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The Purpose of Education: Social Uplift or Social Control?

The Purpose of Education: Social Uplift or Social Control?

By: Andrew Gavin Marshall

This is part 2 of the series, “Class War and the College Crisis.”

Part 1: The “Crisis of Democracy” and the Attack on Education

Part 3: Of Prophets, Power, and the Purpose of Intellectuals

Part 4: Student Strikes, Debt Domination, and Class War in Canada

Part 5: Canada’s Economic Collapse and Social Crisis

Part 6: The Québec Student Strike: From ‘Maple Spring’ to Summer Rebellion?

In Part 1 of this series, I examined the elite assault on education – through the Chamber of Commerce, right-wing think tanks, and the Trilateral Commission – which arose in response to the massive social and political activist movements of the 1960s. The threat of popular democratic participation – that is, active and activist participation of the population in the decision-making process of a community or nation – was too much to bear. The fact that a significant degree of this activism had been mobilizing from the universities was enough reason for elites to declare a “crisis of democracy” and demand more apathy, complacency, and pacification from the population, more authority for themselves, and more control over the society as a whole. The result of this was neoliberalism – globally and locally – in government, the media, and the schools. The “Crisis of Democracy” was that there was too much of it. The solution, therefore, was to deconstruct democracy.

The emergence and spread of education – both mass public and university – is generally considered to be the result of the Enlightenment ideals and the emergence of democracies. The idea was that education was developed and designed for the purpose of enlightening individuals, spreading literacy and fostering intellectual pursuits which would yield for the benefit of the whole of society, a benevolent institution. Indeed, there are these elements to the history of education; but like with most things, there are other, deeper, elements to the story. So it begs the question: what is the purpose of education?

The spread of ‘mass education’ of primary and secondary education from the Prussian system in the 18th century was designed to socialize the population into a state-structured ideology (taking the monopoly of education away from the religious and community institutions and into the hands of the emerging nation-state). The aim, therefore, of mass – or public – education was not a benevolent concept of expanding and sharing knowledge (as is purported in liberal thought), but rather as a means to foster patriotism and support the state system in preserving the social class structures. In 1807, Johann Gottlieb Fichte, one of the founding philosophers of this system, explained that educated was the means toward fostering patriotism, as “universal, state-directed, compulsory education would teach all Germans to be good Germans and would prepare them to play whatever role – military, economic, political – fell to them in helping the state reassert Prussian power.”[1] As British philosopher Bertrand Russell explained:

Fichte laid it down that education should aim at destroying free will, so that, after pupils have left school, they shall be incapable, throughout the rest of their lives, of thinking or acting otherwise than as their schoolmasters would have wished.[2]

It was in the promotion of state formation and patriotism that European nations, one after the other, developed mass schooling systems. In the United States, mass schooling was not directed toward the political process of ‘state formation’, but rather the cultural process of ‘nation-building’ in the 19th century. In the 19th century, the United States remained largely rural and nonindustrial, and thus, “the apparatus of state control was extremely weak in most communities.” As Meyer et. al. argue: in the American Journal of Sociology:

The spread of schooling in the rural North and West can best be understood as a social movement implementing a commonly held ideology of nation-building. It combined the outlook and interests of small entrepreneurs in a world market, evangelical Protestantism, and an individualistic conception of the polity.[3]

In early 19th century United States, many worried about “a new industrial feudalism supplanting the old order.” For such reformers, the complex circumstances in which they found themselves – of a society in which the old ideas and institutions were disappearing and new ones were emerging – could best be addressed by the common school, “serving all citizens, stamping them American and unifying the nation.”[4] This was, in itself, a desire for ‘social control’ in a socially disruptive circumstance of rapid change in all realms of human activity. As Robert H. Wiebe explained, “the instruments of control were themselves the means of improvement,” and schools were viewed as “assimilating, stabilizing mechanisms.” By the 1830s, school reformers “were urgently seeking a new national cohesion, a source of uniquely American wholeness.” The focus on socializing children was of the utmost concern. As one reformer stated, children “must be taken at the earliest opportunity, if the seeds of good are to be planted before the seeds of evil begin to germinate.” Thus, “the role of the educator was to construct a model environment around the child.”[5]

In the early 20th century, most Americans began to view “education as a task specifically of the schools rather than of a general society, a reflection of both the school’s expertise and a modern society’s rational differentiation of functions.” The institutional structure of schools became nationalized and more state-oriented than previously:

Central agencies of education, professionalization and publicity – the major teachers colleges and accrediting agencies, a revitalized National Education Association and a lengthening list of professional journals – set the agenda for discussion and the boundaries of debate throughout the land.[6]

The lower levels of education are directed at producing “general outputs for society,” while the higher levels may actually reflect and affect “socially and politically constituted authority.” In short, the lower levels produce the masses, while the higher levels may produce the managers. The university system is the dominant form of higher education in the world, far outweighing other forms of educational institutions that have existed through history. Universities emerged during the medieval period in Europe, which have been described as “corporations having close relations with both Church and State but possessing considerable independence in relation to each.”[7]

With the universities of medieval Europe, as sociologists Ramirez and Meyer explained, “a more promising strategy considers the relationship between centralized authority and the rise of universities,” as situations of political decentralization tended to favour the establishment of universities.[8] The university which arose during the Medieval period (1150-1500) was a corporation, a guild of masters and scholars, or professors and students. This was the era in which Western civilization was rapidly developing, and this “new and uniquely Western institution resulted from a combination of powerful societal trends.” These trends, wrote John. C Scott in the Journal of Higher Education, included “the revival of mercantilism, growth of cities and the urban middle class, and bureaucratization, along with the 12th-century intellectual renaissance.” Thus:

As European society became more complex, the universal Roman church, secular governments, and municipalities required educated priests, administrators, lawyers, physicians, and clerks for business. Fulfilling this social demand were the universities, which were clearly oriented toward teaching and the learned professions.[9]

There were student-controlled universities, predominantly in the south, such as the Bologna University, as well as universities of faculty governance, such as with the University of Paris. By 1500, the faculty-controlled university became dominant. The aims of the Medieval university was the pursuit of knowledge, “divine truth and learning,” focusing on the areas of law, medicine, and theology. Monarchs and others increasingly relied upon such learned men for their advice in matters of state and court systems, foreign affairs and diplomacy. At the undergraduate level, students came from all social classes and generally studied liberal arts. At the graduate level, however, “students pursued the higher disciplines of theology, medicine, and law. Most alumni served the church, state, or municipality in various capacities.” Save Russia, most of Europe had universities by the end of the Middle Ages, with roughly 80 in the region by then. Predominantly chartered by the Roman church, or by monarchs, these pseudo-autonomous institutions “were subject to the authority of popes, monarchs, local bishops, dukes, or municipalities, depending upon the country and century.”[10]

The medieval university had a cosmopolitan nature, seen as a place of “universal knowledge” which was tied to the “universal ideology of Christendom,” and was not tied to any particular nation-state, largely developing prior to the centralization of nation-states. Scholars traveled all across Europe to the great medieval universities, from Bologna to Paris, to Oxford and Toledo, reflecting their cosmopolitan nature. As sociologist Gerard Delanty wrote in the journal, Social Epistemology:

At first the scholars were generally monks but later they were increasingly secular and became absorbed into the centralization and absolutist state. With the rise of the territorial nation-state from the seventeenth century onwards, the university became increasingly more and more nationalized and gradually lost its transnational character. With this went a decline in its ecclesiastical function: knowledge became a free-floating discourse to be used for domination or emancipation… As an institution the university owed its tremendous power to the fact that it originated at a time when the moral and political power of the Church was in decline but when the modern state system had not yet emerged.[11]

Thus, “the university found itself in a powerful position and could monopolize the field of knowledge.” As the ‘Age of Reason’ descended upon the West, the universal ideology of Christendom that was so paramount in the medieval period shifted to one of rationalizing logic and experimental science. The Reformation and scientific revolution “greatly facilitated this shift in the function of the university.” The university became the institution of knowledge, and as a result, was able to resist both church and state. However, in the transition into the modern period, with the rise of the nation-state, the state quickly sought to ally with the university, which increasingly came under state patronage. The state, whether the British Restoration government or French Absolute state, viewed the universities “as important institutions in the administration of society.”[12]

As the nation-states developed, particularly in England, Spain, and France, the relative autonomy of the first universities started to be eroded. As one academic wrote, “universities throughout Europe in the course of the fifteenth century tended in the same direction – towards the nationalization of Paris as of all other universities.” The University of Paris, then, became subservient to the crown and, thereafter, universities increasingly became national institutions with the mission of “service to the state.”[13]

The role for universities in training a new governing elite became increasingly important as the schools came under the control of new nation-states, municipalities and principalities: “Kings therefore emphasized the acquisition of advanced, secular knowledge and technical skills by students – future public servants – in order to build up efficient state bureaucracies.” Close advisers to kings, princes, and republics would also be expected to be men with legal training from the universities. This era marks the transition from the medieval university to the early modern university:

the early modern university was far more socially responsive than the medieval university because of humanist professors’ emphasis on ethical values for themselves and their students. Early modern universities continued to expand as a movement while making solid scientific and scholarly contributions. The newly consolidated state began to increase visitations, intervention, regulation (curriculum, subjects taught, and publications allowed), and appointment of chancellors.[14]

This was also the era in which these institutions increasingly moved toward professionalization in the modern sense, armed with a new “sociopolitical mission” as “an ideological arm of the state.” As one writer explained it, “The state protects the action of the University; the University safeguards the thought of the state.” Between 1500 and 1800, the university in Europe experienced an enormous expansion, even into Russia, which was untouched by the medieval university, and Europe had roughly 190 universities existing during this period. This era of early modern civilization, with the growth of the nation-state, and the imperial expansion into the New World, the Spanish even put in place state-controlled colonial universities across Latin America, the first of which was founded in Santo Domingo [today Haiti and the Dominican Republic] in 1538. These universities, overtly serving a colonial agenda, “prepared missionaries and jurists for the settlement of the New World.”[15]

With the Enlightenment came a new form of nation-state, the Liberal Nation-State, which further influenced the changing nature of the university during this era. The Enlightenment era saw the further development of the university “under the auspices of the central and national state providing it with a system of knowledge, which was at the same time a system of power.”[16] The aim was to put these universities “to work for the new liberal State and its economic needs.”[17]

Fichte, who was considered one of the intellectual fathers of the Prussian mass schooling system, was also influential in the move toward a modern university system, and his goals were quite similar. Just as mass schooling was established to serve the state, Fichte felt that “the academics should be the new spiritual leaders of society.” The main difference between this Enlightenment model of the university and the medieval one was marked by the shift from city to nation. As the Enlightenment had different effects in different nations, the relationship that developed between the nation and the university was different in each case. In Germany, the university became the cultural center of the nation, while in France its focus was more on producing an actual core of civil servants. In each case, however, the aim of the university was to serve the nation in some capacity, whether functionally, ideologically, culturally, or all of the above.[18]

With the development of the American university system, we still see the objective of serving the nation as inherent in this Enlightenment idea of the ‘modern university.’ In America, the new schools were replacing the old, ill-equipped and elitist colonial colleges. The establishment of universities became a core mission of the founders, as ten key founders also founded academic institutions, including George Washington, Thomas Jefferson, Benjamin Franklin, James Madison, George Wythe, Benjamin Rush, William S. Johnson, William R. Davie, Abraham Baldwin, and Manasseh Cutler. Thus, many of the schools had inherent within them a ‘nationalizing’ mission, a mission to serve the nation, though it may not be explicitly the State.[19]

At the turn of the 20th century, there was a great debate on the missions of the new distinctly American universities. There were profound social, political, and economic changes that had occurred in the post-Civil War period, as America experienced its Industrial Revolution, rise of the corporations, and with that, the Robber Baron industrialists, who increasingly took over the political culture of the nation, which was increasingly centralizing, increasingly imperialistic, and with the labour class exponentially distrustful, resentful and resistant to the new dominant capitalistic powers that emerged. This was further checked by an increasingly educated middle class, informed largely by the rapid new developments in communications and technology, who were also becoming wary of the excesses of Big Business, but at the same time, worried about the threat of rebellion from the lower classes. In short, it was a socially explosive situation, in what came to be known as the Progressive Era, as middle class reformers took the stage in advocating and implementing major social reforms to establish a more stable, lasting society. Thus, the new modern American universities were to combine the ideals of research, teaching, and public service, as many believed the schools should “advance basic knowledge and provide the technical expertise required by a modern industrial society.”[20] Thus, as Scott wrote:

Faculties in the new applied sciences, emerging social sciences, and even an important minority in the humanities believed strongly in the social utility of their disciplines. Professors in the social sciences were often committed to public service. To this end, schools of political science were established at Columbia, Michigan, and Wisconsin during the 1880s and 1890s. At the same time, within departments of economics and sociology, there were devotees of social utility. Psychology, which was then a part of philosophy, also developed a faction devoted to utility (pragmatism). Social scientists served their society in the capacity of experts, which also involved research. By 1900, the “useful” university was establishing such untraditional fields of study as business administration, physical education, sanitary science, and engineering.[21]

The Robber Baron industrialists of the late 19th century – Morgan, Rockefeller, Carnegie, Astor, Vanderbilt, Harriman, etc. – were unquestionably the dominant powers in the country. They controlled the economy, hundreds of corporations, had hundreds of millions or billions in wealth, the banks, bought the politicians, directed foreign policy into an increasingly imperialistic direction, and thus, they saw it as essential to cement their control over society through social institutions, as the masses were hateful of them and needed to be properly controlled. Social control became the major concept of interest for elites and middle class reformers.

In this era of social control, education became increasingly important, not only in terms of mass schooling, which experienced many reforms, but also in terms of the university system. 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.[22] 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.”[23] 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.”[24]

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.”[25] 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.”[26]

There was an obvious desire to “foster the teaching of practical knowledge and skills serving the development of commerce and industry, against the prevailing academic traditions.” However, it also allowed for “a way of diagnosing the social upheavals caused by the accelerated shift from a still largely agrarian society to an industrial mass society” of which they were the dominant class. In particular, the labor unrest of the 19th century was especially prevalent in the minds of the dominant class. 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.”[27] In other words, it marked the construction of a highly corporatist society, merging state and corporate power through institutions, individuals, and ideology.

The Social Sciences and Social Control

The concept of ‘social control’ emerged from the developing field of sociology as a discipline in the late 19th and early 20th centuries. As sociologist Morris Janowitz wrote in the American Journal of Sociology, “in the emergence of sociology as an intellectual discipline, the idea of social control was a central concept for analyzing social organization and the development of industrial society.”[28] Social control is largely viewed as forms of control which reduce coercion, and thus, enhance consent to the system or organizations in question. Even a society with an effective system of social control would require a structure of coercion, but depending on how advanced the social control system is, the less need there would be for coercion. Hence, the societies which are the most advanced in social control would also be less dependent upon internal methods of coercion. Thus, it was within liberal democratic states that both the study and implementation of social control became most effective. 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.”[29]

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.”[30]

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. It was with Rockefeller that we see the development of the scientific notion of philanthropy.[31] Rockefeller had founded the Institute for Medical Research in 1901, the General Education Board (GEB) in 1903, and the Sanitary Commission for the Eradication of Hookworm in 1909. Rockefeller, however, wanted to consolidate his philanthropic enterprise as he had his industrial oil enterprise, and so in 1909 he decided he wanted to establish one great foundation, which “would be a single central holding company which would finance any and all of the other benevolent organizations, and thus necessarily subject them to its general supervision.”[32] In 1913, the Rockefeller Foundation received a charter of incorporation from the State of New York.

