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Global Power Project: The Group of Thirty and the “Good Discussion” They’re Still Having
By: Andrew Gavin Marshall
Originally posted at Occupy.com
The Group of Thirty (or G-30) describes itself as “a private, nonprofit, international body composed of very senior representatives of the private and public sectors and academia,” which “aims to deepen understanding of international economic and financial issues, to explore the international repercussions of decisions taken in the public and private sectors, and to examine the choices available to market practitioners and policymakers.”
Its membership consists of roughly thirty major figures in the global financial world, from central banks, academia, international institutions and major private financial institutions. These figures hold regular meetings, conduct research and produce highly-influential reports through various “working groups,” providing a forum for top policy makers and private sector market “actors” to meet and hold discussions, while helping shape consensus and give recommendations to policy makers on issues of finance and governance.
This institution, though not widely discussed, is enormously influential. And here’s why.
The history of the Group of Thirty goes back to the Rockefeller Foundation, which provided the organization’s initial funding. In its 1978 annual report, the Rockefeller Foundation – which represents the interests of highly centralized corporate and financial power – recalled that it was created in 1913 as a response to “the Populist assault on the massive concentration of wealth in the hands of few.” (Annual Report, 1978, Rockefeller Foundation.)
The 1978 report noted that a former managing director of the IMF, Johannes Witteveen, “agreed to assume the chairmanship of a Consultative Group on International Economic and Monetary Affairs made up of leading bankers, officials, economists, and businessmen from the developed and developing world.” The objective of this group was, the report stated, was “to help analyze, through scholarly inquiry and international consultations, some of the vexing economic and monetary problems facing the world today, and to make their findings widely known.”
The Rockefeller Foundation expressed a keen interest in structuring the global economic and monetary issues of the day, noting that: “The international economic system is not functioning well – as evidenced by slow economic growth, persistent unemployment, and high inflation in many countries, growing skepticism about the capacity of floating exchange rates to correct imbalances of payments, increasing fears of protectionism, and relatively little progress in meeting the needs of developing countries and the quarter of the world’s population that is very poor.”
Thus, the Foundation laid the groundwork for what would come next, by continuing “to concentrate on international economic policy and made plans to bring together a group of experts who will explore the functioning of the international economic system. Beginning with the subject of international monetary problems, the group intends to clarify the issues, identify policy choices for governments, and assess the consequences of alternative policies and institutional arrangements.”
What emerged was the Group of Thirty, originally named the “Consultative Group on International Economic and Monetary Affairs,” which was to function as a think tank, lobby/industry group and, ultimately, a consensus-building institution for the global elites – to ensure that they stayed that way.
The 1979 annual report of the Rockefeller Foundation noted that the Group of Thirty “began an ambitious program of research, study group analyses, and plenary meetings for the purpose of seeking ways to improve the functioning of the international monetary system.” (Annual Report, 1979, Rockefeller Foundation.)
Fast forward more than three decades and the Group of Thirty remains a highly influential organization in matters of global financial governance. Members of the G-30 have included notable figures such as Josef Ackermann, Pedro Aspe, Alan Greenspan, Andrew Crockett, and the newly-anointed Chair of the Federal Reserve System, Janet Yellen.
The Association for Financial Professionals wrote in 2005 that, “over nearly the past three decades, one thing that has remained continuous in the hurly-burly changing landscape of international economics has been the influence of the Group of Thirty,” which it described as “something of a high-powered global economic think tank.”
Gerd Hausler, an official at the IMF and former Governor of the German Bundesbank, stated: “What makes the G30 unique is that it has very senior people there… It recruits members from the central banks and private companies [to get them] sitting together and mulling ideas at a high level.”
Geoffrey L Bell, who founded the organization at the invitation – and with the money – of the Rockefeller Foundation, commented, “The idea of ‘30’ was to have a good cross-section of people from around the world… but not so many that you couldn’t have a good discussion.”
In March of 2009, the Financial Times published a list of “the 50 people likely to be the most influential in shaping the world debate” on “tackling the many problems” of the global financial and economic crisis, “and charting a course through them to a new world order.”
