Influencing democracy Think tanks and what they do

Think Tanks: What they are, what they do, and how they do it POLS2103 Australian Democracy: Comparative & Theoretical Approaches Dr Norman Abjorensen A think tank (also called a policy institute) is an organization, institute, corporation, or group that conducts research and engages in advocacy in areas such as social policy, political strategy, economy, science or technology issues, industrial or business policies, or military 2 advice. “Think tank" is a term that has found use only since the 1950s, there is still some debate over what constitutes the first think tank. One candidate is the Royal United Services Institute for Defence and Security Studies, founded in 1831. Another is the Fabian Society of Britain, founded in 1884 to promote gradual social change. The Brookings Institution, founded in the US in 1916, is another candidate for the first think tank. 3 In 1970, Supreme Court Justice Lewis Powell wrote to the National Chamber of Commerce saying that all of the best students were becoming anti-business because of the Vietnam War, and that something needed to be done about it. 4 Confidential Memorandum: Attack of American Free Enterprise System DATE: August 23, 1971 TO: Mr. Eugene B. Sydnor, Jr., Chairman, Education Committee, U.S. Chamber of Commerce FROM: Lewis F. Powell, Jr. “No thoughtful person can question that the American economic system is under broad attack. This varies in scope, intensity, in the techniques employed, and in the level of visibility.” 5 “We are under attack.” 6 “One of the bewildering paradoxes of our time is the extent to which the enterprise system tolerates, if not participates in, its own destruction. “The campuses from which much of the criticism emanates are supported by (i) tax funds generated largely from American business, and (ii) contributions from capital funds controlled or generated by American business. The boards of trustees of our universities overwhelmingly are composed of men and women who are leaders in the system. “Most of the media, including the national TV systems, are owned and theoretically controlled by corporations which depend upon profits, and the enterprise system to survive.” 7 Powell's agenda included getting wealthy conservatives to set up professorships, setting up institutes on and off campus where intellectuals would write books from a conservative business perspective, and setting up think tanks. He outlined the whole thing in 1970. They set up the Heritage Foundation in 1973, and the Manhattan Institute after that. 8 Think tanks are funded primarily by large businesses and major foundations. They devise and promote policies that shape the lives of everyday Americans: Social Security privatization, tax and investment laws, regulation of everything from oil to the Internet. They supply experts to testify on Capitol Hill, write articles for the op-ed pages of newspapers, and appear as TV commentators. They advise presidential aspirants and lead orientation seminars to train incoming members of Congress. And they design foreign policy and even nominate wars to fight and advise on how to fight them. 9 Think tanks have a decided political leaning. There are twice as many conservative think tanks as left-wing ones, and the conservative ones generally have more money. This is no accident, as one of the important functions of think tanks is to provide a backdoor way for wealthy business interests to promote their ideas or to support economic and sociological research not taking place elsewhere that they feel may turn out in their favor. Conservative think tanks also offer donors an opportunity to support conservative policies outside academia, which during the 1960s and 1970s was accused of having a strong "collectivist" bias. 10 PRO “…one of the main policy actors in democratic societies ... assuring a pluralistic, open and accountable process of policy analysis, research, decision-making and evaluation”. -US National Institute for Research Development 11 ANTI “…little more than public relations fronts ... generating self-serving scholarship that serves the advocacy goals of their industry sponsors.” - Sourcewatch 12 Ralph Nader: “Because of the private nature of the funding of think tanks, their results are biased…” Other critics: “Members will be inclined to promote or publish only those results that ensure the continued flow of funds from private donors. This risk of distortion similarly threatens the reputation and integrity of organizations such as universities, once considered to stand wholly within the public sector. 13 Other criticism Think tanks are little more than propaganda tools for promoting the ideological arguments of whatever group established them. They are not always transparent. 1. Organizations calling themselves think tanks having host lunches for politicians to present research that critics claim is merely in the political interest of major global interests such as Microsoft, but that the connections to these interests are never disclosed. 2. Bodies such as the RAND Corporation issue research reports on, for example, national missile defence that accelerate investment into the very military products being produced by the military manufacturers who control RAND. 14 The Military-Industrial Complex “This conjunction of an immense military establishment and a large arms industry is new in the American experience. The total influence -- economic, political, even spiritual -- is felt in every city, every State house, every office of the Federal government. We recognize the imperative need for this development. Yet we must not fail to comprehend its grave implications. Our toil, resources and livelihood are all involved; so is the very structure of our society. In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist.” -President Dwight D. Eisenhower, 18 January, 1961 15 In some cases, corporate interests have found it useful to create "think tanks" that are thinly disguised vehicles for corporate propaganda. For example, in the US, The Advancement of Sound Science Coalition was formed in the mid 1990s to dispute research finding a link between second-hand smoke and cancer. It was established by the tobacco industry. 