Between 1881 and 1907, Andrew Carnegie had contributed over $40 million to establishing more than 1,600 libraries in the United States alone, but it was after selling Carnegie Steel to J.P. Morgan in 1901 for $300 million that Carnegie began to look at philanthropy on a much larger scale. In 1902, he founded the Carnegie Institution of Washington, and in 1904, founded the Carnegie Corporation of Washington, of which the mission was, “to encourage in the broadest and most liberal manner, investigation, research and discovery, and the application of knowledge to the improvement of mankind,” much like the original mission statement of the Rockefeller Foundation created some years later, “to promote the well-being of mankind.”[33] Carnegie founded, in 1911, the Carnegie Corporation, chartered by the New York State legislature.[34]

These philanthropic foundations, and the many others that appeared in and around the same time, and thereafter, were largely imbued with the idea of “science in the service of society” as a goal for the foundation, basing its actions upon a new rationality brought on by the scientific revolution, and by the notions of reform pushed forward in the Progressive Era, based largely upon the concept of scientific social planning “to problems that educators, the new sociologists, social workers, and political scientists found important.” However, as the wealth of the foundations and the positions of their patrons attracted criticisms, a Congressional commission was on industrial relations (founded to settle a matter related to a brutal repression of a mining strike by a Rockefeller-owned mining company) expanded its scope to deal with the general issue of the foundations. The Walsh Commission, as it was known (after its founder, Frank P. Walsh), was formed in 1914, and Walsh explained the inclusion of the foundations in the commission by postulating that:

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.[35]

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.” No such actions were taken.[36]

David Nugent, an anthropologist at Emory University, wrote a rather lengthy article for the academic journal, Identities, on the role of foundations in shaping the social sciences. Nugent takes a look at the development of the social sciences in relation to the construction of an American Empire. As such, the shaping of the social sciences was designed, at least in part, with an aim to facilitate the emergence and maintenance of a large, globally expanding empire, but an empire unlike previous ones, with no official overseas colonies; rather, it was to be an informal global empire. Globally expansive and locally administered colonies were to replaced with globally expansive and locally applicable social sciences. In order for the empire to spread its military and commercial might across the world, first, the ideas at the heart of the empire must proliferate globally. Imperialism is not merely a political or economic endeavour; it is, and arguably more importantly, a socio-cultural process.

The colonization of the Americas and Africa by the European powers – with their political apparatus and for the benefit of their commercial and financial appendages – would not have been possible without the powerful social and cultural imperialism of the missionaries, whose ‘gospel’ debased traditional local cultural, spiritual, and religious practices and introduced new conceptions of morality, values, truth, justice, and knowledge. The social sciences then, presented the world with a form of imperialism focused on the construction of a new form of knowledge by which to understand, define, categorize, and change our world. The new missionaries spreading this new gospel were the dominant American foundations, most notably, the Rockefeller and Carnegie Foundations, later to be joined by a plethora of others, including the Ford Foundation.

Nugent divides the construction of the social sciences in America, and indeed around the world, into three specific time periods; periods which are defined by economic crises and major geopolitical shifts taking place within those parts of the world which the United States seeks to dominate and control. The first period Nugent identified is what he referred to as the “Formation of Overseas Empire,” from 1900-1940. This period was preceded with an economic depression in 1893 and ended with World War II, though the most rapid changes in the social sciences occurred between World War I and World War II. The second period Nugent identified, the “Consolidation of Overseas Empire,” covered the period of 1943 to 1972, responding to the Depression in the 1930s, the ending of World War II and the subsequent decolonization of the so-called ‘Third World,’ and came to an end with the end of the Bretton Woods agreement in 1972, signaling a new phase of rapid economic changes. The third major period then, the “Reconstruction of Overseas Empire,” took place roughly between 1972 and 2001, which began with the recession of the early 70s, marking profound changes across the Third World, the emergence of neoliberalism, and advanced into the 21st century.[37]

Nugent rightly points out that, while the sponsors of the social sciences, namely, the major foundations, produced such knowledge with specific purpose and intent in establishing and re-enforcing hegemony, empire, domination, social engineering, and social control, it would be a mistake to brand all social science knowledge as being in the service to such interests. Indeed, Nugent wrote, “each of the three period generated a small body of progressive scholarship alongside a much larger corpus of conventional knowledge.”[38]

In the period between World War I and World War II, just as the foundations were themselves emerging, their initial focus in education was in financing the reorganization of major universities in the United States, and almost simultaneously, “they also oversaw sweeping changes in the organization of the social sciences – in the aims, methods, and means of evaluating research, in the background, training, and professional activities of the practitioners, and in the institutional processes that underwrote the production of knowledge.”[39] In this period, both Western scholars in North America and Europe, as well as non-Western scholars in Africa, the Americas, and even in China, were concerned with studying the ways in which North Atlantic industrial capitalism and European imperialism had been “shaping regional and local arenas around the globe, in undermining indigenous economic and socio-political forms, in precipitating enormous population movements, and in stimulating novel cultural configurations and new forms of political affiliation.”[40]

While the Rockefeller philanthropies (including the General Education Board, the Laura-Spellman Rockefeller Memorial, and the Rockefeller Foundation) as well as the Carnegie Corporation were the most influential in this process, they were joined by the Russell Sage Foundation, the Julius Rosenwald Fund, the Phelps-Stokes Fund, and eventually several prominent think tanks (which they also created), such as the Brookings Institution and the Council on Foreign Relations. It was not merely within the United States that these foundations organized and funded the social sciences, but in fact across much of the English-speaking world as a whole, and indeed, well beyond it. Much of their finances went to helping various organizations reform and accommodate these new forms of knowledge; however, the foundations also created several new institutions to achieve their goals in the social sciences or to focus on the specific goal of altering particular institutions. As Nugent noted:

during a period when nation-states were the main arbiters of cultural messages and capital flows, the social science infrastructure that Rockefeller, Carnegie and the other foundations helped to construct was largely independent of (though in no way in conflict with) national controls. In the long run, this infrastructure promoted a “flexible accumulation of knowledge” on a global scale, and in the process helped bring into being an international public sphere of social science knowledge.[41]

This task of “social control” was envisioned by the foundations as consisting in “helping the masses ‘adjust’ to the rigors of industrial life and representative democracy.” The problems with social control that erupted in this era were identified by the foundations as being caused by a number of factors, including the deteriorating condition of the cities, a lack of understanding of the immigrant populations and democratic institutions, resulting in the breakdown of social order. Thus, as Nugent wrote, “the result was a sweeping program of social change and control.”[42]

A Rockefeller Foundation report acknowledged that many people in the world had already been subjected to the “enormously damaging effects… of industrial activity,” and saw it as necessary to alter the “radically false views of life and radically false views of nature” by many of these people. To bring these people into the modern age, foundations agreed, they needed to effect “almost a social revolution,” and to offer these people “training in new forms of political and social organization.” John D. Rockefeller, Jr., articulating the purpose of the Rockefeller Foundation, explained that it would offer “the best of Western civilization, not only in… science but in mental development and spiritual culture.” Science, of course, was the basis upon which the foundations were created: to not only advance the sciences within their own fields, but to advance the principle of the “scientific management” of society. Wicliffe Rose, a professor who was involved in managing several different Rockefeller philanthropies, wrote in a memorandum for Rockefeller officials 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… Science is the method of knowledge. It is the key to such dominion as man may ever exercise over his physical environment. Appreciation of its spirit and technique, moreover, determines the mental attitude of a people, affects the entire system of education, and carried with it the shaping of a civilization.[43]

In the 1920s, the Rockefeller interventions in the social sciences were almost exclusively undertaken by the Laura Spelman Rockefeller Memorial (LSRM), named after John D. Rockefeller’s wife after her death. The Rockefeller Foundation, following the public exposures of the Walsh Commission, primarily maintained itself to funding medicine and public health. Beardsley Ruml, who became director of the LSRM in 1922, was largely responsible for the Rockefeller move into the social sciences, as the LSRM had been primarily concerned with social welfare prior to Ruml’s directorship. On top of the social sciences, Ruml directed the LSRM into funding public administration, and Ruml felt that, “the route to advancing human welfare was through scientific social research,” and thus, “means had to be devised to bring the social scientist into intimate contact with social phenomena.” The main idea was that the social sciences should elevate to establish an equal relationship with that of the natural sciences by making them more “scientific,” and thus, more efficient and able to handle social problems.[44]

Two general scientific objectives were established for organizing the social sciences, the first of which was, “to increase for the scientist and scholar the possibilities of immediate personal observation of the social problems or social phenomena which were under investigation,” and the second objective was to promote inter-disciplinary research. To undertake this, Ruml set out two specific programs of action:

First, the creation of institutional centers in various parts of the world that would with Rockefeller money embody scientific teaching and research. Collaborative research was to be encouraged through the specific research grants to these institutions. These centers would therefore not only be creative institutions but would also serve as a model for the development of the social sciences generally. Second, Ruml began an extensive fellowship program which was designed to complement the training provided by the institutional centers and increase the number of able people working in the field.[45]

Ruml also saw the need to strengthen existing institutions, notably, the elite American universities, which would become “institutional centers of social research.” Edmund E. Day, director of the Rockefeller Foundation’s Social Sciences program from 1928-1937, explained in 1930 that the plan was to develop “within each country of any importance some center which would fructify the local situation and influence other institutions within the same sphere of scientific influence, then within the larger regional centers.” Focusing on the United States and Europe, the LSRM stated in 1926 that its main policy was directed at establishing 12 or 15 centers of social science research around the world, one specific center in each major European country, (University of Stockholm, Deutsche Hochscule für in Berlin, and the London School of Economics), and several in the United States. The LSRM was merged into the Rockefeller Foundation in 1929, which adopted the same agenda established by Ruml in seeking to cultivate through such institutions “a scientific approach to social problems.”[46]

Through the fellowship program, established at the LSRM by Ruml in 1923, students in Europe and Australia were often brought to study in the United States, with the favoured subject within the social sciences being economics, considering it was the closest to establishing itself along the lines of the physical sciences. As the Rockefeller Foundation prepared to incorporate the LSRM into its institutional structure, Edmund E. Day took over as director of the Social Sciences from Ruml in 1928, with the new Social Science division becoming a “formal organization,” just as the Foundation’s other major divisions of medicine, natural science, and the humanities. In 1930, Day wrote that, “what we have to do is to establish in the social sciences the scientific tradition and the scientific habit of mind,” and thus, the Foundation should work to strengthen “certain types of interest and certain habits of thought.” Naturally, this would be “thought” which would be in the “interest” of the Foundation, itself. The aim in doing this was to “coordinate the scientific attack upon social problems,” as education professor, Donald Fisher, wrote in Philanthropy and Cultural Imperialism. Edmund Day saw the potential for the social sciences to engage in “human engineering,” and stated quite bluntly: “the validation of the findings of social science must be through effective social control.”[47]

In 1932, the Foundation put emphasis on the support for creating a field of “International Relations,” within Political Science, as well as “the planning and control of economic structures and economic process.” In the area of “International Relations,” the Rockefeller Foundation hoped to “promote understanding among nations and to reduce the friction which may lead to warfare,” which, combined with the program of “Economic Control” was hoped to prevent any future “crisis of capitalism.” A 1934 Rockefeller Foundation committee of trustees produced a report on the Social Sciences Division, explaining, “we now have the opportunity to see whether we cannot assist in applying to concrete problems of our social, political and industrial life some of the ideas and data which research all over the world is rapidly developing.”[48]

In 1932-33, as the Board was considering the proposals of reform in education, all the programs were subject to the ultimate approval of the Board of Trustees of the GEB, which at the time included 15 individuals, all of whom were white, male protestants, including John D. Rockefeller, Jr., and his 27 year old son, John D. Rockefeller, III, and most of whom had been educated at Ivy League schools or the University of Chicago, which had been founded by John D. Rockefeller. Nine of the fifteen trustees were also academics, and seven of them had been senior administrators at major educational institutions, including Harvard, Yale, Princeton, Dartmouth, N.Y.U, Stanford, and the University of Chicago. Other members of the trustees included Owen Young, Chairman of the Board of General Electric, as well as banker Arthur Woods, and Raymond Fosdick, a Wall Street lawyer who would later become President of the Rockefeller Foundation. By 1931, the GEB’s survey of education emphasized three major fields of concentration:

1) the study of the learning process and the mental, physical, and moral development of the individual; 2) the problem of “preparing the individual for vocations and leisure”; and 3) the means for relating education to an evolving society, that is education which would “insure the active adaptation of the individual to the changes which may come in his social, physical and aesthetic environments.”[49]

It was Edmund E. Day, the new director of the Social Science Division, who assumed the greatest leadership in coordinating national reform of education, having previously been an economics professor at Dartmouth, Harvard, and was Dean of the School of Business Administration at the University of Michigan, when he subsequently led the social sciences division at the Laura Spelman Rockefeller Memorial until its incorporation into the Rockefeller Foundation between 1928 and 1930, at which time he assumed his role as director of the Social Sciences Division within both the Rockefeller Foundation and the General Education Board. Day was responsible for articulating and selling the ideas of educational reform to the Board of Trustees, which he did in 1932 in a memorandum entitled, “Cultural Adjustment to a Changing World.” In regards to the social upheavals of the early Depression years, Day wrote in 1933 that, “Industrialism and urbanism… are new forces of tremendous power, neither of which has been brought under sensible control. The way out is not yet evident, and a prolonged period of readjustment is presumably unavoidable.” Day acknowledged that “prevailing social ideas and ideals in the United States were seriously out of accord with current social forms and forces,” however, he argued, the answer did not lie in reforming the social world to meet the needs of the individual, but in adjusting the individual to the social world. As Day wrote, “we must look chiefly to the school for the major efforts toward cultural adjustment of the individual, since the school is a social instrumentality with a uniquely flexible adaptability and with a primary responsibility to meet this need.” Thus, the school could “set the individual in satisfactory general relation to the world in which he lived.”[50]

Between 1919 and 1940, the Rockefeller, Carnegie, and other major philanthropies provided roughly $3.2 million of support for the social sciences in British universities, and a further $1.7 million for “independent organizations which were closely tied to the universities.” The two major Rockefeller philanthropies at the time, the LSRM and the RF, provided roughly 95% of these expenditures. Thus, it was American philanthropy, and principally the Rockefeller foundations which were directly responsible for the development of British social sciences in this period. Only in the late 1930s did British philanthropy pick up the slack from the Rockefeller foundations.[51]

Rockefeller money was also pivotal in the establishment of the London School of Economics (LSE), which “had become an important world centre of the social sciences,” in large part due to the involvement of Rockefeller philanthropies. The Rockefeller foundations selected the LSE specifically for support because in the early 1920s, it was the most advanced center of social sciences in Britain, and could thus serve as a model for the rest of British institutions. Further, the director of the LSE, Lord William Beveridge (also a member of the British Eugenics Society), “shared with Rockefeller philanthropy the same conception of the way in which the social sciences should develop,” specifically in terms of utilizing the “natural scientific approach” to social problems. Also important to note as to why the LSE was chosen, was its strategic location in London, at the heart of the world’s most powerful and globally expanded empire at the time.[52]

Between 1923 and 1939, the LSRM and the Rockefeller Foundation provided the LSE with over $2 million, during which time the school expanded rapidly, becoming “the leading centre of research in the Social Sciences” in the British Empire. Building expansions, the establishment of the leading research library in Britain, acquisition of land, equipment, and a dramatic increase in full-time teachers from 26 in 1923 to 76 by 1937, was largely due to Rockefeller support. Rockefeller money in particular ensured the development of anthropology, international relations, and social biology, and student enrollment also dramatically increased with large grants from Rockefeller philanthropies for postgraduate research and teaching. Thus, by the end of the 1930s, the LSE had “become an international centre training many foreign students.” Grants also contributed to expanding and supporting publications by LSE faculty, with an enormous amount of books and articles emerging as a result of this support, and supported the creation of journals run out of the school as well.[53]

Rockefeller money also flowed into developing the social sciences at Oxford, funding research lecturers for Human Geography, African Sociology, Colonial Administration, Public Administration, and Public Finance, with more money flowing into forming a training program for the social sciences as well as research groups in the area of Economics, Colonial Administration, and Studies of Native Populations, subjects explicitly related to maintaining Britain’s imperial status. Rockefeller foundations also expanded a fellowship program into every university in Britain, granting a total of 108 fellowships in the social sciences to British citizens between 1924 and 1940, and “by far the largest number were awarded to economists,” with Political Science following behind, and subsequently sociology and history, and only 8 anthropology fellowships.[54]

In 1946, a British government report surveying the state of British universities concluded that the social sciences, which had received no prior support from government sources, presented as many possibilities of generating applicable knowledge as did the natural sciences, and were thus worth of government support in order to advance the social sciences in the “national interest.” A committee was subsequently established to handle government subsidies of the social sciences, and in the 1950s, the British social sciences experienced a major “boom,” advancing what was begun with Rockefeller money so that it became state sanctioned, and, in effect, a new socially constructed reality of higher education in Britain: “the social sciences had become a recognized part of the university curriculum.”[55] As professor of education Donald Fisher wrote:

Indeed Rockefeller philanthropy prepared the way for the post-World War II developments in Britain not only in terms of the increased spending by government but also with respect to what was regarded as important in the social sciences. Rockefeller philanthropy had determined which subjects should be studied, which research questions should be answered, and which methods should be utilized to answer these questions.[56]

