Dark money lurks at the heart of our political crisis

George Monbiot in The Guardian


Democracy is threatened by organisations such the Institute of Economic Affairs that refuse to reveal who funds them

 

Illustration: Sébastien Thibault


A mere two millennia after Roman politicians paid mobs to riot on their behalf, we are beginning to understand the role of dark money in politics, and its perennial threat to democracy. Dark money is cash whose source is not made public, and which is spent to change political outcomes. The Facebook/Cambridge Analytica scandal,unearthed by Carole Cadwalladr, and the mysterious funds channelled through Northern Ireland’s Democratic Unionist party to the leave campaign in England and Scotland have helped to bring the concept to public attention. But these examples hint at a much wider problem. Dark money can be seen as the underlying corruption from which our immediate crises emerge: the collapse of public trust in politics, the rise of a demagogic anti-politics, and assaults on the living world, public health and civic society. Democracy is meaningless without transparency.

The techniques now being used to throw elections and referendums were developed by the tobacco industry, and refined by biotechnology, fossil fueland junk food companies. Some of us have spent years exposing the fake grassroots campaigns they established, the false identities and bogus scientific controversies they created, and the way in which media outlets have been played by them. Our warnings went unheeded, while the ultra-rich learned how to buy the political system. 

The problem is exemplified, in my view, by the Institute of Economic Affairs (IEA). In the latest reshuffle, two ministers with close links to the institute, Dominic Raab and Matthew Hancock, have been promoted to the frontbench, responsible for issues that obsess the IEA: Brexit and the NHS. Raab credits the IEA with supporting him “in waging the war of ideas”. Hancock, in his former role as cabinet office minister, notoriously ruled that charities receiving public funds should not be allowed to lobby the government. His department credited the IEA with the research that prompted the policy. This rule, in effect, granted a monopoly on lobbying to groups such as the IEA, which receive their money only from private sources. Hancock has received a total of £32,000 in political donations from the IEA’s chairman, Neil Record.

The IEA has lobbied consistently for a hard Brexit. A report it published on Monday as an alternative to Theresa May’s white paper calls for Brexit to be used to tear down the rules protecting agency workers, to deregulate finance, annul the rules on hazardous chemicals and weaken food labelling laws. Darren Grimes, who was fined by the Electoral Commission on Tuesday for spending offences during the leave campaign, now works as the IEA’s digital manager.

So what is this organisation, and on whose behalf does it speak? If only we knew. It is rated by the accountability group Transparify as “highly opaque”. All that distinguishes organisations such as the IEA from public relations companies such as Burson-Marsteller is that we don’t know who it is working for. The only hard information we have is that, for many years, it has been funded by British American Tobacco (BAT), Japan Tobacco International, Imperial Tobacco and Philip Morris International. When this funding was exposed, the IEA claimed that its campaigns against tobacco regulation were unrelated to the money it had received. Recently, it has been repeatedly dissing the NHS, which it wants to privatise; campaigning against controls on junk food; attacking trade unions; and defending zero-hour contracts, unpaid internships and tax havens. Its staff appear on the BBC promoting these positions, often several times a week. But never do interviewers ask the basic democratic questions: who funds you, and do they have a financial interest in these topics?

The BBC’s editorial guidelines seem clear: “We should make checks to establish the credentials of our contributors and to avoid being ‘hoaxed’.” In my view, the entire IEA is a hoax. As the documentary filmmaker Adam Curtis has revealed (ironically, on the BBC’s website), when the institute was created, in 1955, one of its founders, Maj Oliver Smedley, wrote to the other, Antony Fisher, urging that it was “imperative that we should give no indication in our literature that we are working to educate the public along certain lines which might be interpreted as having a political bias. … That is why the first draft [of the institute’s aims] is written in rather cagey terms”.

 

The two men were clear about its purpose: to become a public relations agency that would change society along the lines advocated by the founder of neoliberalism, Friedrich Hayek. It should not, Hayek urged them, do any actual thinking, but become a “second-hand dealer in ideas”. The IEA became the template for other neoliberal institutes. It was financed initially from the fortune Fisher made by importing broiler chicken farming into the UK. Curtis credits him with founding 150 such lobby groups around the world.

While dark money has been used to influence elections, the role of groups such as the IEA is to reach much deeper into political life. As its current director, Mark Littlewood, explains, “We want to totally reframe the debate about the proper role of the state and civil society in our country … Our true mission is to change the climate of opinion.”

Astonishingly, the IEA is registered as an educational charity, with the official purpose of helping “the general public/mankind”. As a result it is exempted from the kind of taxes about which it complains so bitterly. Charity Commission rules state that “an organisation will not be charitable if its purposes are political”. How much more political can you get? In what sense is ripping down public protections and attacking the rights of workers charitable? Surely no organisation should be registered as a charity unless any funds it receives above a certain threshold (say £1,000) are declared.

The Charity Commission announced last week that it has decided to examine the role of the IEA, to see whether it has broken its rules. I don’t hold out much hope. In response to a complaint by Andrew Purkis, a former member of the Charity Commission’s board, its head of regulatory compliance, Anthony Blake, claimed that the IEA provides a “relatively uncontroversial perspective accepted by informed opinion”. If he sees hard Brexit, privatising the NHS and defending tax havens as uncontroversial, it makes you wonder what circles he moves in.

I see such organisations as insidious and corrupting. I see them as the means by which money comes to dominate public life without having to declare its hand. I see them as representing everything that has gone wrong with our politics.

