughly 90% of the unemployed. Thus, while the neoliberal reforms of the previous three decades produced high growth rates, “it has [also] led to worsening living standards for the majority of the population and the increased concentration of wealth in the hands of a tiny minority.”[24] Between 1998 and 2010, there were between 2 and 4 million workers who took part in between 3,400 and 4,000 strikes and other labour actions.[25] There were 266 strikes and labour actions in 2006, 614 in 2007, and they reached roughly 1,900 in 2009.[26]

As strikes escalated, the demands for higher wages and more democratic union representation evolved into demands for the end of the Mubarak regime (and the neoliberal reign of Prime Minister Nazif). One strike organizer in 2007 told a radio program, “We are challenging the regime.” At strikes, workers were chanting, “We will not be ruled by the World Bank! We will not be ruled by colonialism!” Images of signs at protests circulated, reading, “Down with the Government. We want a Free Government.” One strike leader who was arrested in 2007, said upon his release: “We want a change in the structure and hierarchy of the union system in this country… The way unions in this country are organized is completely wrong, from top to bottom. It is organized to make it look like our representatives have been elected, when really they are appointed by the government.”[27]

The second Palestinian Intifada in 2000 helped spawn new social movements within Egypt. The Cairo Conference was held in 2002 in an attempt to organize disparate social groups around two main shared positions: anti-neoliberalism and anti-war. In 2004, this led to the formation of the Kefaya (“Enough”), the Egyptian Movement for Change.[28] This was aided along by a major demographic change within the country, where by 2011, roughly 52% of Egypt’s population was under the age of 25, and it was this group which disproportionately lacked employment, with roughly 95% of post-secondary educated youth being unemployed or working in fields unrelated to their education with very low pay. It was this demographic which became increasingly mobilized around non-ideological movements such as Kefaya, organizing a series of anti-Mubarak protests between 2004 and 2005, demanding democracy and accountability. The younger members of this group then established the April 6 Movement, “an organization that emerged in support of the 2008 strike by textile workers in Mohalla al-Kubra.”[29]

A number of other social groups and protests organizations emerged from 2004 onwards, including Students for Change, Youth for Change, University Professors for Change, Workers for Change, Artists for Change, and the People’s Campaign for Change, among many others. In 2005, as Kefaya organized a massive anti-Mubarak protest, an organization of Egyptian intellectuals was formed as the National Assembly for Democratic Transition. Lawyers, journalists and other professions increasingly took part in protests.[30]

The April 6 Youth Movement began to support the Mahalla workers’ strike in 2008, with founder Ahmed Maher having started a Facebook page that quickly reached over 70,000 members. As support grew, the government crack down ensued, with roughly 500 activists arrested over the following two months, including Maher (who was also tortured).[31]

Since the Mubarak government made it illegal to hold meetings of more than five people, with a heavy-handed approach to information control and news censorship, Facebook and other Internet-based social media platforms quickly became very popular among young Egyptians. Roughly one in nine people in Egypt have Internet access, and 9% of those who have access used Facebook, making it the most visited website in the country, following Google and Yahoo. The Facebook page for the April 6 movement, reported the New York Times in 2009, was the page “with the most dynamic debates” among young Egyptians, “most of whom had never been involved with politics before joining the group.” The Facebook page provided a venue for young Egyptians “to assemble virtually and communicate freely about their grievances.”[32]

The United States has been a major sponsor of the Egyptian dictatorship, giving it extensive leverage with the regime. Between 1948 and 2011, the U.S. provided Egypt with a total of $71.6 billion in bilateral foreign aid (most of which consisted of an annual aid package of $1.3 billion in military aid from 1987 to present), and since the peace treaty with Israel was signed in 1979, Egypt has been the second-largest recipient of U.S. ‘aid’ in the world (after Israel).[33]

Another large international sponsor of the Egyptian dictatorship was the International Monetary Fund (IMF), which also heaped praise upon the Tunisian dictatorship of Ben Ali prior to its overthrow. In a 2010 report on Egypt, the IMF noted that the country had been following the Fund’s advice on economic reforms, though continued to recommend “phasing out energy subsidies” and increasing privatizations. The IMF further noted that, “the relationship between Egypt and the World Bank Group has been transformed and markedly improved over the last few years as a result of the progress Egypt has made in implementing reforms.”[34]

In 2010, labour unrest continued throughout the country, with one strike organizer telling the press in May of 2010, “The government represents the marriage between authority and money – and this marriage needs to be broken up… We call for the resignation of Ahmad Nazif’s government because it works only for businessmen and ignores social justice.”[35]

Egypt was clearly on the edge of an uprising, all that was required was a ‘spark’ – which came in the form of the Tunisian uprising in December of 2010 and January of 2011. With the overthrow of the long-time dictator, Ben Ali, in Tunisia, Egyptians were motivated to mobilize against Mubarak.

Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada. He is Project Manager of The People’s Book Project, head of the Geopolitics Division of the Hampton Institute, Research Director for Occupy.com’s Global Power Project and hosts a weekly podcast show at BoilingFrogsPost.

Notes

[1] Rabab El-Mahdi, “Labour protests in Egypt: causes and meanings,” Review of African Political Economy (Vol. 38, No. 129, September 2011), page 390.

[2] Ibid.

[3] Scott Hibbard and Azza Salama Layton, “The origins and future of Egypt’s revolt,” Journal of Islamic Law and Culture (Vol. 12, No. 3, October 2010), pages 198-199.

[4] Ibid, page 199.

[5] Rabab El-Mahdi, op. cit., page 390.

[6] Ray Bush, “Coalitions for Dispossession and Networks of Resistance? Land, Politics and Agrarian Reform in Egypt,” British Journal of Middle Eastern Studies (Vol. 38, No. 3, December 2011), page 395.

[7] Ibid.

[8] Scott Hibbard and Azza Salama Layton, “The origins and future of Egypt’s revolt,” Journal of Islamic Law and Culture (Vol. 12, No. 3, October 2010), page 200.

[9] Ibid, pages 200-201.

[10] Ibid, pages 201-202.

[11] Ibid, pages 202-203.

[12] Angela Joya, “The Egyptian revolution: crisis of neoliberalism and the potential for democratic politics,” Review of African Political Economy (Vol. 38, No. 129, September 2011), page 372.

[13] Ray Bush, op. cit., pages 396-397.

[14] Angela Joya, op. cit., page 370.

[15] Ibid.

[16] Scott Hibbard and Azza Salama Layton, op. cit., page 202.

[17] Rabab El-Mahdi, op. cit., page 395.

[18] Henry Veltmeyer, “Unrest and Change: Dispatches from the Frontline of a Class War in Egypt,” Globalizations (Vol. 8, No. 5, October 2011), page 612.

[19] Angela Joya, op. cit., pages 370-371.

[20] Rabab El-Mahdi, op. cit., page 395.

[21] Henry Veltmeyer, op. cit., page 612.

[22] Rabab El-Mahdi, op. cit., pages 397-399.

[23] Ibid, pages 387-388.

[24] Henry Veltmeyer, op. cit., page 611.

[25] Joel Beinin, “Egyptian Workers and January 25th: A Social Movement in Historical Context,” Social Research (Vol. 79, No. 2, Summer 2012), page 326.

[26] Ibrahim Awad, “Breaking Out of Authoritarianism: 18 Months of Political Transition in Egypt,” Constellations (Vol. 20, No. 2, 2013), page 278.

[27] Joel Beinin, op. cit., page 331.

[28] Angela Joya, op. cit., pages 368-369.

[29] Scott Hibbard and Azza Salama Layton, “The origins and future of Egypt’s revolt,” Journal of Islamic Law and Culture (Vol. 12, No. 3, October 2010), pages 206-207.

[30] Angela Joya, op. cit., page 369.

[31] Ellen Knickmeyer, “Fledgling Rebellion on Facebook Is Struck Down by Force in Egypt,” The New York Times, 18 May 2008:

http://www.washingtonpost.com/wp-dyn/content/story/2008/05/17/ST2008051702711.html

[32] Samantha M. Shapiro, “Revolution, Facebook-Style,” The New York Times, 22 January 2009:

http://www.nytimes.com/2009/01/25/magazine/25bloggers-t.html?pagewanted=1&_r=1

[33] Jeremy M. Sharp, “Egypt: Background and U.S. Relations,” Congressional Research Service, 27 June 2013: page 9.

[34] Patrick Bond, “Neoliberal threats to North Africa,” Review of African Political Economy (Vol. 38, No. 129, September 2011), pages 483-484.

[35] Joel Beinin, “Egyptian Workers and January 25th: A Social Movement in Historical Context,” Social Research (Vol. 79, No. 2, Summer 2012), page 339.

Egypt Under Empire, Part 2: The “Threat” of Arab Nationalism

Egypt Under Empire, Part 2: The “Threat” of Arab Nationalism

By: Andrew Gavin Marshall

The following is Part 2 of my series, “Egypt Under Empire,” originally posted at The Hampton Institute

Part 1: Working Class Resistance and European Imperial Ambitions

Arabnationalism

In 1945, the British agreed to renegotiate the Anglo-Egyptian Treaty of 1936, with the British seeking to protect their large military presence with their base at the Suez Canal. The negotiations had become frustrated with the Egyptians demanding the unconditional removal of all British troops, a prospect that was reviled by both the British and Americans, who were first and foremost interested in maintaining their imperial hegemony over the region.[1] One of the major threats to Western imperial domination of the Middle East and North Africa (and thus, of Asia and Africa more generally) was the “rising tide” of Arab Nationalism.

Arab Nationalism was considered a threat for a number of reasons: it presented the possibility of small countries being able to unite as a common force, chart their own paths and determine their own sovereignty, remain ‘neutral’ in the Cold War, and threaten the West’s control of the region’s oil resources and transport routes long considered vital to energy, trade, and military expansionism. In short, Arab Nationalism was a threat precisely because it presented an ‘alternative’ for the poor nations and peoples of the world to follow, an independent form of nationalism not tied to or dependent upon the imperial powers, instead seeking to unite the ‘Third World’ – with its vast natural resource wealth and strategic locations – and thus, could potentially bring the downfall of Western imperial domination of the world.

As early as 1943, in light of the massive oil reserves in Saudi Arabia, President Roosevelt signed Executive Order 8926 which declared that, “the defense of Saudi Arabia [is] vital to the defense of the United States.”[2] In 1944, President Franklin Roosevelt wrote a memo to the American Director of Economic Operations in the Middle East in which he made clear, “The Middle East is an area in which the United States has a vital interest.” That interest, of course, was oil. Roosevelt made clear that Middle Eastern oil belonged to the Western imperialist nations and not the Middle East itself, as he wrote that “the objective of the United States” in the Middle East “is to make certain that all nations are accorded equality of opportunity,” and that “special privileges… should not be afforded to any country or its nationals.” This was, of course, indirectly referring to France and especially Great Britain, the imperial hegemons of the Middle East at the time. The “equality of opportunity” to exploit the resources of the Middle East was simply referring to the expansion of America’s “vital interest” in the region.[3]

American interest in Saudi Arabia and the Middle East more broadly did not die with Roosevelt. His successor, Harry Truman, was just as eager to “open the door” to the Middle East. A 1945 memorandum to President Truman written by the Chief of the Division of Near Eastern Affairs in the U.S. State Department, Gordon Merriam, stated: “In Saudi Arabia, where the oil resources constitute a stupendous source of strategic power, and one of the greatest material prizes in world history, a concession covering this oil is nominally in American control.”[4] Adolf A. Berle, one of Franklin Roosevelt’s closest advisers, particularly in relation to the construction of the post-War world, years later remarked that controlling the oil reserves of the Middle East would mean obtaining “substantial control of the world.”[5]

After the British left India in 1947 and Palestine in 1948, their largest military base outside Great Britain was on Egypt at the Suez Canal Zone. Yet, in 1947, the Labour government was determined to maintain “a firm hold in the Middle East.” Bilateral talks were held between the British and the Pentagon in 1947 in which they discussed the region, some twenty countries, in which the two powers recognized the region as “vital” to their security interests and agreed to “parallel policies.” This was agreed to by the newly-formed National Security Council (NSC), though the Joint Chiefs of Staff (JCS) were hesitant, fearful that American forces would be drawn into the Middle East at a time when the size of the forces were being decreased while the demands of the emerging empire were increasing. Thus, the JCS stipulated that the “British should continue to maintain primary responsibility for the defense of the Eastern Mediterranean and the Middle East.”[6] In 1947, even the U.S. State Department agreed that while “the security of the Eastern Mediterranean and Middle East… is vital to the security of the United States,” America’s security in the region depended upon the “strong strategic, political, and economic position” of Britain in the region.[7]

As the British Empire continued its decline in influence, and the Soviet Union continued its increase in influence, the Americans became especially concerned with an expanded Soviet presence in the Middle East. In the early 1950s, Secretary of State Dean Acheson sought to exert control over the region “through the coordination of American, British, and indigenous [local Arab dictator] efforts under a concept of the defense of the Middle East as a whole.” Top State Department officials presented the plan to the Pentagon, who agreed, but were hesitant to commit troops to the region, instead favouring the building up of local allies (i.e., to establish strong regional proxies), and recommended the U.S. invite Turkey into NATO in an effort to move the strategic objectives forward. President Truman promptly invited Turkey into NATO in 1951.[8]

In 1951, the U.S. Deputy Secretary of State George McGhee stated, “We wish to keep the area on our side where it is clearly cooperating with us, or to bring it firmly onto our side where it is wavering.”[9] That same year, the Egyptian parliament – frustrated with the British – abrogated the Anglo-Egyptian Treaty in the face of widespread popular demands within the country, frustrating plans for a joint American and British military command of the region, which they wanted to establish within Egypt.[10]

As tensions rose, fighting broke out between British and Egyptian forces, with mass protests and unrest in the streets across the country. It was at this point that the Egyptian army’s ‘Free Officers’ intervened and orchestrated the bloodless coup in 1952.[11] The Americans were warned beforehand about the possibility of a coup, and expressed support for Nasser and the coup officers, feeling that they were “pro-Western,” though the U.S. Ambassador in Egypt added that they were “woefully ignorant of matters economic, financial, political, and international.”[12]

As the Americans sought closer ties to Egypt, Secretary of State John Foster Dulles went to meet with Nasser, who explained that any alliance with the West – built upon the concept of the Cold War’s ‘struggle’ against Communism – would require the British to leave Egypt entirely. Nasser explained that for Egyptians, the main enemy was imperialism, not communism. He told Dulles, “I would become the laughingstock of my people if I told them they now had an entirely new enemy, many thousands of miles away, and that they must forget about the British enemy occupying their territory. Nobody would take me seriously if I forgot about the British.”[13]

The United States continued to attempt to gain the favour of Nasser and the regime in Egypt, noting its strategic importance to the domination of the entire region. The CIA established ties with Nasser’s government in 1953, passing money to the regime, which Nasser (correctly) interpreted as a bribe. Nasser accepted the American approaches to his regime, hoping to keep the U.S. comfortable, though he articulated a ‘non-aligned’ position for Egypt, choosing neither the side of the Soviet Union or the U.S. in the Cold War. The Americans had to accept this position, as they were bluntly told by Nasser’s closest adviser: “You will never be able to get the oil of the Middle East if its people do not side with you… Either you win us forever, or you lose us forever.” The U.S. attempted to ‘win’ favour, by providing funding through the World Bank for the construction of the Aswan Dam.[14]

Nasser’s suspicions grew, however, when World Bank funding came with ‘conditions’ which would allow for concessions to the British and Americans, specifically regarding the Suez Canal. Nasser felt the World Bank was cooperating with “the imperialist nations,” who were getting in the way of his attempted project to build a modern society for Egypt: to achieve a social revolution. Nasser then announced an arms deal with the Soviet Bloc in 1955, prompting the US and UK to cancel their funding of the Aswan Dam.[15]

By 1956, the State Department acknowledged – in internal documents – that, “there seems little likelihood the US will be able to work with Nasser in the foreseeable future.” British Prime Minister Anthony Eden had even stated that he wanted to “destroy” Nasser. A State Department official noted in July of 1956 that, “Nasser is pursuing policies in the Near East opposed to reasonable U.S. objectives.”[16] As the U.S. ended funding for the Aswan Dam, Nasser announced that Egypt would fund the project by nationalizing the Suez Canal. The British and French were furious, with Anthony Eden cabling President Eisenhower that they had to “be ready… to use force to bring Nasser to his senses.” The French compared the nationalization of the Suez Canal to Hitler’s seizure of the Rhineland, but the Americans remained hesitant to resort to military action, fearing that undertaking such a response would ‘compromise’ their position in the region. The British and French told the Americans that “military action is necessary and inevitable,” and hoped for U.S. support.[17]

A special national intelligence estimate shared with the National Security Council in the United States noted that Nasser’s decision had “greatly strengthened his position, not only as leader of Egypt, but also as the spokesman and symbol of Arab nationalism throughout the Middle East.” The decision to nationalize the Suez Canal “has won wild acclaim from the Egyptian population, warm support from the greater part of the Arab world, and approval from the USSR.” The intelligence estimate noted: “Nasser’s action has strengthened anti-Western, anticolonial, and nationalist trends throughout the area, and if successful, will encourage future moves toward early nationalization or other action against foreign-owned oil pipelines and petroleum facilities.”[18]

Referring to Nasser’s nationalization as a “dramatic act of defiance,” the intelligence document explained that this will “have an intoxicating effect on Arab nationalist sentiment,” and subsequently, “certain Arab states may be encouraged, both by example and persuasion, to take similar anti-Western actions.” All of these threats and possible actions “would be increased in the event of intervention by Western military forces or a substantial increase in Western arms shipments to Israel.”[19]

A State Department policy paper from early August 1956 referred to Nasser as “an international political adventurer of considerable skill with clearly defined objectives that seriously threaten the Western world.” The State Department concluded: “Nasser intends to make full use of the resources of the Arab world, notably the Suez Canal and the oil, the resources and turmoil of the entire African continent, and the support of Muslims in Indonesia, China, Malaya, Siam, Burma and elsewhere” in order “to wield a power without limit.” Thus, the State Department noted, “it must be concluded that Nasser is not a leader with whom it will be possible to enter into friendly arrangements of cooperation or with whom it will be possible to make any feasible accommodations.” Nasser did not seek to become “a stooge of the Kremlin,” but rather, to take “a more ambitious” role as a “third force,” which would ultimately “be as inimical to the interests of the West as those of the Kremlin.”[20]

The State Department paper went on to acknowledge that the regional resentment of populations against the West was legitimate in the historical context of Western colonialism and empire, but that it would be necessary to prevent the region coming together, to ‘divide and conquer.’ In the policy paper’s own words, the State Department acknowledged that “the hatreds, frustrations and resentments of the people of the Middle East and Africa certainly exist and there is no easy way of dealing with the problems which they create.” Tellingly, the report continued: “it is to the interest of the West that they be dealt with as nearly separately as possible and that no leader… be permitted to merge the emotions and resources of the entire Middle East and Africa into a single onslaught against Western civilization.” Thus, the West would have to implement “policies designed to reduce… Nasser as a force in the Middle East and Africa.” The memo bluntly concluded: “it is in U.S. interests to take action to reduce Nasser’s power.”[21]

Still, however, fear of the popular reaction in the Arab, Muslim and African world prevented the United States from supporting military intervention in Egypt, as “anticolonial and anti-Western tendencies would be greatly reinforced and resentment of the continued presence of Western power elements in the Middle East would be intensified,” according to a National Intelligence Estimate.[22]

In late October of 1956, the Israelis, British and French began their attack and invasion of Egypt. In a meeting with his National Security Council, Eisenhower declared, “How could we possibly support Britain and France if in doing so we lose the whole Arab world?”[23] The United States and the USSR both publicly and internationally condemned the European-Israeli invasion of Egypt, demanded a ceasefire and a withdrawal of troops. The event was considered a victory first and foremost for Nasser’s Egypt, then for the Soviets and Americans, and a major defeat for the waning influence of the French and British in the region (and not to mention, increased hostility toward Israel, largely viewed as a Western imperial proxy in the region).