This era marked the emergence of what has been referred to as “technocratic liberalism,” whereby social problems were addressed (in large part by the state, or at least state sanction) through the technical application of programs of social engineering: “the one best way,” the most efficient, effective, and “scientific” approach to understanding and addressing social problems. This was the task taken up by the “rational reformers” of the era, emerging out of the Progressive period, in which the techniques of the social sciences were used to create a system of “social control.” These social engineers– social scientists, technocratic reformers, experts, philanthropists, etc. – felt that society could “control its collective destiny in contrast to drifting with the tides… even while working toward the management of the many by the few.”[57]

The notion that the social sciences were to be used in the application of and for the purpose of ‘social control’ is not an abstract theoretical interpretation of the Foundation’s policies; it was, in fact, stated policy. In 1933, the President of the Rockefeller Foundation, Max Mason, wrote that the Foundation’s policies:

… were directed to the general problem of human behavior, with the aim of control through understanding. The Social sciences, for example, will concern themselves with the rationalization of social control; the Medical and Natural sciences propose a closely coordinated study of sciences which underlie personal understanding and personal control. Many procedures will be explicitly co-operative between divisions. The Medical and Natural Sciences will, through psychiatry and psychobiology, have a strong interest in the problems of mental disease [emphasis added].[58]

The influence of the major philanthropic foundations is exerted in a plethora of ways, including, wrote political scientist Joan Roelofs:

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.[59]

Foundations engage in “considerable collaboration” with networks of nonprofits (which they create and fund), corporations, international organizations, and government entities at the local, state, national and international levels. Foundations effectively “blur boundaries” between the public and private sectors, while simultaneously effecting the separation of such areas in the study of social sciences. This boundary erosion between public and private spheres “adds feudal elements to our purported democracy, yet it has not been resisted, protested, or even noted much by political elites or social scientists.”[60] As foreign policy strategist Zbigniew Brzezinski indicated, the blurring of boundaries “serves United States world dominance”:

As the imitation of American ways gradually pervades the world, it creates a more congenial setting for the exercise of the indirect and seemingly consensual American hegemony. And as in the case of the domestic American system, that hegemony involves a complex structure of interlocking institutions and procedures, designed to generate consensus and obscure asymmetries in power and influence.[61]

In the early twentieth century, the Walsh Commission warned that, “the power of wealth could overwhelm democratic culture and politics,”[62] and the Final Report stated, “that foundations would be more likely to pursue their own ideology in society than social objectivity.”[63] The Carnegie Corporation and Rockefeller Foundation, from their origins, immediately began cooperating heavily with one another, coordinating activities and planning agendas. That the financial weight of these two institutions – and with the Ford Foundation to enter the scene with an even larger endowment – the coordinated influence over higher education yielded an immense power for the owners of foundations in the construction of ideology and knowledge. In providing the funding, they have the power to direct the efforts of scholars and academics, to create entire disciplines and schools of thought, to fund conferences, academic journals, publications, and think tanks. The fact that the role of philanthropic foundations in the construction and management of the educational system itself is so little known is a sign of the subtle, yet pervasive power structures that exists within academia.

Rather than looking at it from a conspiratorial view, however, look at it historically. Just as the Kings and Queens of Europe supported the development of universities in order to furnish managers and technocrats for their dynastic empires, so too do the modern dynastic powers – in this case, banking families – seek to tie the direction and purpose of higher education close to their own interests, and for the same reasons. It is not conspiratorial precisely because of the nature of the social phenomena itself: there are far too many social actors at play, dynamic and interactive and reactive relationships between different individuals, institutions, and ideas. Resistance and problems always emerge, even for the most dominant of powers and institutions. Thus, the financial-dynastic powers must be pragmatic in their approach, willing to reform, change, reorganize and regroup. Simply because it is not well known is not reason enough to think it a ‘conspiracy theory.’ The facts are known, just not widely disseminated.

The next part of this series further takes up the question – what is the purpose of education? – and adds to it: what is – and what should be – the role of intellectuals in society? In particular, the focus will be on the roles of radical versus technical intellectuals, within educational institutions and the society as a whole: from the ancient prophets, to Walter Lippmann, from Zbigniew Brzezinski to Noam Chomsky, this dichotomy of intellectuals has existed in society for a great deal of human history. What are the implications this could have for today’s college crisis and class warfare?

Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada, writing on a number of social, political, economic, and historical issues. He is also Project Manager of The People’s Book Project. He also hosts a weekly podcast show, “Empire, Power, and People,” on BoilingFrogsPost.com.

Notes

[1]            Francisco O. Ramirez and John Boli, “The Political Construction of Mass Schooling: European Origins and Worldwide Institutionalization,” Sociology of Education (Vol. 60, January 1987), page 5.

[2]            Bertrand Russell, The Impact of Science on Society (Unwin Paperbacks, London: 1952), page 62.

[3]            John W. Meyer, et. al., “Public Education as Nation-Building in America: Enrollments and Bureaucratization in the American States, 1870-1930,” American Journal of Sociology (Vol. 85, No. 3, November 1979), page 592.

[4]            Robert H. Wiebe, “The Social Functions of Public Education,” American Quarterly (Vol. 21, No. 2, Part 1, Summer 1969), pages 147-148.

[5]            Ibid, pages 149-150.

[6]            Ibid, page 157.

[7]            Francisco O. Ramirez and John W. Meyer, “Comparative Education: The Social Construction of the Modern World System,” Annual Review of Sociology (Vol. 6, 1980), page 377.

[8]            Ibid, pages 378-379.

[9]            John C. Scott, “The Mission of the University: Medieval to Postmodern Transformations,” Journal of Higher Education (Vol. 77, No. 1, January/February 2006), page 6.

[10]            Ibid, pages 6-7.

[11]            Gerard Delanty, “The Idea of the University in the Global Era: From Knowledge as an End to the End of Knowledge?” Social Epistemology (Vol. 12, No. 1, 1998), page 6.

[12]            Ibid, pages 6-7.

[13]            John C. Scott, “The Mission of the University: Medieval to Postmodern Transformations,” Journal of Higher Education (Vol. 77, No. 1, January/February 2006), page 10.

[14]            Ibid, page 11.

[15]            Ibid, page 12.

[16]            Gerard Delanty, “The Idea of the University in the Global Era: From Knowledge as an End to the End of Knowledge?” Social Epistemology (Vol. 12, No. 1, 1998), page 7.

[17]            José-Ginés Mora, “Governance and Management in the New University,” Tertiary Education and Management (Vol. 7, No. 2, 2001), page 97.

[18]            Gerard Delanty, “The Idea of the University in the Global Era: From Knowledge as an End to the End of Knowledge?” Social Epistemology (Vol. 12, No. 1, 1998), page 9.

[19]            John C. Scott, “The Mission of the University: Medieval to Postmodern Transformations,” Journal of Higher Education (Vol. 77, No. 1, January/February 2006), pages 15-16.

[20]            Ibid, pages 23-24.

[21]            Ibid, page 25.

[22]            Nicolas Guilhot, “Reforming the World: George Soros, Global Capitalism and the Philanthropic Management of the Social Sciences,” Critical Sociology, Vol. 33, 2007, page 448.

[23]            Ibid, page 450.

[24]            Ibid, page 451.

[25]            Erkki Berndtson, “Review Essay: Power of Foundations and the American Ideology,” Critical Sociology, Vol. 33, 2007, page 583.

[26]            Ibid, page 584.

[27]            Nicolas Guilhot, “Reforming the World: George Soros, Global Capitalism and the Philanthropic Management of the Social Sciences,” Critical Sociology, Vol. 33, 2007, page 452.

[28]            Morris Janowitz, “Sociological Theory and Social Control,” American Journal of Sociology (Vol. 81, No. 1, July 1975), page 82.

[29]            Ibid, page 85.

[30]            Anthony J. Cortese, “The Rise, Hegemony, and Decline of the Chicago School of Sociology, 1892-1945,” The Social Science Journal (Vol. 32, No. 3, 1995), page 237.

[31]            Robert F. Arnove, ed., Philanthropy and Cultural Imperialism: The Foundations at Home and Abroad (Indiana University Press, Bloomington: 1982), pages 26-28.

[32]            Ibid, pages 28-29.

[33]            Ibid, pages 30-31.

[34]            Ibid, pages 32-33.

[35]            Ibid, pages 33-35.

[36]            Ibid, pages 46-47.

[37]            David Nugent, “Knowledge and Empire: The Social Sciences and United States Imperial Expansion,” Identities (Vol. 17, Issue 1, 2010), pages 2-3.

[38]            Ibid, page 3.

[39]            Ibid, page 4.

[40]            Ibid, pages 5-7.

[41]            Ibid, pages 9.

[42]            Ibid, pages 9-10.

[43]            Ibid, pages 10-11.

[44]            Robert F. Arnove, ed., Philanthropy and Cultural Imperialism: The Foundations at Home and Abroad (Indiana University Press, Bloomington: 1982), pages 234-235.

[45]            Ibid, page 235.

[46]            Ibid, pages 235-236.

[47]            Ibid, pages 236-237.

[48]            Ibid, page 238-239.

[49]            Charles D. Biebel, “Private Foundations and Public Policy: The Case of Secondary Education During the Great Depression,” History of Education Quarterly (Vol. 16, No. 1, Spring 1976), pages 6-8.

[50]            Ibid, pages 10-11.

[51]            Robert F. Arnove, ed., Philanthropy and Cultural Imperialism: The Foundations at Home and Abroad (Indiana University Press, Bloomington: 1982), pages 239-241.

[52]            Ibid, page 241.

[53]            Ibid, pages 244-245.

[54]            Ibid, pages 245-247.

[55]            Ibid, pages 248-251.

[56]            Ibid, pages 252-253.

[57]            Dennis Bryson, “Technocratic Liberalism and Social Science,” Radical History Review (Vol. 64, 1996), pages 119-120.

[58]            Lily E. Kay, “Rethinking Institutions: Philanthropy as an Historigraphic Problem of Knowledge and Power,” Minerva (Vol. 35, 1997), page 290.

[59]            Joan Roelofs, “Foundations and Collaboration,” Critical Sociology, Vol. 33, 2007, page 480

[60]            Ibid.

[61]            Ibid, page 481.

[62]            Ibid, page 483.

[63]            Erkki Berndtson, “Review Essay: Power of Foundations and the American Ideology,” Critical Sociology, Vol. 33, 2007, page 580

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Podcast: “Black History in the United States: Slavery, Segregation, and Social Control”

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In a highly critical black history of the United States, this episode examines the social construction of race (and racism) starting in the late 1600s as a means of social control, devised through the colonial legal system to separate white and black labour, prison labour, black education system, the developments of ghettos as a means of segregating the black population, the civil rights organizations in an attempt to steer the movement away from its natural and potentially revolutionary course to confront the entire social- economic- political system of racism, and the “war on drugs” and laws disproportionately targeting the black community.

Understanding the history of those who have been most oppressed within it is vital to understanding the true nature of the society we live in; thus, the black history of the United States is indivisible from the total history of the United States, and the subject bears relevance to the future of poverty and class struggle in a world of enormous inequality.

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RELATED: “An Empire of Poverty: Race, Punishment, and Social Control”

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An Empire of Poverty: Race, Punishment, and Social Control

An Empire of Poverty: Race, Punishment, and Social Control

By: Andrew Gavin Marshall

NOTE: The following is a brief sampling of some of the concepts, ideas, issues, and events that are to be thoroughly researched and written about in two chapters of The People’s Book Project which will be funded through The People’s Grant, of which the objective is to raise $1,600 from readers and supporters. If you find the information in the following sampling of interest, please donate to the People’s Book Project and help facilitate expanded research on these and other related subjects into constructing two significant chapters for the book. For a look at what other information will be included in these chapters, see the latest information on The People’s Grant.

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Slavery and the Social Construction of Race

Between 1619 and 1860, the American legal system, from that imposed by the British Empire to that constructed following the American Revolution, “expanded and protected the liberties of white Americans – while at the same time the legal process became increasingly more harsh as to the masses of blacks, with a steady contraction of their liberties.” This process marked the ‘social construction’ of race and with it, racial superiority and inferiority, delegated to whites and blacks, respectively.[1] Interesting to note was that between 1619 and the 1660s, the American colonial legal system was “far more supportive for blacks; or, phrased differently, the early legal process was less harsh.” Georgia’s original charter, in fact, had three prohibitions: no alcohol, no free land titles, “and no Negro slaves.” In Virginia, as late as 1672 and 1673, there were legal records of some slaves “serving limited terms as indentured servants rather than being sentenced to the eternity of slavery.”[2]

The colonies in the Americas required a massive labour force, “Between 1607 and 1783, more than 350,000 ‘white’ bond-labourers arrived in the British colonies.”[3] The Americas had both un-free blacks and whites, with blacks being a minority, yet they “exercised basic rights in law.”[4] Problems arrived in the form of elites trying to control the labour class. Slaves were made up of Indian, black and white labourers; yet, problems arose with this “mixed” population of un-free labour. The problem with Indian labourers was that they knew the land and could escape to “undiscovered” territory, and enslavement would often instigate rebellions and war:

The social costs of trying to discipline un-free native labour had proved too high. Natives would eventually be genocidally eliminated, once population settlement and military power made victory more or less certain; for the time being, however, different sources of bond labour had to be found.[5]

Between 1607 and 1682, more than 90,000 European immigrants, “three-quarters of them chattel bond-labourers, were brought to Virginia and Maryland.” Following the “establishment of the Royal African Company in 1672, a steady supply of African slaves was secured.” Problems became paramount, however, as the lower classes tended to be very rebellious, which consisted of “an amalgam of indentured servants and slaves, of poor whites and blacks, of landless freemen and debtors.” The lower classes were united in opposition to the elites oppressing them, regardless of background.[6]

Bacon’s Rebellion of 1676 was of particular note, as bond-labourers, black and white, rebelled against the local elites and “demanded freedom from chattel servitude.” For the colonialists, “[s]uch images of a joint uprising of black and white, slave and bondsman, proved traumatic. In the face of a united rebellion of the lower orders, the planter bourgeoisie understood that their entire system of colonial exploitation and privilege was at risk.”[7]

In response to this threat, the landed elite “relaxed the servitude of white labourers, intensified the bonds of black slavery, and introduced a new regime of racial oppression. In doing so, they effectively created the white race – and with it white supremacy.”[8] Thus, “the conditions of white and black servants began to diverge considerably after 1660.” Following this, legislation would separate white and black slavery, prevent “mixed” marriages, and seek to prevent the procreation of “mixed-race” children. Whereas before 1660, many black slaves were not indentured for life, this changed as colonial law increasingly “imposed lifetime bondage for black servants – and, especially significant, the curse of lifetime servitude for their offspring.”[9]

A central feature of the social construction of this racial divide was “the denial of the right to vote,” as most Anglo-American colonies previously allowed free blacks to vote, but this slowly changed throughout the colonies. The ruling class of America was essentially “inventing race.” Thus, “[f]reedom was increasingly identified with race, not class.”[10]

The ‘Reconstruction’ of Slavery in Post-Civil War America

Important to note has been the ways in which slaves were used as the main labour force, and thus blacks were identified and being sustained as a lower-class labour force. Following the Civil War, abolition of slavery and the Reconstruction Period, there were coordinated moves – a ‘compact’ – between the North and South in the United States, to devise a way of keeping blacks as a submissive labour force, and one which was confined to a new form of slavery: penal slavery. Thus, we see emerging in the 1870s and into the 20th century, a rapid expansion of prisons, and with that, of southern penal systems using prisoners as forced labour. This new legal system, which was “far less rigid than slavery,” had been referred to as “involuntary servitude,” and, wrote one scholar, “was a fluid, flexible affair which alternated between free and forced labor in time to the rhythm of the southern labor market.”[11]

