Think Tanks and Corporate Money

Looking at the financial situation of think tanks, different funding patterns can be found. While financial contributions from foundations play an important role especially for conservative think tanks, also contributions from governments are made to certain institutions. Yet one of the most important funding sources are corporate donors and individual contributors. Although the extent to which - in most cases conservative - think tanks rely on corporate funding varies, from the US$ 158 million spent by the top 20 conservative think tanks, more than half of it was contributed by corporations or businessmen.

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Major U.S. Think Tanks: Cato Institute

Founded in 1977, the institute is named for Cato's Letters, libertarian pamphlets that were widely read in the American Colonies since the early 18th century and played a major role in laying the philosophical foundation for the American Revolution. Cato is a public policy research foundation seeking to "broaden the parameters of public policy debate" to allow consideration of more options that are consistent with the traditional American principles of limited government, individual liberty, free markets and a special focus on deregulation issues.

In recent years, the Cato Institute has become one of the most cited and quoted think tanks in the U.S. news media, while also becoming a key resource for Republican leaders. Catos board of directors not only includes John C. Malone - president and CEO of Tele-Communicaitons Inc. (TCI), the largest cable operator in the United States - but, since autumn 1997, also media titan Rupert Murdoch.

Official Organizational Status: Independent Institute

Political Orientation: U.S. Conservative/Libertarian

Scope/Research Areas: Catos research areas include development studies, science and technology, economic issues, health and welfare, foreign relations and diplomacy. Priority issues are Social Security privatization, fundamental tax reform, limited constitutional government, free trade and term limits. Recent publications include: Kelley, David A.: Life of One's Own. Individual Rights and the Welfare State. (1998). Ferrara, P.J. and M. D. Tanner: A New Deal for Social Security. (1998).

Funding Sources: 1998 Budget US$ 11 million. 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.

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The Institute of Economic Affairs

One of the most impressive examples of the dissemination of ideology through educational activities has been performed by the UK- based Institute of Economic Affairs (IEA), founded in 1955. Dedicated to the idea of free-markets the IEA from the beginning saw the "education" of the public as a key element in the distribution of their ideology. "The philosophy of the market economy must be widely accepted; this requires a large programme of education ..."

Aiming at the wide acceptance of their ideas, the IEA undertook an extensive publishing program with the objective to make the fairly complex concepts of economic liberalism and monetarism available to a student or sixth-form audience. In the 1960s IEA papers normally reached the hands of students through the university Conservative Associations.

The work that the IEA did in this field reaped a rich harvest during the 1970s and 1980s, as many of the younger political activists who staffed the various free-market think-tanks, such as the Center for Policy Studies, the Freedom Association an the Selsdon Group, received their education from the IEA. Especially at St. Andrews university, where Ralph Harris, the first director of the IEA, had been a lecturer, the IEA ideas had a strong impact. St. Andrews over the years did not only produce a generation of free-market Conservative MPs (Member of Parliament), but also influenced former St. Andrews students like Stuart and Eamonn Butler and Madsen Pirie, who went to set up the Adam Smith Institute (ASI) in London in 1976.

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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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Amazon.Com

Amazon.Com was one of the first online bookstores. With thousands of books, CDs and videos ordered via the Internet every year, Amazon.Com probably is the most successful Internet bookstore.

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Seneca

Lucius Annaeus Seneca (~4 BC - 65 AD), originally coming from Spain, was a Roman philosopher, statesman, orator and playwright with a lot of influence on the Roman cultural life of his days. Involved into politics, his pupil Nero forced him to commit suicide. The French Renaissance brought his dramas back to stage.

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