The article noted that, “networks and institutions will matter as much as individuals,” and in particular it referenced the Group of Thirty as “one interesting connection between these players,” with 11 of the 50 individuals selected on the list being members of the G-30. Four years after the list was published, the number of its individuals who were also members of the G-30 increased to 14.
One of those is Jean-Claude Trichet, the former President of the European Central Bank and current Chairman of the Group of Thirty. Upon assuming his role as chairman in 2011, Trichet stated: “This is a time of exceptional challenges to the global economic and financial system, and the G30 will continue to make significant contributions to the policy debate and enhance understanding of the critical paths to stability and to economic growth.”
As Chairman of the G-30, Trichet also sits as the Honorary Governor of the Banque de France (the French central bank), which he used to direct from 1993 until 2003, when he became President of the European Central Bank (ECB), a position he held through 2011. Trichet was also previously a director of the French Treasury and the former chairman of the Paris Club, from 1985 to 1993. While he was President of the ECB, he also served as a member of the board of directors of the Bank for International Settlements (BIS) and as president of the Global Economy Meeting of Central Bank Governors at the BIS from 2002 to 2011.
Today, Trichet holds a number of other highly influential positions. Apart from being Chairman of the G-30, he sits on the board of directors of the Peter G. Peterson Institute for International Economics, he is on the board of the European military contractor EADS, and he is chairman of the board for the influential European think tank BRUEGEL. Trichet is also, importantly, a member of the Group of Trustees in the global bank industry lobby known as the Institute of International Finance (IIF). He is additionally the European Chairman of the Trilateral Commission and is a member of the Steering Committee of the Bilderberg Meetings.
Jacob A. Frenkel, the Chairman of the Board of Trustees of the Group of Thirty, is also a member of the Executive Committee of JPMorgan Chase, and Chairman of JPMorgan Chase International, while also sitting as a member on the International Council of the bank. Frenkel was the Vice Chairman of American International Group (AIG) from 2004 to 2009, during which time it received its mega-bailout from the Federal Government. He is also a past Chairman of Merrill Lynch International from 2000 to 2004.
Prior, Frenkel was the Governor of the Bank of Israel from 1991 to 2000; Economic Counselor and Director of Research at the International Monetary Fund (IMF) from 1987 to 1991; David Rockefeller Professor of International Economics at the University of Chicago from 1973 to 1987; former editor of the Journal of Political Economy; and previously a member of the International Advisory Board for the Council on Foreign Relations.
Currently, Frenkel is a member of the board of directors on the National Bureau of Economic Research (NBER), as well as a member of the Trilateral Commission and the International Advisory Council of the China Development Bank. He too sits on the board of the Peter G. Peterson Institute for International Economics, and is a member of the Economic Advisory Panel of the Federal Reserve Bank of New York, as well as the Investment Advisory Council to the Prime Minister of Turkey. Frenkel is also on the board of directors for Loews Corporation.
This is but a brief introduction to the Group of Thirty, its members, and its influence, which will be elaborated upon in future installments of the Global Power Project. Stay tuned for the second part in the series next week.
Andrew Gavin Marshall is a 26-year old researcher and writer based in Montreal, Canada. He is Project Manager of The People’s Book Project, chair of the Geopolitics Division of The Hampton Institute, research director for Occupy.com’s Global Power Project and the World of Resistance (WoR) Report, and hosts a weekly podcast show with BoilingFrogsPost.
Global Power Project, Part 7: Banking on Influence with Citigroup
By: Andrew Gavin Marshall
Originally posted at Occupy.com
In the second quarter of 2013, the third-largest U.S. bank by assets, Citigroup, posted a 42% increase in profits which CEO Michael Corbat praised as a “well balanced” result of “cost cutting” programs, including the firing of 11,000 workers.
This big bank has a sordid history of predatory profiteering and criminal activity, not unlike all the other large banks. In the early 20th century, what was then National City Bank was the main bank for the Rockefeller Standard Oil interests. Over ensuing decades and mergers it eventually came to be Citibank, and in the late 1990s, Citigroup. At that time, the bank was dealing with accusations that it had aided in the laundering of roughly $100 million in payoffs by Mexican drug cartels.
