Andrew Gavin Marshall

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Voice of Access: The People’s Foundation

Voice of Access: The People’s Foundation

By: Andrew Gavin Marshall

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

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

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

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

The Rockefeller Foundation: Social Engineering for Social Control

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

What is the role of a facilitator foundation?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Problems and Prospects

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

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

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

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

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

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

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

Global Power Project: The Group of Thirty and the “Good Discussion” They’re Still Having

Global Power Project: The Group of Thirty and the “Good Discussion” They’re Still Having

By: Andrew Gavin Marshall

Originally posted at Occupy.com

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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

Global Power Project, Part 7: Banking on Influence with Citigroup

By: Andrew Gavin Marshall

Originally posted at Occupy.com

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Part 1: Exposing the Transnational Capitalist Class

Part 2: Identifying the Institutions of Control

Part 3: The Influence of Individuals and Family Dynasties

Part 4: Banking on Influence with JPMorgan Chase

Part 5: Banking on Influence With Goldman Sachs

Part 6: Banking on Influence With Bank of America

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.

William R. Rhodes

William R. Rhodes

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.

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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

Global Power Project, Part 2: Identifying the Institutions of Control

By: Andrew Gavin Marshall

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The following is Part 2 of my exclusive research series for Occupy.com

Part 1: Exposing the Transnational Capitalist Class

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.

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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.

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

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

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

By: Andrew Gavin Marshall

Originally posted at AlterNet

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

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

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

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

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

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

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

‘A Genuinely Democratic Propaganda’

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Foundations of Social Control

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

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

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

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

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

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

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

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

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

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

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

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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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