Nasser’s influence was especially increased following the Suez Crisis. Nasser’s support for nationalist movements in North Africa, particularly Algeria, increasingly became cause for concern. Pro-Western governments in the Middle East stood on unstable ground, threatened by the ever-expanding wave of Pan-Arab nationalism and indeed, Pan-African nationalism spreading from North Africa downward.

The United States, however, noting the power vacuum created by the defeat of Britain and France in the conflict, as well as the increasing support from the Soviet Union for nationalist movements in the region as elsewhere, had to decide upon a more direct strategy for maintaining dominance in the region. As President Eisenhower stated in December of 1956, as the Suez Crisis was coming to a final close, “We have no intention of standing idly by… to see the southern flank of NATO completely collapse through Communist penetration and success in the Mid East.” Secretary Dulles stated in turn, that, “we intend to make our presence more strongly felt in the Middle East.” Thus, the Eisenhower Doctrine was approved in early 1957, calling for the dispersal of “$200 million in economic and military aid and to commit armed forces to defend any country seeking assistance against international communism,” explaining that, “the existing vacuum… must be filled by the United States before it is filled by Russia.”[24]

Support for the Eisenhower doctrine in 1957 came from the pro-Western governments [aka: dictatorships] of Libya, Lebanon, Turkey, Iran, Pakistan, Jordan, Iraq and Saudi Arabia, while opposition was strongest amongst Syria and Egypt. Nasser suggested that the Eisenhower Doctrine was “a device to re-establish imperial control by non-military means,” and he would thus “have nothing to do with it and felt it was directed at Egypt as much as at any communist threat.”[25]

Indeed, Nasser was correct, as internal State Department policy planning papers reflected. While a great deal of the rhetoric from internal documents and public statements was directed at dealing with the threat of ‘communism’ and the Soviet Union’s influence in the region, Nasser and Egypt figured prominently in the internal discussion among U.S. policy-makers, noting the threat of a ‘Third Force.’ Thus, as the State Department noted, “efforts to counter Soviet penetration” of the region “must include measures to… circumscribe Nasser’s power and influence.” The U.S. was adamant that it must avoid “suspicion that our aim is to dominate or control any of the countries or to reimpose British domination in a different form,” and thus, “our actions will be largely self-defeating if they create a general impression that our objective is to directly overthrow Nasser.”[26] It may be worth noting that the document said that while they wanted Nasser gone, the issue was simply that they did not want to give the “impression” (appearance) that they wanted him gone. Thus, the guise of stemming the spread of ‘communism’ became increasingly useful in a strategic context.

A National Security Council Operations Coordinating Board report from 1957 acknowledged that there had “been increasing manifestations of an awakened nationalism” in the Arab world, largely emerging in response to “a desire to end both real and imagined vestiges of the mandate and colonial periods.” Since the historic colonial powers of the region “were from Western Europe, this nationalism has assumed generally an anti-Western form” which has “created opportunities for Soviet exploitation” which has “placed the United States in a difficult position.” The “sympathy” that the United States has towards those who want to overthrow the oppressive structures of empire and domination – which is to say, the rhetoric of the American system as being supportive of democracy and liberation – often runs “into sharp conflict with actions required to maintain the strength of the Western alliance and to support our closest allies,”[27] who happen to be ruthless tyrants.

While Britain and France viewed this nationalism “as a threat to their entire position in the area,” the United States felt that while such nationalism “represents a threat to the West,” it viewed it “as an inevitable development which should be channeled, not opposed.” While acknowledging that Nasser would “remain the leader of Egypt” for some time, the objective of the United States would be to determine “the degree to which it will actively seek to curb Nasser’s influence and Egyptian activities in the Near East and Africa.”[28]

A 1958 National Security Council report on the ‘Long-Range U.S. Policy Toward the Near East’ noted that the region was “of great strategic, political, and economic importance to the Free World,” by which they meant, the Western imperial powers. This was especially true because the region “contains the greatest petroleum resources in the world and essential facilities for the transit of military forces and Free World commerce,” such as the Suez Canal. Thus, the report noted, “it is in the security interest of the United States to make every effort to insure that these resources will be available and will be used for the strengthening of the Free World,” with the added benefit of the fact that the “geographical position of the Near East makes the area a stepping-stone toward the strategic resources of Africa.”[29]

The NSC document noted that, “In the eyes of the majority of Arabs the United States appears to be opposed to the realization of the goals of Arab nationalism,” believing “that the United States is seeking to protect its interest in Near East oil by supporting the status quo and opposing political or economic progress.” The status quo, of course, was to support ruthless dictators who impoverished their populations and gave their nation’s resources over to Western imperial powers. The Soviet Union, on the other hand, has a much better reputation within the Arab world, supporting the cause of Arab nationalism without demanding the same allegiance in the Cold War struggle that the U.S. was demanding of its autocratic allies in the region. Thus, “the prestige of the United States and of the West has declined in the Near East while Soviet influence has greatly increased.” The U.S. and Soviet Union were largely divided on issues related to Israel-Palestine, Arab nationalism and self-determination, U.S. support for its “colonial” allies in Western Europe, and the “widespread belief that the United States desires to keep the Arab world disunited and is committed to work with ‘reactionary’ [i.e., authoritarian] elements to that end.”[30]

These beliefs, the report went on to note, were essentially true. The United States “supports the continued existence of Israel” and “our economic and cultural interests in the area have led not unnaturally to close U.S. relations with elements in the Arab world whose primary interest lies in the maintenance of relations with the West and the status quo in their countries,” identifying the rulers of Lebanon, Saudi Arabia, Iraq and Jordan as obvious examples. The report even acknowledged that the “police-state methods” employed by communist governments “seem no worse than similar methods employed by Near East regimes, including some of those supported by the United States.”[31]

Acknowledging that the region had “extremes of wealth and poverty,” the Arab people largely blamed “external factors” such as “colonialism,” and “a desire on the part of the West to keep the Arab world relatively undeveloped so that it may ultimately become a source of raw materials.” The NSC also acknowledged that because of the U.S. alliance with the Western European colonial powers through NATO, “it is impossible for us to avoid some identification” with colonialism. However, the NSC noted, “we cannot exclude the possibility of having to use force in an attempt to maintain our position in the area,” though such force may only preserve Western interests “with great difficulty.”[32]

Instead of “attempting merely to preserve the status quo,” the NSC document suggested, the United States should “seek to guide the revolutionary and nationalistic pressures throughout the area into orderly channels which will not be antagonistic to the West and which will contribute to solving the internal social, political and economic problems of the area.” However, this still required the United States to “provide military aid to friendly countries to enhance their internal security and governmental stability,” or in other words, to preserve the status quo. However, when a “pro-Western orientation is unattainable,” the document recommended to “accept neutralist policies of states in the area” and that the U.S. should “provide assistance… to such states.”[33]

In terms of the ‘threat’ posed by Pan-Arab nationalism, the NSC report recommended that the U.S. publicly proclaim “support for the ideal of Arab unity,” but to quietly “encourage a strengthening of the ties among Saudi Arabia, Jordan and Iraq” in order to “counterbalance Egypt’s preponderant position of leadership in the Arab world” to support the political and economic power of “more moderate” states such as Saudi Arabia, Lebanon, Sudan and Iraq. The United States still had to “be prepared” to use force, however, in order “to reconcile vital Free World interests in the area’s petroleum resources with the rising tide of nationalism in the area.”[34]

The National Security Council Planning Board produced a report in July of 1958 which noted a difference of views within planning circles, one of which was that the U.S. “must face up to the fact that Arab nationalism is the dominant force in the Arab world, and that it has assumed a radical form symbolized by Nasser.” Further, because “we back regimes which seem out of step with it, or otherwise seek to retard its impact, we are going to appear to oppose it.” Thus, the NSC put forward one suggestion that, “we must adapt to Arab nationalism and seek to utilize it, if we are to retain more than a steadily declining influence in the Arab world.”[35]

Another view of the matter, the NSC paper articulated, was that, “because of the many disparities between our interests and the demands of radical Arab nationalism, the United States cannot afford to accommodate it,” as Nasser’s brand of Pan-Arab nationalism “may be virtually insatiable; it mat not stop its march until it has taken over large parts of Africa,” and thus, accommodation “may only bring a still more rapid loss of Western influence.” Ultimately, the NSC document noted, “if we choose to combat radical Arab nationalism and to hold Persian Gulf oil by force if necessary, a logical corollary would be to support Israel as the only strong pro-West power left in the Near East.”[36] In other words, the United States would support Israel as a buffer against the spread of Arab nationalism.

Two days after the NSC document was issued, Secretary of State John Foster Dulles stated – during a meeting of the National Security Council – that, “Arab nationalism was like an overflowing stream – you cannot stand in front of it and oppose it frontally, but you must try to keep it in bounds. We must try to prevent lasting damage to our interests in the Near East until events deflate the great Nasser hero myth,” and that “we must try to deflate that myth.” President Eisenhower chimed in during the meeting, suggesting, “we could support self-determination by the Arabs as far as the internal governments of the various countries were concerned. Since we are about to get thrown out of the area, we might as well believe in Arab nationalism.”[37]

The following month, in August of 1958, a Special National Intelligence Estimate (NIE) noted that many pro-West dictatorships in the region were experiencing major crises, such as Lebanon and Jordan (both of which the U.S. sent troops to that year), or having been overthrown (such as Iraq), or forced to make accommodations to Nasser (such as Saudi Arabia and Kuwait), and thus, noted the NIE: “the Western-supported conservative governments of the Middle East have seen their influence and authority slip away.” Arab nationalism, the NIE noted, “is a movement of long standing, with great emotional appeal, aimed at a renaissance of the Arab peoples and the restoration of their sovereignty, unity, power, and prestige.” Thus, while pro-West governments publicly spoke out against Western imperialism, they continued to maintain ties to the imperial powers “because they needed Western support in order to stay in power.”[38]

The radical nationalist governments, on the other hand, “were far more distrustful of the West, more determined to eradicate the remaining Western controls over Arab political and economic life, and far more serious about achieving (rather than simply praising) the goal of Arab unity.” Further, these radical regimes “added a doctrine of social revolution and reform to the older tenets of Arab nationalism, and thus came into conflict with the traditional upper classes and social and economic systems of the Arab world on which the conservatives’ power rested.” Ultimately, the NIE noted, “it is necessary to think of Nasser and the mass of Arab nationalists as inseparable” and that “no rival is likely to challenge him unless he suffers a series of defeats.”[39]

An NSC planning board paper from late August suggested that the United States should “seek to contain radical pan-Arab nationalism from spilling out beyond the Near East and undermining other pro-Western regimes.”[40]

Indeed, few things are more frightening to imperial powers than the possibility of a good example. If a comparably small and poor country like Egypt could successfully defy the United States, France, Britain, Israel and the Soviet Union – to not become a proxy of any major power – and to chart its own path in international affairs and attempt a ‘social revolution’ at home, the rest of the world – the majority of the world being poor and living in Africa, Asia and Latin America – are paying attention. If Egypt could do it, so could they. What’s more, if the Arab countries could unite, then the African countries could unite, defying the fallacious borders carved up by European empires and creating powerful regional forces of their own.

In short, it amounts to a type of domino theory which was articulated by the Pentagon and other imperial planning bodies in the United States to justify their massive wars in Indochina and beyond, except instead of fearing the spread of Communism – with countries caving one by one (like dominos) to the appeal of the Soviet Union – the reality of the threat was much greater: a successful attempt of independent nationalism would encourage more to follow.

This is no less true today than it was when Nasser was in power. Perhaps the most important quote regarding the spread of Arab Nationalism in the 1950s – from the perspective of American imperial strategists – was when the NSC declared in 1958 that the United States should “seek to guide the revolutionary and nationalistic pressures throughout the area into orderly channels which will not be antagonistic to the West and which will contribute to solving the internal social, political and economic problems of the area.” Indeed, one could imagine such a statement appearing almost verbatim in the internal documents of the Obama administration related to Egypt’s ongoing revolution.

Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada. He is Project Manager of The People’s Book Project, head of the Geopolitics Division of the Hampton Institute, Research Director for Occupy.com’s Global Power Project and hosts a weekly podcast show at BoilingFrogsPost.

Notes

[1] Peter L. Hahn, “Containment and Egyptian Nationalism: The Unsuccessful Effort to Establish the Middle East Command, 1950-53,” Diplomatic History (Vol. 11, No. 1, January 1987), pages 25-26.

[2] Maurice Jr. Labelle, “‘The Only Thorn’: Early Saudi-American Relations and the Question of Palestine, 1945-1949,” Diplomatic History (Vol. 35, No. 2, April 2011), pages 259-260.

[3] Letter from President Roosevelt to James M. Landis, American Director of Economic Operations in the Middle East, Concerning the Vital Interest of the United States in the Middle East, Foreign Relations of the United States, The Near East, South Asia, and Africa, 6 March 1944.

[4] Report by the Coordinating Committee of the Department of State, “Draft Memorandum to President Truman,” Foreign Relations of the United States, Diplomatic Papers, The Near East and Africa, Vol. 8, 1945, page 45.

[5] Lloyd C. Gardner, Three Kings: The Rise of an American Empire in the Middle East After World War II (The New Press, 2009), page 96; Noam Chomsky, “Is the World Too Big to Fail?” Salon, 21 April 2011: http://www.salon.com/2011/04/21/global_empire_united_states_iraq_noam_chomsky/

[6] Toru Onozawa, “Formation of American Regional Policy for the Middle East, 1950-1952: The Middle East Command Concept and Its Legacy,” Diplomatic History (Vol. 29, No. 1, January 2005), pages 120-121.

[7] Peter L. Hahn, op. cit., page 24.

[8] Ibid, pages 28-29.

[9] Toru Onozawa, op. cit., pages 125-127.

[10] Peter L. Hahn, op. cit., pages 34-35.

[11] Ibid, pages 36-39.

[12] H.W. Brands, “The Cairo-Tehran Connection in Anglo-American Rivalry in the Middle East, 1951-1953,” The International History Review (Vol. 11, No. 3, August 1989), pages 446-447.

[13] Ibid, pages 451-452.

[14] Barry Rubin, “America and the Egyptian Revolution, 1950-1957,” Political Science Quarterly (Vol. 97, No. 1, Spring 1982), pages 76-80.

[15] Amy L. S. Staples, “Seeing Diplomacy Through Bankers’ Eyes: The World Bank, the Anglo-Iranian Oil Crisis, and the Aswan High Dam,” Diplomatic History (Vol. 26, No. 3, Summer 2002), pages 410-414.

[16] Geoffrey Warner, “The United States and the Suez Crisis,” International Affairs (Vol. 67, No. 2, April 1991), pages 304-308.

[17] Ibid, pages 308-309.

[18] Document 40, “Special National Intelligence Estimate,” Foreign Relations of the United States, 1955-1957, Vol. 16, Suez Crisis, 31 July 1956.

[19] Ibid.

[20] Document 62, “Paper by the Secretary of State’s Special Assistant (Russell),” Foreign Relations of the United States, 1955-1957, Vol. 16, Suez Crisis, 4 August 1956.

[21] Ibid.

[22] Document 175, “Special National Intelligence Estimate,” Foreign Relations of the United States, 1955-1957, Vol. 16, Suez Crisis, 5 September 1956.

[23] Document 455, “Memorandum of Discussion at the 302d Meeting of the National Security Council, Washington, November 1, 1956, 9 a.m.,” Foreign Relations of the United States, 1955-1957, Vol. 16, Suez Crisis, 1 November 1956.

[24] Peter L. Hahn, “Securing the Middle East: The Eisenhower Doctrine of 1957,” Presidential Studies Quarterly, (Vol. 36, No. 1, March 2006), pages 39-40.

[25] Ibid, page 41.

[26] Document 161, “Paper Prepared in the Bureau of Near Eastern, South Asian, and African Affairs and the Policy Planning Staff,” Foreign Relations of the United States, 1955-1957, Vol. 12, Near East Region; Iran; Iraq, 5 December 1956.