In 2000, the mega-bank was accused of abusing borrowers and clients through predatory lending practices. The bank aroused further controversy by helping Enron evade financial rules which allowed the company to hide its real financial reporting from government regulators. In 2005, Citigroup paid a $2 billion settlement to Enron investors who had filed a class-action lawsuit against the bank for helping Enron hide billions of dollars in debt.
A 2005 report by Citigroup created the term ‘plutonomy’ to describe the modern state capitalist system in which there is only the rich “and everyone else”; an economy in which the rich increasingly become the consuming class, driven to a significant degree by “disruptive technology-driven productivity gains, creative financial innovation, [and] capitalist friendly cooperative governments.”
Referencing the United States, the U.K., Australia and Canada as modern plutonomies, Citigroup global strategist Ajay Kapur noted, “The Plutonomy is here, is going to get stronger, its membership is swelling,” and while the “risks” of plutonomies include “war, inflation, financial crises, the end of the technological revolution and populist political pressure,” Kapur noted that “the rich are likely to keep getting even richer, and enjoy an even greater share of the wealth pie over the coming years.” Indeed, Citigroup would ensure that this was the case.
In the 1990s, Bill Clinton’s Treasury Secretary Robert Rubin helped to deregulate Wall Street and allow for massive mergers and the proliferation of dangerous financial instruments in the derivatives market, which helped create the future housing crisis. After leaving the White House, Rubin became an adviser to Citigroup, and ultimately the bank’s chairman, where he helped push the mega-bank further down the path taken by Morgan Stanley and Goldman Sachs to build up an unprecedented housing bubble. When the inevitable happened, Citigroup owned tens of billions of dollars in bad debts. Meanwhile, Robert Rubin was appointed as an economic adviser to the transition team for President Obama.
Citigroup was subsequently bailed out by the federal government, that is, the U.S. taxpayer, and became the largest single recipient of bailout funds totaling some $476.2 billion in cash and guarantees. Citigroup was essentially put into receivership by the government, which decided to reward the bank after its highly effective and efficient participation in the destruction of the economy. The U.S. Treasury eventually sold the last of its shares in Citigroup in 2010.
Since that time, the bank has been quietly settling civil complaints and lawsuits, further proving that criminal activity by major financial institutions comes down to a cost-benefit analysis: if the cost of committing massive crimes is less than the benefit of engaging in such criminal activity, there is little incentive to obey the law rather than pay comparably lower fines after breaking it.
Between 2003 and 2011, the Securities and Exchange Commission (SEC) accused Citigroup of securities fraud five separate times, with the bank agreeing to pay settlements in each case, amounting to a slap on the wrist from the SEC. As a Bloomberg report stated bluntly, for Citigroup “obeying the law is too damn hard.” Or rather, simply, it is unnecessary.
In 2011, Citigroup paid a $285 million settlement with the SEC for defrauding investors. In 2012, the bank paid another settlement of $590 million for defrauding investors, though it made sure not to admit guilt as the payment was “solely to eliminate the uncertainties, burden and expense of further protracted litigation.” In 2013, Citigroup agreed to pay a further $968 million to Fannie Mae over the bad mortgage loans it sold to the company in the run-up to the financial crisis.
But before you assume that Citigroup simply defrauded investors and other institutions, know this: the bank also undertook foreclosures on hundreds of U.S. military members during the financial crisis, often while the military personnel were in Iraq or Afghanistan. After illegally foreclosing on military personnel while they were overseas fighting wars for the America’s imperialists and profiteers, Citigroup made a later appearance in Iraq, announcing in 2013 that it would be the first U.S. bank to open a branch in Bagdad “as major international oil groups as well as industrial and construction companies are looking to invest in Iraq.”