A famous American botanist and agricultural editor of the Weekly News and Courier wrote in 1865 that, “There must… be stringent laws to control the negroes, & require them to fulfill their contracts of labour on the farms.” Southern legislatures, then, began to enact what were referred to as Black Codes, “designed to preserve white hegemony.”[12] The 12-year period following the end of the Civil War, known as the ‘Reconstruction,’ saw the continued struggle of newly-freed blacks to attempt to break free from being “forced back under the political and economic domination of the large landowners,” and to do so, they were demanding land ownership rights to the tune of “40 acres and a mule.” This was, of course, unacceptable to vested interests. While the Republic Party had freed the slaves, the main core of the Party had become dominated by Northern wealthy interests, and “were unwilling to press for thoroughgoing reform, and by 1877 had become convinced that their interests were better served by an alliance with Southern white conservatives than the largely illiterate and destitute ex-slave population.” In the North at this time, the captains of industry and kings of capital (the bankers and industrialists) were waging a continued war against organized and increasingly radicalized labour. Thus, there was very little interest in seeking to enfranchise black labour in the South. As the New York Times suggested, the demands for “40 acres and a mule” hit at “the fundamental relation of industry to capital,” and “strikes at the root of all property rights in both sections. It concerns Massachusetts quite as much as Mississippi.”[13]

The legal system was used to essentially criminalize black life, without making specific references to race, laws that were passed specifically targeted blacks in attempting to limit their mobility, the price of their labour, and to make several aspects of typical black southern life to be deemed “criminal.” This process was paralleled in South Africa in the construction of the apartheid system. As one historian wrote:

Prior to the 1860s, neither the South nor South Africa had an extensive history of large-scale imprisonment or of hiring out prison labour to private contractors. Before the Civil War, slave-owners had punished their own slaves. African Americans accounted for less than 1 per cent of Alabama’s pre-war prison population; the bulk of the 200-300 inmates of the first penitentiary built in 1841 comprised, as in northern prisons, mostly of newly-arrived European immigrants.[14]

Many of the South’s prisons were destroyed during the Civil War, and thus, as the Black Codes were subsequently enacted, legislation was increasingly passed which aimed to facilitate the leasing of convicts to private contractors, and as a result, there was little need to rebuild the prison infrastructure; instead, have prisoners build the new infrastructure of an industrializing South, with the convict population from the 1870s onward largely being leased to farmers and railroad contractors, which saved state revenues from building new prisons as well as procuring revenue. In 1874, the governor of Alabama had complained about spending $100,000 on convicts, and within two years of leasing out Alabama’s inmates to private contractors, he boasted of a $15,000 profit. Thus, prisons would never “be anything but a source of immense revenue to the state.” Largely the same process was undertaken in South Africa to secure labour for the diamond mines run by the De Beers Company.[15] As William Worger wrote of the dual development of the American South and South African convict labour systems:

[C]apitalists in both areas establishing new industries and constrained by expensive capital, high fixed costs for plant and operations, and competitive struggles for market share, viewed convict labour as essential to the introduction of machine production, the defeat of organized labour, and the overall cheapening of the costs of production… [I]n both cases the state, when viewed in its local and regional rather than national and metropolitan manifestations, enthusiastically supported the leasing of convicts to private employers… because of the enormous financial benefits to their administrations of selling prison labour… and because imprisonment with hard labour in industrial enterprises offered a means to ‘discipline’ (in the discourse of the South) and to ‘civilise’ (in that of British colonialism) African Americans and Africans convicted on the basis of their race for acts – such as petty theft and burglary… that would not have resulted in lengthy terms of incarceration for whites… [In both cases] convict labour was used to divide and defeat organized labour and to enable employers to segregate the workplace on the basis of race.[16]

Migration, Housing, and Organizing Ghettos

It was no coincidence that each of these convict labour systems emerged in the context and circumstances of the development of Jim Crow segregation laws in the South and official apartheid in South Africa. At the same time as this was taking place in the South, massive migration of blacks from the South to the North began, concurrently with a period of radical labour militancy and class crisis. As such, this era saw the development of the ghettoes in major Northern cities “as a space of containment in urban areas.” The harsh legal racism, segregation, and cultural hatred of blacks in the South also spurred the migration to Northern cities. Between 1882 and 1968, there were 4,723 reported lynchings of African Americans, 90% of which took place in the Deep South. Between 1910 and 1960, roughly 5 million African Americans migrated to the North, Midwest, and Northeast. As Eduardo Mendieta wrote:

It is significant that the process of northern urbanization takes place in tandem with the process of racial gentrification. This racial gentrification is overseen by the state itself through its housing policies. These policies ensure that the poor and colored are concentrated in the dilapidated and poorly serviced urban centers while wealthy whites… are granted the license and funding to flee to the suburbs. In other words, the development of the ghetto has to be seen in tandem with the suburbanization of the US… An overview of the different agencies and acts used by Congress to regulate housing policies and availability reveals that the government conspired to segregate through its loaning practices, and actually participated in the very act of destroying housing that was and could have been available to African Americans and poor people in the inner cities.[17]

In fact, amazingly, “the government [had] destroyed more low-incoming housing than it actually built.” This process had extended right into the post-World War II period. Between 1960 and 1977, “as the number of whites living in suburbs increased by 22 million… the inner-city African-American population grew by 6 million.” Kenneth T. Jackson wrote, “American housing policy was not only devoid of social objectives, but instead helped establish the basis for social inequities. Uncle Sam was not impartial, but instead contributed to the general disbenefit of the cities and to the general prosperity of the suburbs.”[18]

Most American ghettos first came into existence just as economic inequalities were reaching “new heights” in the 1920s in the midst of the long-worn battle between industrialists and organized labour. At this time, racial segregation was increasingly a global phenomenon, when imperial and national states were implementing social and geographical forms of segregation “by equating urban problems such as ‘vice’, crime, disease and social unrest with blacks and other people of color and suggesting urban division as a means to solve these problems.” As Carl H. Nightingale wrote in the Journal of Urban History:

In the United States, this global “racial urbanism” informed the actions of the white homeowners, realtors, and banks that transformed an urban landscape marked by scattered minority-black enclaves into one of the large-scale segregated majority-black communities we know as ghettos. These first ghettos were also marked by the founding of separate black-run institutions that served their residents.[19]

The second phase of ghettoization in the United States occurred with the Great Depression, New Deal, and World War II-era, a time in which there was a continued growth of northward migration of black Americans to the industrial cities. In this context, the New Deal’s Home Owner’s Loan Corporation and the Federal Housing Administration “instituted highly discriminatory housing policies… [which] were aggravated by similarly racially biased urban renewal, public housing, and transportation policies, which not only solidified the boundaries of ghettos but also pushed them outward from downtown.”[20]

The third major phase of ghetto reform came about as a result of the Civil Rights Movement. Working with a major Civil Rights organization, the Congress of Racial Equality (CORE), the Ford Foundation sought to “organize the ghetto” through a program aimed at “making working-class blacks a decipherable and controllable constituency,” and thus:

[The Ford] foundation sought black leaders who could be brought into the establishment fold and could engineer orderly change in the ghetto. Having found a model to control the black community by containing it… the Ford Foundation would use its experience with CORE in Cleveland as a base to complete its vision for African Americans in a post-civil rights America.[21]

A national housing program, organized around new public-private partnerships which would benefit the elite class, was developed to create housing for the poor. The development of this plan – the Rockefeller Program – was the most controversial of the initiatives under the 1968 housing legislation, which placed “little emphasis on expanding homeownership opportunities,” and instead, stressed “the importance of involving private enterprises in the rebuilding of cities and make use of tax incentives to encourage such involvement.” The interesting features of the Rockefeller Program, implemented under New York Governor Nelson Rockefeller, were that it contemplated “that government will sponsor, develop, construct, and possibly manage the housing project,” and while the “actual construction work will be done by private firms as contractors… it is government which is to rebuild the slums.” Thus, the “incentives to enlist the active involvement of the private sector are not directly related to the task of rebuilding the slums, except insofar as they enable private enterprise to participate in the profits which will accrue.”[22]

The Rockefeller Foundation itself had a significant impact upon the changing focus of urban design. As Peter L. Laurence wrote, “between 1955 and 1965, the Rockefeller Foundation research programme for Urban Design Studies contributed significantly to post-war urban theory and to the emergence of the new discipline of urban design out of the overlapping interests of the fields of architecture, city planning and landscape design.”[23] Rockefeller influence on city planning was thereafter established and institutionalized through the formation of the fields of urban studies and city planning.

Educating Africans to be “Junior Partners in the Firm”

In the first half of the 20th century, the Rockefeller Foundation and Carnegie Corporation undertook joint projects aimed at constructing an education system for black Americans in the South as well as for black Africans in several British colonies. In 1911, the Phelps-Stokes Fund was chartered with the purpose of managing “the education of Negroes both in Africa and the United States.” This restrictive educational system for black Americans had already been institutionalized, beginning with the ‘philanthropic’ endeavours of Wall Street bankers and northern industrialists and capitalists at several conferences in 1898. The education was constructed on the basis that, as one conference participant stated, “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. History demonstrates that the Caucasian will rule, and he ought to rule.” As one conference organizer stated:

Time has proven that [the ‘negro’] is best fitted to perform the heavy labor in the Southern states… He will willingly fill the more menial positions, and do the heavy work, at less wages, than the American white man or any foreign race… This will permit the Southern white laborer to perform the more expert labor, and to leave the fields, the mines, and the simple trades for the negro.[24]

The conferences resulted in what became known as the ‘Tuskegee educational philosophy,’ which was decided upon by 1901. Three major decisions were taken at the conferences. The first major decision was that “it was necessary that provision be made to train a Negro leadership cadre”:

For this purpose, then, it was concluded that certain Negro colleges would be strengthened to educate a strong professional class – doctors, lawyers, ministers – which would be responsible for raising the general physical and moral level of the race in the segregated black communities… [Second], it was decided that the Negro had been educated away from his natural environment and that his education should concern only those fields available to him. This key decision marked the formulation of the concept of a special Negro education. Third, it was decided that this special education – vocational and agricultural in focus – of the Negro had to be directed toward increasing the labor value of his race, a labor value which, not surprisingly, would see the white capitalist as chief beneficiary.[25]

Thus, in 1901 the fourth conference on the issue established the Southern Education Board. The following year, John D. Rockefeller established the General Education Board (a precursor to the Rockefeller Foundation), which “alleviated any financial concerns which the planners of southern Negro education might have experienced.”[26] The Rockefeller philanthropy had extensive influence on implementing the ‘Tuskegee educational philosophy,’ particularly through the Southern Education Board, of which it not only helped finance, but had a shared leadership. Eleven members of the Southern Education Board were also members of Rockefeller’s General Education Board. With time, other funds and philanthropies became involved, such as the Jeanes Fund, the Slater Fund, and eventually the Phelps-Stokes Fund. Again, there was significant overlap between these organizations. The first president of the Jeanes Fund was James H. Dillard, a member of the Southern Education Board, an agent of the Slater Fund, and a member of Rockefeller’s General Education Board. In 1923, Dillard became a trustee of the Phelps-Stokes Fund. The Jeanes Fund, headed by Dillard, instituted the concept of the ‘Jeanes teacher’:

a local Negro who could make contact in the rural communities as no one else could and who could adapt the school curriculum to the conditions of these communities. Hygiene, home economics, and industrial and agricultural training were to form the backbone of the curriculum for Jeanes rural schools. In 1925, the Jeanes school concept was transferred to Kenya, largely owing to the vigorous advocacy for such a transplantation by representatives of the Phelps-Stokes Fund.[27]

The Tuskegee/Phelps-Stokes educational philosophy quickly garnered the attention of British missionary educators in Africa. Two influential British missionary educators visited the Tuskegee Institute in 1912, with the idea in mind that they could adapt this educational philosophy to Britain’s colonies in Africa. One of these missionaries was J.H. Oldham, former secretary of the World Missionary Conference, and editor of the International Review of Missions, “the quasi-official journal of the Protestant missionary societies in Great Britain from its inception in 1912.” Having become well-acquainted with the American philanthropists involved in organization black education, Oldham introduced Thomas Jesse Jones to British colonial officials in charge of educational policy in Africa, and in 1924, “Oldham became the Phelps-Stokes Fund’s representative in the United Kingdom and intensified his vigorous lobbying efforts to have Phelps-Stokes Fund/Tuskegee concept incorporated into official mission and colonial educational policy.”[28]

As Kenya’s colonial secretary stated, the educational philosophy would ensure “an intelligent, cheerful, self-respecting, and generally docile and willing-to-learn African native.” In 1925, Jones successfully negotiated for financial aid from the Carnegie Corporation to finance the establishment of a Jeanes training school in Kenya. The funding from Carnegie included direct funding for the school, as well as facilitating white educators from Africa to come to the U.S. to “investigate” the Southern educational system, as well as implementing intelligence tests for Africans (just as the major philanthropies had been propagating around the United States as part of their support for eugenics programs). Jones also turned to other major foundations for support, such as Rockefeller’s International Education Board (which had Anson Phelps-Stokes as a trustee), as well as the Laura Spellman Rockefeller Memorial, which all subsequently provided major grants to establish several schools across Africa.[29]

Jones and the major foundations further supported the development of black education in South Africa, helping cement the apartheid system that was being developed. As Jones himself stated, the education of black South Africans in the Tuskegee philosophy can maintain their subordination to the white ruling class, and keep them as “junior partners in the firm.”[30]

Managing the Poor through Social Welfare

Another major area of concern in these chapters is on the ‘moral construction’ of the poor, going beyond (but not ignoring) the ways in which the poor are ‘created’ and ‘maintained’ as a social group (i.e., noting the political, economic, and social policies and institutions that create and sustain poverty as a powerful social force), but also in looking at how the poor are, as a group, “regulated” and how society “morally constructs” views and perceptions of the poor, so that they are vilified, demonized, and politicized as “deviants.”

The origins of ‘welfare policies’ and other forms of ‘social welfare’ emerged several hundred years ago as a response to the inability of the economic system to benefit the masses of society, and thus, to prevent – often in the midst of an economic crisis – mass social unrest, rebellion, or potentially, revolution, social welfare policies were implemented as a means of social control: to alleviate some of the tensions from the gross systemic inequalities, and secondly, and often overlooked, as a means of regulating the behaviour, “work ethic” and prospects of the poor; to maintain them as a cheap labour force. This is done through the methods in which social welfare is provided: the process of applying for social services and welfare, the conditions required to be applicable, the demands which must be met by the applicant as determined by the state, the state intervention in the family and personal life of recipients (often through social workers), and other means of both expanding and detracting the amount of people on welfare as a means to sustain the labour force according to the demands of industry. As such, it is important to analyze the origins of “social work” as a means of “social control” and “managing the poor.”

Originating in the 16th century, relief giving to the poor began to be transferred from the private realm to the state. In Britain, the poor had to be registered and begging had to be authorized, and the Elizabethan Poor Laws, passed in 1572, “established a ‘poor rate’ tax and provided for secular control of the poor by justices of the peace, so-called overseers of the poor.” The poor were separated into three categories: “a) the poor by impotency, b) the poor by casualty, and c) the thriftless poor.” The third category, “thriftless poor,” were viewed as being responsible for their own condition, and thus had to “work for relief.” In the 18th century, workhouses began to emerge as a “policy innovation” to establish “worth” among the poor, to make them productive to the industrial class through contracting cheap labour in return for minor poverty relief. In the 19th century, the poorhouse “had become the official last resort for the poor.”[31]

The poorhouse and workhouse were often examined in the works of Charles Dickens. One is often reminded of the character Ebenezer Scrooge in A Christmas Carol, when approached by collectors seeking donations for poor relief, with the collector stating, “At this festive time of year, Mr. Scrooge, it is more than usually desirable that we should make some slight provision for the poor and destitute.” To which Scrooge replied, “Are there no prisons?”

“Plenty of prisons.”

“And the union workhouses – are they still in operation?”

“They are. I wish I could say they were not.”

“The Treadmill and the Poor Law are in full vigour, then?”

“Both very busy, sir.”

“Oh, from what you said at first I was afraid that something had happened to stop them in their useful course. I’m very glad to hear it.”

Refusing to donate, Scrooge stated, “I help to support the establishments I have mentioned — they cost enough; and those who are badly off must go there.”

“Many can’t go there; and many would rather die.”

Scrooge replied, “If they would rather die… they had better do it, and decrease the surplus population.”