[27] Document 178, “Operations Coordinating Board Report,” Foreign Relations of the United States, 1955-1957, Vol. 12, Near East Region; Iran; Iraq, 22 December 1956.

[28] Ibid.

[29] Document 5, “National Security Council Report,” Foreign Relations of the United States, 1958-1960, Vol. 12, Near East Region; Iraq; Iran; Arabian Peninsula, 24 January 1958.

[30 - 34] Ibid.

[35] Document 35, “Paper Prepared by the National Security Council Planning Board,” Foreign Relations of the United States, 1958-1960, Vol. 12, Near East Region; Iraq; Iran; Arabian Peninsula, 29 July 1958.

[36] Ibid.

[37] Document 36, “Memorandum of Discussion at the 374th Meeting of the National Security Council,” Foreign Relations of the United States, 1958-1960, Vol. 12, Near East Region; Iraq; Iran; Arabian Peninsula, 31 July 1958.

[38] Document 40, “Special National Intelligence Estimate,” Foreign Relations of the United States, 1958-1960, Vol. 12, Near East Region; Iraq; Iran; Arabian Peninsula, 12 August 1958.

[39] Ibid.

[40] Document 42, “Paper Prepared by the National Security Council Planning Board,” Foreign Relations of the United States, 1958-1960, Vol. 12, Near East Region; Iraq; Iran; Arabian Peninsula, 19 August 1958.

Egypt Under Empire, Part 1: Working Class Resistance and European Imperial Ambitions

Egypt Under Empire, Part 1: Working Class Resistance and European Imperial Ambitions

By: Andrew Gavin Marshall

Originally posted at The Hampton Institute

egypt

Egypt is one of the most important countries in the world, geopolitically speaking. With a history spanning some 7,000 years, it is one of the oldest civilizations in the world, sitting at the point at which Africa meets the Middle East, across the Mediterranean from Europe. Once home to its own empire, it became a prized possession in the imperial designs of other civilizations, including the Persians, Greeks, Romans, and Byzantine to the Islamic and Ottoman Empires, and subsequently the French, British and Americans. For any and every empire that has sought to exert control over the Middle East, Asia or Africa, control over Egypt has been a pre-requisite. Its strategic location has only become more important with each subsequent empire.

For the British to control India – their prized imperial possession – dominance over Egypt was a necessity. With the construction of the Suez Canal, Europe became increasingly dependent upon Egypt as a transport route for trade, energy and warfare, making Europe’s domination of the world increasingly dependent upon their domination of Egypt, particularly for the French and British. For the modern American Empire, which designates all of planet Earth as being under its hegemony, Egypt remains one of the most important countries over which to exert influence: with its strategic location to some of the world’s most prized energy resources, to the maintenance of the Canal route for the benefit of transport and trade – not least of all for America’s European allies – and due to Egypt’s ability to exert influence across Africa, the Middle East, the Arab/Muslim world as a whole, and indeed, across the so-called ‘Third World’ as a whole.

In the past two and half years, Egypt has been experiencing an unprecedented revolutionary struggle. Egypt’s Revolution represents a popular uprising against a domestic dictatorship, the denial of liberties and freedoms, the repression of workers and dissidents, against a global socio-political and economic system (which we commonly refer to as ‘neoliberalism’), and against the American Empire and its many institutional manifestations. Any revolution within Egypt is inevitably a revolution against the American Empire. An uprising – not only against a long-time dictator and his authoritarian imitators who followed – but against the most powerful empire the world has ever known is a powerful symbol to the rest of the world, most of which has known the terror of living under domestic tyranny, and the reality of living under America’s global hegemony.

A good example can go a long way.

This series examines some of Egypt’s recent history as it relates to Empire, and as it has built up to Egypt’s unfinished Revolution.

Egypt and the State-Capitalist Imperial Order

The development of the Egyptian working class, labour activism and nationalism was intimately tied to the expansion of Western imperial expansion and domination over Egypt and much of the rest of the world. In the early 19th century, Egypt was increasingly an autonomous state under the Ottoman Empire, ruled by Muhammad Ali who initiated a process of state-sponsored industrialization. In 1819, his regime constructed European-style factories for military production, agricultural processing and textiles. By the early 1830s, there were 30 cotton mills on operation, employing roughly 30,000 labourers, who were largely recruited from among the landless peasants.[1]

Egypt’s attempt to industrialize followed the examples set by Britain and other European powers – as well as the United States – by imposing protective measures, tariffs on foreign goods and other subsidies for domestic industry in order to allow the country to compete against the heavily protected industries of the European and American economies. Egypt was not the only major country to pursue such a strategy, as India and Paraguay also attempted major state-led industrialization programs. In 1800, Egypt’s GNP was around that of France, higher than both Eastern Europe and Japan, and Paraguay also had comparable economic weight. They were attempting to industrialize, wrote Jean Batou, “in order to avoid dependency and underdevelopment.”[2]

Resistance to these industrialization projects was strong on the part of Britain and other industrial Western powers, which wanted these countries to be in subservient positions to their own. The Europeans – and especially Britain – pressured these countries to “open up” their economies to “free trade” competition with the heavily-protected industrial goods of the West. The result, of course, was that they could not compete on an even basis, and European industrial goods gained the major advantage, forcing these countries to focus on raw goods for export to the rich nations.

In Egypt, a great deal of resistance was also expressed by the new working class, and in the 1830s, the state-led industrialization programs began to decline. Following the death of Muhammad Ali in 1849, few of his industrial programs remained, “and Egypt was well on its way to full integration into a European-dominated world market as supplier of a single raw material, cotton.” If Egypt had succeeded in its industrialization programs, some have suggested, “it might have shared with Japan [or the United States] the distinction of achieving autonomous capitalist development and preserving its independence.”[3]

In the latter half of the 19th century, Egypt made an attempt at increasing its industrial potential, though this time relying primarily upon foreign capital from European powers. The most important example of this was with the foreign financing that led to the construction of the Suez Canal in 1869, which “resulted in the development of the export sector of the economy and its necessary infrastructure,” and in turn, the development of a permanent working class.[4]

Great Britain was the first major power to undergo an industrial revolution, with other European empires and the United States soon to follow. Countries that underwent industrialization did so with heavy state involvement in the form of subsidies and protective tariffs and trade measures, allowing domestic industries and goods to gain a competitive advantage over those of other nations around the world. The global trading system – as an outgrowth of the development of the modern state-capitalist system – became a central facet in the construction and expansion of empire.

The imperial powers – predominantly in the North Atlantic region, the United States and Western Europe, with the later addition of Japan – had to maintain their own influence over the world by ensuring that the rest of the world did not follow their examples of industrialization, and thus, be able to compete with them for regional and global influence. Thus, industrialization – or ‘development’ – in the ‘core’ countries necessarily required de -industrialization – or underdevelopment - in the rest of the world, the global imperial ‘periphery.’

The period between 1770 and 1870 marked “the first phase of the underdevelopment process” for many countries and regions in the world. In 1770, “the present Third World probably had a real income and an industrial product per capita comparable to those of the rest of the world.” Multiple countries attempted state-led and protected industrialization processes in the early nineteenth century – notably Egypt and Paraguay, though lesser efforts at state-led industrialization were made in what are modern-day Turkey, Iraq, Iran, Tunisia and Brazil, with more isolated and less state-involved efforts in Mexico and Colombia. By 1870, however, the gap had widened significantly between the industrial powers (Western Europe, North America and Japan), which exported manufactured goods, and the rest of the world, which largely focused on exporting commodities needed for industry.[5]

The “specialization” of economies in the Global South – the ‘Third World’ – made them dependent upon the export of raw materials to the rich, powerful countries, and thus, kept them in a subservient position within the global order. This has been referred to as the “Great Divergence” between the powerful countries and the rest of the world, where the powerful countries industrialized themselves and de-industrialized others.[6] In short, the powerful countries became – and remained – powerful by virtue of their ability to undermine and disempower the rest of the world, pushing them away from independence and autonomy into a position of dependence on the ‘core’ economies.

In 1870, roughly 70% of Egypt’s exports were cotton, and by 1910-14, this had risen to 93%. In 1882, the British occupied Egypt, at which point the country was essentially ruled over by Lord Cromer, “a devout believer” in the ‘free market’ (for every country except Britain). Cromer’s rule of Egypt (1883-1907) coincided with many of the “formative” years for the Egyptian working class, as labour became increasingly exploited in sectors dominated by European capital.[7] Out of a total population of 11 million, Egypt had approximately 350,000 male workers in the 1907 census, with 100,000 in transport and 150,000 in commerce. Thus, by the early 20th century, “Egypt had a modern working class concentrated in its two largest cities and ready to make itself heard.”[8]

Anarchism and a Radical Working Class in Egypt

Added to the increased domestic formation of a working class, a large presence of foreign workers was brought into Egypt to provide the necessary skills for building the country’s infrastructure. Waves of immigrant workers came from Europe, notably Italy and Greece. In the latter half of the nineteenth century, many of these migrant workers brought with them to Egypt the emerging ideologies and philosophies of resistance and revolution which were spreading among the European working classes, notably socialism and anarchism. Italian workers began forming anarchist groups within Egypt, and others soon followed. Egypt’s anarchists quickly established close connections with anarchists in Greece and Turkey, and were developing connections with groups in Tunis, Palestine and Lebanon.[9]

From the 1880s onward, anarchist groups within Egypt – still primarily European in membership – were forming educational groups and starting publications around the country. As the domestic Egyptian labour movement grew, so too did the influence of anarchists, notably anarcho-syndicalists. While still largely Italian in makeup, the anarchist community in Egypt became increasingly multi-ethnic, with the increased presence of Greeks, Jews, Germans, and several Eastern European nationalities. Arab Egyptians became increasingly involved in the late 19th and early 20th centuries, specifically within the working class, and notably among the cigarette workers, printers and service employees.[10]

The first major strike in Egypt took place in 1899 among the Cairo cigarette rollers. More strike activity took place in the following years, incorporating both foreign and domestic workers within the country. The primary issues for workers were the long hours, low wages, minimal benefits and oppressive management. Since almost all of Egypt’s large employers were foreign, and the country was under foreign (British) occupation since 1882 (to 1922), “the struggle of Egyptian workers for economic gains converged with the nationalist movement seeking to end British rule.”[11] Thus, resistance to domestic tyranny within Egypt inevitably required resistance to imperial hegemony over Egypt by outside powers.

Anarchists in Egypt created the Free Popular University (UPL) in Alexandria in 1901, “with the aim of providing free evening education to the popular classes… and drew widespread support from across the full range of Alexandrian society.” Classes were given on subjects from the humanities to the sciences, to discussing workers’ associations and women in society, with discussions given in a number of different languages, including Italian, French, and Arabic. As anarcho-syndicalists began building ties with the indigenous Egyptian workers, international (or ‘mixed’) unions were formed between domestic and foreign migrant workers in Egypt, which helped contribute to the 1899 cigarette rollers strike, among other actions.[12]

During World War I, Britain decided that Egypt was now a ‘protectorate,’ and over the course of the war (1914-18), the British “oversaw a policy of clamping down on all political activities, interning nationalists, surveilling or deporting foreign anarchists and closing down newspapers.”[13] In 1919, there was a popular uprising against the British – called the 1919 Revolution – in which nationalists called for the British to leave Egypt and for independence. Workers participated in the form of strikes, demonstrations and clashes with police. Anarcho-syndicalists also played a part in supporting the protests and strikes of the 1919 Revolution.[14]

Ultimately, the British agreed to grant Egypt ‘formal’ independence by 1922, but in the decade and a half that followed World War I, the major political issues revolved around the negotiation of a treaty with Britain and the establishment of a parliamentary regime. The Wafd party, founded in 1918, would quickly become the “embodiment of the Egyptian national movement,” holding a great deal of popular support, winning all of the elections until 1952, but it was largely used as a party through which to co-opt the more radical labour and anti-imperialist elements within Egyptian society. The Wafd encouraged union organization, but only under its umbrella, not independently. When a treaty with Britain was reached in 1936, the Wafd began to lose some of its influence as new political organizations formed, such as the precursor to the Muslim Brotherhood. Labour struggled for more rights, seeking to pass legislation that would, among other things, allow for independent unions. World War II, however, came with the imposition of martial law, but also with increased industrial development within Egypt, and thus, a growing working class.[15]

Between the end of the war and 1952, Egypt “saw the appearance of an active left inside and outside the workers’ movement, a new political scene characterized by new mass organizations and issues, and renewed nationalist struggle including guerrilla action against British forces.” In 1952, Gamal Abdul Nasser and the ‘Free Officers’ orchestrated a bloodless coup, abolished the monarchy and the parliament and installed a nationalist military government under the leadership of Nasser. The coup quickly resulted in the repression of the militant labour movement, bringing workers under the control of the government.[16]

The development and evolution of Egypt’s working class has been intimately tied to the development and evolution of Egypt’s relations with the Western imperial powers and their imposition of a global state-capitalist order. The struggle of workers continued over the following decades, providing a major impetus behind the conditions that led to the start of Egypt’s unfinished Revolution in 2011, where the conditions of workers remain tied to the imperial imposition of a state-capitalist order.

In the next part of this series, I examine the relationship between Arab Nationalism – as propagated by Nasser – and the American Empire’s efforts to exert its influence over the Middle East and much of the rest of the world.

Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada. He is Project Manager of The People’s Book Project, head of the Geopolitics Division of the Hampton Institute, the research director of Occupy.com’s Global Power Project, and has a weekly podcast with BoilingFrogsPost.

Notes

[1] Zachary Lockman, “Noted on Egyptian Workers’ History,” International Labor and Working Class History (No. 18, Fall 1980), pages 1-2;

Joel Benin, “Formation of the Egyptian Working Class,” MERIP Reports (No. 94, February 1981), page 14.

[2] Jean Batou, “Nineteenth-Century Attempted Escapes from the Periphery: The Cases of Egypt and Paraguay,” Review – Fernand Braudel Center (Vol. 16, No. 3, Summer 1993), pages 279-280, 291-292, 294-295.

[3] Zachary Lockman, “Notes on Egyptian Workers’ History,” International Labor and Working Class History (No. 18, Fall 1980), page 2.

[4] Joel Benin, “Formation of the Egyptian Working Class,” MERIP Reports (No. 94, February 1981), page 15.

[5] Jean Batou, op cit., pages 282-283.

[6] Jeffrey G. Williamson, “Globalization and the Great Divergence: terms of trade booms, volatility and the poor periphery, 1782-1913,” European Review of Economic History (Vol. 12, 2008), pages 357, 379.

[7] Joel Benin, op. cit., page 15.

[8] Zachary Lockman, op. cit., page 2.

[9] Anthony Gorman, “Diverse in Race, Religion and Nationality… But United in Aspirations of Civil Progress: The Anarchist Movement in Egypt 1860-1940,” in Steve Hirsch and Lucien van der Walt (eds), Anarchism and Syndicalism in the Colonial and Postcolonial World, 1870-1940: The Praxis of National Liberation, Internationalism and Social Revolution (Boston, Brill, 2010), pages 3-6.

[10] Ibid, pages 8-10.

[11] Zachary Lockman, op cit., page 3.

[12] Anthony Gorman, op. cit., pages 18-23.

[13] Ibid, page 26.

[14] Zachary Lockman, op. cit., page 4; Anthony Gorman, op. cit., page 26.

[15] Zachary Lockman, op. cit., pages 4-6.

[16] Ibid, pages 6-7.

Engineering Empire: An Introduction to the Intellectuals and Institutions of American Imperialism

Engineering Empire: An Introduction to the Intellectuals and Institutions of American Imperialism

By: Andrew Gavin Marshall

Originally posted at The Hampton Institute

The following is my first original piece for The Hampton Institute, “a working class think tank,” at which I chair the Geopolitics Division. This essay is meant as an introduction to modern American geopolitics, and a reference piece for future research and published material through The Hampton Institute’s Geopolitics Division.

warroom

Educating yourself about empire can be a challenging endeavor, especially since so much of the educational system is dedicated to avoiding the topic or justifying the actions of imperialism in the modern era. If one studies political science or economics, the subject might be discussed in a historical context, but rarely as a modern reality; media and government voices rarely speak on the subject, and even more rarely speak of it with direct and honest language. Instead, we exist in a society where institutions and individuals of power speak in coded language, using deceptive rhetoric with abstract meaning. We hear about ‘democracy’ and ‘freedom’ and ‘security,’ but so rarely about imperialism, domination, and exploitation.

The objective of this report is to provide an introduction to the institutional and social structure of American imperialism. The material is detailed, but should not be considered complete or even comprehensive; its purpose is to function as a resource or reference for those seeking to educate themselves about the modern imperial system. It’s not an analysis of state policies or the effects of those policies, but rather, it is an examination of the institutions and individuals who advocate and implement imperial policies. What is revealed is a highly integrated and interconnected network of institutions and individuals – the foreign policy establishment – consisting of academics (so-called “experts” and “policy-oriented intellectuals”) and prominent think tanks.

Think tanks bring together prominent academics, former top government officials, corporate executives, bankers, media representatives, foundation officials and other elites in an effort to establish consensus on issues of policy and strategy, to produce reports and recommendations for policy-makers, functioning as recruitment centers for those who are selected to key government positions where they have the ability to implement policies. Thus, think tanks function as the intellectual engines of empire: they establish consensus among elites, provide policy prescriptions, strategic recommendations, and the personnel required to implement imperial policies through government agencies.

Among the most prominent American and international think tanks are the Council on Foreign Relations (CFR), the Bilderberg meetings, the Trilateral Commission, the Center for Strategic and International Studies (CSIS), the Brookings Institution, the Carnegie Endowment for International Peace, and the Atlantic Council. These institutions tend to rely upon funding from major foundations (such as Rockefeller, Ford, Carnegie, etc.) as well as corporations and financial institutions, and even various government agencies. There is an extensive crossover in leadership and membership between these institutions, and between them and their funders.