Iraq is just the latest hub of overseas criminal financial activities for Citigroup, which has meanwhile been struggling to “comply” with anti-money laundering laws after also participating in the largest financial scam in history: the Libor rate-rigging scandal. At the same time, the bank has been dooming the European Union’s crisis countries (namely Greece) to a faster decline, issuing self-fulfilling reports that suggest the region is headed for further crisis, thus reducing investor confidence and pushing the crisis-hit economies into even deeper crisis.
In sum, Citigroup’s fraudulent lifestyle – with its increased quarterly profits – is one more example of how the institutions of the financial system function as criminal conglomerates on a scale far surpassing any Mafia on record. And of course, for such criminal activity to go unpunished, the institution cannot exist in isolation. In fact, like all other big banks, Citigroup is heavily integrated in the national – and increasingly international – structure of elite institutions, with cross-membership between major corporations, think tanks, governmental positions, media and educational institutions.
Thirty-seven individuals on the executive committee and board of directors of Citigroup were examined for the Global Power Project. The most represented institution was the Council on Foreign Relations, with six individual affiliations, followed by Morgan Stanley, Banco Nacional de Mexico (Banamex), American Express, the Foreign Policy Association, IBM, the Brookings Institution, the Metropolitan Museum of Art, Yale University, and Stanford University, among many others.
Meet the Elites
On the board of directors of Citigroup is Franz B. Humer, the chairman of Roche Holding, a major pharmaceutical conglomerate. Humer also sits on the International Advisory Council of JPMorgan Chase, and is chairman of INSEAD, chairman of Diageo Plc, a member of the international advisory board of Allianz SE, a member of the board of Jacobs Holdings, and a member of the European Round Table of Industrialists (which advises EU leaders on promoting policies beneficial to large corporate and financial interests). Humer also serves, comfortingly, as chairman of the International Centre for Missing and Exploited Children.
Judith Rodin, the president of the Rockefeller Foundation, is on the board of Citigroup. Rodin also served as the President of the University of Pennsylvania from 1994-2004, after which she remained as President Emerita. A former Provost of Yale University, Rodin also serves as a director of Comcast Corporation, AMR Corporation, the World Trade Memorial Foundation and Carnegie Hall. She is a member of the Council on Foreign Relations and a former honorary director of the Brookings Institution. Additionally, Rodin is a member of the board of the Alliance for a Green Revolution in Africa (AGRA) – a joint venture between the Rockefeller Foundation and the Bill & Melinda Gates Foundation to promote the advancement of GMOs in Africa – and she served as a member of the High Level Panel of the African Development Bank. Rodin currently serves as a member of the international advisory council of the Mary Robinson Foundation, a member of the American Academy of Arts and Sciences, the American Philosophical Society, and the Institute of Medicine of the National Academy of Sciences. She is also a participant in the World Economic Forum, the Global Humanitarian Forum, the Clinton Global Initiative’s “poverty alleviation track,” and she is a board member of Obama’s White House Council for Community Solutions.
Another member of the Citigroup board is Ernesto Zedillo, the former President of Mexico from 1994 to 2000, who was pivotal in implementing the North American Free Trade Agreement (NAFTA), much to the benefit of big banks and corporations, and to the detriment of poor and working people. Zedillo had previously served a number of positions in the Mexican government, including deputy director of the Bank of Mexico. Currently, Zedillo is the director of the Center for the Study of Globalization and an International Economics and Politics professor at Yale University. He is a member of the Group of Thirty, on the board of directors of Alcoa and Procter & Gamble, and on the international advisory boards of both BP, Rolls-Royce and ACE Ltd.. He is additionally an adviser to the Credit Suisse Research Institute, a member of the Foundation Board of the World Economic Forum, a former member of the Trilateral Commission, the former chairman of the Global Development Network, a former chair of the High Level Commission on Modernization of the World Bank Group Governance, a former member of the international advisory board of the Council on Foreign Relations and the Coca-Cola Company, a former member of the Global Development Program Advisory Panel of the Bill & Melinda Gates Foundation, and he is currently a member of the board of the Peterson Institute for International Economics.
