Corporate Money and Politics

The fact that corporate money is seeking to influence public policy is nothing unusual. From the different ways of how private money helps to shape politics the first, and most familiar is direct campaign contributions to political candidates and parties, which is especially widespread in the United States. While the second great river of money goes to underwrite lobbying apparatus in diverse state capitals, the third form of attempts to influence public policy making is less well-known, but nearly as wide and deep as the two others - it is money which underwrites a vast network of public policy think tanks and advocacy groups. Although tried to be labeled in another way, unmistakably, these donations are naked attempts by corporations and other donors, to influence the political process.

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The Microsoft Case

Shortly after Microsoft was faced with federal antitrust charges, full-page newspaper ads supporting Microsoft's claim of innocence were run by the Independent Institute. The ads took the form of a letter signed by 240 academic experts and purported to be a scholarly, unbiased view of why the government had gone overboard in its case against the company. According to an article published in the New York Times, Microsoft had not paid for the ads, but was in fact the single largest donor to the Independent Institute, a conservative organization, that has been a leading defender of the company since it first came under fire from federal prosecutors.

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Examples of Mainly Corporate Funded Think Tanks: Cato Institute

Founded in 1977 the Cato Institutes 1998 budget made up US$ 11 million. Its funding consists of corporate and private donations (especially from corporations and executives in the highly regulated industries of financial services, telecommunications and pharmaceuticals industries) and sales of publications.

Catos corporate donors include tobacco firms: Philip Morris (Rupert Murdoch sits on Philip Morris board of directors) and R.J. Reynolds. Financial firms: American Express, Chase Manhattan Bank, Chemical Bank, Citicorp/Citibank, Commonwealth Fund, Prudential Securities and Salomon Brothers. Energy conglomerates: Chevron Companies, Exxon Company, Shell Oil Company and Tenneco Gas, as well as the American Petroleum Institute, Amoco Foundation and Atlantic Richfield Foundation. Furthermore the Cato Institute is funded by pharmaceutical firms: Eli Lilly & Company, Merck & Company and Pfizer, Inc., foundations, like Koch, Lambe and Sarah Scaife and companies from the telecommunications sector: Bell Atlantic Network Services, BellSouth Corporation, Microsoft, NYNEX Corporation, Sun Microsystems and Viacom.

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Abolition of Resale Price Maintenance

The London-based Institute for Economic Affairs (AEI) from its beginning undertook an extensive publishing program to push forward its free-market ideology. Among its publications was one particular paper, which had a direct and immediate political impact. Published in 1960 "Resale Price Maintenance and Shoppers' Choice" by Basil Yamey argued for the abolition of Resale Price Maintenance, which by fixing prices in shops prevented large stores from necessarily under-cutting smaller shops. Yamey argued that a free market in shop prices would save the shoppers £180,000,000 a year, and prices would fall by five percent.

The publication of Yamey's paper was timed to coincide with a period of public debate on the subject to ensure maximum impact, and Yamey's suggestions were taken up by the incumbent Conservative Government. Although the Abolition of Resale Price Maintenance by Edward Heath in 1964, can not only be attributed to Yamey's paper, it for sure had a substantial impact.

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Dissemination Strategies

Think tanks undertake research in very specific public policy areas. Which topics they cover mainly depends on their political and ideological orientation. In any case think tanks produce incredible amounts of "research findings". The crucial aspect usually is not their production, but their distribution. Therefore most think tanks have developed sophisticated dissemination strategies, whose main aim is the communication of their ideas to important audiences. These include members of governmental institutions, policymakers in the executive branch, news media, intellectuals, business men as well as academic and policy communities - in short, everybody, who is involved in shaping public opinion.

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Examples of Mainly Corporate Funded Think Tanks: Manhattan Institute

The Manhattan Institute, founded by William Casey, who later became President Reagan's CIA director, besides subsidies from a number of large conservative foundations has gained funding from such corporate sources as: The Chase Manhattan Bank, Citicorp, Time Warner, Procter & Gamble and State Farm Insurance, as well as the Lilly Endowment and philantropic arms of American Express, Bristol-Myers Squibb, CIGNA and Merrill Lynch. Boosted by major firms, the Manhattan Institute budget reached US$ 5 million a year by the early 1990s.

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Internet Research Task Force

Being itself under the umbrella of the Internet Society, the Internet Research Task Force is an umbrella organization of small research groups working on topics related to Internet protocols, applications, architecture and technology. It is governed by the Internet Research Steering Group.

http://www.irtf.org

http://www.irtf.org/
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Cisco, Inc.