Roughly focusing on the period from the early 1970s until today, what emerges from this research is a highly integrated network of foreign policy elites, with individuals like Henry Kissinger, Zbigniew Brzezinski, Brent Scowcroft, and Joseph Nye figuring prominently in sitting at the center of the American imperial establishment over the course of decades, with powerful corporate and financial patrons such as the Rockefeller family existing in the background of American power structures.

Meet the Engineers of Empire

Within the U.S. government, the National Security Council (NSC) functions as the main planning group, devising strategy and policies for the operation of American power in the world. The NSC coordinates multiple other government agencies, bringing together the secretaries of the State and Defense Departments, the CIA, NSA, Joint Chiefs of Staff, and various other government bodies, with meetings directed by the National Security Adviser, who is generally one of the president’s most trusted and influential advisers. In several administrations, the National Security Adviser became the most influential voice and policy-maker to do with foreign policy, such as during the Nixon administration (with Henry Kissinger) and the Carter administration (with Zbigniew Brzezinski).

While both of these individuals were top government officials in the 1970s, their influence has not declined in the decades since they held such positions. In fact, it could be argued that both of their influence (along with several other foreign policy elites) has increased with their time outside of government. In fact, in a January 2013 interview with The Hill, Brzezinski stated: “To be perfectly frank – and you may not believe me – I really wasn’t at all conscious of the fact that the defeat of the Carter administration [in 1980] somehow or another affected significantly my own standing… I just kept doing my thing minus the Office of the National Security Adviser in the White House.” [1]

David Rothkopf has written the official history of the National Security Council (NSC) in his book, Running the World: The Inside Story of the National Security Council and the Architects of American Power, published in 2005. Rothkopf writes from an insiders perspective, being a member of the Council on Foreign Relations, a visiting scholar at the Carnegie Endowment, he was Under Secretary of Commerce for International Trade Policy and Development in the Clinton administration, and is currently president and CEO of Garten Rothkopf, an international advisory firm, CEO of Foreign Policy magazine, previously CEO of Intellibridge Corporation, and was also a managing director at Kissinger Associates, an international advisory firm founded and run by Henry Kissinger. In his book on the NSC, Rothkopf noted that, “[e]very single national security advisor since Kissinger is, in fact, within two degrees of Kissinger,” referring to the fact that they have all “worked with him as aides, on his staff, or directly with him in some capacity,” or worked for someone in those categories (hence, within “two degrees”).[2]

For example, General Brent Scowcroft, who was National Security Advisor (NSA) under Presidents Ford and George H.W. Bush, was Kissinger’s Deputy National Security Advisor in the Nixon administration; Zbigniew Brzezinski, Carter’s NSA, served on the faculty of Harvard with Kissinger, also served with Kissinger on the President’s Foreign Intelligence Advisory Board during the Reagan administration, both of them are also members (and were at times, board members) of the Council on Foreign Relations, as well as members of the Trilateral Commission, and they are both currently trustees of the Center for Strategic and International Studies (CSIS). Other NSA’s with connections to Kissinger include: Richard Allen, NSA under Reagan, who worked for Kissinger in the Nixon administration; William P. Clark, NSA under Reagan, who worked for Kissinger’s former aide, Alexander Haig at the State Department; Robert McFarlane, also NSA under Reagan, worked with Kissinger in the Nixon administration; John Poindexter, also NSA for Reagan, was McFarlane’s deputy; Frank Carlucci, also NSA in the Reagan administration, worked for Kissinger in the Nixon administration; Colin Powell, NSA for Reagan (and Secretary of State for George W. Bush), worked for Carlucci as his deputy; Anthony Lake, Clinton’s NSA, worked directly for Kissinger; Samuel Berger, also NSA for Clinton, was Lake’s deputy; Condoleezza Rice, NSA for George W. Bush, worked on Scowcroft’s NSC staff; and Stephen Hadley also worked for Kissinger directly.[3]

The foreign policy establishment consists of the top officials of the key government agencies concerned with managing foreign policy (State Department, Pentagon, CIA, NSC), drawing upon officials from within the think tank community, where they become well acquainted with corporate and financial elites, and thus, become familiar with the interests of this group of people. Upon leaving high office, these officials often return to leadership positions within the think tank community, join corporate boards, and/or establish their own international advisory firms where they charge hefty fees to provide corporations and banks with strategic advice and use of their international political contacts (which they acquired through their time in office). Further, these individuals also regularly appear in the media to provide commentary on international affairs as ‘independent experts’ and are routinely recruited to serve as ‘outside’ advisors to presidents and other high-level officials.

No less significant in assessing influence within the foreign policy establishment is the relative proximity – and relationships – individuals have with deeply entrenched power structures, notably financial and corporate dynasties. Arguably, both Kissinger and Brzezinski are two of the most influential individuals within the foreign policy elite networks. Certainly of no detriment to their careers was the fact that both cultivated close working and personal relationships with what can be said to be America’s most powerful dynasty, the Rockefeller family.

Dynastic Influence on Foreign Policy

At first glance, this may appear to be a rather obscure addition to this report, but dynastic power in modern state-capitalist societies is largely overlooked, misunderstood, or denied altogether, much like the concept of ‘empire’ itself. The lack of discourse on this subject – or the relegation of it to fringe ‘conspiratorial’ views – is not reason enough to ignore it. Far from assigning a conspiratorial or ‘omnipotent’ view of power to dynastic elements, it is important to place them within a social and institutional analysis, to understand the complexities and functions of dynastic influence within modern society.

Dynastic power relies upon a complex network of relationships and interactions between institutions, individuals, and ideologies. Through most of human history – in most places in the world – power was wielded by relatively few people, and often concentrated among dynastic family structures, whether ancient Egypt, imperial Rome, ancient China, the Ottoman Empire or the European monarchs spreading their empires across the globe. With the rise of state-capitalist society, dynastic power shifted from the overtly political to the financial and economic spheres. Today’s main dynasties are born of corporate or banking power, maintained through family lines and extended through family ties to individuals, institutions, and policy-makers. The Rockefellers are arguably the most influential dynasty in the United States, but comparable to the Rothschilds in France and the UK, the Wallenbergs in Sweden, the Agnellis in Italy, or the Desmarais family in Canada. These families are themselves connected through institutions such as the Bilderberg Group and the Trilateral Commission, among others. The power of a corporate-financial dynasty is not a given: it must be maintained, nurtured, and strengthened, otherwise it will be overcome or made obsolete.

The Rockefeller family has existed at the center of American power for over a century. Originating with the late 19th century ‘Robber Baron’ industrialists, the Rockefellers established an oil empire, and subsequently a banking empire. John D. Rockefeller, who had a personal fortune surpassing $1 billion in the first decade of the 20th century, also founded the University of Chicago, and through the creation and activities of the Rockefeller Foundation (founded in 1913), helped engineer higher education and the social sciences. The Rockefeller family – largely acting through various family foundations – were also pivotal in the founding and funding of several prominent think tanks, notably the Council on Foreign Relations, the Asia Society, Trilateral Commission, the Group of Thirty, and the Bilderberg Group, among many others.

The patriarch of the Rockefeller family today is David Rockefeller, now in his late 90s. To understand the influence wielded by unelected bankers and billionaires like Rockefeller, it would be useful to simply examine the positions he has held throughout his life. From 1969 until 1980, he was the chairman and CEO of Chase Manhattan Bank and from 1981 to 1999 he was the chairman of the International Advisory Committee of Chase Manhattan, at which time it merged with another big bank to become JPMorgan Chase, of Rockefeller served as a member of the International Advisory Council from 2000 to 2005. David Rockefeller was a founding member of the Bilderberg Group in 1954, at which he remains on the Steering Committee; he is the former chairman of Rockefeller Group, Inc. (from 1981-1995), Rockefeller Center Properties (1996-2001), and the Rockefeller Brothers Fund, at which he remains as an advisory trustee. He is chairman emeritus and life trustee of the Museum of Modern Art, and the founder of the David Rockefeller Fund and the International Executive Service Corps.

David Rockefeller was also the chairman of the Council on Foreign Relations from 1970 to 1985, of which he remains to this day as honorary chairman; is chairman emeritus of the board of trustees of the University of Chicago; honorary chairman, life trustee and chairman emeritus of the Rockefeller University Council, and is the former president of the Harvard Board of Overseers. He was co-founder of the Global Philanthropists Circle, is honorary chairman of the Committee Encouraging Corporate Philanthropy (CECP), and is an honorary director of the Peterson Institute for International Economics. David Rockefeller was also the co-founder (with Zbigniew Brzezinski) of the Trilateral Commission in 1973, where he served as North American Chairman until 1991, and has since remained as honorary chairman. He is also the founder and honorary chairman of the Americas Society and the Council of the Americas.

It should not come as a surprise, then, that upon David Rockefeller’s 90th birthday celebration (held at the Council on Foreign Relations) in 2005, then-president of the World Bank, James Wolfensohn delivered a speech in which he stated that, “the person who had perhaps the greatest influence on my life professionally in this country, and I’m very happy to say personally there afterwards, is David Rockefeller, who first met me at the Harvard Business School in 1957 or ’58.” He went on to explain that in the early 20th century United States, “as we looked at the world, a family, the Rockefeller family, decided that the issues were not just national for the United States, were not just related to the rich countries. And where, extraordinarily and amazingly, David’s grandfather set up the Rockefeller Foundation, the purpose of which was to take a global view.” Wolfensohn continued:

So the Rockefeller family, in this last 100 years, has contributed in a way that is quite extraordinary to the development in that period and has given ample focus to the issues of development with which I have been associated. In fact, it’s fair to say that there has been no other single family influence greater than the Rockefeller’s in the whole issue of globalization and in the whole issue of addressing the questions which, in some ways, are still before us today. And for that David, we’re deeply grateful to you and for your own contribution in carrying these forward in the way that you did. [4]

Wolfensohn of course would be in a position to know something about the influence of the Rockefeller family. Serving as president of the World Bank from 1995 to 2005, he has since founded his own private firm, Wolfensohn & Company, LLC., was been a longtime member of the Steering Committee of the Bilderberg Group, an honorary trustee of the Brookings Institution, a trustee of the Rockefeller Foundation, and is a member of the Council on Foreign Relations. Wolfensohn’s father, Hyman, was employed by James Armand de Rothschild of the Rothschild banking dynasty (after whom James was named), and taught the young Wolfensohn how to “cultivate mentors, friends and contacts of influence.”[5] In his autobiography of 2002, Memoirs, David Rockefeller himself wrote:

For more than a century ideological extremists at either end of the political spectrum have seized upon well-publicized incidents such as my encounter with Castro to attack the Rockefeller family for the inordinate influence they claim we wield over American political and economic institutions. Some even believe we are part of a secret cabal working against the best interests of the United States, characterizing my family and me as ‘internationalists’ and of conspiring with others around the world to build a more integrated global political and economic structure–one world, if you will. If that’s the charge, I stand guilty, and I am proud of it. [6]

In the United States, the Rockefeller family has maintained a network of influence through financial, corporate, educational, cultural, and political spheres. It serves as a logical extension of dynastic influence to cultivate relationships among the foreign policy elite of the U.S., notably the likes of Kissinger and Brzezinski.

Intellectuals, ‘Experts,’ and Imperialists Par Excellence: Kissinger and Brzezinski

Both Kissinger and Brzezinski served as professors at Harvard in the early 1950s, as well as both joining the Council on Foreign Relations around the same time, and both also attended meetings of the Bilderberg Group (two organizations which had Rockefellers in leadership positions). Kissinger was a director at the Rockefeller Brothers Fund from 1956 until 1958, and thereafter became an advisor to Nelson Rockefeller. Kissinger was even briefly brought into the Kennedy administration as an advisor to the State Department, while Brzezinski was an advisor to the Kennedy campaign, and was a member of President Johnson’s Policy Planning Council in the State Department from 1966 to 1968. When Nixon became president in 1969, Kissinger became his National Security Advisor, and eventually also took over the role of Secretary of State.

In 1966, prior to entering the Nixon administration, Henry Kissinger wrote an article for the journal Daedalus in which he proclaimed the modern era as “the age of the expert,” and went on to explain: “The expert has his constituency – those who have a vested interest in commonly held opinions; elaborating and defining its consensus at a high level has, after all, made him an expert.” [7] In other words, the “expert” serves entrenched and established power structures and elites (“those who have a vested interest in commonly held opinions”), and the role of such an expert is to define and elaborate the “consensus” of elite interests. Thus, experts, as Henry Kissinger defines them, serve established elites.

In 1970, Brzezinski wrote a highly influential book, Between Two Ages: America’s Role in the Technetronic Era, which attracted the interest of Chase Manhattan Chairman (and Chairman of the Council on Foreign Relations) David Rockefeller. The two men then worked together to create the Trilateral Commission, of which Kissinger became a member. Kissinger remained as National Security Advisor for President Ford, and when Jimmy Carter became President (after Brzezinski invited him into the Trilateral Commission), Brzezinski became his National Security Advisor, also bringing along dozens of other members of the Trilateral Commission into the administration’s cabinet.

In a study published in the journal Polity in 1982, researchers described what amounted to modern Machiavellis who “whisper in the ears of princes,” notably, prominent academic-turned policy-makers like Walt Rostow, Henry Kissinger, and Zbigniew Brzezinski. The researchers constructed a ‘survey’ in 1980 which was distributed to a sample of officials in the State Department, CIA, Department of Defense and the National Security Council (the four government agencies primarily tasked with managing foreign policy), designed to assess the views of those who implement foreign policy related to how they measure influence held by academics. They compared their results with a similar survey conducted in 1971, and found that in both surveys, academics such as George Kennan, Hans Morgenthau, Henry Kissinger, and Zbigniew Brzezinski were listed as among the members of the academic community who most influenced the thinking of those who took the survey. In the 1971 survey, George Kennan was listed as the most influential, followed by Hans Morgenthau, John K. Galbraith, Henry Kissinger, E.O. Reischauer and Zbigniew Brzezinski; in the 1980 survey, Henry Kissinger was listed as the most influential, followed by Hans Morgenthau, George Kennan, Zbigniew Brzezinski and Stanley Hoffmann. [8]

Of the fifteen most influential scholars in the 1980 survey, eleven received their highest degree from a major East Coast university, eight held a doctorate from Harvard, twelve were associated with major East Coast universities, while seven of them had previously taught at Harvard. More than half of the top fifteen scholars had previously held prominent government positions, eight were members of the Council on Foreign Relations, ten belonged to the American Academy of Arts and Sciences and eight belonged to the American Political Science Association. Influence tended to sway according to which of the four government agencies surveyed was being assessed, though for Kissinger, Morgenthau and Brzezinski, they “were equally influential with each of the agencies surveyed.” The two most influential academic journals cited by survey responses were Foreign Affairs (run by the Council on Foreign Relations), read by more than two-thirds of those who replied to the survey, and Foreign Policy, which was read by more than half of respondents. [9]

In a 1975 report by the Trilateral Commission on The Crisis of Democracy, co-authored by Samuel Huntington, a close associate and friend of Zbigniew Brzezinski, the role of intellectuals came into question, noting that with the plethora of social movements and protests that had emerged from the 1960s onwards, intellectuals were asserting their “disgust with the corruption, materialism, and inefficiency of democracy and with the subservience of democratic government to ‘monopoly capitalism’.” Thus, noted the report: “the advanced industrial societies have spawned a stratum of value-oriented intellectuals who often devote themselves to the derogation of leadership, the challenging of authority, and the unmasking and delegitimation of established institutions, their behavior contrasting with that of the also increasing numbers of technocratic policy-oriented intellectuals.”[10] In other words, intellectuals were increasingly failing to serve as “experts” (as Henry Kissinger defined it), and were increasingly challenging authority and institutionalized power structures instead of serving them, unlike “technocratic and policy-oriented intellectuals.”

The influence of “experts” and “technocratic policy-oriented intellectuals” like Kissinger and Brzezinski was not to dissipate going into the 1980s. Kissinger then joined the Center for Strategic and International Studies (CSIS), taught at Georgetown University, and in 1982, founded his own consulting firm, Kissinger Associates, co-founded and run with General Brent Scowcroft, who was the National Security Advisor for President Ford, after being Kissinger’s deputy in the Nixon administration. Scowcroft is also a member of the Council on Foreign Relations, the Trilateral Commission, CSIS, and The Atlantic Council of the United States, which also includes Kissinger and Brzezinski among its leadership boards. Scowcroft also founded his own international advisory firm, the Scowcroft Group, and also served as National Security Advisor to President George H.W. Bush.

Kissinger Associates, which included not only Henry Kissinger and Brent Scowcroft, but also Lawrence Eagleburger, Kissinger’s former aide in the Nixon administration, and Undersecretary of State for Political Affairs in the Reagan administration, and briefly as Deputy Secretary of State in the George H.W. Bush administration. These three men, who led Kissinger Associates in the 1980s, made a great deal of money advising some of the world’s leading corporations, including ITT, American Express, Coca-Cola, Volvo, Fiat, and Midland Bank, among others. Kissinger Associates charges corporate clients at least $200,000 for “offering geopolitical insight” and “advice,” utilizing “their close relationships with foreign governments and their extensive knowledge of foreign affairs.”[11]

While he was Chairman of Kissinger Associates, advising corporate clients, Henry Kissinger was also appointed to chair the National Bipartisan Commission on Central America by President Reagan from 1983 to 1985, commonly known as the Kissinger Commission, which provided the strategic framework for Reagan’s terror war on Central America. As Kissinger himself noted in 1983, “If we cannot manage Central America… it will be impossible to convince threatened nations in the Persian Gulf and in other places that we know how to manage the global equilibrium.” [12] In other words, if the United States could not control a small region south of its border, how can it be expected to run the world?