William R. Rhodes, another Citigroup board member, serves as a senior advise to Citi and is president and CEO of William R. Rhodes Global Advisors. A director of the Private Export Funding Corporation, Rhodes is a senior adviser to the World Economic Forum, the global management firm Oliver Wyman, vice chairman of the National Committee on U.S.-China Relations, a director of the Korea Society and the U.S.-China Business Council, a member of Korean President Lee’s Council of Global Advisors, a member of the international advisory board of the National Bank of Kuwait, a senior adviser to the Dalian Government in China, a member of the private sector advisory board of the Inter-American Development Bank, a member of the international policy committee of the U.S. Chamber of Commerce, a member of the board of the Foreign Policy Association, and a trustee of the Asia Society and the Economic Club of New York. Rhodes is also a member of the Council on Foreign Relations, the Group of Thirty, the Lincoln Center Consolidated Corporate Fund Leadership Committee, the Metropolitan Museum of Art Business Committee, and he sits on the advisory council of the Brazilian American Chamber of Commerce. He is a former vice chairman of the Institute of International Finance, a chairman emeritus of the Americas Society and the Council of the Americas, a director of the U.S.-Russia Business Council and the U.S.-Hong Kong Business Council, a chairman of the U.S.-Korea Business Council, a trustee and member of the board of governors of the New York Presbyterian Hospital, a chairman of the board of trustees of the Northfield Mount Hermon School, and a member of the board of overseers of the Watson Institute for International Studies at Brown University.
Like all the big banks, Citigroup is heavily integrated with other dominant institutions in American and international society, which helps explain why the bank can break so many laws and get away with it. It’s not simply financial weight that makes this bank “too big to fail” and “too big to jail.” It’s the institutional affiliations that also help make it that way.
Andrew Gavin Marshall is a 26-year old researcher and writer based in Montreal, Canada. He is Project Manager of The People’s Book Project, chair of the Geopolitics Division of The Hampton Institute, research director for Occupy.com‘s Global Power Project, and hosts a weekly podcast show with BoilingFrogsPost.
Global Power Project, Part 2: Identifying the Institutions of Control
By: Andrew Gavin Marshall
The following is Part 2 of my exclusive research series for Occupy.com
The Global Power Project, an investigative series produced by Occupy.com, aims to identify and connect the worldwide institutions and individuals who comprise today’s global power oligarchy. In Part 1, which appeared last week, I provided an overview examining who and what constitute the global ruling elite – often referred to as the Transnational Capitalist Class (TCC). In this second part, I will attempt to identify some of the key, dominant institutions that have facilitated and have in turn been supported by the development of this oligarchic class. This is not a study of wealth, but a study of power.
In an article for the journal International Sociology, William K. Carroll and Jean Philippe Sapinski examined the relationship between the corporate elite and the emergence of a “transnational policy-planning network,” beginning with its formation in the decades following World War II and speeding up in the 1970s with the creation of “global policy groups” and think tanks such as the World Economic Forum, in 1971, and the Trilateral Commission, in 1973, among many others.
The function of such institutions was to help mobilize and integrate the corporate elite beyond national borders, constructing a politically “organized minority.” These policy-planning organizations came to exist as “venues for discussion, strategic planning, discourse production and consensus formation on specific issues,” as well as “places where responses to crises of legitimacy are crafted,” such as managing economic, political, or environmental crises where elite interests might be threatened. These groups also often acted as “advocates for specific projects of integration, often on a regional basis.” Perhaps most importantly, the organizations “provide bridges connecting business elites to political actors (heads of states, politicians, high-ranking public servants) and elites and organic intellectuals in other fields (international organizations, military, media, academia).”
One important industry association, according to researchers Carroll and Carson in the journal Global Networks (Vol. 3, No. 1, 2003), is the International Chamber of Commerce. Launched by investment bankers in 1919, immediately following WWI, the Paris-based Chamber groups roughly 7,000 member corporations together across 130 countries, adhering to largely conservative, “free market” ideology. The “primary function” of the ICC, write Carroll and Carson, “is to institutionalize an international business perspective by providing a forum where capitalists and related professionals… can assemble and forge a common international policy framework.”