This scene reflected the ideology and philosophy of elites in that era, and indeed, up until present day. The poorhouses of that era were terrible, where “conditions were so awful, the act of relief itself became the test of necessity.” Much like the stigma of welfare in today’s context, “[t]hose who presented themselves to the poorhouse were casting themselves outside of moral society,” as entrance into that situation “symbolized and made painfully concrete a loss of social status, citizenship, and even the right to one’s own labor and physical freedom.” The New Deal following the Great Depression in the 1930s reaffirmed, with its expanded welfare and social services, the stipulation that relief must only be in exchange for work and labour. This represents a “moral construction” of poverty and “the poor,” because they are deemed as being required to work for relief, as in, they are undeserving of relief without conditions, regardless of their circumstances. The “stigma” of poverty and welfare are such that the poor are viewed as generally undeserving of anything, of being the cause of their own poverty, and thus, if they want/need relief, they had better work for it. It was through working and labour that the poor, then, were able to provide a “social worth” in return for “poor relief.” It is thus no coincidence that social security and unemployment insurance were “restricted to individuals classified by policy as workers, that is, individuals with a relatively prolonged and steady formal work history.” As a result, this led to the exclusion of “agricultural and domestic workers as well as those in marginal jobs who moved in and out of work,” which, not coincidentally, included a significant portion of the black population in the United States.[32]

With the New Deal, the state in America moved into the realm of activity previously the focus of the philanthropic foundation. In fact, these private foundations were pivotal in the formation of the New Deal. As Barry Karl and Stanley Katz noted, “Franklin Roosevelt preferred to conceal the fact that so many of his major advisers on policy and some of his major programmes in social reform were the result of support by one of more of the private foundations,” particularly through the Rockefeller Foundation and the Social Science Research Council, funded by the Rockefeller and Carnegie foundations.[33] The support from such foundations, which represent the most elite interests within society and the capitalist class itself, founded and run by the wealthiest and most powerful bankers and industrialists of the era, represented an elite fear generated by the mass social unrest of the era brought on by the Great Depression, which was created by that very same class. Thus, social security and the New Deal were a means of securing social control.[34] The New Deal, however, also had a profoundly negative impact upon the “race question” in the United States, which broadly affected the black community. As Christopher G. Wye wrote in the Journal of American History:

[T]he New Deal public housing and emergency work programs played an important part in alleviating the problems generated by the Depression, [but] they also contributed to the preservation of perhaps the two salient components which combine to produce a caste-like Negro social structure – residential segregation and a distinctly racial occupational pattern.[35]

Civil Rights: From “Black Power” to “Black Capitalism”

The major foundations – Ford, Carnegie, and Rockefeller – were also heavily involved in the Civil Rights movement, but with specific aims of social control. In the 1950s, the Ford Foundation began taking an interest in the Civil Rights movement, and after convening a study on how to “improve race relations,” the Ford Foundation began giving grants to black colleges “to improve the quality of their educational offerings.”[36] By 1966, the Civil Rights movement was one of the major areas of Ford Foundation funding. Against the backdrop of the summer of 1966 in which there were 43 “urban disorders” (riots in ghettos), which had been “precipitated by confrontations between blacks and the police,” the Ford Foundation announced that it would “direct significant resources to the social justice area.” Among the aims of the Foundation were: “to improve leadership and programming within minority organizations; to explore approaches to better race relations; to support policy-oriented research on race and poverty; to promote housing integration; and to increase the availability of legal resources through support of litigating organizations and minority law students.”[37]

The Ford Foundation also sponsored the Grey Areas program in the early 1960s, which evolved into President Johnson’s “War on Poverty,” as a program for “urban renewal,” but was, in fact, concerned with issues arising out of poor people’s (and particularly poor people of colour’s) resistance to major urban growth projects undertaken by a coalition of corporations and corporatist labour unions following World War II. As Roger Friedland wrote:

Political challenge by the poor, and especially the nonwhite poor, threatened the dominance of the corporations and labor unions and the growth policies they pursued. It was the poorest neighborhoods which were displaced by urban renewal and highway construction, whose housing stock was depleted by clearance, whose employment opportunities were often reduced both by the expansion of office employment stimulated by central business district growth and by restrictive unionization on large construction projects and municipal jobs, and whose services were constrained by the enormous fiscal costs of the growth programs.[38]

It was in this context that the Ford Foundation established programs aimed at ameliorating the antagonisms within the impoverished communities, not through structural or systemic change of the causes of poverty, but through organization, institutionalization, and legalistic reform programs, thus leading to the government’s “War on Poverty.” The same approach was taken in regards to the Civil Rights movement.

There was a transformation between 1966 and 1967 of the notion of ‘black power’, which was increasingly viewed by elites and ‘authorities’, such as J. Edgar Hoover of the FBI, as “the beginning of a true black revolution.” Many advocates of ‘black power’ saw it as the beginnings of a revolt against “white western imperialist” America.[39] The Civil Rights movement was originally “launched by indigenous leadership and primarily mobilized the southern black community.” Thus, it was essential for large foundation funding of the movement, to effectively control its direction and impetus. This “elite involvement would seem to occur only as a response to the threat posed by the generation of a mass-based social movement.” The major foundations “supported the moderate civil rights organizations in response to the ‘radical flank’ threat of the militants, while non-elites (churches, unions and small individual donors) spread their support evenly.”[40]

Elite patronage of the Civil Rights movement “diverted leaders from indigenous organizing and exacerbated inter-organizational rivalries, thereby promoting movement decay.”[41] Foundation funding for civil rights did not become significant until 1961-62, five years after the Birmingham bus boycott, and the peak of foundation support for civil rights was in 1972-73, four to five years after the assassination of King.[42] This indicated that foundation grants to civil rights were ‘reactive’, in that they were designed in response to changes in the movement itself, implying that foundation patronage was aimed at social control. Further, most grants went to professionalized social movement organizations (SMOs) and in particular, the NAACP. While the professional SMOs initiated only 14% of movement actions, they accounted for 57% of foundation grants, while the classical SMOs, having carried out roughly 36% of movement actions, received roughly 32% of foundation grants. This disparity grew with time, so that by the 1970s, the classical SMOs garnered 25% of grants and the professional SMOs received nearly 70% of grants. Principally, the NAACP and the NAACP Legal Defense Fund were the most endowed with foundation support.[43] Many of the foundations subsequently became “centrally involved in the formulation of national social policy and responded to elite concerns about the riots.”[44]

It became clear that the older, established and moderate organizations received the most outside funding, such as the National Urban League, the NAACP and the Legal Defense and Educational Fund.[45] As the black struggles of the 1960s increasingly grew militant and activist-oriented in the latter half of the 1960s, “foundation contributions became major sources of income for the National Urban League, the Southern Regional Council, and the Legal Defense and Educational Fund.”[46] The attempt was to promote reform instead of losing their vested powers and interests in the face of a growing revolution.

The NAACP and the National Urban League represent the more moderate civil rights organizations, as they were also the oldest, with membership primarily made up of middle class African Americans, leading to many, including King himself, to suggest they were disconnected from the reality or in representing poor blacks in America.[47] The radicalization of the black protest movement led to the emergence of challenges to the NAACP and Urban League in being the ‘leaders’ in civil rights, as new organizations emerged which represented a broader array of the black population. Among them were the Congress of Racial Equality (CORE), the Student Non-violent Coordinating Committee (SNCC), and the Southern Christian Leadership Conference (SCLC), which Martin Luther King led. Foundations increased funding for all of these organizations, but as activism and militancy accelerated in the latter half of the 1960s, the funding declined for the more radical, militant and activist organizations and increased dramatically for the established and moderate organizations. This trend continued going into the 1970s.

In 1967, Martin Luther King’s SCLC received $230,000 from the Ford Foundation, yet after his assassination, the organization received no more funding and virtually fell to pieces. That same year, the Ford Foundation gave the NAACP $300,000, and gave the Urban League $585,000. The Rockefeller Foundation granted the League $650,000, with the Carnegie Corporation coming in with $200,000. The Ford Foundation also gave the Congress of Racial Equality (CORE) $175,000 in 1967.[48]

In 1968, with the SCLC out of the picture, Ford increased funding for CORE to $300,000, increased grants to the NAACP to $378,000, and gave the Urban League a monumental grant of $1,480,000. The same year, the Rockefeller Foundation and the Carnegie Corporation gave the NAACP $500,000 and $200,000 respectively. Clearly, the foundations were supporting the older established and moderate organizations over the new, young and activist/radical organizations. For the following year, 1969, CORE received no more grants from foundations, while the Ford, Rockefeller and Carnegie foundations increased their grants to the NAACP and the Urban League. In 1974, the NAACP received grants of $950,000 from the Ford Foundation, $250,000 from the Rockefeller Foundation, and $200,000 from the Carnegie Corporation. The Urban League received grants of $2,350,000 from the Ford Foundation and $350,000 from the Rockefeller Foundation.[49] The strategic use of foundation funding helped undermine and outmaneuver the radical and militant civil rights organizations, while strengthening and institutionalizing the reform-oriented organizations.

This co-optation of the civil rights movement was so vital to these elite interests for the principle reason of the movement taking its natural course, out of an ethnic or race-based focus and into a class and global social focus. A. Philip Randolph, a civil rights leader, spoke in 1963 at an ALF-CIO convention at which he stated, “The Negro’s protest today is but the first rumbling of the ‘under-class.’ As the Negro has taken to the streets, so will the unemployed of all races take to the streets.”[50] The aim of foundation funding for the Civil Rights movement was to direct it from a potentially revolutionary position – that of ‘Black Power’ – and transform it into a reformist and legalistic movement, ostensibly to establish “Black Capitalism.” Thus, instead of changing the systemic and institutional structures of society which had created racism, segregation, and exploitation, the “success” of the Civil Rights movement (apart from the very real achievements of securing basic civil rights for black citizens) was seen by elites as the ability of blacks to rise within the institutional and hierarchical system which dominated society, not to challenge or change it fundamentally.

The “Excess of Democracy”

In the 1970s, elite intellectual discussion was dominated by what was referred to as “democratic overload,” or what the Trilateral Commission referred to in a report of the same title as, “The Crisis of Democracy.” One of the principal authors of this 1975 report was Samuel Huntington, who wrote that the 1960s saw a surge in democracy in America, with an upswing in citizen participation, often “in the form of marches, demonstrations, protest movements, and ‘cause’ organizations.”[51] Further, “the 1960s also saw a reassertion of the primacy of equality as a goal in social, economic, and political life.”[52] Of course, for Huntington and the Trilateral Commission, which was founded by Huntington’s friend, Zbigniew Brzezinski, and banker David Rockefeller, the idea of “equality as a goal in social, economic, and political life” is a terrible and frightening prospect. Huntington analyzed how as part of this “democratic surge,” statistics showed that throughout the 1960s and into the early 1970s, there was a dramatic increase in the percentage of people who felt the United States was spending too much on defense (from 18% in 1960 to 52% in 1969, largely due to the Vietnam War).[53]

Huntington wrote that the “essence of the democratic surge of the 1960s was a general challenge to existing systems of authority, public and private,” and that, “People no longer felt the same compulsion to obey those whom they had previously considered superior to themselves in age, rank, status, expertise, character, or talents.” He explained that in the 1960s, “hierarchy, expertise, and wealth” had come “under heavy attack.”[54] He stated that the three key issues which were central to the increased political participation in the 1960s were:

social issues, such as use of drugs, civil liberties, and the role of women; racial issues, involving integration, busing, government aid to minority groups, and urban riots; military issues, involving primarily, of course, the war in Vietnam but also the draft, military spending, military aid programs, and the role of the military-industrial complex more generally.[55]

Huntington presented these issues, essentially, as the “crisis of democracy,” in that they increased distrust with the government and authority, that they led to social and ideological polarization, and ultimately, to a “decline in the authority, status, influence, and effectiveness of the presidency.”[56] Huntington concluded that many problems of governance in the United States stem from an “excess of democracy,” and that, “the effective operation of a democratic political system usually requires some measure of apathy and noninvolvement on the part of some individuals and groups.” Huntington explained that society has always had “marginal groups” which do not participate in politics, and while acknowledging that the existence of “marginality on the part of some groups is inherently undemocratic,” it has also “enabled democracy to function effectively.” Huntington identifies “the blacks” as one such group that had become politically active, posing a “danger of overloading the political system with demands.”[57]

Huntington, in his conclusion, stated that the vulnerability of democracy, essentially the ‘crisis of democracy,’ comes “from the internal dynamics of democracy itself in a highly educated, mobilized, and participant society,” and that what is needed is “a more balanced existence” in which there are “desirable limits to the indefinite extension of political democracy.”[58] Summed up, the Trilateral Commission Task Force Report essentially explained that the “Crisis of Democracy” is that there is too much of it, and so the ‘solution’ to the crisis, is to have less democracy and more ‘authority’.

To have “less democracy,” however, required careful and strategic moves and considerations. Primarily, the means through which this objective would be reached was through the disciplinary measures of the “free market” and “regulation of the poor.” This led to the neoliberal era, where this program of “reducing democracy” took place not only in the United States, but on a global scale. The disciplinary means undertaken in the ‘Third World’ nations were brought on by the 1980s debt crisis, and the World Bank and IMF “structural adjustment programs” which invariably expanded poverty, debt, and supported ruthless dictatorships which suppressed their own populations. This era also saw the “globalization of the ghetto” with the rapid development of urban slums around the world, to the point where over one billion people today live in slums. In the United States, the middle classes began to be mired in debt, particular the expansion of student debt, which served as a disciplinary feature, so that students were no longer activists or mobilized, but simply had to graduate and get jobs to pay off their debts.

A 1971 memo written by a representative of the U.S. Chamber of Commerce reflected the fear inherent in the Trilateral Commission report of a few years later at the problems posed to elite interests by the “excess of democracy.” It referred to these “excesses” as a “broad attack” on the American economic system. The memo noted that, “the assault on the enterprise system is broadly based and consistently pursued. It is gaining momentum and converts.” While noting that sources of the attack include leftists and revolutionaries, it also acknowledged that the “attack” was being joined “from perfectly respectable elements of society: from the college campus, the pulpit, the media, the intellectual and literary journals, the arts and sciences, and from politicians.” The author of the memo stated that, “If our system is to survive, top [corporate] management must be equally concerned with protecting and preserving the system itself.” It went on:

But independent and uncoordinated activity by individual corporations, as important as this is, will not be sufficient. Strength lies in organization, in careful long-range planning and implementation, in consistency of action over an indefinite period of years, in the scale of financing available only through joint effort, and in the political power available only through united action and national organizations.[59]

The memo then went on to articulate a major program of “counter attack” with an emphasis on changing the educational system, the media, and bringing the state and courts more directly into the business community’s orbit. This era saw the emergence of the major right-wing think tanks, and the expanded influence of business leaders in the media, government, and universities, crowned with the Reagan-Thatcher era of neoliberalism: privatization, deregulation, debt-expansion, impoverishment, and punishment.

Punishing the Poor

In regards to the black population, who created quite a stir among the American elites in the 1960s and into the 1970s, the response from the elite sector was similar as to what it was during the Reconstruction period following the Civil War: mass incarceration. Reagan’s “war on drugs” led to a rapid expansion of legislation purportedly aimed to reduce the problems of the illicit drug trade in the United States (while the Reagan administration secretly supported the drug trade in covert operations abroad, such as in Nicaragua, the Iran-Contra Scandal, etc.).

The growth of the prison population in the United States from 1975 onward was marked simultaneously by a decline in welfare recipients. In fact, the largest prison systems were established in states with the weaker welfare systems. Between 1980 and 2000, “the number of people incarcerated in the United States increased by 300 percent, from 500,000 to nearly 2 million.” The parole and probation population, by 2000, included 3.8 million people, and by 1998, “nearly 6 million people – almost 3 percent of the adult population – were under some form of correctional supervision.” As reported in the journal, Punishment & Society:

The impact of these developments has fallen disproportionately on young African-Americans and Latinos. By 1994, one of every three black males between the ages of 18-34 was under some form of correctional supervision, and the number of Hispanic prisoners has more than quintupled since 1980. These developments are not primarily the consequence of rising crime rates, but rather the ‘get-tough’ policies of the wars on crime and drugs.[60]

As sociologists Katherine Beckett and Bruce Western wrote, “in the wake of the Reagan revolution, penal and welfare institutions have come to form a single policy regime aimed at the governance of social marginality,” or, in other words, the management of the poor and non-white populations. Thus, reduced welfare spending as a method of social control was replaced with increased incarceration and imprisonment.[61]

The prison system itself, which had its origins in the application of social control, functioned through segregation and discrimination, has not evolved from these institutional ideologies that saw its development over several hundred years. The prison and incarceration, according to philosopher and historian Michel Foucault, was “a new form of repression, designed to consolidate the political and economic power of capitalism under the modern state,” in what he termed, “the disciplinary society.”[62]

Just as took place during the criminalization of black life following the Civil War, the criminalization of black life following the Civil Rights Movement saw not only the growth of incarceration rates for the black community, but also saw the growth of the use of the prison population as a source of cheap labour. In today’s context, with privatization of prisons, outsourcing of prison labour, and other forms of exploitation of the “punished” population, this has given rise to what is often referred to as the “prison-industrial complex.”[63]

Conclusion

This article was but a brief sampling of some of the information, issues, ideas, events, and processes that will be thoroughly researched and written about in two chapters for The People’s Book Project. If you found the information enlightening, interesting, or important, please contribute to the People’s Grant goal of raising $1,600 to finance the completion of two chapters on this subject, which will include a great deal more than was sampled above, deeper analysis, more detailed and documented understandings, and a much wider, global contextualization. This was but a minor fraction of what can be completed with the support of readers. Help get this important information into the public sphere. As the global economic crisis rapidly expands the global rates of impoverishment, as the middle class vanishes into debt and poverty, and as our societies are reorganized to “manage” these social, political, and economic changes, this history is vital to understanding not only the objectives, ideas and actions of elites, but also the ways in which the people may challenge them.