Between 1984 and 1990, Henry Kissinger was also appointed to Reagan’s (and subsequently Bush Sr.’s) Foreign Intelligence Advisory Board, an organization that provides “advice” to the President on intelligence issues, which Brzezinski joined between 1987 and 1989. Brzezinski also served as a member of Reagan’s Chemical Warfare Commission, and from 1987 to 1988, worked with Reagan’s U.S. National Security Council-Defense Department Commission on Integrated Long-Term Strategy, alongside Henry Kissinger. The Commission’s report, Discriminate Deterrence, issued in 1988, noted that the United States would have to establish new capabilities to deal with threats, particularly in the ‘Third World,’ noting that while conflicts in the ‘Third World’ “are obviously less threatening than any Soviet-American war would be,” they still “have had and will have an adverse cumulative effect on U.S. access to critical regions,” and if these effects cannot be managed, “it will gradually undermine America’s ability to defend its interest in the most vital regions, such as the Persian Gulf, the Mediterranean and the Western Pacific.”[13]

Over the following decade, the report noted, “the United States will need to be better prepared to deal with conflicts in the Third World” which would “require new kinds of planning.” If the United States could not effectively counter the threats to U.S. interests and allies, notably, “if the warfare is of low intensity and protracted, and if they use guerrilla forces, paramilitary terrorist organizations, or armed subversives,” or, in other words, revolutionary movements, then “we will surely lose the support of many Third World countries that want to believe the United States can protect its friends, not to mention its own interests.” Most ‘Third World’ conflicts are termed “low intensity conflict,” referring to “insurgencies, organized terrorism, [and] paramilitary crime,” and therefore the United States would need to take these conflicts more seriously, noting that within such circumstances, “the enemy” is essentially “omnipresent,” meaning that the enemy is the population itself, “and unlikely ever to surrender.”[14]

From Cold War to New World Order: ‘Containment’ to ‘Enlargement’

At the end of the Cold War, the American imperial community of intellectuals and think tanks engaged in a process that continues to the present day in attempting to outline a geostrategic vision for America’s domination of the world. The Cold War had previously provided the cover for the American extension of hegemony around the world, under the premise of ‘containing’ the Soviet Union and the spread of ‘Communism.’ With the end of the Cold War came the end of the ‘containment’ policy of foreign policy. It was the task of ‘experts’ and ‘policy-oriented intellectuals’ to assess the present circumstances of American power in the world and to construct new strategic concepts for the extension and preservation of that power.

In 1990, George H.W. Bush’s administration released the National Security Strategy of the United States in which the Cold War was officially acknowledged as little more than a rhetorical deception. The document referenced U.S. interventions in the Middle East, which were for decades justified on the basis of ‘containing’ the perceived threat of ‘communism’ and the Soviet Union. The report noted that, “even as East-West tensions diminish, American strategic concerns remain.” Threats to America’s “interests” in the region, such as “the security of Israel and moderate Arab states” – otherwise known as ruthless dictatorships – “as well as the free flow of oil – come from a variety of sources.” Citing previous military interventions in the region, the report stated that they “were in response to threats to U.S. interests that could not be laid at the Kremlin’s door.” In other words, all the rhetoric of protecting the world from communism and the Soviet Union was little more than deception. As the National Security Strategy noted: “The necessity to defend our interests will continue.” [15]

When Bush became president in 1989, he ordered his national security team – headed by Brent Scowcroft – to review national security policy. Bush and Scowcroft had long discussed – even before the Iraqi invasion of Kuwait – the notion that the U.S. will have to make its priority dealing with “Third World bullies” (a euphemism referring to U.S. puppet dictators who stop following orders). At the end of the Cold War, George Bush declared a ‘new world order,’ a term which was suggested to Bush by Brent Scowcroft during a discussion “about future foreign-policy crises.” [16]

Separate from the official National Security Strategy, the internal assessment of national security policy commissioned by Bush was partly leaked to and reported in the media in 1991. As the Los Angeles Times commented, the review dispensed with “sentimental nonsense about democracy.” [17] The New York Times quoted the review: “In cases where the U.S. confronts much weaker enemies, our challenge will be not simply to defeat them, but to defeat them decisively and rapidly… For small countries hostile to us, bleeding our forces in protracted or indecisive conflict or embarrassing us by inflicting damage on some conspicuous element of our forces may be victory enough, and could undercut political support for U.S. efforts against them.” [18] In other words, the capacity to justify and undertake large-scale wars and ground invasions had deteriorated substantially, so it would be necessary to “decisively and rapidly” destroy “much weaker enemies.”

Zbigniew Brzezinski was quite blunt in his assessment of the Cold War – of which he was a major strategic icon – when he wrote in a 1992 article for Foreign Affairs, the journal of the Council on Foreign Relations, that the U.S. strategic discourse of the Cold War as a battle between Communist totalitarianism and Western democracy was little more than rhetoric. In Brzezinski’s own words: “The policy of liberation was a strategic sham, designed to a significant degree for domestic political reasons… the policy was basically rhetorical, at most tactical.” [19] In other words, it was all a lie, carefully constructed to deceive the American population into accepting the actions of a powerful state in its attempts to dominate the world.

In 1992, the New York Times leaked a classified document compiled by top Pentagon officials (including Paul Wolfowitz and Dick Cheney) devising a strategy for America in the post-Cold War world. As the Times summarized, the Defense Policy Guidance document “asserts that America’s political and military mission in the post-cold-war era will be to ensure that no rival superpower is allowed to emerge in Western Europe, Asia or the territories of the former Soviet Union.” The document “makes the case for a world dominated by one superpower whose position can be perpetuated by constructive behavior and sufficient military might to deter any nation or group of nations from challenging American primacy.” [20]

In the Clinton administration, prominent “policy-oriented intellectuals” filled key foreign policy positions, notably Madeleine Albright, first as ambassador to the UN and then as Secretary of State, and Anthony Lake as National Security Advisor. Anthony Lake was a staffer in Kissinger’s National Security Council during the Nixon administration (though he resigned in protest following the ‘secret’ bombing of Cambodia). Lake was subsequently recruited into the Trilateral Commission, and was then appointed as policy planning director in Jimmy Carter’s State Department under Secretary of State (and Trilateral Commission/Council on Foreign Relations member) Cyrus Vance. Richard Holbrooke and Warren Christopher were also brought into the Trilateral Commission, then to the Carter administration, and resurfaced in the Clinton administration. Holbrooke and Lake had even been college roommates for a time. Madeleine Albright had studied at Columbia University under Zbigniew Brzezinski, who was her dissertation advisor. When Brzezinski became National Security Adviser in the Carter administration, he brought in Albright as a special assistant. [21]

Anthony Lake was responsible for outlining the ‘Clinton Doctrine,’ which he elucidated in a 1993 speech at Johns Hopkins University, where he stated: “The successor to a doctrine of containment must be a strategy of enlargement – enlargement of the world’s free community of market democracies.” This strategy “must combine our broad goals of fostering democracy and markets with our more traditional geostrategic interests,” noting that, “[o]ther American interests at times will require us to befriend and even defend non-democratic states for mutually beneficial reasons.” [22] In other words, nothing has changed, save the rhetoric: the interest of American power is in “enlarging” America’s economic and political domination of the world.

In 1997, Brzezinski published a book outlining his strategic vision for America’s role in the world, entitled The Grand Chessboard. He wrote that “the chief geopolitical prize” for America was ‘Eurasia,’ referring to the connected landmass of Asia and Europe: “how America ‘manages’ Eurasia is critical. Eurasia is the globe’s largest continent and is geopolitically axial. A power that dominates Eurasia would control two of the world’s three most advanced and economically productive regions. A mere glance at the map also suggests that control over Eurasia would almost automatically entail African subordination.”[23] The “twin interests” of the United States, wrote Brzezinski, were, “in the short-term preservation of its unique global power and in the long-run transformation of it into increasingly institutionalized global cooperation.” Brzezinski then wrote:

To put it in a terminology that hearkens back to the more brutal age of ancient empires, the three grand imperatives of imperial geostrategy are to prevent collusion and maintain security dependence among the vassals, to keep tributaries pliant and protected, and to keep the barbarians from coming together.[24]

The officials from the George H.W. Bush administration who drafted the 1992 Defense Policy Guidance report spent the Clinton years in neoconservative think tanks, such as the Project for the New American Century (PNAC). Essentially using the 1992 document as a blueprint, the PNAC published a report in 2000 entitled Rebuilding America’s Defenses: Strategy, Forces, and Resources for a New Century. In contrast to previous observations from strategists like Brzezinski and Scowcroft, the neocons were not opposed to implementing large-scale wars, declaring that, “the United States must retain sufficient forces able to rapidly deploy and win multiple simultaneous large-scale wars.” The report stated that there was a “need to retain sufficient combat forces to fight and win, multiple, nearly simultaneous major theatre wars” and that “the Pentagon needs to begin to calculate the force necessary to protect, independently, US interests in Europe, East Asia and the Gulf at all times.”[25]

Drafted by many of the neocons who would later lead the United States into the Iraq war (including Paul Wolfowitz), the report recommended that the United States establish a strong military presence in the Middle East: “the United States has for decades sought to play a more permanent role in Gulf regional security. While the unresolved conflict with Iraq provides the immediate justification, the need for a substantial American force presence in the Gulf transcends the issue of the regime of Saddam Hussein.”[26]

When the Bush administration came to power in 2001, it brought in a host of neoconservatives to key foreign policy positions, including Paul Wolfowitz, Donald Rumsfeld and Dick Cheney. As one study noted, “among the 24 Bush appointees who have been most closely identified as neocons or as close to them, there are 27 links with conservative think tanks, 19 with their liberal counterparts and 20 with ‘neocon’ think tanks,” as well as 11 connections with the Council on Foreign Relations.[27]

The 2002 U.S. National Security Strategy announced by the Bush administration, thereafter referred to as the “Bush doctrine,” which included the usual rhetoric about democracy and freedom, and then established the principle of “preemptive war” and unilateral intervention for America’s War of Terror, noting: “the United States will, if necessary, act preemptively. The United States will not use force in all cases to preempt emerging threats, nor should nations use preemption as a pretext for aggression. Yet in an age where the enemies of civilization openly and actively seek the world’s most destructive technologies, the United States cannot remain idle while dangers gather.”[28] The doctrine announced that the U.S. “will constantly strive to enlist the support of the international community, [but] we will not hesitate to act alone, if necessary, to exercise our right of self-defense by acting preemptively against terrorists.”[29]

A fusion of neoconservative and traditional liberal internationalist “policy-oriented intellectuals” was facilitated in 2006 with the release of a report by the Princeton Project on National Security (PPNS), Forging a World of Liberty Under Law: U.S. National Security in the 21st Century, co-directed by G. John Ikenberry and Anne-Marie Slaughter. Ikenberry was a professor at Princeton and the Woodrow Wilson School of Public and International Affairs. He had previously served in the State Department Policy Planning staff in the administration of George H.W. Bush, was a senior associate at the Carnegie Endowment for International Peace, a senior fellow at the Brookings Institution, and a member of the Council on Foreign Relations. Anne-Marie Slaughter was Dean of the Woodrow Wilson School of Public and International Affairs, has served on the board of the Council on Foreign Relations, the New America Foundation, the National Endowment for Democracy, New American Security, the Truman Project, and the Center for Strategic and International Studies (CSIS), and has also served on the boards of McDonald’s and Citigroup, as well as often being a State Department adviser.

While the Bush administration and the neoconservatives within it had articulated a single vision of a ‘global war on terror,’ the objective of the Princeton Project’s report was to encourage the strategic acknowledgement of multiple, conflicting and complex threats to American power. Essentially, it was a project formed by prominent intellectual elites in reaction to the myopic and dangerous vision and actions projected by the Bush administration; a way to re-align strategic objectives based upon a more coherent analysis and articulation of the interests of power. One of its main critiques was against the notion of “unilateralism” advocated in the Bush Doctrine and enacted with the Iraq War. The aim of the report, in its own words, was to “set forth agreed premises or foundational principles to guide the development of specific national security strategies by successive administrations in coming decades.”[30]

The Honourary Co-Chairs of the Project report were Anthony Lake, Clinton’s former National Security Adviser, and George P. Shultz, former U.S. Secretary of Labor and Secretary of the Treasury in the Nixon administration, U.S. Secretary of State in the Reagan administration, president of Bechtel Corporation, and was on the International Advisory Council of JP Morgan Chase, a director of the Peterson Institute for International Economics, a member of the Hoover Institution, the Washington Institute for Near East Policy, and was on the boards of a number of corporations.

Among the co-sponsors of the project (apart from Princeton) were: the Brookings Institution, the Council on Foreign Relations, the Carnegie Endowment for International Peace, the Centre for International Governance Innovation, Oxford, Stanford, the German Marshall Fund, and the Hoover Institution, among others. Most financing for the Project came from the Woodrow Wilson School/Princeton, the Ford Foundation, and David M. Rubenstein, one of the world’s richest billionaires, co-founder of the global private equity firm the Carlyle Group, on the boards of Duke University, the Brookings Institution, the Council on Foreign Relations, President of the Economic Club of Washington, and the International Business Council of the World Economic Forum. [31]

Among the “experts” who participated in the Project were: Henry Kissinger, Zbigniew Brzezinski, Eliot Cohen, Francis Fukuyama, Leslie Gelb, Richard Haas, Robert Kagan, Jessica Tuchman Matthews, Joseph S. Nye, James Steinberg, and Strobe Talbott, among many others. Among the participating institutions were: Princeton, Harvard, Yale, CSIS, the Brookings Institution, Council on Foreign Relations, Carnegie Endowment, Federal Reserve Bank of New York, World Bank, the State Department, National Security Council, Citigroup, Ford Foundation, German Marshall Fund, Kissinger Associates, the Scowcroft Group, Cato Institute, Morgan Stanley, Carlyle Group. Among the participants in the Project were no less than 18 members of the Council on Foreign Relations, 10 members of the Brookings Institution, 6 members of the Carnegie Endowment for International Peace, and several representatives from foreign governments, including Canada, Australia, and Japan.[32]

The Road to “Hope” and “Change”

After leaving the Clinton administration, Madeleine Albright founded her own consulting firm in 2001, The Albright Group, since re-named the Albright Stonebridge Group, co-chaired by Albright and Clinton’s second National Security Adviser Samuel Berger, advising multinational corporations around the world. Albright is also chair of Albright Capital Management LLC, an investment firm which focuses on ‘emerging markets.’ Albright is also on the board of directors of the Council on Foreign Relations, is a professor at Georgetown University School of Foreign Service, chairs the National Democratic Institute for International Affairs, the Pew Global Attitudes Project, and is president of the Truman Scholarship Foundation. She is also on the board of trustees of the Aspen Institute, a member of the Atlantic Council, and in 2009 was recruited by NATO Secretary-General Anders Fogh Rasmussen to chair the ‘group of experts’ tasked with drafting NATO’s New Strategic Concept for the world.

Kissinger, Scowcroft, and Albright are not the only prominent “former” statespersons to have established consulting firms for large multinational conglomerates, as the far less known Brzezinski Group is also a relevant player, “a consulting firm that provides strategic insight and advice to commercial and government clients,” headed by Zbig’s son, Ian Brzezinski. Ian is a Senior Fellow at the Atlantic Council and also sits on its Strategic Advisors Group, having previously served as a principal at Booz Allen Hamilton, a major global consulting firm. Prior to that, Ian Brzezinski was Deputy Assistant Secretary of Defense for Europe and NATO Policy in the Bush administration, from 2001 to 2005, and had previously served for many years on Capitol Hill as a senior staff member in the Senate. Zbigniew Brzezinski’s other son, Mark Brzezinski, is currently the U.S. Ambassador to Sweden, having previously been a corporate and securities associate at Hogan & Hartson LLP, after which he served in Bill Clinton’s National Security Council from 1999 to 2001. Mark Brzezinski was also an advisor to Barack Obama during his first presidential campaign starting in 2007. Among other notable advisors to Obama during his presidential campaign were Susan Rice, a former Clinton administration State Department official (and protégé to Madeleine Albright), as well as Clinton’s former National Security Advisor Anthony Lake. [33]

No less significant was the fact that Zbigniew Brzezinski himself was tapped as a foreign policy advisor to Obama during the presidential campaign. In August of 2007, Brzezinski publically endorsed Obama for president, stating that Obama “recognizes that the challenge is a new face, a new sense of direction, a new definition of America’s role in the world.” He added: “Obama is clearly more effective and has the upper hand. He has a sense of what is historically relevant and what is needed from the United States in relationship to the world.”[34] Brzezinski was quickly tapped as a top foreign policy advisor to Obama, who delivered a speech on Iraq in which he referred to Brzezinski as “one of our most outstanding thinkers.”[35] According to an Obama campaign spokesperson, Brzezinski was primarily brought on to advise Obama on matters related to Iraq. [36]

Thus, it would appear that Brzezinski may not have been exaggerating too much when he told the Congressional publication, The Hill, in January of 2013 that, “I really wasn’t at all conscious of the fact that the defeat of the Carter administration somehow or another affected significantly my own standing… I just kept doing my thing minus the Office of the National Security Adviser in the White House.” While Brzezinski had advised subsequent presidents Reagan and Bush Sr., and had close ties with key officials in the Clinton administration (notably his former student and NSC aide Madeleine Albright), he was “shut out of the George W. Bush White House” when it was dominated by the neoconservatives, whom he was heavily critical of, most especially in response to the Iraq War. [37]

In the first four years of the Obama administration, Brzezinski was much sought out for advice from Democrats and Republicans alike. On this, he stated: “It’s more a case of being asked than pounding on the doors… But if I have something to say, I know enough people that I can get in touch with to put [my thoughts] into circulation.” When Afghan President Hamid Karzai visited Washington, D.C. in early 2013, Brzezinski was invited to a special dinner hosted by the Afghan puppet leader, of which he noted: “I have a standard joke that I am on the No. 2 or No. 3 must-visit list in this city… That is to say, if a foreign minister or an ambassador or some other senior dignitary doesn’t get to see the President, the Secretary of State, the Secretary of Defense, the National Security Adviser, then I’m somewhere on that other list as a fallback.”[38]

Today, Zbigniew Brzezinski is no small player on the global scene. Not only is he an occasional and unofficial adviser to politicians, but he remains in some of the main centers of strategic planning and power in the United States. Brzezinski’s background is fairly well established, not least of all due to his role as National Security Adviser and his part in the creation of the Trilateral Commission with David Rockefeller in 1973. Brzezinski was also (and remains) a member of the Council on Foreign Relations, and was a director of the CFR from 1972 to 1977. Today, he is a member of the CFR with his son Mark Brzezinski and his daughter Mika Brzezinski, a media personality on CNBC. Brzezinski is a Counselor and Trustee of the Center for Strategic and International Studies (CSIS), and he is also co-Chair (with Carla A. Hills) of the Advisory Board of CSIS, composed of international and US business leaders and current and former government officials, including: Paul Desmarais Jr. (Power Corporation of Canada), Kenneth Duberstein (Duberstein Group), Dianne Feinstein (U.S. Senator), Timothy Keating (Boeing), Senator John McCain, Senator John D. Rockefeller IV, and top officials from Chevron, Procter & Gamble, Raytheon, Lockheed Martin, Exxon Mobil, Toyota, and United Technologies.[39]

And now we make our way to the Obama administration, the promised era of “hope” and “change;” or something like that. Under Obama, the two National Security Advisors thus far have been General James L. Jones and Tom Donilon. General Jones, who was Obama’s NSA from 2009 to 2010, previously and is now once again a trustee with the Center for Strategic and International Studies (CSIS). Just prior to becoming National Security Advisor, Jones was president and CEO of the U.S. Chamber of Commerce’s Institute for 21st Century Energy, after a career rising to 32nd commandant of the Marine Corps and commander of U.S. European Command. He was also on the boards of directors of Chevron and Boeing, resigning one month prior to taking up his post in the Obama administration.