Another policy group with outsized global influence is the Bilderberg group, founded between 1952 and 1954, which provided “a context for more comprehensive international capitalist coordination and planning.” Bringing together roughly 130 elites from Western Europe and North America at annual closed meetings, “Bilderberg conferences have furnished a confidential platform for corporate, political, intellectual, military and even trade-union elites from the North Atlantic heartland to reach mutual understanding.”
As Valerie Aubourg examined in an article for the journal Intelligence and National Security (Vol. 18, No. 2, 2003), the Bilderberg meetings were organized largely at the initiative of a handful of European elites, with heavy financial backing from select American institutions including the Rockefeller Foundation, the Ford Foundation and the CIA. The meetings incorporate leadership from the most prominent national think tanks, such as the Council on Foreign Relations, Brookings Institution, Carnegie Endowment and others from across the North Atlantic ‘community.’
Hugh Wilford, writing in the journal Diplomacy & Statecraft (Vol. 14, No. 3, 2003), identified major philanthropic foundations such as the Rockefeller, Ford, and Carnegie foundations as not only major sources of funding but also providers for much of the leadership of the Bilderberg meetings, which saw the participation of major industrial and financial firms in line with those foundations (David Rockefeller of Chase Manhattan is a good example). Bilderberg was a major force in helping to create the political, economic and strategic consensus behind constructing a common European market.
With the support of these major foundations and their leadership, the Bilderberg meetings became a powerful global tool of the elites, not only in creating the European Union but in designing the process of globalization itself. Will Hutton, a former Bilderberg member, once referred to the group as “the high priests of globalization,” and a former Bilderberg steering committee member, Denis Healey,once noted: “To say we were striving for a one-world government is exaggerated, but not wholly unfair…we felt that a single community throughout the world would be a good thing.”
The large industrial foundations have played a truly profound – and largely overlooked – role in the shaping of modern society. The ‘Robber Baron’ industrial fortunes of the late 19th century – those of Morgan, Rockefeller, Carnegie, Harriman, Vanderbilt, etc. – sought to shape a new order in which they would maintain a dominant influence throughout society. They founded major American universities (often named after themselves) such as Vanderbilt, or the University of Chicago which was founded by John D. Rockefeller.
It was through their institutions that they sought to produce new elites to manage a new society, atop of which they sat. These universities became the harbingers of modern social sciences, seeking to “reform” society to fit the needs of those who dominated it; to engage in social engineering with the purpose of social control. It was in this context that the Carnegie Corporation, the Rockefeller Foundation, and later the Ford Foundation and others were founded: as engines of social engineering. One of their principal aims was to shape the development of the social sciences – and their exportation around the world to other industrial and imperial powers like Great Britain, and beyond. The social sciences were to facilitate the “scientific management” of society, and the foundations were the patrons of “social control.”
The Rockefeller, Carnegie and Ford foundations were instrumental in providing funding, organization and personnel for the development of major American and international think tanks such as the Council on Foreign Relations, which became essential to the emergence of a dominant and entrenched U.S. business class linking academia, political, strategic, corporate and financial elites. The Rockefeller and Ford foundations in particular constructed the field of modern political science and “Area Studies” with a view to educating a class of people who would be prepared to help manage a global empire.
They were also prominent in developing the educational system for black Americans designed to keep them relegated to labor and “vocational” training. They helped found many prominent universities in Africa, Asia and Latin America to train indigenous elites with a “Western” education in the social sciences, to ensure continuity between a domestic and international elite, between core and periphery, empire and protectorate.
Another major policy planning group is the Trilateral Commission, created out of the Bilderberg meetings as a separate transnational think tank and founded by Chase Manhattan CEO (and Chairman of the Council on Foreign Relations) David Rockefeller along with academic-turned-policymaker Zbigniew Brzezinski in 1973. The Trilateral Commission linked the elites from Western Europe, North America and Japan (hence “trilateral”), and it now also includes members from China, India and a range of other Pacific-East Asian countries.