Contribute to The People’s Grant:

Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada, writing on a number of social, political, economic, and historical issues. He is also Project Manager of The People’s Book Project. He also hosts a weekly podcast show, “Empire, Power, and People,” on BoilingFrogsPost.com.

Notes

[1]            A. Leon Higginbotham, Jr., “Racism and the Early American Legal Process, 1619-1896,” Annals of the American Academy of Political and Social Science (Vol. 407, No. 1, May 1973), page 1.

[2]            Ibid, page 6.

[3]            David McNally, Another World is Possible: Globalization and Anti-Capitalism (Arbeiter Ring Publishing, 2006), page 149.

[4]            Ibid, page 150.

[5]            Ibid, pages 151-152.

[6]            Ibid, pages 152-153.

[7]            Ibid, page 153.

[8]            Ibid, pages 153-154.

[9]            Ibid, pages 154-155.

[10]            Ibid, page 155.

[11]            William Cohen, “Negro Involuntary Servitude in the South, 1865-1940,” The Journal of Southern History (Vol. 42, No. 1, February 1976), page 33.

[12]            Ibid, page 34.

[13]            Brian Kelly, “Labor, Race, and the Search for a Central Theme in the History of the Jim Crow South,” Irish Journal of American Studies (Vol. 10, 2001), page 58.

[14]            William H. Worger, “Convict Labour, Industrialists and the State in the US South and South Africa, 1870-1930,” Journal of Southern African Studies (Vol. 30, No. 1, March 2004), page 68.

[15]            Ibid, pages 68-69.

[16]            Ibid, page 85.

[17]            Eduardo Mendieta, “Plantations, Ghettos, Prisons: US Racial Geographies,” Philosophy and Geography (Vol. 7, No. 1, February 2004), page 52.

[18]            Ibid, pages 52-53.

[19]            Carl H. Nightingale, “A Tale of Three Global Ghettos: How Arnold Hirsch Helps Us Internationalize U.S. Urban History,” Journal of Urban History (Vol. 29, No. 3, March 2003), page 262.

[20]            Ibid, page 265.

[21]            Karen Ferguson, “Organizing the Ghetto: The Ford Foundation, CORE, and White Power in the Black Power Era, 1967-1969,” Journal of Urban History (Vol. 34, No. 1, November 2007), pages 69, 96.

[22]            William J. Quirk and Leon E. Wein, “Homeownership for the Poor: Tenant Condominiums, the Housing and Urban Development Act of 1968, and the Rockefeller Program,” Cornell Law Review (Vol. 54, No. 6, July 1969), pages 849, 855.

[23]            Peter L. Laurence, “The Death and Life of Urban Design: Jane Jacobs, The Rockefeller Foundation and the New Research in Urbanism, 1955-1965,” Journal of Urban Design (Vol. 11, No. 2, June 2006), page 145.

[24]            Robert F. Arnove, ed., Philanthropy and Cultural Imperialism: The Foundations at Home and Abroad (Indiana University Press, 1980), pages 180-181.

[25]            Ibid, page 181.

[26]            Ibid.

[27]            Ibid, page 182.

[28]            Ibid, pages 185-186.

[29]            Ibid, pages 188-190.

[30]            Ibid, page 194.

[31]            Evelyn Z. Brodkin, “The Making of an Enemy: How Welfare Policies Construct the Poor,” Law & Social Inquiry (Vol. 18, No. 4, Autumn 1993), pages 655-656.

[32]            Ibid, pages 656-658.

[33]            Barry D. Karl and Stanley N. Katz, “The American Private Philanthropic Foundation and the Public Sphere 1890-1930,” Minerva (Vol. 19, No. 2, Summer 1981), page 268.

[34]            J. Craig Jenkins and Barbara Brents, “Capitalists and Social Security: What Did They Really Want?” American Sociological Review (Vol. 56, No. 1, February 1991), page 129.

[35]            Christopher G. Wye, “The New Deal and the Negro Community: Toward a Broader Conceptualization,” The Journal of American History (Vol. 59, No. 3, December 1972), page 639.

[36]            Lynn Walker, “The Role of Foundations in Helping to Reach the Civil Rights Goals of the 1980s,” Rutgers Law Review, (1984-1985), page 1059.

[37]            Ibid, page 1060.

[38]            Roger Friedland, “Class Power and Social Control: The War on Poverty,” Politics & Society (Vol. 6, No. 4, December 1976), pages 459-461.

[39]            Robert C. Smith, “Black Power and the Transformation from Protest to Policies,” Political Science Quarterly, Vol. 96, No. 3, (Autumn, 1981), page 438

[40]            J. Craig Jenkins and Craig M. Eckert, “Channeling Black Insurgency: Elite Patronage and Professional Social Movement Organizations in the Development of the Black Movement,” American Sociological Review, Vol. 51, No. 6, (Dec., 1986), page 814.

[41]            Ibid, page 815.

[42]            Ibid, pages 819-820.

[43]            Ibid, page 821.

[44]            Ibid, page 826.

[45]            Herbert H. Haines, “Black Radicalization and the Funding of Civil Rights: 1957-1970,” Social Problems, Vol. 32, No. 1, Thematic Issue on Minorities and Social Movements, (Oct., 1984), page 38.

[46]            Ibid, page 40.

[47]            Martin N. Marger, “Social Movement Organizations and Response to Environmental Change: The NAACP, 1960- 1973,” Social Problems, Vol. 32, No. 1, Thematic Issue on Minorities and Social Movements, (Oct., 1984), page 22.

[48]            Ibid, page 25.

[49]            Ibid.

[50]            Howard Zinn, A People’s History of the United States (Harper: New York, 2003), page 464.

[51]            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), page 61.

[52]            Ibid, page 62.

[53]            Ibid, page 71.

[54]            Ibid, pages 74-75.

[55]            Ibid, page 77.

[56]            Ibid, page 93.

[57]            Ibid, pages 113-114.

[58]            Ibid, page 115.

[59]            Lewis F. Powell, Jr., “Confidential Memorandum: Attack of American Free Enterprise System,” U.S. Chamber of Commerce, 23 August 1971: http://www.pbs.org/wnet/supremecourt/personality/sources_document13.html

[60]            Katherine Beckett and Bruce Western, “Governing Social Marginality: Welfare, Incarceration, and the Transformation of State Policy,” Punishment & Society (Vol. 3, No. 1, January 2001), pages 43-44.

[61]            Ibid, page 55.

[62]            Robert P. Weiss, “Humanitarianism, Labour Exploitation, or Social Control? A Critical Survey of Theory and Research on the Origin and Development of Prisons,” Social History (Vol. 12, No. 3, October 1987), page 333.

[63]            Rose M. Brewer and Nancy A. Heitzeg, “The Racialization of Crime and Punishment: Criminal Justice, Color-Blind Racism, and the Political Economy of the Prison Industrial Complex,” American Behavioral Scientist (Vol. 51, No. 5, January 2008).

The Bilderberg Plan for 2009: Remaking the Global Political Economy

The Bilderberg Plan for 2009: Remaking the Global Political Economy
Global Research, May 26, 2009

From May 14-17, the global elite met in secret in Greece for the yearly Bilderberg conference, amid scattered and limited global media attention. Roughly 130 of the world’s most powerful individuals came together to discuss the pressing issues of today, and to chart a course for the next year. The main topic of discussion at this years meeting was the global financial crisis, which is no surprise, considering the list of conference attendees includes many of the primary architects of the crisis, as well as those poised to “solve” it.

The Agenda: The Restructuring of the Global Political Economy

Before the meeting began, Bilderberg investigative journalist Daniel Estulin reported on the main item of the agenda, which was leaked to him by his sources inside. Though such reports cannot be verified, his sources, along with those of veteran Bilderberg tracker, Jim Tucker, have proven to be shockingly accurate in the past. Apparently, the main topic of discussion at this year’s meeting was to address the economic crisis, in terms of undertaking, “Either a prolonged, agonizing depression that dooms the world to decades of stagnation, decline and poverty … or an intense-but-shorter depression that paves the way for a new sustainable economic world order, with less sovereignty but more efficiency.” Other items on the agenda included a plan to “continue to deceive millions of savers and investors who believe the hype about the supposed up-turn in the economy. They are about to be set up for massive losses and searing financial pain in the months ahead,” and “There will be a final push for the enactment of Lisbon Treaty, pending on Irish voting YES on the treaty in Sept or October,”[1] which would give the European Union massive powers over its member nations, essentially making it a supranational regional government, with each country relegated to more of a provincial status.

Shortly after the meetings began, Bilderberg tracker Jim Tucker reported that his inside sources revealed that the group has on its agenda, “the plan for a global department of health, a global treasury and a shortened depression rather than a longer economic downturn.” Tucker reported that Swedish Foreign Minister and former Prime Minister, Carl Bildt, “Made a speech advocating turning the World Health Organization into a world department of health, advocating turning the IMF into a world department of treasury, both of course under the auspices of the United Nations.” Further, Tucker reported that, “Treasury Secretary Geithner and Carl Bildt touted a shorter recession not a 10-year recession … partly because a 10 year recession would damage Bilderberg industrialists themselves, as much as they want to have a global department of labor and a global department of treasury, they still like making money and such a long recession would cost them big bucks industrially because nobody is buying their toys…..the tilt is towards keeping it short.”[2]

After the meetings finished, Daniel Estulin reported that, “One of Bilderberg’s primary concerns according to Estulin is the danger that their zeal to reshape the world by engineering chaos in order to implement their long term agenda could cause the situation to spiral out of control and eventually lead to a scenario where Bilderberg and the global elite in general are overwhelmed by events and end up losing their control over the planet.”[3]

On May 21, the Macedonian International News Agency reported that, “A new Kremlin report on the shadowy Bilderberg Group, who this past week held their annual meeting in Greece, states that the West’s financial, political and corporate elite emerged from their conclave after coming to an agreement that in order to continue their drive towards a New World Order dominated by the Western Powers, the US Dollar has to be ‘totally’ destroyed.” Further, this same unconfirmed Kremlin report, stated that, “most of the West’s wealthiest elite convened at an unprecedented secret meeting in New York called for and led by” David Rockefeller, “to plot the demise of the US Dollar.”[4] This report, which was not acknowledged by other media sources, requires verification.

The Secret Meeting of Billionaires

The meeting being referred to was a secret meeting where, “A dozen of the richest people in the world met for an unprecedented private gathering at the invitation of Bill Gates and Warren Buffett to talk about giving away money,” held at Rockefeller University, and included notable philanthropists such as Gates, Buffett, New York Mayor Michael Bloomberg, George Soros, Eli Broad, Oprah Winfrey, David Rockefeller Sr. and Ted Turner. One attendee stated that, “It wasn’t secret,” but that, “It was meant to be a gathering among friends and colleagues. It was something folks have been discussing for a long time. Bill and Warren hoped to do this occasionally. They sent out an invite and people came.” Chronicle of Philanthropy editor Stacy Palmer said, “Given how serious these economic times are, I don’t think it’s surprising these philanthropists came together,” and that, “They don’t typically get together and ask each other for advice.” The three hosts of the meeting were Buffet, Gates and David Rockefeller.[5] [See: Appendix 2: Bilderberg Connections to the Billionaire’s Meeting].

At the meeting, “participants steadfastly refused to reveal the content of the discussion. Some cited an agreement to keep the meeting confidential. Spokesmen for Mr. Buffett, Mr. Bloomberg, Mr. Gates, Mr. Rockefeller, Mr. Soros and Ms. Winfrey and others dutifully declined comment, though some confirmed attendance.”[6] Reports indicate that, “They discussed how to address the global slump and expand their charitable activities in the downturn.”[7]

The UK newspaper The Times reported that these “leading billionaires have met secretly to consider how their wealth could be used to slow the growth of the world’s population,” and that they “discussed joining forces to overcome political and religious obstacles to change.” Interestingly, “The informal afternoon session was so discreet that some of the billionaires’ aides were told they were at ‘security briefings’.” Further, “The billionaires were each given 15 minutes to present their favourite cause. Over dinner they discussed how they might settle on an ‘umbrella cause’ that could harness their interests,” and what was decided upon was that, “they agreed that overpopulation was a priority.” Ultimately, “a consensus emerged that they would back a strategy in which population growth would be tackled as a potentially disastrous environmental, social and industrial threat,” and that, “They need to be independent of government agencies, which are unable to head off the disaster we all see looming.” One guest at the meeting said that, “They wanted to speak rich to rich without worrying anything they said would end up in the newspapers, painting them as an alternative world government.”[8]

The Leaked Report

Bilderberg investigative reporter Daniel Estulin reportedly received from his inside sources a 73-page Bilderberg Group meeting wrap-up for participants, which revealed that there were some serious disagreements among the participants. “The hardliners are for dramatic decline and a severe, short-term depression, but there are those who think that things have gone too far and that the fallout from the global economic cataclysm cannot be accurately calculated if Henry Kissinger’s model is chosen. Among them is Richard Holbrooke. What is unknown at this point: if Holbrooke’s point of view is, in fact, Obama’s.” The consensus view was that the recession would get worse, and that recovery would be “relatively slow and protracted,” and to look for these terms in the press over the next weeks and months.

Estulin reported, “that some leading European bankers faced with the specter of their own financial mortality are extremely concerned, calling this high wire act “unsustainable,” and saying that US budget and trade deficits could result in the demise of the dollar.” One Bilderberger said that, “the banks themselves don’t know the answer to when (the bottom will be hit).” Everyone appeared to agree, “that the level of capital needed for the American banks may be considerably higher than the US government suggested through their recent stress tests.” Further, “someone from the IMF pointed out that its own study on historical recessions suggests that the US is only a third of the way through this current one; therefore economies expecting to recover with resurgence in demand from the US will have a long wait.” One attendee stated that, “Equity losses in 2008 were worse than those of 1929,” and that, “The next phase of the economic decline will also be worse than the ’30s, mostly because the US economy carries about $20 trillion of excess debt. Until that debt is eliminated, the idea of a healthy boom is a mirage.”[9]

According to Jim Tucker, Bilderberg is working on setting up a summit in Israel from June 8-11, where “the world’s leading regulatory experts” can “address the current economic situation in one forum.” In regards to the proposals put forward by Carl Bildt to create a world treasury department and world department of health under the United Nations, the IMF is said to become the World Treasury, while the World Health Organization is to become the world department of health. Bildt also reaffirmed using “climate change” as a key challenge to pursue Bilderberg goals, referring to the economic crisis as a “once-in-a-generation crisis while global warming is a once-in-a-millennium challenge.” Bildt also advocated expanding NAFTA through the Western hemisphere to create an American Union, using the EU as a “model of integration.”

The IMF reportedly sent a report to Bilderberg advocating its rise to becoming the World Treasury Department, and “U.S. Treasury Secretary Timothy Geithner enthusiastically endorsed the plan for a World Treasury Department, although he received no assurance that he would become its leader.” Geithner further said, “Our hope is that we can work with Europe on a global framework, a global infrastructure which has appropriate global oversight.”[10]

Bilderberg’s Plan in Action?