Shortly after Jones first became National Security Advisor, he was speaking at a conference in February of 2009 at which he stated (with tongue-in-cheek), “As the most recent National Security Advisor of the United States, I take my daily orders from Dr. Kissinger, filtered down through General Brent Scowcroft and Sandy Berger… We have a chain of command in the National Security Council that exists today.”[40] Although said in jest, there is a certain truth to this notion. Yet, Jones only served in the Obama administration from January 2009 to October of 2010, after which he returned to more familiar pastures.

Apart from returning as a trustee to CSIS, Jones is currently the chairman of the Brent Scowcroft Center on International Security and is on the board and executive committee of the Atlantic Council (he was previously chairman of the board of directors from 2007 to 2009). Jones is also on the board of the East-West Institute, and in 2011 served on the board of directors of the military contractor, General Dynamics. General Jones is also the president of his own international consulting firm, Jones Group International. The Group’s website boasts “a unique and unrivaled experience with numerous foreign governments, advanced international relationships, and an understanding of the national security process to develop strategic plans to help clients succeed in challenging environments.” A testimonial of Jones’ skill was provided by Thomas Donohue, the president and CEO of the U.S. Chamber of Commerce: “Few leaders possess the wisdom, depth of experience, and knowledge of global and domestic economic and military affairs as General Jones.”[41]

Obama’s current NSA, Thomas E. Donilon, was previously deputy to General James Jones, and worked as former Assistant Secretary of State and chief of staff to Secretary of State Warren Christopher in Clinton’s administration. From 1999 to 2005, he was a lobbyist exclusively for the housing mortgage company Fannie Mae (which helped create and pop the housing bubble and destroy the economy). Donilon’s brother, Michael C. Donilon, is a counselor to Vice President Joseph Biden. Donilon’s wife, Cathy Russell, is chief of staff to Biden’s wife, Jill Biden. [42] Prior to joining the Obama administration, Thomas Donilon also served as a legal advisor to banks like Goldman Sachs and Citigroup. [43]

CSIS: The ‘Brain’ of the Obama Administration

While serving as national security advisor, Thomas Donilon spoke at the Center for Strategic and International Studies (CSIS) in November of 2012. He began his speech by stating that for roughly half a century, CSIS has been “the intellectual capital that has informed so many of our national security policies, including during the Obama administration… We’ve shared ideas and we’ve shared staff.”[44]

Indeed, CSIS has been an exceptionally influential presence within the Obama administration. CSIS launched a Commission on ‘Smart Power’ in 2006, co-chaired by Joseph S. Nye, Jr. and Richard Armitage, with the final report delivered in 2008, designed to influence the next president of the United States on implementing “a smart power strategy.” Joseph Nye is known for – among other things – developing the concept of what he calls “soft power” to describe gaining support through “attraction” rather than force. In the lead-up to the 2008 presidential elections, Nye stated that if Obama became president, it “would do more for America’s soft power around the world than anything else we could do.”[45]

Joseph Nye is the former Dean of the Kennedy School, former senior official in the Defense and State Departments, former Chair of the National Intelligence Council, and a highly influential political scientist who was rated in a 2008 poll of international relations scholars as “the most influential scholar in the field on American foreign policy,” and was also named as one of the top 100 global thinkers in a 2011 Foreign Policy report. Nye is also Chairman of the North American Group of the Trilateral Commission, is on the board of directors of the Council on Foreign Relations, a member of the board of trustees of the Center for Strategic and International Studies (CSIS), and a former director of the Institute for East-West Security Studies, the International Institute of Strategic Studies, and a former member of the advisory committee of the Institute of International Economics.

Richard Armitage, the other co-chair of the CSIS Commission on Smart Power, is the President of Armitage International, a global consulting firm, and was Deputy Secretary of State from 2001-2005 in the George W. Bush administration, Assistant Secretary of Defense for International Security Affairs in the Reagan administration, and is on the boards of ConocoPhillips, a major oil company, as well as ManTech International and Transcu Group, and of course, a trustee at CSIS.

In the Commission’s final report, A Smarter, More Secure America, the term ‘smart power’ was defined as “complementing U.S. military and economic might with greater investments in soft power,” recommending that the United States “reinvigorate the alliances, partnerships, and institutions that serve our interests,” as well as increasing the role of “development in U.S. foreign policy” which would allow the United States to “align its own interests with the aspirations of people around the world.” Another major area of concern was that of “[b]ringing foreign populations to our side,” which depended upon “building long-term, people-to-people relationships, particularly among youth.” Further, the report noted that “the benefits of free trade must be expanded” and that it was America’s responsibility to “establish global consensus and develop innovative solutions” for issues such as energy security and climate change. [46]

The forward to the report was authored by CSIS president and CEO, John Hamre, who wrote: “We have all seen the poll numbers and know that much of the world today is not happy with American leadership,” with even “traditional allies” beginning to question “American values and interests, wondering whether they are compatible with their own.” Hamre spoke for the American imperial establishment: “We do not have to be loved, but we will never be able to accomplish our goals and keep Americans safe without mutual respect.” What was needed, then, was to utilize their “moment of opportunity” in order “to strike off on a big idea that balances a wiser internationalism with the desire for protection at home.” In world affairs, the center of gravity, wrote Hamre, “is shifting to Asia.” Thus, “[a]s the only global superpower, we must manage multiple crises simultaneously while regional competitors can focus their attention and efforts.” What is required is to strengthen “capable states, alliances, partnerships, and institutions.” Military might, noted Hamre, while “typically the bedrock of a nation’s power,” remains “an inadequate basis for sustaining American power over time.”[47]

In their summary of the report, Nye and Armitage wrote that the ultimate “goal of U.S. foreign policy should be to prolong and preserve American preeminence as an agent for good.” The goal, of course, was to ‘prolong and preserve American preeminence,’ whereas the notion of being ‘an agent for good’ was little more than a rhetorical add-on, since for policy-oriented intellectuals like those at CSIS, American preeminence is inherently a ‘good’ thing, and therefore preserving American hegemony is – it is presumed – by definition, being ‘an agent for good.’ Nye and Armitage suggested that the U.S. “should have higher ambitions than being popular,” though acknowledging, “foreign opinion matters to U.S. decision-making,” so long as it aligns with U.S. decisions, presumably. A “good reputation,” they suggested, “brings acceptance for unpopular ventures.” This was not to mark a turn away from using military force, as was explicitly acknowledged: “We will always have our enemies, and we cannot abandon our coercive tools.” Using “soft power,” however, was simply to add to America’s arsenal of military and economic imperialism: “bolstering soft power makes America stronger.”[48]

Power, they wrote, “is the ability to influence the behavior of others to get a desired outcome,” noting the necessity of “hard power” – military and economic strength – but, while “[t]here is no other global power… American hard power does not always translate into influence.” While technological advances “have made weapons more precise, they have also become more destructive, thereby increasing the political and social costs of using military force.” Modern communications, they noted, “diminished the fog of war,” which is to say that they have facilitated more effective communication and management in war-time, “but also heightened the atomized political consciousness,” which is to say that it has allowed populations all over the world to gain access to information and communication outside the selectivity of traditional institutions of power.[49]

These trends “have made power less tangible and coercion less effective.” The report noted: “Machiavelli said it was safer to be feared than to be loved. Today, in the global information age, it is better to be both.” Thus, “soft power… is the ability to attract people to our side without coercion,” making “legitimacy” the central concept of soft power. As such, if nations and people believe “American objectives to be legitimate, we are more likely to persuade them to follow our lead without using threats and bribes.” Noting that America’s “enemies” in the world are largely non-state actors and groups who “control no territory, hold few assets, and sprout new leaders for each one that is killed,” victory becomes problematic: “Militaries are well suited to defeating states, but they are often poor instruments to fight ideas.” Thus, victory in the modern world “depends on attracting foreign populations to our side,” of which ‘soft power’ is a necessity. [50]

Despite various “military adventures in the Western hemisphere and in the Philippines” in the late nineteenth and early twentieth centuries, “the U.S. military has not been put in the service of building a colonial empire in the manner of European militaries,” the report read, acknowledging quite plainly that while not a formal colonial empire, the United States was an imperial power nonetheless. Since World War II, “America has sought to promote rules and order in a world in which life continues to be nasty, brutish, and short for the majority of inhabitants.” While “the appeal of Hollywood and American products can play a role in inspiring the dreams and desires of others,” soft power is not merely cultural, but also promotes “political values” and “our somewhat reluctant participation and leadership in institutions that help shape the global agenda.” However, a more “interconnected and tolerant world” is not something everyone is looking forward to, noted the authors: “ideas can be threatening to those who consider their way of life to be under siege by the West,” which is to say, the rest of the world. Smart power, then, “is neither hard nor soft – it is the skillful combination of both,” and “means developing an integrated strategy, resource base, and tool kit to achieve American objectives, drawing on both hard and soft power.” [51]

Other members of the CSIS Commission on Smart Power included: Nancy Kassebaum Baker, former US Senator and member of the advisory board of the Partnership for a Secure America; General Charles G. Boyd, former president and CEO of the Business Executives for National Security, former director of the Council on Foreign Relations (CFR); as well as Maurice Greenberg, Thomas Pickering, David Rubenstein and Obama’s newest Secretary of Defense, Chuck Hagel.

It’s quite apparent that members of the CSIS Commission and CSIS itself would be able to wield significant influence upon the Obama administration. Joseph Nye has even advised Hillary Clinton while she served as Secretary of State. [52] Perhaps then, we should not be surprised that at her Senate confirmation hearing in January of 2009, Clinton declared the era of “rigid ideology” in diplomacy to be at an end, and the foreign policy of “smart power” to be exercised, that she would make decisions based “on facts and evidence, not emotions or prejudice.”[53]

Before the Senate Foreign Relations Committee, Clinton declared: “We must use what has been called smart power, the full range of tools at our disposal – diplomatic, economic, military, political, legal, and cultural – picking the right tool, or combination of tools, for each situation.” She quoted the ancient Roman poet Terence, “in every endeavor, the seemly course for wise men is to try persuasion first,” then added: “The same truth binds wise women as well.”[54]

While Joseph Nye had coined the term “soft power” in the 1990s, Suzanne Nossel coined the term “smart power.” Nossel was the chief operating officer of Human Rights Watch, former executive at media conglomerate Bertelsmann, and was a former deputy to UN Ambassador Richard Holbrooke in the Clinton administration. She coined the term “smart power” in a 2004 issue of Foreign Affairs, the journal of the Council on Foreign Relations, after which time Joseph Nye began using it, leading to the CSIS Commission on Smart Power. At the Senate hearing, Senator Jim Webb stated, “the phrase of the week is ‘smart power’.” Nossel commented on Clinton’s Senate hearing: “Hillary was impressive… She didn’t gloss over the difficulties, but at the same time she was fundamentally optimistic. She’s saying that, by using all the tools of power in concert, the trajectory of American decline can be reversed. She’ll make smart power cool.”[55]

Following the first six months of the Obama administration, Hillary Clinton was to deliver a major foreign policy speech to the Council on Foreign Relations, where she would articulate “her own policy agenda,” focusing on the strengthening of “smart power.” One official involved in the speech planning process noted that it would include discussion on “U.S. relations with [and] management of the great powers in a way that gets more comprehensive.” The speech was long in the making, and was being overseen by the director of the State Department’s Policy Planning Council, Anne-Marie Slaughter. [56]

Slaughter was director of Policy Planning in the State Department from 2009 to 2011, where she was chief architect of the Quadrennial Diplomacy and Development Review, designed to better integrate development into U.S. foreign policy, with the first report having been released in 2010. She is also a professor of politics and international affairs at Princeton, was co-Chair of the Princeton Project on National Security, former Dean of the Woodrow Wilson School of Public and International Affairs, served on the boards of the Council on Foreign Relations (2003-2009), the New America Foundation, the National Endowment for Democracy, New American Security, the Truman Project, and formerly with CSIS, also having been on the boards of McDonald’s and Citigroup. Slaughter is currently a member of the Aspen Strategy Group, the CFR, a member of the board of directors of the Atlantic Council, and has been named on Foreign Policy‘s Top 100 Global Thinkers for the years 2009-2012.

In preparation for her speech at the Council on Foreign Relations, according to the Washington Post blog, Plum Line, Clinton “consulted” with a “surprisingly diverse” group of people, including: Henry Kissinger, George Schultz, Zbigniew Brzezinski, Paul Farmer, Joseph Nye, Francis Fukuyama, Brent Scowcroft, Strobe Talbott (president of the Brookings Institution), John Podesta, and Richard Lugar, as well as Defense Secretary Robert Gates, then-National Security Advisor General James Jones, and President Obama himself.[57]

When Clinton began speaking at the Council on Foreign Relations in Washington, D.C., she stated: “I am delighted to be here in these new headquarters. I have been often to, I guess, the mother ship in New York City, but it’s good to have an outpost of the Council right here down the street from the State Department. We get a lot of advice form the Council, and so this will mean I won’t have as far to go to be told what we should be doing and how we should think about the future.” Many in the world do not trust America to lead, explained Clinton, “they view America as an unaccountable power, too quick to impose its will at the expense of their interests and our principles,” but, Clinton was sure to note: “they are wrong.” The question, of course, was “not whether our nation can or should lead, but how it will lead in the 21st century,” in which “[r]igid ideologies and old formulas don’t apply.” Clinton claimed that “[l]iberty, democracy, justice and opportunity underlie our priorities,” even though others “accuse us of using these ideals to justify actions that contradict their very meaning,” suggesting that “we are too often condescending and imperialistic, seeking only to expand our power at the expense of others.”[58]

These perceptions, explained Clinton, “have fed anti-Americanism, but they do not reflect who we are.” America’s strategy “must reflect the world as it is, not as it used to be,” and therefore, “[i]t does not make sense to adapt a 19th century concert of powers, or a 20th century balance of power strategy.” Clinton explained that the strategy would seek to tilt “the balance away from a multi-polar world and toward a multi-partner world,” in which “our partnerships can become power coalitions to constrain and deter [the] negative actions” of those who do not share “our values and interests” and “actively seek to undermine our efforts.” In order to construct “the architecture of global cooperation,” Clinton recommended “smart power” as “the intelligent use of all means at our disposal, including our ability to convene and connect… our economic and military strength,” as well as “the application of old-fashioned common sense in policymaking… a blend of principle and pragmatism.” Noting that, “our global and regional institutions were built for a world that has been transformed,” Clinton stated that “they too must be transformed and reformed,” referencing the UN, World Bank, IMF, G20, OAS, ASEAN, and APEC, among others. This “global architecture of cooperation,” said Clinton, “is the architecture of progress for America and all nations.”[59]

Just in case you were thinking that the relationship between CSIS and the Obama administration was not strong enough, apparently both of them thought so too. CSIS wields notable influence within the Pentagon’s Defense Policy Board, which is chaired by the president and CEO of CSIS, John Hamre. A former Deputy Defense Secretary in the Clinton administration, Hamre is a member of the Aspen Strategy Group, sits on the board of defense contractors such as ITT, SAIC, and the Oshkosh Corporation, as well as MITRE, a “not-for-profit” corporation which “manages federally funded research and development centers.” The Defense Policy Board provides the Secretary of Defense, as well as the Deputy Secretary and Undersecretary of Defense “with independent, informed advice and opinion on matters of defense policy;” from outside ‘experts’ of course. [60]

Also on the board is Sam Nunn, the chairman of CSIS, co-chair and CEO of the Nuclear Threat Initiative (NTI), former U.S. Senator from 1972-1996, member of the Council on Foreign Relations, and currently on the boards of General Electric, the Coca-Cola Company, Hess Corporation, and was recently on the boards of Dell and Chevron. Other CSIS trustees and advisors who sit on the Defense Policy Board are Harold Brown, Henry Kissinger, James Schlesinger, Brent Scowcroft, General Jack Keane, and Chuck Hagel. [61]

Harold Brown was the Secretary of Defense in the Carter administration, honorary director of the Atlantic Council, member of the boards of Evergreen Oil and Philip Morris International, former partner at Warburg Pincus, director of the Altria Group, Trustee of RAND Corporation, and member of the Trilateral Commission and the Council on Foreign Relations. James Schlesinger was the former Defense Secretary in the Nixon and Ford administrations, Secretary of Energy in the Carter administration, was briefly director of the CIA, a senior advisor to Lehman Brothers, Kuhn, Loeb Inc., and was on George W. Bush’s Homeland Security Advisory Council. He is currently chairman of the MITRE Corporation, a director of the Sandia National Corporation, a trustee of the Atlantic Council and is a board member of the Henry M. Jackson Foundation.