Consisting of a membership of roughly 350 individuals from finance, corporations, media, think tanks, foundations, academia and political circles, the Trilateral Commission (TC) has been immensely influential as a forum facilitating the development and integration of a “transnational elite.” The aim of the TC was “to foster closer cooperation among these core industrialized areas of the world with shared leadership responsibilities in the wider international system.”
The most famous report issued by the Trilateral Commission in the mid-1970s suggested that due to the popular activism of the 1960s, there was a “crisis of democracy” that it defined as an “excess of democracy,” which needed to be reduced in order for “democracy to function effectively.” According to the Trilateral Commission, what was needed was increased “apathy and noninvolvement on the part of some individuals and groups” to counter the “crisis” being caused by “a highly educated, mobilized, and participant society.”
Moving elsewhere, the World Economic Forum, founded in 1971, convenes annually in Davos, Switzerland and was originally designed “to secure the patronage of the Commission of European Communities, as well as the encouragement of Europe’s industry associations” and “to discuss European strategy in an international marketplace.” The WEF has since expanded its membership and mandate, as Carroll and Carson noted, “organized around a highly elite core of transnational capitalists (the ‘Foundation Membership’) – which it currently limits to ‘1000 of the foremost global enterprises’.” The meetings include prominent individuals from the scientific community, academics, the media, NGOs and many other policy groups.
Another major policy planning group emerged in the mid-1990s with an increased focus on environmental issues, called the World Business Council for Sustainable Development (WBCSD), which “instantly became the pre-eminent business voice on the environment” with a 1997 membership of 123 top corporate executives, tasked with bringing the “voice” of big business to the process of international efforts to address environmental concerns (and thus, to secure their own interests).
Among other prominent think tanks and policy-planning boards helping to facilitate and integrate a transnational network of elites are many nation-based organizations, particularly in the United States, such as with the Council on Foreign Relations, the Brookings Institution and the Center for Strategic and International Studies (CSIS), among many others. The advisory boards to these organizations provide an important forum through which transnational elites may help to influence the policies of many separate nations, and most importantly, the world’s most powerful nation: the United States.
The Council on Foreign Relations, founded in 1921, refers to itself as “an independent, nonpartisan membership organization, think tank, and publisher,” with roughly 4,700 members. It is largely based in New York with affiliate offices in Washington D.C. and elsewhere. The CFR is, and has been, at the heart of the American foreign policy establishment, bringing together elites from academia, government, the media, intelligence, military, financial and corporate institutions.
The CFR worked in close cooperation with the U.S. government during World War II to design the post-War world over which America would reign supreme. The Council was active in establishing the “Grand Areas” of the American Empire, and in maintaining extensive influence over the foreign policy of the United States.
As Carroll and Carson noted, there is a prominent relationship between those individuals who sit on multiple corporate boards and those who sit on the boards of prominent national and transnational policy-planning groups, “suggesting a highly centralized corporate-policy network.”
Studying 622 corporate directors and 302 organizations (five of which were the major policy-planning groups: ICC, Bilderberg, Trilateral Commission, World Economic Forum and World Business Council for Sustainable Development), Carroll and Carson assessed this network of transnational elites with data leading up to 1996, and concluded: “The international network is primarily a configuration of national corporate networks, integrated for the most part through the affiliations of a few dozen individuals who either hold transnational corporate directorships or serve on two or more policy boards.”
Out of the sample of 622 individuals, they found roughly 105 individuals (94 “transnational corporate linkers” and 11 others “whose corporate affiliations are not transnational but who sit on multiple global policy boards”) making up “the most immediate structural contributions to transnational class formation.” At the “core” of this network were 17 corporate directors, primarily European and North American, largely linked by the transnational policy groups, with the Trilateral Commission as “the most centrally positioned.” This network, they noted, “is highly centralized in terms of the individuals and organizations that participate in it.”