Being the worldwide leader in networking for the Internet, Cisco Systems is one of the most prominent companies of the Internet industry.

http://www.cisco.com

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Gottfried Wilhelm von Leibniz

b. July 1, 1646, Leipzig
d. November 14, 1716, Hannover, Hanover

German philosopher, mathematician, and political adviser, important both as a metaphysician and as a logician and distinguished also for his independent invention of the differential and integral calculus. 1661, he entered the University of Leipzig as a law student; there he came into contact with the thought of men who had revolutionized science and philosophy--men such as Galileo, Francis Bacon, Thomas Hobbes, and René Descartes. In 1666 he wrote De Arte Combinatoria ("On the Art of Combination"), in which he formulated a model that is the theoretical ancestor of some modern computers.

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Bristol-Myers Squibb Company

American company resulting from a merger in 1989 and dating to companies
founded in 1858 and 1887. It produces toiletries, cosmetics, household cleaning products, pharmaceuticals, health foods and supplements, and health equipment and prostheses. Headquarters are in New York City. In 1989 the merger of Bristol-Myers Company and Squibb Corporation (descendant of a company founded in 1858) created one of the world's largest pharmaceutical companies.

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Expert system

Expert systems are advanced computer programs that mimic the knowledge and reasoning capabilities of an expert in a particular discipline. Their creators strive to clone the expertise of one or several human specialists to develop a tool that can be used by the layman to solve difficult or ambiguous problems. Expert systems differ from conventional computer programs as they combine facts with rules that state relations between the facts to achieve a crude form of reasoning analogous to artificial intelligence. The three main elements of expert systems are: (1) an interface which allows interaction between the system and the user, (2) a database (also called the knowledge base) which consists of axioms and rules, and (3) the inference engine, a computer program that executes the inference-making process. The disadvantage of rule-based expert systems is that they cannot handle unanticipated events, as every condition that may be encountered must be described by a rule. They also remain limited to narrow problem domains such as troubleshooting malfunctioning equipment or medical image interpretation, but still have the advantage of being much lower in costs compared with paying an expert or a team of specialists.

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Eli Lilly & Company

Eli Lilly & Company discovers, develops, manufactures, and sells pharmaceutical and animal health care products. Research efforts are directed primarily towards discovering and developing products to diagnose and treat diseases in human beings and animals and to increase the efficiency of animal food production. Pharmaceutical products comprise neuroscience products, endocrine products and anti-invectives. Products are manufactured and distributed through owned or leased facilities in the United States, Puerto Rico, and 27 other countries and sold in approximately 160 countries.

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Merrill Lynch & Co., Inc.

American financial-services holding company whose principal subsidiary, Merrill Lynch, Pierce, Fenner & Smith Inc., is the largest retail brokerage house in the United States. Headquarters are in New York City. In the 1970s, under Chairman Donald T. Regan (later treasury secretary under President Ronald Reagan), the firm moved aggressively into such other financial services as insurance and established the nation's largest money-market mutual fund. The holding company was created in 1973. Under Merrill Lynch International, it has several international operations, including Smith New Court PLC, a British securities firm acquired in 1995.

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World Bank

The World Bank as well as the International Monetary Fund (IMF) originated during World War II in preparation for postwar international financial and economic cooperation. Initiated by the United States and Great Britain. The principal functions of the World Bank are to assist in the reconstruction and development of its member countries by facilitating capital investment for productive purposes, to promote private foreign investment by guarantees of and participation in loans and other investments made by private investors, and to make loans for productive purposes out of its own resources or funds borrowed by it when private capital is not available on reasonable terms.

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Mark

A mark (trademark or service mark) is "... a sign, or a combination of signs, capable of distinguishing the goods or services of one undertaking from those of other undertakings. The sign may particularly consist of one or more distinctive words, letters, numbers, drawings or pictures, emblems, colors or combinations of colors, or may be three-dimensional..." (WIPO) To be protected a mark must be registered in a government office whereby generally the duration is limited in time, but can be periodically (usually every 10 years) renewed.

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Time Warner

The largest media and entertainment conglomerate in the world. The corporation resulted from the merger of the publisher Time Inc. and the media conglomerate Warner Communications Inc. in 1989. It acquired the Turner Broadcasting System, Inc. (TBS) in 1996. Time Warner Inc.'s products encompass magazines, hardcover books, comic books, recorded music, motion pictures, and broadcast and cable television programming and distribution. The company's headquarters are in New York City. In January 2000 Time Warner merged with AOL (America Online), which owns several online-services like Compuserve, Netscape and Netcenter in a US$ 243,3 billion deal.

