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Monday, February 6, 2012

Billionaires Channel Millions to Think Tanks

Laurie Bennett 
Laurie Bennett, Forbes Contributor

Examining the social, political & business networks of the rich. 

Just as big money is transforming politics, it’s also helping to reshape American think tanks.

Members of the Forbes 400 have poured millions of dollars into research organizations that fit their social, political and/or business concerns.

The conservative Heritage Foundation has received funding from libertarian Charles G. Koch, CEO of Koch Industries, as well as from Richard Mellon Scaife, owner of the Pittsburgh Tribune-Review and heir to the Mellon banking fortune.

DAVOS/SWITZERLAND, 27JAN10 - George Soros, Cha...
At the left end of the spectrum, financier George Soros has supported the Center for American Progress and the Center for Economic and Policy Research. (It should be noted, however, that his foundations have also donated to centrist groups and the conservative Cato Institute.)

In the middle, Bill Gates and Henry Kravis support the Council on Foreign Relations. Kirk Kerkorian, Haim Saban and Kirk Kerkorian have donated to the Brookings Institution.

The number of think tanks has grown from a few dozen in the mid-1940s to more than 1,800 today, providing wealthy donors with an ever-larger array of institutions to choose from.

And yet some still start their own organizations. Billionaire investor Nicolas Berggruen founded the Nicolas Berggruen Institute, which explores ideas for good governance. One of the institute’s projects, the Think Long Committee, has called for tax reform to help fix California’s economy.



While the Think Long Committee has brought together Democrats and Republicans, some of the newer think tanks are unabashedly partisan.

As real-time sources of analysis and forecasting, these groups play an expanding role in public debate. Fellows blog responses to the State of the Union. Wonks appear regularly on cable TV to opine on health care, defense spending and other national issues.

Think tankers also contribute to mainstream media such as Forbes. Manhattan Institute fellow Josh Barro, for example, recently responded on this site to a Heritage blog post about taxes paid by the top 1 percent.

The commentary can easily become fodder for those trying to shape policy. Some think tanks, including the Heritage Foundation and the Center for American Progress, have even formed separate action funds that advocate for specific policies and legislation.

In a recent article in National Affairs, Tevi Troy, former deputy secretary of Health and Human Services and a senior fellow at the Hudson Institute, warned against the trend toward partisanship.

“I’m a full-throated fan of think tanks,” Troy said in a subsequent interview. But the price of politicization, he said, “is that some good public policy research is not going to be taken seriously.”

In most cases, research organizations operate as 501(c)(3) nonprofits. Donations are tax deductible.

Billionaires, of course, aren’t the only funders. Think tanks draw support from individuals, corporations and other foundations. Some are affiliated with universities.

But deep pockets enable America’s wealthiest individuals to have a growing impact in this world.

Calculating their reach is difficult, because think tanks do not have to publicly disclose donors. We approached the issue from the opposite direction, examining U.S. tax returns of foundations established by billionaires.

We found foundation grants to a total of 46 national think tanks. The table below lists these funding connections.

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Sunday, February 5, 2012

The times to change in Malaysian politics!

Evolving with the times

INSIGHT: By JOCELINE TAN

DAP’s new Malay recruits are more likely to impress its non-Malay supporters than the Malay ground which it is trying to infiltrate but, in the long run, it is an astute move to tap into the changing urban demography.

DATUK Ariff Sabri has been the talk of Pahang Umno since he joined DAP a few weeks ago. Ariff, a former Pahang assemblyman but who is now more famous as a blogger, is arguably the biggest Umno name to have joined DAP.

“I was quite shocked. I thought someone was playing a joke on me and I felt sad when it turned out to be true,” said Pahang exco member Datuk Sharkar Shamsuddin.

The Umno and DAP view of each other has always been extremely polarised – ultra Malay versus Chinese chauvinist. As far as Ariff’s friends in Umno were concerned, his political move was akin to leaving one world for another.

 
Malay recipe: Zulkifli (left) and Zairil (centre) represent DAP’s past and present attempts at diluting its image as a Chinese chauvinist party. They are seen here with life member Iskandar Basha Abdul Kadir (right) in Penang.
 