In undertaking a follow-up study of data between 1996 and 2006, published in the journal International Sociology (Vol. 25, No. 4, 2010), Carroll and Sapinski expanded the number of policy-planning groups from five to 11, including the original five (ICC, Bilderberg, TC, WEF, and WBCSD), but adding to them the Council on Foreign Relations (through its International Advisory Board), the UN Global Compact (through its advisory board), the European Round Table of Industrialists (ERT), founded in 1983, the EU-Japan Business Round Table, the Transatlantic Business Dialogue, and the North American Competitiveness Council.
The results of their research found that among the corporate directors, “policy-board membership has shifted towards the transnationalists, who come to comprise a larger segment of the global corporate elite,” and that there was a growing group of elites “made up of individuals with one or more transnational policy-board affiliations.” As Carroll and Sapinski concluded:
“The corporate-policy network is highly centralized, at both the level of individuals and that of organizations. Its inner circle is a tightly interwoven ensemble of politically active business leaders; its organizational core includes the Trilateral Commission, the Bilderberg Conference, the European Round Table of Industrialists and the World Business Council for Sustainable Development, surrounded by other policy boards and by the directorates of leading industrial corporations and financial institutions based in capitalism’s core regions.”
Organizations like the European Round Table of Industrialists (ERT) are not think tanks, but rather, industry organizations (exclusively representing the interests and individuals of major corporations), wielding significant influence over political and social elites. As Bastiaan van Apeldoorn wrote in the journal New Political Economy (Vol. 5, No. 2, 2000), the ERT “developed into an elite platform for an emergent European transnational capitalist class from which it can formulate a common strategy and – on the basis of that strategy – seek to shape European socioeconomic governance through its privileged access to the European institutions.”
In 1983, the ERT was formed as an organization of 17 major European industrialists (which has since expanded to several dozen members), with the proclaimed objective being “to revitalize European industry and make it competitive again, and to speed up the process of unification of the European common market.” Wisse Dekker, former Chairman of the ERT, once stated: “I would consider the Round Table to be more than a lobby group as it helps to shape policies. The Round Table’s relationship with Brussels [the EU] is one of strong co-operation. It is a dialogue which often begins at a very early stage in the development of policies and directives.”
The ERT was a central institution in the re-launching of European integration from the 1980s onward, and as former European Commissioner (and former ERT member) Peter Sutherland stated, “one can argue that the whole completion of the internal market project was initiated not by governments but by the Round Table, and by members of it… And I think it played a fairly consistent role subsequently in dialoguing with the Commission on practical steps to implement market liberalization.” Sutherland also explained that the ERT and its members “have to be at the highest levels of companies and virtually all of them have unimpeded access to government leaders because of the position of their companies… So, by definition, each member of the ERT has access at the highest level to government.”
Other notable industry associations include the Canadian Council of Chief Executives (CCCE), formerly called the Business Council on National Issues (BCNI), a group comprised of Canada’s top 150 CEOs who were a major force for the promotion and implementation of the North American Free Trade Agreement (NAFTA). The CCCE remains one of the most influential “interest groups” in Canada.
In the United States there are prominent industry associations like the Business Council, the Business Roundtable, and the Financial Services Forum. The Business Council describes itself as “a voluntary association of business leaders whose members meet several times a year for the free exchange of ideas both among themselves and with thought leaders from many sectors.”
Likewise, the Business Roundtable describes itself as “an association of chief executive officers of leading U.S. companies with more than $7.3 trillion in annual revenues,” which believes that “businesses should play an active and effective role in the formation of public policy.”
Finally, the Financial Services Forum proclaims itself to be “a non-partisan financial and economic policy organization” which aims “to pursue policies that encourage savings and investment, promote an open and competitive global marketplace, and ensure the opportunity of people everywhere to participate fully and productively in the 21st-century global economy.”
These are among some of the many institutions which will be researched and examined in greater detail throughout the Global Power Project. In the next installment, I will be examining not only the societal and economic results of these dominant institutions of power, but the specific individuals — and in some cases family dynasties — that wield significant influence nationally and globally.
Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada. He is Project Manager of The People’s Book Project, head of the Geopolitics Division of the Hampton Institute, Research Director for Occupy.com’s Global Power Project and host of a weekly podcast show at BoilingFrogsPost.