Examples of Mainly Corporate Funded Think Tanks: Brookings Institution

With a budget of US$ 23 million and assets worth US$ 192 million the Brookings Institution, based in Washington D.C., in 1998 was funded by: Corporate and private donations (38 %), endowment (30 %), revenue from conferences and seminars (18 %), sales of publications (9 %), government support (2 %).

Among the 138 corporate donors are: Bell Atlantic, Citibank, J.P. Morgan, Goldman Sachs, NationsBank, Exxon, Chevron, Microsoft, Hewlett Packard, Toyota, Pfizer, Johnson & Johnson, Dupont, Mobil and Lockheed Martin, and the foundations of companies like American Express, Travelers, AT&T and McDonnell Douglas. A few media conglomerates, like Time Warner and the Washington Post Co.. Contributions of individual donors include executives from Visa, Procter and Gamble, BankAmerica and U.S. Airways.

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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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Think Tanks and the Internet

As think tanks try to push policy making in their desired direction in such diverse fields as health, education, taxation, regulation and national security it is not surprising, that also the Internet has entered their issue list:

RAND, a center-right U.S. think tank not only argues for the usage of certain guidelines concerning the use of e-mail, but has also released a research report - sponsored by the Office of the Secretary of Defense - entitled "Strategic Information Warfare: A New Face of War". In November 1999 RAND has furthermore launched a co-operation with the International Chamber of Commerce (ICC) aimed at combating the threat of cybercrime. ICCs practical expertise and RANDs research and analytical capacities shall aid at finding solutions to fight hackers, industrial spies, and other criminals who may exploit the Internet to attack commercial and public-sector systems.

Another of the big players in the elite of think tanks, the conservative Washington D.C. based Cato Institute quite surprisingly has started to defend human rights in Cyberspace. Jonathan D. Wallace' "Nameless in Cyberspace: Anonymity on the Internet." sees the constitutionally guaranteed right of freedom of speech and expression in the United States under attack by proposals to limit or restrict the use of anonymity on the Internet.

Yet another conservative think tank, the U.S. based Center for Strategic and International Studies in June 1999 has initiated a Conference (Global Information Infrastructure Commission) to accelerate the development of E-Commerce in India. Among the Conferences participants were not only government representatives from India and the United States, but also the CEO of Global TeleSystems Group Inc., the vice chairman of Fujitsu and the executive president of Siemens A.G., as well as the World Bank and the World Intellectual Property Organization.

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Conservative vs. Progressive Think Tanks

The political orientation of think tanks is as broad as in every other kind of institutions or organizations. It ranges from conservative over centrist to progressive. Still it can be noted, that there are considerable differences between the right and the left wing of think tanks, especially concerning funding sources and revenues as well as media relations, which have considerable consequences on their perception and influence on the public as well as on policy makers.

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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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History of Corporate Funding of Conservative Think Tanks

Corporate funding for right-wing policy work has its roots in the 1970s, when leading conservative thinkers appealed to corporations to fund intellectuals who supported their economic interests. Irving Kristol, in his 1978 book "Two Cheers for Capitalism", argued that corporations should make "philantrophic contributions to scholars and institutions who are likely to advocate preservation of a strong private sector.". At the same time think tank entrepreneurs like Ed Feulner of Heritage and Edward Crane of CATO moved to cultivate corporate allies. At most conservative think tanks, corporate leaders now make up the overwhelming majority of board members.

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Media Relations

Another difference that can be noted between right and left-wing think tanks concerns their media appearance and media relations. While in 1997 53 % of the U.S. media references made to think tanks involved conservative institutions, progressive think tanks accounted for only16 % of the media citations made to think tanks (32 % centrist institutions). This suggests that the media agenda is markedly influenced by conservative issues and ideology, and therefore leads to a considerable imbalance within the spectrum of political views.

On the other hand the financial resources of right- and left- wing media associated with think tanks also differ appreciably. While conservative foundations provided US$ 2,734,263 to four right-of-center magazines between 1990 and 1993 including The National Interest, The Public Interest, The New Criterion, and The American Spectator, over the same time period four left-of-center publications, namely The Nation, The Progressive, In These Times, and Mother Jones received only US$ 269,500 from foundations.

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Philip Morris

American holding company founded in 1985, the owner of several major American companies, notably Philip Morris Inc., the General Foods Corporation, and Kraft, Inc., with diversified interests in tobacco and food products. In 1988 Philip Morris acquired Kraft, Inc., a large maker of cheeses and grocery products. Philip Morris thus became one of the world's largest corporate producers of consumer goods. Its headquarters are in New York City.

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Salomon Smith Barney

Investment banking firm and securities dealer. Founded in the 19th century in Philadelphia, in 1993 Smith Barney became a wholly owned subsidiary of Travelers Group Inc. The 1998 merger of Citicorp and Travelers Group brought together Citibank, Travelers, Salomon Smith Barney, Commercial Credit and Primerica under Citigroup's trademark red umbrella.