16 Democratic role contested 1. They are indicative of a vibrant, open and pluralistic civil society in which ideas compete in an intellectual marketplace. 2. They are powerful vested interests disguised as impartial scholars who manipulate both government and public opinion alike for their own purposes. 17 Variety of ideological perspectives. Some think tanks, such as the US Heritage Foundation are clearly aligned with conservative causes, and the American Enterprtise Institute is a pro-business lobby. More recently the neo-conservative Project for a New American Century has had a significant impact on US foreign policy. In Australia the Sydney Institute run by Gerard Henderson is the best-known conservative example, while the pro-capitalist Institute for Public Affairs and neo-liberal Centre for Independent Studies are also prominent on the Right. 18 Think tanks play much more limited role in Australian public and business policy making than in theUnited States. However, in the past two decades the number of think tanks has increased substantially. 19 Many Australian think tanks are based at universities - for example, the Melbourne Institute - or are government funded - for example, the Productivity Commission or the CSIRO. There are also about 20-30 "independent" Australian think tanks, which are funded by private sources. The best-known of these are: The Australia Institute The Centre for Independent Studies The Committee for Economic Development of Australia The Institute of Public Affairs The Lowy Institute The National Civic Council (NCC) Per Capita The Sydney Institute 20 “The IPA is an independent, non-profit public policy think tank, dedicated to preserving and strengthening the foundations of economic and political freedom. We believe in the free market of ideas, the free flow of capital, a limited and efficient government, the rule of law, and representative democracy. These are the ideas which, throughout history, have proven themselves to be most dynamic, liberating and exciting. Our researchers apply these ideas to the public policy questions which matter today. By the close study of Australian policy, we can recommend the best path for our politicians, policy makers and businesses to take.” 21 “The Centre for Independent Studies is the leading independent public policy 'think tank' within Australasia. The CIS is actively engaged in support of a free enterprise economy and a free society under limited government where individuals can prosper and fully develop their talents. By critical recommendations to public policy and encouraging debate amongst leading academics, politicians and journalists, the CIS aims to build a better society.” 22 Founded 1943 in response to big Labor win Concerned over Labor‟s “socialism” and long-term plans Worried about tarnished image of business Need to educate the public about private enterprise Sets out basis for new political party – the Liberal Party 23 The post-war settlement 1945-1970 24 Lessons from World War II Propaganda is powerful 25 Grassroots: reach as many people as possible in order to bring about a change in public opinion Treetops: Directed at influencing elites – those who shape opinion Politicians Newspaper editors Commentators 26 Treetops – Object of the exercise Set the terms of the debate Determine the kinds of questions that will dominate public discussion Set the political agenda (Preferably in ways favourable to corporate interests) 27 Effects on public opinion Affluent societies no longer have a first responsibility to provide jobs for all who want them (Keynes) Instead, debate shifts to whether 6 or 10 per cent unemployment is „natural‟ (and therefore acceptable) Environmental degradation: how much is economically acceptable? Not what can governments do and how they might do it, but how can government involvement be reduced and what‟s the timetable? No debate about social role of trade unions; rather about ways of reducing union influence. But, NO DEBATE about curtailment of manipulative power of contemporary corporations 28 Public BAD Private GOOD 29 “The free market ideas promoted by the think tanks have become hegemonic not only amongst conservative parties, but even within traditionally social democratic groupings. (UK Labour, Australian Labor Party) “They have become publicly accepted as self-evident truths against which there is no alternative.” - S. Beder, Global Spin, Scribe Publications, 1997. 30 TINA T here Is No A lternative 31 The IPA and the attack on the welfare state Subsidization of „irresponsible‟ and „immoral‟ behaviour Undermining of traditional family Disincentives to work Growing welfare dependency of working age people „Crowding out‟ of private (for profit) welfare provision Deliberate exaggeration of poverty rates Unsustainable growth in welfare expenditure - IPA Review, 1979-2002 32 Reaching out: Education or propaganda? CIS Economics Resource Centre (1989) – regular publication and sponsored seminars for economics teachers and students. In 1993, 600 teachers attended and 800 schools and libraries subscribed to The Economics Education Review Helped legitimate the neo-liberal framework of economic analysis within teaching of high-school economics. Promotes idea of TINA 33 Under cover? 1986-1995 Age, SMH, AFR •14% of articles mentioning neo-liberal think tanks identified them as right-wing or conservative •63 % contained quotes from think tank publications or members - Damien Cahill, Overland, 2002 Ideological nature concealed Output presented as authoritative, disinterested and objective 34 Prominent media commentator Dr Gerard Henderson Executive Director, The Sydney Institute ? 35 Where does the money come from? Neo-liberalism („economic rationalism‟) never a popular movement Without heavy corporate support unlikely to have emerged as potent force Nor could its promoters have sustained their activities For example: CIS in 1996 derived $772,077 of its corporate budget from corporate „donations‟ Only $113,085 (14%) derived from book sales and subscriptions Had the CIS relied upon market forces to fund its activities it would not have been viable 36 Policy advocacy think tanks CIS IPA Sydney Inst Aust Inst 1976 1943 1989 1994 $1.7m $800,000 $900,000 $450,000 Public policy/free enter Free Market policies Public policy Social policy, environment 37