Brent Scowcroft, apart from being Kissinger’s deputy in the Nixon administration, and the National Security Advisor in the Ford and Bush Sr. administrations (as well as co-founder of Kissinger), is currently a member of the Council on Foreign Relations, the Trilateral Commission, the Atlantic Council, and founded his own international advisory firm, the Scowcroft Group. General Jack Keane, a senior advisor to CSIS, is the former Vice Chief of Staff of the US Army, current Chairman of the board for the Institute for the Study of War; Frank Miller, former Defense Department official in the Reagan, Bush Sr., and Clinton administrations, served on the National Security Council in the George W. Bush administration, joined the Cohen Group in 2005, currently a Principal at the Scowcroft Group, and serves on the U.S.-European Command Advisory Group, is a member of the Council on Foreign Relations, a Director of the Atlantic Council, and he serves on the board of EADS-North America (one of the world’s leading defense contract corporations).

Kissinger’s record has been well-established up until present day, though he has been a member of the Defense Policy Board since 2001, thus serving in an advisory capacity to the Pentagon for both the Bush and Obama administrations, continues to serve on the steering committee of the Bilderberg meetings, is a member of the Trilateral Commission and he is currently an advisor to the board of directors of American Express, on the advisory board of the RAND Center for Global Risk and Security, honorary chairman of the China-United States Exchange Foundation, the board of the International Rescue Committee, and is on the International Council of JPMorgan Chase.

Another member of the Policy Board who was a trustee of CSIS was Chuck Hagel, who is now Obama’s Secretary of Defense. Prior to his new appointment, Hagel was a US Senator from 1997 to 2009, after which he was Chairman of the Atlantic Council, on the boards of Chevron, Zurich’s Holding Company of America, Corsair Capital, Deutsche Bank America, MIC Industries, was an advisor to Gallup, member of the board of PBS, member of the Council on Foreign Relations, and was a member of the CSIS Commission on Smart Power. Hagel also served on Obama’s Foreign Intelligence Advisory Board, an outside group of ‘experts’ providing strategic advice to the president on intelligence matters.

Other members of the Defense Policy Board (who are not affiliated with CSIS) are: J.D. Crouch, Deputy National Security Advisor in the George W. Bush administration, and is on the board of advisors of the Center for Security Policy; Richard Danzig, Secretary of the Navy in the Clinton administration, a campaign advisor to Obama, and is the current Chairman of the Center for a New American Security; Rudy de Leon, former Defense Department official in the Clinton administration, a Senior Vice President at the Center for American Progress, and is a former vice president at Boeing Corporation; John Nagl, president of the Center for a New American Security, and is a member of the Council on Foreign Relations; William Perry, former Secretary of Defense in the Clinton administration, who now sits on a number of corporate boards, a senior fellow at the Hoover Institution, on the board of the Nuclear Threat Initiative (NTI), and has served on the Carnegie Endowment; Sarah Sewall, former Deputy Assistant Secretary of Defense for Peacekeeping and Humanitarian Assistance in the Clinton administration, on the board of Oxfam America, and was a foreign policy advisor to Obama’s election campaign; and Larry Welch, former Chief of Staff of the US Air Force in the Reagan administration. More recently added to the Defense Policy Board was none other than Madeleine Albright.

Imperialism without Imperialists?

The ‘discourse’ of foreign affairs and international relations failing to adequately deal with the subject of empire is based upon a deeply flawed perception: that one cannot have an empire without imperialists, and the United States does not have imperialists, it has strategists, experts, and policy-oriented intellectuals. Does the United States, then, have an empire without imperialists? In the whole history of imperialism, that would be a unique situation.

Empires do not happen by chance. Nations do not simply trip and stumble and fall into a state of imperialism. Empires are planned and directed, maintained and expanded. This report aimed to provide some introductory insight into the institutions and individuals who direct the American imperial system. The information – while dense – is far from comprehensive or complete; it is a sample of the complex network of imperialism that exists in present-day United States. Regardless of which president or political party is in office, this highly integrated network remains in power.

This report, produced exclusively for the Hampton Institute, is to serve as a reference point for future discussion and analysis of ‘geopolitics’ and foreign policy issues. As an introduction to the institutions and individuals of empire, it can provide a framework for people to interpret foreign policy differently, to question those quoted and interviewed in the media as ‘experts,’ to integrate their understanding of think tanks into contemporary politics and society, and to bring to the surface the names, organizations and ideas of society’s ruling class.

It is time for more of what the Trilateral Commission dismissively referred to as “value-oriented intellectuals” – those who question and oppose authority – instead of more policy-oriented imperialists. The Geopolitics Division of the Hampton Institute aims to do just that: to provide an intellectual understanding and basis for opposing empire in the modern world.

Empires don’t just happen; they are constructed. They can also be deconstructed and dismantled, but that doesn’t just happen either. Opposing empire is not a passive act: it requires dedication and information, action and reaction. As relatively privileged individuals in western state-capitalist societies, we have both the opportunity and the responsibility to understand and oppose what our governments do abroad, how they treat the people of the world, how they engage with the world. It is our responsibility to do something, precisely because we have the opportunity to do so, unlike the majority of the world’s population who live in abject poverty, under ruthless dictators that we arm and maintain, in countries we bomb and regions we dominate. We exist in the epicenter of empire, and thus: we are the only ones capable of ending empire.

Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada. He is Project Manager of The People’s Book Project, head of the Geopolitics Division of the Hampton Institute, Research Director for Occupy.com’s Global Power Project and hosts a weekly podcast show at BoilingFrogsPost.

Notes

[1] Julian Pecquet, “Brzezinski: Professor in the halls of power,” The Hill’s Global Affairs, 22 January 2013:

http://thehill.com/blogs/global-affairs/americas/278401-professor-in-the-halls-of-power

[2] David Rothkopf, Running the World: The Inside Story of the National Security Council and the Architects of American Power (Public Affairs, New York: 2005), page 19.

[3] David Rothkopf, Running the World: The Inside Story of the National Security Council and the Architects of American Power (Public Affairs, New York: 2005), pages 19-20.

[4] James D. Wolfensohn, Council on Foreign Relations Special Symposium in honor of David Rockefeller’s 90th Birthday, The Council on Foreign Relations, 23 May 2005: http://www.cfr.org/world/council-foreign-relations-special-symposium-honor-david-rockefellers-90th-birthday/p8133

[5] Michael Stutchbury, The man who inherited the Rothschild legend, The Australian, 30 October 2010: http://www.theaustralian.com.au/news/features/the-man-who-inherited-the-rothschild-legend/story-e6frg6z6-1225945329773

[6] David Rockefeller, Memoirs (Random House, New York: 2002), pages 404 – 405.

[7] Henry A. Kissinger, “Domestic Structure and Foreign Policy,” Daedalus (Vol. 95, No. 2, Conditions of World Order, Spring 1966), page 514.

[8] Sallie M. Hicks, Theodore A. Couloumbis and Eloise M. Forgette, “Influencing the Prince: A Role for Academicians?” Polity (Vol. 15, No. 2, Winter 1982), pages 288-289.

[9] Sallie M. Hicks, Theodore A. Couloumbis and Eloise M. Forgette, “Influencing the Prince: A Role for Academicians?” Polity (Vol. 15, No. 2, Winter 1982), pages 289-291.

[10] Michel J. Crozier, Samuel P. Huntington and Joji Watanuki, The Crisis of Democracy: Report on the Governability of Democracies to the Trilateral Commission (New York University Press, 1975), pages 6-7.

[11] Jeff Gerth and Sarah Bartlett, “Kissinger and Friends and Revolving Doors,” The New York Times, 30 April 1989:

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[27] Inderjeet Parmar, “Foreign Policy Fusion: Liberal interventionists, conservative nationalists and neoconservatives – the new alliance dominating the US foreign policy establishment,” International Politics (Vol. 46, No. 2/3, 2009), pages 178-179.

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[29] U.S. NSS, “The National Security Strategy of the United States of America,” The White House, September 2002, page 6.

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[32] G. John Ikenberry and Anne-Marie Slaughter, Forging a World of Liberty Under Law: U.S. National Security in the 21st Century – Final Report of the Princeton Project on National Security (The Princeton project on National Security, The Woodrow Wilson School of Public and International Affairs, Princeton University, 27 September 2006), pages 79-90.

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[39] Annual Report 2011, Center for Strategic and International Studies, Strategic Insights and Bipartisan Policy Solutions, page 8.

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[45] James Traub, “Is (His) Biography (Our) Destiny?,” The New York Times, 4 November 2007: http://www.nytimes.com/2007/11/04/magazine/04obama-t.html?pagewanted=all

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[47] Richard Armitage and Joseph Nye, Jr., “CSIS Commission on Smart Power: A Smarter, More Secure America,” Center for Strategic and International Studies, 2007: pages 3-4.

[48] Richard Armitage and Joseph Nye, Jr., “CSIS Commission on Smart Power: A Smarter, More Secure America,” Center for Strategic and International Studies, 2007: pages 5-6.

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[50] Richard Armitage and Joseph Nye, Jr., “CSIS Commission on Smart Power: A Smarter, More Secure America,” Center for Strategic and International Studies, 2007: page 6.

[51] Richard Armitage and Joseph Nye, Jr., “CSIS Commission on Smart Power: A Smarter, More Secure America,” Center for Strategic and International Studies, 2007: page 7.

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[61] Marcus Weisgerber, “U.S. Defense Policy Board Gets New Members,” Defense News, 4 October 2011:

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The Propaganda System That Has Helped Create a Permanent Overclass Is Over a Century in the Making

The Propaganda System That Has Helped Create a Permanent Overclass Is Over a Century in the Making

Pulling back the curtain on how intent the wealthiest Americans have been on establishing a propaganda tool to subvert democracy.

By: Andrew Gavin Marshall

Originally posted at AlterNet

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Where there is the possibility of democracy, there is the inevitability of elite insecurity. All through its history, democracy has been under a sustained attack by elite interests, political, economic, and cultural. There is a simple reason for this: democracy – as in true democracy – places power with people. In such circumstances, the few who hold power become threatened. With technological changes in modern history, with literacy and education, mass communication, organization and activism, elites have had to react to the changing nature of society – locally and globally.

From the late 19th century on, the “threats” to elite interests from the possibility of true democracy mobilized institutions, ideologies, and individuals in support of power. What began was a massive social engineering project with one objective: control. Through educational institutions, the social sciences, philanthropic foundations, public relations and advertising agencies, corporations, banks, and states, powerful interests sought to reform and protect their power from the potential of popular democracy.

Yet for all the efforts, organization, indoctrination and reformation of power interests, the threat of democracy has remained a constant, seemingly embedded in the human consciousness, persistent and pervasive.

In his highly influential work, The Crowd: A Study of the Popular Mind, French social psychologist Gustav Le Bon suggested that middle class politics were transforming into popular democracy, where “the opinion of the masses” was the most important opinion in society. He wrote: “The destinies of nations are elaborated at present in the heart of the masses, and no longer in the councils of princes.” This was, of course, a deplorable change for elites, suggesting that, “[t]he divine right of the masses is about to replace the divine right of kings.” Le Bon suggested, however, that the “crowd” was not rational, but rather was driven by emotion and passion.

An associate and friend of Le Bon’s, Gabriel Tarde, expanded upon this concept, and articulated the idea that “the crowd” was a social group of the past, and that “the public” was “the social group of the future.” The public, argued Tarde, was a “spiritual collectivity, a dispersion of individuals who are physically separated and whose cohesion is entirely mental.” Thus, Tarde identified in the growth of the printing press and mass communications a powerful medium through which “the public” was shaped, and that, if managed appropriately, could bring a sense of order to a situation increasingly chaotic. The newspaper, Tarde explained, facilitated “the fusion of personal opinions into local opinions, and this into national and world opinion, the grandiose unification of the public mind.”

The development of psychology, psychoanalysis, and other disciplines increasingly portrayed the “public” and the population as irrational beings incapable of making their own decisions. The premise was simple: if the population was driven by dangerous, irrational emotions, they needed to be kept out of power and ruled over by those who were driven by reason and rationality, naturally, those who were already in power.

The Princeton Radio Project, which began in the 1930s with Rockefeller Foundation funding, brought together many psychologists, social scientists, and “experts” armed with an interest in social control, mass communication, and propaganda. The Princeton Radio Project had a profound influence upon the development of a modern “democratic propaganda” in the United States and elsewhere in the industrialized world. It helped in establishing and nurturing the ideas, institutions, and individuals who would come to shape America’s “democratic propaganda” throughout the Cold War, a program fostered between the private corporations which own the media, advertising, marketing, and public relations industries, and the state itself.

‘A Genuinely Democratic Propaganda’

World War I popularized the term “propaganda” and gave it negative connotations, as all major nations involved in the war effort employed new techniques of modern propaganda to mobilize their populations for war. In the United States, the effort was led by President Woodrow Wilson in the establishment of the Committee on Public Information (CPI) as a “vast propaganda ministry.” The central theme of the CPI was to promote U.S. entry into the war on the basis of seeking “to make a world that is safe for democracy.” This point was specifically developed by the leading intellectual of the era, Walter Lippmann, who by the age of 25 was referred to by President Theodore Roosevelt as “the most brilliant man of his age.” Lippmann was concerned primarily with the maintenance of the state-capitalist system in the face of increased unrest, resistance, and ideological opposition, feeling that the “discipline of science” would need to be applied to democracy, where social engineers and social scientists “would provide the modern state with a foundation upon which a new stability might be realized.” For this, Lippmann suggested the necessity of “intelligence and information control” in what he termed the “manufacture of consent.”

Important intellectuals of the era then became principally concerned with the issue of propaganda during peacetime, having witnessed its success in times of war. Propaganda, wrote Lippmann, “has a legitimate and desirable part to play in our democratic system.” A leading political scientist of the era, Harold Lasswell, noted: “Propaganda is surely here to stay.” In his 1925 book, The Phantom Public, Lippmann wrote that the public was a “bewildered herd” of “ignorant and meddlesome outsiders” who should be maintained as “interested spectators of action,” and distinct from the actors themselves, the powerful. Edward Bernays, the ‘father of public relations’ and nephew of Sigmund Freud got his start with Wilson’s CPI during World War I, and had since become a leading voice in the fields of propaganda and public relations. In his 1928 book, Propaganda, Bernays wrote: “The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society. Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country.” Modern society was dominated by a “relatively small number of persons… who understand the mental processes and social patterns of the masses,” and this was, in Bernays’ thinking, “a logical result of the way in which our democratic society is organized.” Bernays referred to this – “borrowing” from Walter Lippmann – as the “engineering of consent.”

For the leading intellectuals and social engineers of the era, “propaganda” was presented as distinctly “democratic” and as a necessity to the proper functioning of society. John Marshall of the Rockefeller Foundation focused on what he called the “problem of propaganda” and sought to create, as he wrote in 1938, a “genuinely democratic propaganda.” Marshall pursued this objective through the Rockefeller Foundation, and specifically with the Princeton Radio Project in the late 1930s under the direction of Hadley Cantril and Frank Stanton, though including other intellectuals such as Paul Lazarsfeld and Harold Lasswell.

In 1936, Marshall wrote that the best way to expand the use of radio and film was for the Rockefeller Foundation to give “a few younger men with talent for these mediums an opportunity for relatively free experimentation… men interested primarily in education, literature, criticism, or in disseminating the findings of the social or natural sciences.”

In 1939, with the war in Europe under way, the Rockefeller Foundation had organized several conferences and published several papers on the issue of mass communication, directed by what was called the Communications Group, headed by Marshall and other Foundation officials, and with the participation of Lasswell, Lazarzfeld, Cantril, and several others. Early on, the Communications Group noted that with “an increasing degree of [government] control… in regard to all phases of communication, such as in the schools, the radio, the films, the press, and even eventually in all public discussion,” it was necessary to arrive at a consensus – among the “experts” – as to what role they should play as the state expands its authority over communication. Sociologist Robert Lynd took a page from Lippmann and wrote that a “goal” of experts in communication should “be that of persuading the people that there are many issues too complicated for them to decide, which should be left to experts.” One other participant commented on Lynd’s suggestion: “Mr. Lynd feels we need a restructuring of democratic action in terms of the capacity of different groups of the population and an abandonment of the American idea of the responsibility and capacity of the man on the street.” In 1940, John Marshall wrote:

In a period of emergency such as I believe we now face, the manipulation of public opinion to meet emergency needs has to be taken for granted. In such a period, those in control must shape public opinion to support courses of action which the emergency necessitates… No one, I think, can blame them for that impulse.

In a 1940 memo for the Communications Group, Marshall wrote that, “We believe… that for leadership to secure that consent will require unprecedented knowledge of the public mind and of the means by which leadership can secure consent… We believe… that we gave available today methods of research which can reliably inform us about the public mind and how it is being, or can be, influenced in relation to public affairs.” The memo concerned some officials at the Rockefeller Foundation, noting that it could be misinterpreted and that such research should be careful about becoming a mere tool of the state, with one official noting: “Public opinion and vested interests are… violently opposed to such a development which would be labeled as fascist or authoritarian.” Another official suggested that the memo “looks to me like something that [Nazi propaganda chief] Herr Goebbels could put out with complete sincerity.” While one Foundation official referred to the memo as resembling “the methods by which democracy has been destroyed,” he added that, “finding out regularly and completely what the mass of the people feel and believe and think about things and policies is a necessary part of the modern democratic process.” Marshall and the Communications Group refined their approach from a more overt authoritarianism of “one-way” communication between the state and the population, to a more Lippmann-centered concept of “manufacturing consent” and what has been referred to as “democratic elitism.” In the final report of the Communications Group in 1940, it was noted that two-way communication between the government and population was essential, as without it, “democracy is endangered,” and that it was required for the population to give “consent.”