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Defense Advanced Research Project Agency (DARPA)

DARPA (Defense Advanced Research Projects Agency) is the independent research branch of the U.S. Department of Defense that, among its other accomplishments, funded a project that in time was to lead to the creation of the Internet. Originally called ARPA (the "D" was added to its name later), DARPA came into being in 1958 as a reaction to the success of Sputnik, Russia's first manned satellite. DARPA's explicit mission was (and still is) to think independently of the rest of the military and to respond quickly and innovatively to national defense challenges.

In the late 1960s, DARPA provided funds and oversight for a project aimed at interconnecting computers at four university research sites. By 1972, this initial network, now called the ARPAnet, had grown to 37 computers. ARPANet and the technologies that went into it, including the evolving Internet Protocol (IP) and the Transmission Control Protocol (TCP), led to the Internet that we know today.

http://www.darpa.mil

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Institute for Policy Studies

IPS, based in Washington D.C. is a multi-issue, nationally focused think tank aiming at the promotion of economic redistribution, full employment, ecological restoration, democratic participation, community empowerment, and global nonviolence. IPS pursues its mission through the following eight strategies: activism; scholarship; public debate; political advocacy; model building; memory; training; and global alliances.

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Technological measures

As laid down in the proposed EU Directive on copyright and related rights in the information society technological measures mean "... any technology, device, or component that, in the normal course of its operations, is designed to prevent or inhibit the infringement of any copyright..." The U.S. DMCA (Digital Millennium Copyright Act) divides technological measures in two categories: 1) measures that prevent unauthorized access to a copyrighted work, and 2) measures that prevent unauthorized copying of a copyrighted work. Also the making or selling of devices or services that can be used to circumvent either category of technological measures is prohibited under certain circumstances in the DMCA. Furthermore the 1996 WIPO Copyright Treaty states that the "... contracting parties shall provide adequate legal protection and effective legal remedies against the circumvention of effective technological measures that are used by authors..."

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Chase Manhattan

American holding company incorporated Jan. 22, 1969, to acquire, as its main
subsidiary, The Chase Manhattan Bank, NA, and to develop other related financial services and operations. The Chase Manhattan Bank itself had resulted from the merger in 1955 of the Bank of the Manhattan Company (founded 1799) and The Chase National Bank (founded 1877). Its headquarters are in New York City.

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Amoco Corporation

American petroleum corporation that was founded in 1889 by the Standard Oil trust to direct the refining and marketing of oil in the Midwestern states. By the late 20th century, American operations still accounted for more than half of Amoco's total assets, though the company has been active in some 40 other countries in the areas of production, refining, and marketing. In addition to refining crude oil, Amoco is one of the largest producers of natural gas in the North American continent.

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Internet Societal Task Force

The Internet Societal Task Force is an organization under the umbrella of the Internet Society dedicated to assure that the Internet is for everyone by identifying and characterizing social and economic issues associated with the growth and use of Internet. It supplements the technical tasks of the Internet Architecture Board, the Internet Engineering Steering Group and the Internet Engineering Task Force.

Topics under discussion are social, economic, regulatory, physical barriers to the use of the Net, privacy, interdependencies of Internet penetration rates and economic conditions, regulation and taxation.

http://www.istf.isoc.org/

http://www.istf.isoc.org/
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American Express

U.S. company founded on March 18, 1850, as an express-transportation company, but today operating as a worldwide organization providing primarily travel-related and insurance services and international finance operations and banking. Headquarters are in New York City.

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Chevron

Chevron is a U.S. petroleum corporation formed in 1926 with the merger of Standard Oil Company of California and Pacific Oil Company. Headquartered in San Francisco, it operates today in more than 90 countries, either directly or through affiliates.

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Wide Application Protocol (WAP)

The WAP (Wireless Application Protocol) is a specification for a set of communication protocols to standardize the way that wireless devices, such as cellular telephones and radio transceivers, can be used for Internet access, including e-mail, the World Wide Web, newsgroups, and Internet Relay Chat (IRC).

While Internet access has been possible in the past, different manufacturers have used different technologies. In the future, devices and service systems that use WAP will be able to interoperate.

Source: Whatis.com

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NSFNet

Developed under the auspices of the National Science Foundation (NSF), NSFnet served as the successor of the ARPAnet as the main network linking universities and research facilities until 1995, when it was replaced it with a commercial backbone network. Being research networks, ARPAnet and NSFnet served as testing grounds for future networks.

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RAND

RAND (an acronym for research and development) is a non-profit institution that tries to "improve public policy through research and analysis". RAND was created at the urging of its original sponsor, the Air Force (then the Army Air Forces) and employs more than 500 people. Most work in RAND's Santa Monica, California headquarters, others are based in Washington, D.C. Some operate from RAND's Council for Aid to Education in New York City and from RAND Europe in Delft, the Netherlands. Areas of research are: Foreign relations and diplomacy, security and defense, economic issues, regional studies, social issues, health and welfare, education, labor and human resource development, science and technology.