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Royal Dutch/Shell Group

One of the world's largest corporate entities in sales, consisting of companies in more than 100 countries, whose shares are owned by NV Koninklijke Nederlandsche Petroleum Maatschappij (Royal Dutch Petroleum Company Ltd.) of The Hague and by the "Shell" Transport and Trading Company, PLC, of London. Below these two parent companies are two holding companies, Shell Petroleum NV and the Shell Petroleum Company Limited, whose shares are owned 60 percent by Royal Dutch and 40 percent by "Shell" Transport and Trading. The holding companies, in turn, hold shares in and administer the subsidiary service companies and operating companies around the world, which engage in oil, petrochemical, and associated industries, from research and exploration to production and marketing. Several companies also deal in metals, nuclear energy, solar energy, coal, and consumer products.

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Chemical Banking Corporation

In 1996 the firm, which was by then the second-largest bank in the United States, merged with another New York-based bank, The Chase Manhattan Corporation, to form the largest bank in the nation. Though the Chemical Banking Corporation had been the larger partner in the merger, the resulting firm was called The Chase Manhattan Corporation.

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Mobil

One of the largest of American holding companies, primarily engaged in petroleum operations but having major interests in chemical products and retailing. It was formed in 1976 to be the parent company in the merger of Mobil Oil Corporation and Marcor Inc. Mobil Oil Corporation carries on a full range of petroleum operations from exploration to marketing, with major production in the Gulf of Mexico, California, the Atlantic coast, the Alaskan North Slope, the North Sea, and Saudi Arabia. Headquarters for Mobil Corporation (and Mobil Oil Corporation) are in Fairfax, Va.

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American Petroleum Institute

Major national trade association representing petroleum industry efforts in exploration and production, transportation, refining, and marketing.

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CIGNA

CIGNA was formed in 1982 through the combination of INA Corporation and Connecticut General Corporation. CIGNA's formation in 1982 combined a leading property-casualty insurer with a leading supplier of life insurance and employee benefits. CIGNA has tightened its focus on employee benefits, divesting its individual life insurance business in 1998, and its domestic and international property and casualty operations in 1999.

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Viacom

One of the largest and foremost communications and media conglomerates in the
world. Founded in 1971, the present form of the corporation dates from 1994 when Viacom Inc., which owned radio and television stations and cable television programming services and systems, acquired the entertainment and publishing giant Paramount Communications Inc. and then merged with the video and music retailer Blockbuster Entertainment Corp. Headquarters are in New York City.

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Atlantic Richfield Company

American petroleum corporation created in 1966 by the merger of Richfield Oil

Corporation and Atlantic Refining Company. A further merger in 1969 brought in Sinclair Oil Corporation. Atlantic Richfield has petroleum operations in all parts of the United States as well as in Indonesia, the North Sea, and the South China Sea. The company also owns and operates transportation facilities for liquid petroleum, including pipelines and tankers; produces and sells chemicals, coal, and metal products; and is involved in the development of solar energy products and in other energy-related activities. Headquarters are in Los Angeles.

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Rupert Murdoch

Australian-born newspaper publisher and media entrepreneur, founder and head of the global media holding company The News Corporation Ltd., which governs News Limited (Australia), News International (U.K.), and News America Holdings Inc. (U.S.). Murdoch's corporate interests center on newspapers, magazines, books, and electronic publishing; television broadcasting; and film and video production, principally in the United States, the United Kingdom, and Australia.

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Edward Heath

Conservative prime minister of Great Britain from 1970 to 1974. Of modest origins, Heath was educated at Oxford, where he was elected president of the University Conservative Association in 1937. In 1938, as chairman of the Federation of University Conservative Associations and president of the Oxford Union, he actively opposed the policy of appeasement toward Nazi Germany pursued by the Conservative prime minister Neville Chamberlain. He served in the army during World War II, worked in the Ministry of Civil Aviation in 1946-47, was editor of the Church Times from January 1948 to October 1949, and then became a member of a merchant banking firm.

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Casey, William J.

b. March 13, 1913, Elmhurst, Queens, N.Y., U.S.
d. May 6, 1987, Glen Cove, N.Y.

Powerful and controversial director of the U.S. Central Intelligence Agency (CIA) from 1981 to 1987 during the Ronald Reagan administration. While affiliated with the law firm Rogers & Wells (1976-81), Casey became Reagan's presidential campaign manager and was subsequently awarded the directorship of the CIA in 1981. Under his leadership, covert action increased in such places as Afghanistan, Central America, and Angola, and the agency stepped up its support for various anticommunist insurgent organizations. He was viewed as a pivotal figure in the CIA's secret involvement in the Iran-Contra Affair, in which U.S. weapons were sold to Iran and in which money from the sale was funneled to Nicaraguan rebels, in possible violation of U.S. law. Just before he was to testify in Congress on the matter in December 1986, he suffered seizures and then underwent brain surgery; he died from nervous-system lymphoma without ever testifying.

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Microsoft Corporation

Founded by Bill Gates and Paul Allen and headquartered in Redmond, USA, Microsoft Corporation is today's world-leading developer of personal-computer software systems and applications. As MS-DOS, the first operating system released by Microsoft, before, Windows, its successor, has become the de-facto standard operating system for personal computer. According to critics and following a recent court ruling this is due to unfair competition.

http://www.microsoft.com

For more detailed information see the Encyclopaedia Britannica: http://www.britannica.com/bcom/eb/article/4/0,5716,1524+1+1522,00.html

http://www.microsoft.com/
http://www.britannica.com/bcom/eb/article/4/0...
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