On top of that, DAP has been making a song and dance about the fact that Ariff hailed from the Prime Minister’s constituency and used to be the Pekan Umno information chief.

But no one felt more taken aback than Pahang Mentri Besar Datuk Seri Adnan Yaakob. The two men have known each other for years and when Ariff was not picked to defend his Pulau Manis state seat in 2008, the Mentri Besar had reportedly made efforts to ensure that Ariff and his family would be all right.

Sharkar is one of those people who sees everyone as a friend and he called Ariff to urge him to rethink his decision, but the die was cast.

Ariff and Aspan Alias, another Umno politician from Negri Sembilan, had attended the DAP national conference in January where they were welcomed like VIPs. Since then, former National Union of Journalists president Hata Wahari has also been recruited.

The latest recruits stand out as both are from Umno whereas Hata had single-handedly taken on Utusan Malaysia before he was sacked from the paper.

In that sense, it was the first time that DAP had managed to snare three Umno-related personalities who can now join them in challenging Umno.

Hata, who is currently working for Lembah Pantai MP Nurul Izzah Anwar, seems to be taking his radical views against Utusan Malaysia and on press freedom to the political arena.

Ariff and Aspan have used their blogs to air their opinions and often to hit out at what they think is wrong with Umno.

Ariff, being a former assemblyman, is definitely the biggest catch among the three. He said he is against corruption and wants to see good governance and the rule of law.

“It’s not easy to move on but I am taking stock of the new realities of Malay politics. The younger generation is less racial in outlook and more willing to go on merit,” he said.



He is also much harder to define – he is a big fan of muay thai, has a taste for serious literature and likes music from an earlier era. Although his blog may be rather too cerebral for the average person, his writing is very cut-and-thrust and he can be quite ruthless. He has commented on everything from politics to the economy and has a loyal following.

DAP Youth chief and Rasah MP Anthony Loke who took the initiative to approach Ariff admitted he was attracted to the latter’s line of attack against Umno.

“We told them to go on writing. They can attack Umno and explain a lot of things on our behalf,” said Loke.

But what is the big deal, some have asked. They said that a few new Malay members looking for a new platform to air their grouses is not going to change the image of DAP. They think DAP is recruiting people who have an axe to grind, basically “Umno-bashers” who can take the DAP fight with Umno to another level.

There has been a trickle of Malays into the party over the years and there is even an all Malay DAP branch in the Klang Valley. There have also been Malay DAP candidates every general election but only three or four have managed to win seats, the most notable being the late Bayan Baru MP Ahmad Nor who was a well-known trade unionist.

But DAP’s attempts to reach out to the Malays over the last 40 years have been a flop partly because of the success of Umno’s propaganda against DAP and partly because of the way DAP had exploited Chinese issues.

DAP was more than happy to ride on its reputation as a champion of all things Chinese but their troubles in the wake of their success in Penang and Perak drummed home the point that their Chinese image had become a liability.

All those years of attacking Umno, the NEP, Islamic policies, the civil service, the police and, more recently, the MACC have come home to roost.

The targets of their criticism have one thing in common – they are largely associated with the Malays and Islam. Their attacks have been akin to Malay-bashing and the party has, rightly or wrongly, acquired an anti-Malay reputation.

Last year, the party launched its Malay website, Roketkini. It is not the most original of names but it is quite an interesting site although critics say that it sounds like a Malay apologist for a Chinese party.

It is quite obvious that Roketkini’s purpose is also to debunk Malay prejudices against DAP, defending the party against notions that it is anti-Islam, supports the Islamic State, is trying to promote a Christian Prime Minister, has communist leanings and so on.

Malays in the party find themselves always having to explain themselves to their Malay friends. For instance, former vice-chairman Zulkifli Md Noor still gets puzzled looks after 30 years in the party. Some of his friends think that DAP uses Malays like him as tokens and that the party is not sincere in giving them real roles. His detractors see him as a DAP poodle.

