A Post That Should Worry All Americans

My fellow blogmeister Mark of Zenpundit has published A Call For Radical Transparency in Politics a post by Bruce Kesler of Democracy Project.

The post is a must read for all those who worry about the undue influence that comes when large contributions are made to political leaders and institutes of learning and culture by wealthy interest groups. In the past the concern was big business, and labor unions, it now appears that foreign entities, governments and others, have bought their way into American politics and many of the institutes that shape our culture. I think that this is so pervasive that I am going to do what Zenpundit and Chicago Boyz* have done, and reproduce it in full with Mark's comments.

Mark begins:

My friend Bruce Kesler, who keeps a sharper eye on the fine details of American politics than I do, is dead square right in a recent post at Democracy Project that I reproduce here in full:
Hidden Foreign Contributions Affect US Elections


US election law forbids non-Americans to contribute directly to federal candidates, and qualified donations above $200 are available to public scrutiny. There is a huge loophole – or, more correctly, shroud – over contributions by foreigners to US non-profits, who heavily shape public discussion affecting our elections – and other policies. (There’s, also, some indication that the $200 cut-off for full disclosure of contributions to our campaigns may be another loophole being exploited by some foreigners.)


IRS Form 990 generally requires that non-profits list contributors and their addresses who give $5000 or more. However, non-profits are not required to publicly divulge who they are (with the exception of private foundations and 527’s).


Non-profits include 501(c)(4)’s, which are estimated to spend in 2008 well more than the $424-million that 527’s spent to influence the 2004 elections.

Another area of concern is donations made by foreigners to our universities. Although New York State requires that such contributions be revealed, there is no enforcement and filings are often not made.

In Britain, it is estimated, more funding comes from the Mid East for Islamic Studies departments than from the government.

Ministers labelled Islamic studies a "strategic subject" and said the "effective and accurate teaching" of it in universities could help community cohesion and counter extremism.Similar concerns have been raised in the US about the influence of Mid East contributors on our universities’ curriculum's, and the faculty who influence public discussion. See here and here, for examples.

Former presidents Carter and Clinton have received tens of millions in donations, and more, from foreign sources for their foundations, yet the public knows very little about from whom or how much. Meanwhile, Carter and Clinton take frequent public stands on public policy and candidates for office.

A draft has been released of a revised IRS Form 990. It increases exposure on governance issues, but retains the shroud over contributors to non-profits. At the very least, foreign contributors should be revealed publicly, at least for amounts over the $200 of election laws.
You can send your comments to the IRS during the comment period. It’s as simple as an email to Form990Revision@irs.gov

Mark writes:

Bravo to Bruce for highlighting this important but generally unrecognized problem.

One of the ironies of Beltway incumbent preferred campaign finance regulation like the odious McCain-Feingold law is that it manages to combine restrictions of the political activities and free speech rights of American citizens while granting opacity to wealthy foreigners who seek to influence political discourse here through generous donations to foundations, educational organizations, think tanks, universities, presidential libraries and other institutions that shape our intellectual life. It is completely understandable, given the potential impact of American policies on the rest of the world that other states and their sundry notables would seek to make their voice heard here. To a certain extent, when it’s above board public diplomacy and cultural exchanges, it’s even a good thing. What’s unacceptable is that foreign interests can often buy such influence - which is what they are really doing - under the radar or even behind the shield of legal secrecy. If some of our finest universities were people then they would have already had to register as foreign agents a long, long, loooooooong, time ago.


The same might be said of some former presidents. Or of presidential candidates.


The answer here is not to go on a fruitless legal jihad to ban foreign money, which at times does get turned toward humanitarian or genuinely educational purposes but to require radical transparency of our think tanks, universities, charities and other institutions enjoying tax deductible status but are dedicated to indirectly influencing the political process or policy formation. If an American institution or scholar wants to shill for the Wahabbi Lobby by working for a tank on the take from a senior Saudi prince, or accept grants from PLA-affiliated Chinese corporations, Japanese billionaires, mobbed-up Russian “businessmen” or other foreign sources, fine, but a highly visible disclaimer to that fact ought to be mandatory. If Carnegie or AEI or Harvard departments are advising presidential candidates on Mideast policy then contributions emanating from that region are relevant to the discussion.

If accepting the check in public is cause for dismay then there’s a word for what’s really going on:

Graft.

This revelation comes during former President Carter's trip to the Middle East where he spent most of his time cozying up to Hamas and Hezbollah, after denouncing Israel for the past several months. It would also call to mind recent policy changes in universities in Great Britain and the U.S. making special accommodation for Islam, as they decry any demonstration of faith by other religions as violating the separation of church and state.

It is time for Americans to demand that institutions and all government officials past and present be held accountable as private citizens in their receiving foreign contributions. Some politicians pander to the fear of losing jobs offshore and some universities pretend to be enlightened, while in reality those who we have entrusted to educate our young and govern our destiny, line their pockets with gold from silent masters.