Reorganizing the Federal Reserve

Following the Bilderberg meeting, there were several interesting announcements made by key participants, specifically in regards to reorganizing the Federal Reserve. On May 21, it was reported that US Treasury Secretary Timothy Geithner “is believed to be leaning heavily towards giving the Federal Reserve a central role in future regulation,” and “it is understood that the Fed would take on some of the work currently undertaken by the US Securities and Exchange Commission.”[11]

On Wednesday, May 20, Geithner spoke before the Senate Banking Committee, at which he stated that, “there are important indications that our financial system is starting to heal.” In regards to regulating the financial system, Geithner stated that, “we must ensure that international rules for financial regulation are consistent with the high standards we will be implementing in the United States.”[12]

Bloomberg reported that, “The Obama administration may call for stripping the Securities and Exchange Commission of some of its powers under a regulatory reorganization,” and that, “The proposal, still being drafted, is likely to give the Federal Reserve more authority to supervise financial firms deemed too big to fail. The Fed may inherit some SEC functions, with others going to other agencies.” Interestingly, “SEC Chairman Mary Schapiro’s agency has been mostly absent from negotiations within the administration on the regulatory overhaul, and she has expressed frustration about not being consulted.”

It was reported that “Treasury Secretary Timothy Geithner was set to discuss proposals to change financial regulations last night at a dinner with National Economic Council Director Lawrence Summers [who was also present at Bilderberg], former Fed Chairman Paul Volcker [also at Bilderberg], ex-SEC Chairman Arthur Levitt and Elizabeth Warren, the Harvard University law professor who heads the congressional watchdog group for the $700 billion Troubled Asset Relief Program.”[13] The Federal Reserve is a privately owned central bank, owned by its shareholders, consisting of the major banks the make up each regional Fed bank (the largest of which is JP Morgan Chase and the Federal Reserve Bank of New York). This plan would essentially give a privately owned bank, which has governmental authority, the ability to regulate the banks that own it. It’s the equivalent of getting a Colonel to guard a General to whom he is directly answerable. Talk about the fox guarding the hen house. It is literally granting ownership over the financial regulator to the banks being regulated.

As Market Watch, an online publication of the Wall Street Journal, reported, “The Federal Reserve, created nearly 100 years ago in the aftermath of a financial panic, could be transformed into a different agency as the Obama administration reinvents the way government interacts with the financial system.” Referring to Geithner’s Senate appearance, it was reported that, “Geithner was also grilled on the cozy relationships that exist between the big banks and the regional Federal Reserve banks. Before Geithner joined the administration, he was president of the New York Fed, which is a strange public-private hybrid institution that is actually owned and run by the banks.” In response, “Geithner insisted that the private banks have no say over the policies of the New York Fed, but he acknowledged that the banks do have a say in hiring the president, who does make policy. The chairman of the New York Fed, Stephen Friedman, was forced to resign earlier this month because of perceived conflicts of interest due to his large holdings in Goldman Sachs.”[14]

The IMF as a Global Treasury

The Bilderberg agenda of creating a global treasury has already been started prior to the Bilderberg meeting, with decisions made during the G20 financial summit in April. Although the G20 seemed to frame it more in context of being formed into a global central bank, although it is likely the IMF could fill both roles.

Following the G20 meeting at the beginning of April, 2009, it was reported that, “The world is a step closer to a global currency, backed by a global central bank, running monetary policy for all humanity,” as the Communiqué released by the G20 leaders stated that, “We have agreed to support a general SDR allocation which will inject $250bn (£170bn) into the world economy and increase global liquidity,” and that, “SDRs are Special Drawing Rights, a synthetic paper currency issued by the International Monetary Fund that has lain dormant for half a century.” Essentially, “they are putting a de facto world currency into play. It is outside the control of any sovereign body.”[15] [See Appendix 2: Creating a Central Bank of the World]

Following the Bilderberg meeting, “President Obama has asked Congress to authorize $100 billion in loans to the International Monetary Fund (IMF) to help create a $500 billion global bailout fund,” which would give the IMF the essential prerogative of a global treasury, providing bailouts for countries in need around the world. Further, “the bill would allow the IMF to borrow up to $100 billion from the U.S. and increase the U.S. fiscal contribution to the IMF by $8 billion.” Elaborating on the program, it was reported that, “World leaders began on the global bailout initiative, called the New Arrangement for Borrowing (NAB), at the G-20 summit in early April. The president agreed at that time to make the additional funds available.” Obama wrote that, “Treasury Secretary Geithner concluded that the size of the NAB is woefully inadequate to deal with the type of severe economic and financial crisis we are experiencing, and I agree with him.”[16]

With the G20 decision to increase the usage of IMF Special Drawing Rights (SDRs), forming a de facto world currency, it was recently reported that, “Sub-Saharan Africa will receive around $10 billion from the IMF in Special Drawing Rights (SDRs) to help its economies weather the global financial crisis,” and that, “As part of a $1.1 trillion deal to combat the world economic downturn agreed at April’s G20 summit, the IMF will issue $250 billion worth of SDRs, which can be used to boost foreign currency reserves.”[17]

Recent reports have also indicated that the IMF’s role in issuing SDRs goes hand in hand with the Bilderberg discussion on the potential collapse of the US dollar, and, “Transforming the dollar standard into an SDR-based system would be a major break with a policy that has lasted more than 60 years.” It was reported that, “There are two ways in which the dollar’s role in the international monetary system can be reduced. One possibility is a gradual, market-determined erosion of the dollar as a reserve currency in favor of the euro. But, while the euro’s international role – especially its use in financial markets – has increased since its inception, it is hard to envisage it overtaking the dollar as the dominant reserve currency in the foreseeable future.” However, “With the dollar’s hegemony unlikely to be seriously undermined by market forces, at least in the short and medium-term, the only way to bring about a major reduction in its role as a reserve currency is by international agreement.” This is where the SDRs come into play, as “One way to make the SDR the major reserve currency relatively soon would be to create and allocate a massive amount of new SDRs to the IMF’s members.”[18] This is, interestingly, exactly what is happening with Africa and the IMF now.

Former IMF Managing Director Jacques de Larosière recently stated that the current financial crisis, “given its scope, presents a unique opening to improve institutions, and there is already a danger that the chance might be missed if the different actors cannot agree to changes by the time economic growth resumes.” He is now an adviser with BNP Paribas, a corporation highly represented at Bilderberg meetings, and he was head of the Treasury of France when Valéry Giscard d’Estaing was President of France, who is a regular of the Bilderberg Group.[19]

The Guardian Covers Bilderberg

The British paper, the Guardian, was the only major mainstream news publication to provide ongoing coverage of the Bilderberg meeting over the weekend. His first columns were satirical and slightly mocking, referring to it as, “A long weekend at a luxury hotel, where the world’s elite get to shake hands, clink glasses, fine-tune their global agenda and squabble over who gets the best sun loungers. I’m guessing that Henry Kissinger brings his own, has it helicoptered in and guarded 24/7 by a CIA special ops team.”[20] However, as the weekend dragged on, his reporting took a change of tone. He reported on the Saturday that, “I know that I’m being followed. I know because I’ve just been chatting to the plainclothes policemen I caught following me,” and he was arrested twice in the first day of the meetings for attempting to take photographs as the limousines entered the hotel.[21]

He later reported that he wasn’t sure what they were discussing inside the hotel, but that he has “a sense of something rotten in the state of Greece,” and he further stated, “Three days and I’ve been turned into a suspect, a troublemaker, unwanted, ill at ease, tired and a bit afraid.” He then went on to write that, “Bilderberg is all about control. It’s about “what shall we do next?” We run lots of stuff already, how about we run some more? How about we make it easier to run stuff? More efficient. Efficiency is good. It would be so much easier with a single bank, a single currency, a single market, a single government. How about a single army? That would be pretty cool. We wouldn’t have any wars then. This prawn cocktail is GOOD. How about a single way of thinking? How about a controlled internet?,” and then, “How about not.”

He makes a very astute point, countering the often postulated argument that Bilderberg is simply a forum where people can speak freely, writing: “I am so unbelievably backteeth sick of power being flexed by the few. I’ve had it flexed in my face for three days, and it’s up my nose like a wasp. I don’t care whether the Bilderberg Group is planning to save the world or shove it in a blender and drink the juice, I don’t think politics should be done like this,” and the author, Charlie Skelton, eloquently stated, “If they were trying to cure cancer they could do it with the lights on.” He further explained that, “Bilderberg is about positions of control. I get within half a mile of it, and suddenly I’m one of the controlled. I’m followed, watched, logged, detained, detained again. I’d been put in that position by the “power” that was up the road.”[22]

On Sunday, May 17, Skelton reported that when he asked the police chief why he was being followed, the chief responded asking, “Why you here?” to which Skelton said he was there to cover the Bilderberg conference, after which the chief stated, “Well, that is the reason! That is why! We are finished!”[23] Do reporters get followed around and stalked by police officers when they cover the World Economic Forum? No. So why does it happen with Bilderberg if all it is, is a conference to discuss ideas freely?

On the Monday following the conference, Skelton wrote that, “It isn’t just me who’s been hauled into police custody for daring to hang around half a mile from the hotel gates. The few journalists who’ve made the trip to Vouliagmeni this year have all been harassed and harried and felt the business end of a Greek walkie-talkie. Many have been arrested. Bernie, from the American Free Press, and Gerhard the documentarian (sounds like a Dungeons and Dragons character) chartered a boat from a nearby marina to try to get photos from the sea. They were stopped three miles from the resort. By the Greek navy.” As Skelton said himself, “My dispatches on the 2009 conference, if they mean anything at all, represent nothing more acutely than the absence of thorough mainstream reporting.”[24]

Skelton’s final report on Bilderberg from May 19, showed how far he had gone in his several days of reporting on the meeting. From writing jokingly about the meeting, to discovering that he was followed by the Greek State Security force. Skelton mused, “So who is the paranoid one? Me, hiding in stairwells, watching the pavement behind me in shop windows, staying in the open for safety? Or Bilderberg, with its two F-16s, circling helicopters, machine guns, navy commandos and policy of repeatedly detaining and harassing a handful of journalists? Who’s the nutter? Me or Baron Mandelson? Me or Paul Volker, the head of Obama’s economic advisory board? Me or the president of Coca-Cola?”

Skelton stated that, “Publicity is pure salt to the giant slug of Bilderberg. So I suggest next year we turn up with a few more tubs. If the mainstream press refuses to give proper coverage to this massive annual event, then interested citizens will have to: a people’s media.”

Amazingly, Skelton made the pronouncement that what he learned after the Bilderberg conference, was that, “we must fight, fight, fight, now – right now, this second, with every cubic inch of our souls – to stop identity cards,” as, “It’s all about the power to ask, the obligation to show, the justification of one’s existence, the power of the asker over the subservience of the asked.” He stated that he “learned this from the random searches, detentions, angry security goon proddings and thumped police desks without number that I’ve had to suffer on account of Bilderberg: I have spent the week living in a nightmare possible future and many different terrible pasts. I have had the very tiniest glimpse into a world of spot checks and unchecked security powers. And it has left me shaken. It has left me, literally, bruised.” Pointedly, he explains that, “The identity card turns you from a free citizen into a suspect.”[25]

Who was there?

Royalty

Among the members of the Bilderberg Group are various European monarchs. At this years meeting, Queen Beatrix of the Netherlands was present, who happens to be the largest single shareholder in Royal Dutch Shell, one of the world’s largest corporations. She was joined by one of her three sons, Prince Constantijn, who also attended the meeting. Prince Constantijn has worked with the Dutch European Commissioner for the EU, as well as having been a strategic policy consultant with Booz Allen & Hamilton in London, a major strategy and technology consulting firm with expertise in Economic and Business Analysis, Intelligence and Operations Analysis and Information Technology, among many others. Prince Constantijn has also been a policy researcher for RAND Corporation in Europe. RAND was initially founded as a global policy think tank that was formed to offer research and analysis to the US Armed Forces, however, it now works with governments, foundations, international organizations and commercial organizations.[26] Also present among European Royalty was Prince Philippe of Belgium, and Queen Sofia of Spain.

Private Bankers

As usual, the list of attendees was also replete with names representing the largest banks in the world. Among them, David Rockefeller, former CEO and Chairman of Chase Manhattan, now JP Morgan Chase, of which he was, until recently, Chairman of the International Advisory Board; and still sits as Honourary Chairman of the Council on Foreign Relations, Chairman of the Board of the Americas Society and Council of the Americas, Honourary Chairman of the Trilateral Commission, which he founded alongside Zbigniew Brzezinski; also a founding member of the Bilderberg Group, prominent philanthropist and is the current patriarch of one of the world’s richest and most powerful banking dynasties.

Also present was Josef Ackermann, a Swiss banker who is CEO of Deutsche Bank, also a non-executive director of Royal Dutch Shell; Deputy Chairman of Siemens AG, Europe’s largest engineering corporation; he is also a member of the International Advisory Council of Zurich Financial Services Group; Chairman of the Board of the Institute International of Finance, the world’s only global association of financial institutions; and Vice Chairman of the Foundation Board of the World Economic Forum.[27]

Roger Altman was also present at the Bilderberg meeting, an investment banker, private equity investor and former Deputy Treasury Secretary in the Clinton Administration. Other bankers at this years meeting include Ana Patricia Botin, Chairman of the Spanish bank, Banco Español de Crédito, formerly having worked with JP Morgan; Frederic Oudea, CEO and newly appointed Chairman of the Board of French bank Societe Generale; Tommaso Padoa-Schioppa, an Italian banker and economist, formerly Italy’s Minister of Economy and Finance; Jacob Wallenberg, Chairman of Investor AB; Marcus Wallenberg, CEO of Investor AB; and George David, CEO of United Technologies Corporation, who also sits on the board of Citigroup, member of the Business Council, the Business Roundtable, and is Vice Chairman of the Peterson Institute for International Economics. [For more on the Peterson Institute, see: Appendix 1]

Canadian bankers include W. Edmund Clark, President and CEO of TD Bank Financial Group, also a member of the board of directors of the C.D. Howe Institute, a prominent Canadian think tank; Frank McKenna, Deputy Chairman of TD Bank Financial Group, former Canadian Ambassador to the United States, former Premier of New Brunswick; and Indira Samarasekera, President of the University of Alberta, who is also on the board of Scotiabank, one of Canada’s largest banks.

Central Bankers

Of course, among the notable members of the Bilderberg Group, are the world’s major central bankers. Among this years members are the Governor of the National Bank of Greece, Governor of the Bank of Italy, President of the European Investment Bank, James Wolfensohn, former President of the World Bank, and Nout Wellink, on the board of the Bank for International Settlements (BIS).[28] Jean-Claude Trichet, the President of the European Central Bank was also present.[29] There is no indication that the Governor of the Federal Reserve, Ben Bernanke was present, which would be an odd turn of events, considering that the Federal Reserve Governor is always present at Bilderberg meetings, alongside the President of the Federal Reserve Bank of New York, William C. Dudley. I have contacted the New York Fed inquiring if Dudley visited Greece or went to any meetings in Greece between May 14-17, or if another senior representative from the New York Fed went in his stead. I have yet to get a response.

The Obama Administration at Bilderberg

The Obama administration was heavily represented at this years Bilderberg meeting. Among the attendees were Keith B. Alexander, a Lieutenant General of U.S. Army and Director of the National Security Agency, the massive spying agency of the United States; Timothy Geithner, US Treasury Secretary and former President of the Federal Reserve Bank of New York; Richard Holbrooke, the Obama administration’s special envoy for Afghanistan and Pakistan; General James Jones, United States National Security Advisor; Henry Kissinger, Obama’s special envoy to Russia, longtime Bilderberg member and former Secretary of State and National Security Advisor; Dennis Ross, special advisor for the Persian Gulf and Southwest Asia to Secretary of State Hillary Clinton; David Patraeus, Commander of CENTCOM, (U.S. Central Command, in the Middle East), Lawrence Summers, Director of the White House’s National Economic Council, former Treasury Secretary in the Clinton administration, former President of Harvard University, former Chief Economist of the World Bank; Paul Volcker, former Governor of the Federal Reserve System and Chair of Obama’s Economic Recovery Advisory Board; Robert Zoellick, former Chairman of Goldman Sachs and current President of the World Bank;[30] and Deputy Secretary of State James Steinberg.[31]

Other Notable Names

Among many others present at the meeting are Viscount Étienne Davignon, former Vice President of the European Commission, and Honourary Chairman of the Bilderberg Group; Francisco Pinto Balsemão, former Prime Minister of Portugal; Franco Bernabè, CEO of Telecom Italia and Vice Chairman of Rothschild Europe; Carl Bildt, former Prime Minister of Sweden; Kenneth Clarke, Shadow Business Secretary in the UK; Richard Dearlove, former head of Britain’s Secret Intelligence Services (MI6); Donald Graham, CEO of the Washington Post Company; Jaap De Hoop Scheffer, Secretary-General of NATO; John Kerr, member of the British House of Lords and Deputy Chairman of Royal Dutch Shell; Jessica Matthews, President of the Carnegie Endowment for International Peace; Richard Perle of the American Enterprise Institute; Romano Prodi, former Italian Prime Minister; J. Robert S. Prichard, CEO of Torstar Corporation and President Emeritus of the University of Toronto; Peter Sutherland, former Director General of the General Agreement on Tariffs and Trade (GATT), first Director General of the World Trade Organization (WTO), and is currently Chairman of British Petroleum (BP) and Goldman Sachs International as well as being a board member of the Royal Bank of Scotland, Chairman of the Trilateral Commission, Vice Chairman of the European Roundtable of Industrialists, and longtime Bilderberg member; Peter Thiel, on the board of directors of Facebook; Jeroen van der Veer, CEO of Royal Dutch Shell; Martin Wolf, Associate Editor and Chief Economics Commentator of the Financial Times newspaper; and Fareed Zakaria, US journalist and board member of the Council on Foreign Relations.[32] There were also some reports that this years meeting would include Google CEO Eric Schmidt, as well as Wall Street Journal Editor Paul Gigot,[33] both of whom attended last years meeting.[34]

Conclusion

Clearly, it was the prerogative of this year’s Bilderberg meeting to exploit the global financial crisis as much as possible to reach goals they have been striving toward for many years. These include the creation of a Global Treasury Department, likely in conjunction with or embodied in the same institution as a Global Central Bank, both of which seem to be in the process of being incorporated into the IMF.