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Merck & Co., Inc.

Merck & Co. is a research-driven pharmaceutical company that discovers, develops, manufactures and markets a broad range of human and animal health products, and provides pharmaceutical benefit services through Merck-Medco Managed Care LLC. The Company is comprised of two operating segments. Merck-Medco primarily includes sale of non-Merck products and Merck-Medco pharmaceutical benefit services, principally manages prescription drug programs and programs to help manage patient health. Merck-Medco sells its services to corporations, labor unions and insurance companies. Merck Pharmaceuticals consists of therapeutic and preventive agents, generally sold by prescription, for the treatment of human disorders. The Company's human health products are sold to drug wholesalers and retailers, hospitals, clinics, government agencies, and managed care providers.

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R.J. Reynolds

American manufacturer of tobacco products. The origins of the R.J. Reynolds Tobacco Company date to the post-Civil War era, when Richard Joshua Reynolds (1850-1918) began trading in tobacco, first in his native Virginia and then in Winston, N.C., where in 1875 he established his first plug factory. The company began to diversify in the 1960s, acquiring chiefly food and oil concerns, and the tobacco concern became a subsidiary of R.J. Reynolds Industries, Inc., in 1970.

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CIA

CIA's mission is to support the President, the National Security Council, and all officials who make and execute U.S. national security policy by: Providing accurate, comprehensive, and timely foreign intelligence on national security topics; Conducting counterintelligence activities, special activities, and other functions related to foreign intelligence and national security, as directed by the President. To accomplish its mission, the CIA engages in research, development, and deployment of high-leverage technology for intelligence purposes. As a separate agency, CIA serves as an independent source of analysis on topics of concern and works closely with the other organizations in the Intelligence Community to ensure that the intelligence consumer--whether Washington policymaker or battlefield commander--receives the adaequate intelligence information.

http://www.cia.gov

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Wide Area Network (WAN)

A Wide Area Network is a wide area proprietary network or a network of local area networks. Usually consisting of computers, it may consist of cellular phones, too.

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Citizens for a Sound Economy

Since 1984, Citizens for a Sound Economy has advocated market-based solutions to public policy problems. Uniting its 250,000 members is the fundamental belief that a strong and vibrant free-market economic system offers the best hope for creating opportunity and improving the quality of life for every American.

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Leonard M. Adleman

Leonard M. Adleman was one of three persons in a team to invent the RSA public-key cryptosystem. The co-authors were Adi Shamir and Ron Rivest.

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International Chamber of Commerce

The International Chamber of Commerce (ICC) is the world business organization, the only representative body that speaks with authority on behalf of enterprises from all sectors in every part of the world. ICC promotes an open international trade and investment system and the market economy. Its conviction that trade is a powerful force for peace and prosperity dates from the organization's origins early in the century. The small group of business leaders who founded the ICC called themselves "the merchants of peace".

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Citizens for Tax Justice

Citizens for Tax Justice was formed in 1979 to give people a "greater voice" in the development of the tax laws at the national, state and local levels. CTJ efforts are based on the idea that people should pay taxes according to their ability to pay them.

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Citicorp/Citibank

American holding company (formerly (1967-74) First National City Corporation),
incorporated in 1967, with the City Bank of New York, National Association (a bank tracing to 1812), as its principal subsidiary. The latter's name changed successively to First National City Bank in 1968 and to Citibank, N.A. (i.e., National Association), in 1976. Citicorp was the holding company's popular and trade name from its inception but became the legal name only in 1974. Headquarters are in New York City.

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Economic Policy Institute

EPI was founded to "widen the debate about policies to achieve healthy economic growth, prosperity, and opportunity in the "new American economy"." Areas of research include political issues, economic issues, industry policy, social issues, education and environmental issues. EPI's current research agenda includes projects on: evaluating state/federal minimum wage policies; welfare reform; social security studies; domestic industrial competitiveness; nonstandard work arrangements; "fast-track" and other globalization policies; and privatization of public services.

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Center for Strategic and International Studies

CSIS is a private, tax-exempt and public policy research institution dedicated to policy analysis. It covers key functional areas such as international finance, emerging markets, U.S. domestic and economic policy and U.S. foreign policy and national security issues. Policy impact is the basic mission of CSIS. Its goal is to shape selected policy decisions in government and the private sector.

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Next Generation Internet Program

A research and development program funded by the US government. Goal is the development of advanced networking technologies and applications requiring advanced networking with capabilities that are 100 to 1,000 times faster end-to-end than today's Internet.

http://www.ngi.gov

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