They said that if DAP genuinely wanted to promote the Malays, people like Zulkifli should be given winnable seats. Instead, he has contested three general elections in seats where he was pitched against big guns and where he had little chance of winning. In 2008, he even had to make way for a well-connected Indian candidate even though he had been doing work in that particular constituency.

But Ariff is definitely not going to be anyone’s poodle. For instance, his blog is called Sakmongkol AK47 – Sakmongkol is the name of a famous kickboxer whereas AK47 is a Russian-made firearm.

He described his first few interactions with DAP as a culture shock but as he said: “Just because I am in DAP does not make me less of a Malay, I’m still a loyal subject of the Rulers.”

During a party retreat in Seremban last year, Lim Kit Siang had urged members to correct their image by attracting young, liberal and progressive Malays.

“We’re not only targeting former Umno members, we’re also looking for fresh faces without any political history,” said Loke.

DAP, said social historian Dr Neil Khor, is by constitution a non-sectarian party.

“They have to practise what they preach. They have been dominated by a Chinese type of thinking. I think they are trying to say that, yes, we can’t deny that we have become an ethnic Chinese party but we are pushing for a more multi-racial outlook,” said Dr Khor.

The latest Malay recruits will probably be made candidates in the next general election. The question is whether they will be tested in Malay seats where they will have to struggle to win or given safe, Chinese-majority seats.

“If they pull it off, it will be a real game changer for DAP,” said Dr Khor.

Everyone is watching what the party is planning to do in Perak. Pakatan Rakyat politicians have convinced themselves that they will take back Perak and the talk is that DAP wants to have their own Malay candidate for mentri besar. They have been badly damaged by attacks that although they won an overwhelming number of seats in the state, they had to surrender the mentri besar post to PAS.

Not everyone in the party is thrilled about the entry of Ariff, Aspan and Hata. First, there are the suspicions and stigma attached to party-hoppers. Then there is the concern about whether they will be able to adapt to the party’s way of doing things.

A few of them are also concerned about the Johor-born Hata. They saw how he bit the hand that fed him and his ferocious flogging of his then employer shocked many people. They are worried the firebrand could easily turn around and bite DAP if things do not go his way in future. They can see that this is a guy who goes for broke.

They want the party to recruit more Malays like Zairil Khir Johari and former Transparency Malaysia chief Senator Tunku Aziz Ibrahim. They have no baggage and do not ask too many embarrassing questions or cause trouble in the party.

Zairil, whose stepfather is the late Umno veteran Tan Sri Khir Johari, is seen as a rising star in Penang where he is the Chief Minister’s blue-eyed boy. The Internet chatter is projecting him as the next deputy chief minister. But to be fair to him, he is a genuinely likeable person, humble and hard-working.

“All these people joined without any pre-conditions. They may or may not be candidates in the general election and we do not have carrots to dangle,” said Jelutong MP Jeff Ooi.

The party constitution specifies at least two years of membership because anyone can be considered as an election candidate but it can be waived by the central executive committee as in the case of Ooi, who joined the party about six months before the 2008 election.

The short-term take on this is that DAP is trying to dilute its Chinese image which is becoming a liability in its quest for power. But the new recruits are more likely to impress DAP’s non-Malay ground rather than the Malays whom they are trying to attract. No one can quite see Malays rushing to join DAP in the near future and especially given the way DAP leaders attack Malay institutions.

But in the long term, this is an astute party that has begun to tap into the changes taking place in the urban areas and among urban Malays.

The Malay population is growing very fast and will soon dominate the electorate map in such a way that future general elections will be largely a Malay fight. Any party that wants to stay relevant will have to be acceptable to the Malays in one way or another.

Saturday, February 4, 2012

Malaysia's nothing ventured, nothing gained

Institut Pendidikan Guru Malaysia Kampus Tun A...

Nothing ventured, nothing gained

ON YOUR OWN By TAN THIAM HOCK

I had a weird start to 2012. For the first time, I joined the unemployment line. Voluntarily of course. I started working two weeks after my final examination in University Malaya back in Feb 1983 and I have never stopped working since.

Had a good month's break from writing this column and I have to admit that writing is much much more difficult than selling lipsticks! Mighty pleased that I am not making a living out of this writing profession ... or my family will be starving at this moment. No holidays. No iPhones and no I want this and I want that.