Naturally, Bilderberg meetings serve the interests of the people and organizations that are represented there. Due to the large amount of representatives from the Obama administration that were present, US policies revolving around the financial crisis are likely to have emerged from and serve the interests of the Bilderberg Group. Given the heavy representation of Obama’s foreign policy establishment at the Bilderberg meeting, it seemed surprising to not have received any more information regarding US foreign policy from this year’s meeting, perhaps having to do with Pakistan and Afghanistan.

However, the US recently decided to fire the general who oversaw the Afghan war, being replaced with “Lt. Gen. Stanley McChrystal, a former Green Beret who recently commanded the military’s secretive special operations forces in Iraq.”[35] From 2003 to 2008, McChrystal “led the Pentagon’s Joint Special Operations Command (JSOC), which oversees the military’s most sensitive forces, including the Army’s Delta Force,” and who Pulitzer-Prize winning investigative journalist Seymour Hersh singled out as the head of VP Cheney’s “executive assassination wing.”[36]

So, given these recent changes, as well as the high degree of representation Obama’s foreign policy establishment held at Bildebrerg this year, there were likely to have been some decisions or at least discussion of the escalation of the Afghan war and expansion into Pakistan. However, it is not surprising that the main item on the agenda was the global financial crisis. Without a doubt, the next year will be an interesting one, and the elite are surely hoping to make it a productive one.


APPENDIX 1: Bilderberg Connections to the Billionaire’s Meeting

Peter G. Peterson, one of the guests in attendance at the secret billionaires meeting, was the former United States Secretary of Commerce in the Nixon administration, Chairman and CEO of Lehman Brothers, Kuhn, Loeb Inc., from 1977 to 1984, he co-founded the prominent private equity and investment management firm, the Blackstone Group, of which he is currently Senior Chairman, and in 1985, he became Chairman of the Council on Foreign Relations, taking over when David Rockefeller stepped down from that position. He founded the Peterson Institute for International Economics and was Chairman of the New York Federal Reserve Bank from 2000-2004. The Peterson Institute for International Economics is a major world economic think tank, which seeks to “inform and shape public debate,” from which, “Institute studies have helped provide the intellectual foundation for many of the major international financial initiatives of the past two decades: reform of the International Monetary Fund (IMF), adoption of international banking standards, exchange rate systems in the G-7 and emerging-market economies, policies toward the dollar, the euro, and other important currencies, and responses to debt and currency crises (including the current crisis of 2008–09).” It has also “made important contributions to key trade policy decisions” such as the development of the World Trade Organization, NAFTA, APEC, and East Asian regionalism.[37]

It has a prominent list of names on its board of directors. Peter G. Peterson is Chairman of the board; George David, Chairman of United Technologies is Vice Chairman, as well as being a board member of Citigroup, and was a guest at this year’s Bilderberg meeting; Chen Yuan, Governor of the China Development Bank and former Deputy Governor of the People’s Bank of China (China’s central bank); Jessica Einhorn, Dean of Washington’s Paul H. Nitze School of Advanced International Studies (SAIS) of the Johns Hopkins University, former Visiting Fellow of the International Monetary Fund (IMF), former Managing Director of the World Bank, and currently on the board of Time Warner and the Council on Foreign Relations; Stanley Fischer, Governor of the Central Bank of Israel, former Vice President at the World Bank, former Managing Director at the IMF, former Vice Chairman of Citigroup, and has also been a regular participant in Bilderberg meetings; Carla A. Hills, former US Trade Representative, and was the prime negotiator of NAFTA, she sits on the International Advisory Boards of American International Group, the Coca-Cola Company, Gilead Sciences, J.P. Morgan Chase,  member of the Executive Committee of the Trilateral Commission, Co-Chair of the Council on Foreign Relations, and played a key part in the CFR document, “Building a North American Community,” which seeks to remodel North America following along the lines of the European Union, and she has also been a prominent Bilderberg member; David Rockefeller also sits on the Peterson Institute’s board, as well as Lynn Forester de Rothschild; Jean-Claude Trichet, President of the European Central Bank, who is at every Bilderberg meeting; Paul A. Volcker, former Governor of the Federal Reserve System, regular participant of Bilderberg meetings, and current Chair of Obama’s Economic Recovery Advisory Board.

Honourary Directors of the Peterson Institute include Bilderbergers Alan Greenspan, former Chairman of the Board of Governors of the Federal Reserve System, a prime architect of the current crisis; Frank E. Loy, former Under Secretary of State for Global Affairs, and is on the boards of Environmental Defense, the Pew Center for Global Climate Change, Resources for the Future, and Population Services International; George P. Shultz, former US Secretary of State in the Reagan administration, President and Director of Bechtel Group and former Secretary of the Treasury.[38]

APPENDIX 2: Creating a Central Bank of the World

Jeffrey Garten, Undersecretary of Commerce for International Trade in the Clinton administration, former Dean of the Yale School of Management, previously served on the White House Council on International Economic Policy under the Nixon administration and on the policy planning staffs of Secretaries of State Henry Kissinger and Cyrus Vance of the Ford and Carter administrations. He also was a managing director of Lehman Brothers and the Blackstone Group, is also a member of the Council on Foreign Relations. As early as 1998, Garten wrote an article for the New York Times in which he advocated the creation of a global central bank.[39]

Amid the current financial crisis, Garten wrote an article for the Financial Times in which he advocated for “the establishment of a Global Monetary Authority to oversee markets that have become borderless,” acting as a global central bank.[40] In late October, Garten wrote an article for Newsweek in which he said that world “leaders should begin laying the groundwork for establishing a global central bank.”[41]

Three days after the publication of Garten’s Newsweek article, it was reported that, “The International Monetary Fund may soon lack the money to bail out an ever growing list of countries crumbling across Eastern Europe, Latin America, Africa, and parts of Asia, raising concerns that it will have to tap taxpayers in Western countries for a capital infusion or resort to the nuclear option of printing its own money.” Further, “The nuclear option is to print money by issuing Special Drawing Rights, in effect acting as if it were the world’s central bank.”[42]

[For a detailed look at the moves to create a global central bank, regional currencies, a global reserve currency and a world governing body, see: Andrew G. Marshall, The Financial New World Order: Towards a Global Currency and World Government: Global Research, April 6, 2009]

Endnotes

[1] CFP, Annual Elite Conclave, 58th Bilderberg Meeting to be held in Greece, May 14-17. Canadian Free Press: May 5, 2009:
http://canadafreepress.com/index.php/article/10854

[2] Paul Joseph Watson, Bilderberg Wants Global Department Of Health, Global Treasury. Prison Planet: May 16, 2009:
http://www.infowars.com/bilderberg-wants-global-department-of-health-global-treasury/

[3] Paul Joseph Watson, Bilderberg Fears Losing Control In Chaos-Plagued World. Prison Planet: May 18, 2009:
http://www.prisonplanet.com/bilderberg-fears-losing-control-in-chaos-plagued-world.html

[4] Sorcha Faal, Bilderberg Group orders destruction of US Dollar? MINA: May 21, 2009:
http://macedoniaonline.eu/content/view/6807/53/

[5] Kristi Heim, What really happened at the billionaires’ private confab. The Seattle Times: May 20, 2009:
http://seattletimes.nwsource.com/html/thebusinessofgiving/2009244202_what_really_happened_at_the_bi.html

[6] A. G. Sulzberger, The Rich Get … Together (Shhh, It Was a Secret). The New York Times: May 20, 2009:
http://cityroom.blogs.nytimes.com/2009/05/20/the-rich-get-together-shhh-it-was-a-secret/

[7] Chosun, American Billionaires Gather to Discuss Slump. The Chosun Ilbo: May 22, 2009:
http://english.chosun.com/site/data/html_dir/2009/05/22/2009052200772.html

[8] John Harlow, Billionaire club in bid to curb overpopulation. The Sunday Times: May 24, 2009:
http://www.timesonline.co.uk/tol/news/world/us_and_americas/article6350303.ece

[9] Press Release, Investigative Author, Daniel Estulin Exposes Bilderberg Group Plans. PRWeb: May 22, 2009:
http://www.prweb.com/releases/Bilderberg_Group_Meeting/Daniel_Estulin/prweb2453144.htm

[10] James P. Tucker Jr., BILDERBERG AGENDA EXPOSED. American Free Press: June 1, 2009:
http://www.americanfreepress.net/html/bilderberg_2009_179.html

[11] James Quinn, Tim Geithner to reform US financial regulation. The Telegraph: May 21, 2009:
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance
/5359527/Tim-Geithner-to-reform-US-financial-regulation.html

[12] Greg Menges, U. S. Secretary of the Treasury Timothy F. Geithner speech before the Senate Banking Committee. Examiner: May 20, 2009:
http://www.examiner.com/x-8184-Boston-Investing-Examiner~y2009m
5d20-U-S-Secretary-of-the-Treasury-Timothy-F-Geithner-speech-before-the-Senate-Banking-Committee

[13] Robert Schmidt and Jesse Westbrook, U.S. May Strip SEC of Powers in Regulatory Overhaul. Bloomberg: May 20: 2009:
http://www.bloomberg.com/apps/news?pid=20601087&sid=a18ctNv3FDcw

[14] Rex Nutting, Fed could be completely retooled, Geithner says. Market Watch: May 20, 2009:
http://www.marketwatch.com/story/fed-could-be-completely-retooled-geithner-says

[15] Ambrose Evans-Pritchard, The G20 moves the world a step closer to a global currency. The Telegraph: April 3, 2009:
http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/5096524/The-G20-moves-the-world-a-step-closer-to-a-global-currency.html

[16] Marie Magleby, Obama Wants U.S. to Loan $100 Billion to Global Bailout Fund. CNS News: May 20, 2009:
http://www.cnsnews.com/public/content/article.aspx?RsrcID=48329

[17] Joe Bavier, Sub-Saharan Africa to receive $10 bln in SDRs-IMF. Reuters: May 25, 2009:
http://www.reuters.com/article/latestCrisis/idUSLP336909

[18] Onno Wijnholds, The Dollar’s Last Days? International Business Times: May 18, 2009:
http://www.ibtimes.com/articles/20090518/dollar-rsquolast-days.htm

[19] MATTHEW SALTMARSH, Former I.M.F. Chief Sees Opportunity in Crisis. The New York Times: May 22, 2009:
http://www.nytimes.com/2009/05/23/business/global/23spot.html?ref=global

[20] Charlie Skelton, Our man at Bilderberg: in pursuit of the world’s most powerful cabal. The Guardian: May 13, 2009:
http://www.guardian.co.uk/world/2009/may/13/in-search-of-bilderberg

[21] Charlie Skelton, Our man at Bilderberg: They’re watching and following me, I tell you. The Guardian: May 15, 2009:
http://www.guardian.co.uk/world/2009/may/15/bilderberg-charlie-skelton-dispatch

[22] Charlie Skelton, Our man at Bilderberg: I’m ready to lose control, but they’re not. The Guardian: May 15, 2009:
http://www.guardian.co.uk/world/2009/may/15/bilderberg-charlie-skelton-dispatch1

[23] Charlie Skelton, Our man at Bilderberg: ‘You are not allowed to take pictures of policemen!’ The Guardian: May 17, 2009:
http://www.guardian.co.uk/world/2009/may/17/charlie-skelton-bilderberg

[24] Charlie Skelton, Our man at Bilderberg: Fear my pen. The Guardian: May 18, 2009:
http://www.guardian.co.uk/world/2009/may/18/bilderberg-charlie-skelton-dispatch

[25] Charlie Skelton, Our man at Bilderberg: Let’s salt the slug in 2010. The Guardian: May 19, 2009:
http://www.guardian.co.uk/news/blog/2009/may/19/bilderberg-skelton-greece

[26] Dutch Royal House, Work and official duties. Prince Constantijn:
http://www.koninklijkhuis.nl/english/content.jsp?objectid=18215

[27] Deutsche Bank, Management Board. Our Company:
http://www.db.com/en/content/company/management_board.htm

[28] InfoWars, Bilderberg 2009 Attendee List (revised). May 18, 2009:
http://www.infowars.com/bilderberg-2009-attendee-list/

[29] Demetris Nellas, Greek nationalists protest Bilderberg Club meeting. AP: May 14, 2009:
http://www.google.com/hostednews/ap/article/ALeqM5jep_nbEq1srzJHFQ8fRGNQO3P38QD987H3200

[30] InfoWars, Bilderberg 2009 Attendee List (revised). May 18, 2009:
http://www.infowars.com/bilderberg-2009-attendee-list/

[31] MRT, Top US official arrives in Greece. Macedonian Radio and Television: May 15, 2009:
http://www.mrt.com.mk/en/index.php?option=com_content&task=view&id=6112&Itemid=28

[32] InfoWars, Bilderberg 2009 Attendee List (revised). May 18, 2009:
http://www.infowars.com/bilderberg-2009-attendee-list/

[33] WND, Google joins Bilderberg cabal. World Net Daily: May 17, 2009:
http://worldnetdaily.com/index.php?fa=PAGE.view&pageId=98469

[34] Adam Abrams, Are the people who ‘really run the world’ meeting this weekend? Haaretz: May 14, 2009:
http://www.haaretz.com/hasen/spages/1085589.html

[35] YOCHI J. DREAZEN and PETER SPIEGEL, U.S. Fires Afghan War Chief. The Wall Street Journal: May 12, 2009:
http://online.wsj.com/article/SB124206036635107351.html

[36] M.J. Stephey, Stan McChrystal: The New U.S. Commander in Afghanistan. Time Magazine: May 12, 2009:
http://www.time.com/time/politics/article/0,8599,1897542,00.html

[37] PIIE, About the Institute. Peterson Institute for International Economics:
http://www.petersoninstitute.org/institute/aboutiie.cfm

[38] PIIE, Board of Directors. Peterson Institute for International Economics:
http://www.petersoninstitute.org/institute/board.cfm#52

[39] Jeffrey E. Garten, Needed: A Fed for the World. The New York Times: September 23, 1998:
http://www.nytimes.com/1998/09/23/opinion/needed-a-fed-for-the-world.html

[40] Jeffrey Garten, Global authority can fill financial vacuum. The Financial Times: September 25, 2008:
http://www.ft.com/cms/s/7caf543e-8b13-11dd-b634-0000779fd18c,Authorised=false.html?_i_
location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F7caf543e-8b13-11dd-b634-000077
9fd18c.html&_i_referer=http%3A%2F%2Fwilliamnotes.wordpress.com%2F2008%2F09%2F30%2Fgarten-on-a-global-monetary-authority%2F

[41] Jeffrey Garten, We Need a Bank Of the World. Newsweek: October 25, 2009: http://www.newsweek.com/id/165772

[42] Ambrose Evans-Pritchard, IMF may need to “print money” as crisis spreads. The Telegraph: October 28, 2009:
http://www.telegraph.co.uk/finance/comment/ambroseevans
_pritchard/3269669/IMF-may-need-to-print-money-as-crisis-spreads.html