Frank Stanton, along with Hadley Cantril, was one of the co-directors of the Princeton Project since its inception. As Michael J. Socolow wrote in the Journal of Broadcasting & Electronic Media, Frank Stanton had “devoted much of his life to understanding the cultural, social, and psychological effects of the mass media.” Stanton was the president of CBS from 1946 until 1973, during which he “proved to be an effective corporate strategist” and “a skillful political operator,” not least of all because he “collaborated closely with the U.S. government, performing propaganda tasks during the Second World War and the ensuing Cold War.”

Stanton’s first job was in the advertising industry, beginning in 1929 and cut short by the market crash, though Stanton maintained that advertising “was the greatest thing since sliced bread.” In school, Stanton studied business administration and psychology, being particularly influenced by John B. Watson, the developer of behaviorism, who himself went to go work for an advertising agency. Throughout his own life and career, Stanton viewed himself as “a behaviorist, a social scientist valuing the application of psychological technique across a variety of human endeavors.”

Behaviorism was a brand of psychology which emerged in response to the development of the field by social scientists seeking to make “scientific” what was previously the realm of philosophy and spirituality, drawing in political scientists, economists, sociologists, and others. The field of psychology had become more prominent following World War I, after having proved its worth to power interests in mobilizing, manipulating, and studying populations and their perceptions. In 1929, the president of Yale, James Agnell, announced the creation of the Yale Institute of Human Relations (IHR), with a generous grant from the Rockefeller Foundation. Agnell explained that the IHR was “directly concerned with the problems of man’s individual and group conduct,” out of which the purpose was “to correlate knowledge and coordinate technique in related fields that greater progress may be made in the understanding of human life.”

The IHR helped facilitate the rise of behaviorism in psychology, as in the 1920s and 30s, social unrest was a growing problem, and so psychologists attempted to promote themselves and their field as a possible solution to these problems, as a “scientific psychology” – or “social psychology” – could “be instrumental for attaining democratic social order and control.” Such a theory was based upon the view that the individual was not well “adjusted” to a rapidly changing environment, and therefore, with the help of psychology, the individual could be “adjusted” successfully. Of course, the notion that there is something inherently problematic with society and the social order (and the hierarchy upon which it was built) went unquestioned. In other words, it was not society which needed to “adjust” to individuals and the population, but rather the opposite. Psychologists and Yale’s Institute of Human Relations would promote themselves as the solution to this complex problem. Behaviorism was thus concerned with environmental and behavior control in human relations. This influenced not only Frank Stanton, but other key officials who were involved in the Princeton Radio Project, including Paul Lazarsfeld.

Frank Stanton eventually got a job at CBS following some research he had done on radio audiences and had sent to CBS headquarters. In 1935, Stanton was the third employee hired by CBS for the research division, concerned largely with the ability of advertisers to sell to radio listeners. As Stanton explained in 1936, the contribution of psychology to radio research “should be largely one of technique,” adding: “It isn’t enough to know what programs are heard and preferred. We want to know why they are listened to and liked, and furthermore, we want to quantify influence.” Weeks later, Stanton – with the suggestion of Hadley Cantril – wrote a draft memo of a research proposal for the Rockefeller Foundation, out of which would come to Office of Radio Research at Princeton.

The Princeton Radio Project, established with Rockefeller funding and directed by Paul Lazarsfeld, Cantril, and Stanton, focused on studying the uses and effects of radio communications upon the population, and almost exclusively led to the field of mass communications research. Theodor Adorno, a critical theorist whom Lazarsfeld invited to join the Princeton Radio Project ran into several problems during his research with his associates. Lazarsfeld brought Adorno into the project hoping that he could bridge the gap between American and European approaches to research. Adorno, however, sought to understand not simply the effects of radio in mass communications, but the role played by the “researcher” – or “expert” – in the social order itself. This put him in direct conflict with the project and its philosophy. For Adorno, wrote Slack and Allor, “not only the processes of communication but the practice of communication research itself had to be viewed critically.” Reflecting upon his experience some decades later, Adorno wrote that, “there appeared to be little room for such social research in the framework of the Princeton Project.” He noted: “Its charter, which came from the Rockefeller Foundation, expressly stipulated that the investigations must be performed within the limits of the commercial radio system prevailing in the United States.” Thus, “the system itself, its cultural and sociological consequences and its social and economic presuppositions were not to be analyzed… I was disturbed.”

Shortly after World War II and into the 1950s, the U.S. State Department became increasingly interested in the subject of propaganda, or what was termed “information management” and “public diplomacy.” Television was of particular interest in promoting American state interests, specifically those defined by the Cold War. Francis Russell, the director of the State Department’s Public Affairs (PA) division from 1945 to 1953, noted that “propaganda abroad is indispensable” in the Cold War, but that the State Department had “diligently cultivated the concept of PA as a service to the American people, a place where the public can come to obtain information.” He explained his worry that, “if the American people ever get the idea that the same high-powered propaganda machine” used abroad was “also at work on them, the result will be disaster fir both the domestic and overseas programs.” The role of the PA was not in a censorship bureau, but as a dispenser of “information,” to which the media – largely privately owned – would use as a consistent source for reporting, re-printing press releases, and seeking official sources for comment. Edward Barrett, another top official in the PA division, later noted: “We really tried to stick to the truth and tell nothing but the truth, but we didn’t always tell the whole truth.”

Nancy Bernhard, writing in the journal Diplomatic History, explained this contradiction aptly: “While Americans defended commercial broadcasting because it was free from Communistic government control, commercial broadcasters voluntarily collaborated with the government information services in the name of anticommunism. “Free” broadcasters volunteered as a virtually official information agency.” It was no surprise, then, that government “information programs” used the specific talents of corporate tycoons in the media world, bringing in talent from networks, advertising agencies, public relations agencies, and marketing bureaus. The State Department established a number of “advisory boards” to monitor its “public affairs” operations, largely made up of industry and corporate officials. Among the influential board members was Frank Stanton.

When Eisenhower came to power, a new agency was created to handle information and cultural programs previously undertaken by the State Department, the US Information Agency (USIA), established in 1953. In attempting to create a terminology to describe the activities of the USIA and its relationship to foreign policy goals – without using the obvious term “propaganda” – the term “public diplomacy” was commonly used. Frank Stanton, who left CBS in 1973, subsequently chaired a research report by the prominent American think tank, the Center for Strategic and International Studies (CSIS) in 1975, entitled, International Information Education and Cultural Relations – Recommendations for the Future. The report recommended “that the international information and cultural programs [of the U.S. government] deserve all possible support in the years ahead, that they have demonstrated their success and are therefore an exceptional investment of government energy and the taxpayer’s dollar.”

While head of CBS, Stanton developed relationships with American presidents, whose Cold War strategies he would help promote through his network. When Kennedy became president, he offered Frank Stanton the job as head of the United States Information Agency (USIA), which Stanton declined (though recommended the appointment of Edward R. Murrow, a prominent journalist with CBS, whom Stanton had no lack of problems with). In fact, in 1958, Edward R. Murrow delivered a speech before the Radio-Television News Directors Association in which he “implicitly indicted Stanton” for the way in which he managed CBS, stating: “The top management of the networks… has been trained in advertising, research, or show business… by the nature of the corporate structure, [these managers] also make the final and crucial decisions having to do with news and public affairs. Frequently they have neither the time nor the competence to do this.”

Stanton developed a reputation as a trustworthy propagandist for the Cold War, but was not unwilling to flex his own power when confronted with state power, such as when President Lyndon Johnson, angry at specific coverage of Vietnam on CBS, called up Stanton and stated, “Frank, are you trying to fuck your country?” Stanton refused to budge on his coverage under pressure from the president. Yet still, he remained a propagandist, and even participated in the CIA’s program to infiltrate the domestic media, with general knowledge of the Agency’s program with CBS, though according to one CIA agent involved in the matter, he didn’t “want to know the fine points.”

Stanton, however, was ultimately a corporation man. Not only did he help in the development of the government’s official propaganda systems, but he was a key figure in the promotion of the “corporatization” of news and information. Thus, for Stanton, “information management” was not simply to be done in the interests of the state, but also – and arguably primarily – in the interests of corporations. In Stanton’s own words, “since we are advertiser supported we must take into account the general objectives and desires of advertisers as a whole.” Stanton was not the only executive to voice such views, as one executive at NBC as early as 1940, declared, “we should make money on our news.”

The ‘Social Control’ Society: A Background to ‘Democratic Propaganda’

One of the primary institutions of social control is the educational system. For primary and secondary educational institutions, the original objective was to foster a strong sense of national identity, bringing a cohesive world view to the development of a national citizenry, and thus, to establish a system of social control. For university education, the original and evolving intend had been to develop an elite capable of managing society, and thus, to produce the controllers and technicians of society, itself. As the modern university underwent a major transformation in late 19th century America, it sought to apply the potential of the “sciences” to the social world, and thus, in a society undergoing rapid industrialization, urbanization, poverty, immigration, labour unrest, and new forms of communication, the “social sciences” were developed with an objective of producing social engineers and technicians for a new society of “social control.”

The major industrial and financial elites had a direct role to play in the transformation of this educational system, and a substantial interest in the ideologies which would emerge from them. As Andrew Carnegie wrote in 1889, at the top of the list of “charitable deeds” to undertake was “the founding of a university by men enormously rich, such men as must necessarily be few in any country.” It was in this context, of robber barons seeking to remake education, that we see the founding of several of America’s top universities, many of which were named after their robber baron founders, such as Stanford (after Leland Stanford), Cornell (after Ezra Cornell), and Johns Hopkins, who owned the Baltimore & Ohio Railroad.

This new class of industrialists, who emerged out of the Civil War in America, “challenged the position of the old propertied, pre-industrial elite. This struggle crystallized in particular around the reform of the educational system that had legitimated the old elite’s domination.” The modern university was born out of this struggle between elites, with the old educational system based upon religious and moral values, “and the making of gentlemen,” while the “new education” focused on “the importance of management or administration” as well as “public service, [and] the advancement of knowledge through original investigation.”

John D. Rockefeller founded the University of Chicago in 1891, and the President of the University, “initiated a new disciplinary system, which was enormously influential.” Ultimately, it “led to the formation of the department structure of the American university, which was internationally unique,” and was later exported around the world “with the help of American foundations.” This disciplinary system consisted of separating politics from economics (rejecting the notion of “political economy” and its “ideologies”), as ideology was “deemed unscientific and inappropriate in social sciences and political scientists have increasingly seen their function as service to the powerful, rather than providing leadership to populist or socialist movements.”

Nicolas Guilhot wrote in the journal Critical Sociology that since “social reform was inevitable,” these industrialists “chose to invest in the definition and scientific treatment of the ‘social questions’ of their time,” and subsequently, they “promoted reformist solutions that did not threaten the capitalistic nature of the social order,” and instead constructed a “private alternative to socialism.” Social control was not simply seen as the means through which a society – as it exists – could be maintained, but more often sought to preserve elements of that society (such as its hierarchical structure, the position of the elites) through periods of profound social change. In this sense, the question was “whether the processes of social control are able to maintain the social order [hierarchy] while transformation and social change take place.”

The United States was viewed “as the laboratory for the study of transitional society in the framework of a rapidly changing social structure,” and therefore, at a time when sociology was being established as an intellectual and academic discipline, “the United States could be viewed as a microcosm of social change and disorder.” The sociologist Edward A. Ross was the first to popularize the concept of social control in the American Journal of Sociology in 1896 and 1898, and later in his 1901 book, Social Control. Ross “viewed individuals as objects of society’s domination,” and suggested that society had to establish order “by channeling the behavior of its members into orderly relations.” Ross, largely influenced by Gabriel Tarde, did not believe that individuals were rational, but rather, that they would need to be “controlled” in one fashion or another. As some sociologists lamented in the 1920s, “all social problems turn out finally to be problems of social control,” and “the study of society was the study of social control.”

Sociology largely emerged from the University of Chicago (founded by John D. Rockefeller), with the world’s first department of sociology founded in 1892. The sociologists who rose within and out of the University of Chicago made up what was known as the “Chicago School of Sociology.” The school developed the most influential sociologists in the nation, including George Herbert Mead and W.I. Thomas, two scholars who had profound influence on the development of the concept of “social control,” and sociologists became “reform-oriented liberals, not radical revolutionaries or conservative cynics.”

The American Journal of Sociology was founded out of the University of Chicago by Albion Small, who was the head professor of the department of sociology, and became the editor of the journal for thirty years from 1895-1925. Between 1915 and 1940, the University of Chicago was the dominant force in sociology in the United States, and “the dominance of the Sociology Department was representative of the social sciences at Chicago during that period.” The school was largely made the center of not only sociology, but many areas of the social sciences, due to funding from outside sources, namely the major philanthropic foundations created by the Robber Baron industrialists in the early 20th century. The foundations became, in effect, engines of social engineering and perhaps the most effective institutions in the application of social control in modern society.

The Foundations of Social Control

The new industrial elite accumulated millions and even hundreds of millions by the end of the 19th century: Andrew Carnegie was worth roughly $300 million after he sold Carnegie Steel to J.P. Morgan in 1901, and by 1913, John D. Rockefeller was estimated to have a personal worth of $900 million. In the late 1880s, Rockefeller met Frederick T. Gates, a minister, educator, and administrator in the Baptist Church when they were negotiating the founding of a new university, which resulted with a pledge of $600,000 from Rockefeller to found the University of Chicago in 1889. At this time, Rockefeller hired Gates as his associate in charge of Rockefeller’s philanthropic ventures. Gates became central in inculcating the notion of “scientific benevolence” within Rockefeller’s philanthropies. As Gates wrote in his autobiography, “I gradually developed and introduced in all his charities the principle of scientific giving.” Gates advised Rockefeller to form a series of “self-perpetuating” philanthropies.

The circumstances in which the Rockefeller Foundation emerged are notable. In 1913, a coal strike began at a Colorado mine owned by the Rockefellers in the small mining town of Ludlow, where roughly 11,000 workers (mostly Greek, Italian, and Serbian immigrants) went on strike against the “feudal domination of their lives in towns completely controlled by the mining companies.” Repression quickly followed, culminating in what became known as the Ludlow Massacre in 1914, with the Rockefellers hiring the National Guard to attack the strikers and destroy their tent city, machine gunning the crowd and setting fire to tents, one of which was discovered to have housed eleven children and two women, all of whom were killed by the fire.

The Congressional Walsh Commission was founded to investigate the activities which led to violent labour repression at the Colorado Fuel & Iron Company in Ludlow, though the scope of the Commission was expanded to study philanthropic foundations themselves. The Commission’s founder, Frank P. Walsh, explained:

…the creation of the Rockefeller and other foundations was the beginning of an effort to perpetuate the present position of predatory wealth through the corruption of sources of public information… [and] that if not checked by legislation, these foundations will be used as instruments to change to form of government of the U.S. at a future date, and there is even a hint that there is a fear of a monarchy.

In 1916, the Walsh Commission produced its final report, the Manly Report (after the research director, Basil M. Manly), which concluded that the foundations were so “grave a menace” to society, that “it would be desirable to recommend their abolition.” Frank Walsh referred to foundations as “a menace to the welfare of society.”

As the Walsh Commission began their work, the Rockefeller Foundation sought to join forces with other major corporate leaders to advance their formation of ideology, and attended a conference “held between representatives of some of the largest financial interests” in the United States. This conference resulted in two approaches being pushed forward in terms of seeking to “educate the citizenry in procapitalistic ideology and thus relieve unrest.” One view was the interpretation that the public was provided with “poor quality of facts and interpretation available on social and economic issues.” Thus, they felt there was a need for a “publicity bureau” to provide a “constant stream of correct information” targeted at the lower and middle classes. The Rockefeller Foundation agreed that a publicity bureau was a good strategy, but added that what was also needed was “a permanent research organization to manufacture knowledge on these subjects.” A publicity bureau would “correct popular misinformation,” while a research organization would study the “causes of social and economic evils,” though of course avoiding problematic considerations of institutional analysis or radical critiques. They were instead to focus on “disinterested” and “detached” studies of social problems, portraying themselves as scientists and technicians for society, focused on reform and social control.

Rockefeller interests quickly undertook both strategies. While the Foundation was engaged in the manufacture of ideology (which specifically states that it is “non-ideological,” meaning that it supports power), the corporate arm of the Rockefeller empire hired the first public relations man, Ivy Lee, a Progressive era journalist. The Foundation hired the Canadian labour expert, William Lyon Mackenzie King (who would later become Canada’s longest-serving Prime Minister) to manage “labour relations,” promoting “company unions” over “autonomous unions,” thus undermining the freedom of labour to organize and oppose the social order as a whole, bringing them firmly within the corporate-state ideology and institutions.

Ivy Lee, for his part, attempted to undertake “damage control” for the Rockefellers, who were widely despised at the time, acting as a PR man, disseminating communiqués to media and educators attempting “to cultivate middle-class allies.” His efforts at stemming animosity toward the Rockefellers following Ludlow failed, but for years he continued to present “the human side of the Rockefellers,” earning him the rather unfavourable nickname “Poison Ivy.”

While Lee’s specific efforts were unsuccessful, the ideas behind them continued to grow and evolve. Two major social engineering projects were underway: one, the manufacture of ideology, largely the initiative of philanthropic foundations (and the social sciences), and the other, public relations as a modern form of propaganda. Both of these social engineering projects were designed to ensure social control through social engineering, and both were to have a profound impact upon both the definition and function of modern “democracies.”

Through the educational system, the social sciences, philanthropic foundations, public relations, advertising, marketing, and the media, America and the industrialized states of the world developed a unique and complex system of social control and propaganda for the 20th century and into the 21st. It is imperative to recognize and understand this complex system if we are to challenge and change it.

Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada, with a focus on studying the ideas, institutions, and individuals of power and resistance across a wide spectrum of social, political, economic, and historical spheres. He has been published in AlterNet, CounterPunch, Occupy.com, Truth-Out, RoarMag, and a number of other alternative media groups, and regularly does radio, Internet, and television interviews with both alternative and mainstream news outlets. He is Project Manager of The People’s Book Project, Research Director of Occupy.com’s Global Power Project, and has a weekly podcast show with BoilingFrogsPost.

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