To some concerned readers, no, I was not banned from writing nor was I terminated by Star Publications (M) Bhd CEO. I did receive some formal complaints from some sensitive officials from government agencies and sovereign funds but no RM100mil defamation suits ... yet. As such, I do not have to apologise in public to anybody. So far, so good. No shame.

Writing this column forces me to recall snippets of historical events that had pass me by. Looking back, an event that happened 31 years ago could have changed Malaysian history. And your current cost of living.

In 1981, I was in AIESEC, University Malaya involved in organising the Heavy Industries seminar, at a time when our Dr M decided to launch the national car project. Our economics professor, Dr Chee Peng Lim was adamantly against the car project, arguing that Malaysia should concentrate her resources on modernising agriculture, invest in infrastructure and resource-based manufacturing.



He further argued that unlike Japan and South Korea, Malaysia has a small domestic market and we will not achieve the economy of scale that will help make us cost competitive for the export market. It would be an extremely inefficient allocation of economic resources if we were to proceed with the car project.

It was rumoured then that Dr Chee had to leave the country and he subsequently joined the World Bank. No opportunity to confirm this rumour but what a great story!

Commodity prices are at its highest in years. Felda pioneer settlers are all millionaires. Malaysian rubber gloves dominate the world market. And Proton is still in a poor state of affairs. Proton still needs the protection of the Government to compete in the local market. It has never been able to compete in the world market. With or without Lotus. It never will. Dr Chee was right.

To be fair, Proton did generate some economic benefits. It spawned many entrepreneurs with investments in car parts, logistics, etc and it created jobs. Billionaire entrepreneurs were also created ... from papers. That's right. From AP papers that costs a few cents to print. So, why bother to sell cars when it is more lucrative to sell a piece of paper? In the meantime, the poor rakyat has to pay some of the highest car prices in the world.

There is no better place in the world for entrepreneurship to flourish than Malaysia. The best projects are privatisation projects. Buy an airline from the Government with maximum loans from our GLC banks. If you manage it well, then you are a successful entrepreneur. If not, no worries. The Government will buy it back from you at the same price. So, you wasted your precious time but hey ... nothing ventured, nothing gained, right? You will never ever suffer personal losses. Only occasional lawsuits.

Back in the good old days before LRT, we had a haphazard public transport system of mini-buses and many bus companies. But it worked. In true entrepreneurship spirit, supply meets demand. And the mass could travel everywhere by bus. Many choices and on time arrivals.

Then the Government decided to upgrade the public transport system by centralising and privatising. All the old Omnibus companies folded. Tong Fong Omnibus, Klang Omnibus and Ah Hock Omnibus. Conservative entrepreneurs who toil over long hours and small margins. Good riddance though to those crazy and dangerous mini-bus drivers.

Brilliant entrepreneurs were roped in to invest in modern air-conditioned buses. Easy loans were arranged. Modern management techniques were employed. Monopolistic routes were divided and spread among these entrepreneurs. But still they lose money? Now they claim that they are providing a social service to the rakyat. “Compensate us for the losses or we will stop running the buses.” The rakyat was held to ransom.

With election looming, neither the opposition state government nor the federal government could afford the backlash from the rakyat. The rakyat's money was used again to pay inefficient and hopeless entrepreneurs. No shame. No shame.

Entrepreneurs invest in business knowing that the risk of failure is ever present. So you work hard and you work smart. You try your best. If it works, great. If you fail, just swallow your pride and walk away. Don't go begging for help especially if it is the rakyat's money. And don't you dare hold the rakyat to ransom again.

In the ETP seminar, Datuk Seri Idris Jala said inefficient entrepreneurs should be eliminated in a free enterprise economy. I agree. The politicians and the bureaucrats should manage the rakyat's money as if it's their own or the rakyat will hold them accountable in the polls.

Dr Chee, wherever you are, thank you for the invaluable lecture.

On Your Own The writer is an entrepreneur who hopes to shares his experience and insights with readers who want to take that giant leap into business but are not sure if they should. Email him at thtan@alliancecosmetics.com