Frightened by Donald Trump? You don’t know the half of it

George Monbiot in The Guardian

Yes, Donald Trump’s politics are incoherent. But those who surround him know just what they want, and his lack of clarity enhances their power. To understand what is coming, we need to understand who they are. I know all too well, because I have spent the past 15 years fighting them.

Over this time, I have watched as tobacco, coal, oil, chemicals and biotech companies have poured billions of dollars into an international misinformation machine composed of thinktanks, bloggers and fake citizens’ groups. Its purpose is to portray the interests of billionaires as the interests of the common people, to wage war against trade unions and beat down attempts to regulate business and tax the very rich. Now the people who helped run this machine are shaping the government.

I first encountered the machine when writing about climate change. The fury and loathing directed at climate scientists and campaigners seemed incomprehensible until I realised they were fake: the hatred had been paid for. The bloggers and institutes whipping up this anger were funded by oil and coal companies.

Among those I clashed with was Myron Ebell of the Competitive Enterprise Institute (CEI). The CEI calls itself a thinktank, but looks to me like a corporate lobbying group. It is not transparent about its funding, but we now know it has received $2m from ExxonMobil, more than $4m from a group called the Donors Trust (which represents various corporations and billionaires), $800,000 from groups set up by the tycoons Charles and David Koch, and substantial sums from coal, tobacco and pharmaceutical companies.

For years, Ebell and the CEI have attacked efforts to limit climate change, through lobbying, lawsuits and campaigns. An advertisement released by the institute had the punchline “Carbon dioxide: they call it pollution. We call it life.”

Former campaign manager Corey Lewandowski, like other members of Trump’s team, came from a group called Americans for Prosperity. Photograph: UPI/Barcroft Images

It has sought to eliminate funding for environmental education, lobbied against the Endangered Species Act, harried climate scientists and campaigned in favour of mountaintop removal by coal companies. In 2004, Ebell sent a memo to one of George W Bush’s staffers calling for the head of the Environmental Protection Agency to be sacked. Where is Ebell now? Oh – leading Trump’s transition team for the Environmental Protection Agency.

Charles and David Koch – who for years have funded extreme pro-corporate politics – might not have been enthusiasts for Trump’s candidacy, but their people were all over his campaign. Until June, Trump’s campaign manager was Corey Lewandowski, who like other members of Trump’s team came from a group called Americans for Prosperity (AFP).

This purports to be a grassroots campaign, but it was founded and funded by the Koch brothers. It set up the first Tea Party Facebook page and organised the first Tea Party events. With a budget of hundreds of millions of dollars, AFP has campaigned ferociously on issues that coincide with the Koch brothers’ commercial interests in oil, gas, minerals, timber and chemicals.
In Michigan, it helped force through the “right to work bill”, in pursuit of what AFP’s local director called “taking the unions out at the knees”. It has campaigned nationwide against action on climate change. It has poured hundreds of millions of dollars into unseating the politicians who won’t do its bidding and replacing them with those who will.

I could fill this newspaper with the names of Trump staffers who have emerged from such groups: people such as Doug Domenech, from the Texas Public Policy Foundation, funded among others by the Koch brothers, Exxon and the Donors Trust; Barry Bennett, whose Alliance for America’s Future (now called One Nation) refused to disclose its donors when challenged; and Thomas Pyle, president of the American Energy Alliance, funded by Exxon and others. This is to say nothing of Trump’s own crashing conflicts of interest. Trump promised to “drain the swamp” of the lobbyists and corporate stooges working in Washington. But it looks as if the only swamps he’ll drain will be real ones, as his team launches its war on the natural world.

Understandably, there has been plenty of coverage of the racists and white supremacists empowered by Trump’s victory. But, gruesome as they are, they’re peripheral to the policies his team will develop. It’s almost comforting, though, to focus on them, for at least we know who they are and what they stand for. By contrast, to penetrate the corporate misinformation machine is to enter a world of mirrors. Spend too long trying to understand it, and the hyporeality vortex will inflict serious damage on your state of mind.

Don’t imagine that other parts of the world are immune. Corporate-funded thinktanks and fake grassroots groups are now everywhere. The fake news we should be worried about is not stories invented by Macedonian teenagers about Hillary Clinton selling arms to Islamic State, but the constant feed of confected scares about unions, tax and regulation drummed up by groups that won’t reveal their interests.

The less transparent they are, the more airtime they receive. The organisation Transparify runs an annual survey of thinktanks. This year’s survey reveals that in the UK only four thinktanks – the Adam Smith Institute, Centre for Policy Studies, Institute of Economic Affairs and Policy Exchange – “still consider it acceptable to take money from hidden hands behind closed doors”. And these are the ones that are all over the media.

When the Institute of Economic Affairs, as it so often does, appears on the BBC to argue against regulating tobacco, shouldn’t we be told that it has been funded by tobacco companies since 1963? There’s a similar pattern in the US: the most vocal groups tend to be the most opaque.

As usual, the left and centre (myself included) are beating ourselves up about where we went wrong. There are plenty of answers, but one of them is that we have simply been outspent. Not by a little, but by orders of magnitude. A few billion dollars spent on persuasion buys you all the politics you want. Genuine campaigners, working in their free time, simply cannot match a professional network staffed by thousands of well-paid, unscrupulous people.

You cannot confront a power until you know what it is. Our first task in this struggle is to understand what we face. Only then can we work out what to do,