The challenge of bringing transparency to an American Corporatocracy

American activists Sheila Krumholz and Danielle Brian talk about the challenges they face as heads of independent watchdog NGOs in the US

No 752 Posted by fw, May 21, 2013

“I think that the most important thing for people to remember is that they can do something about it. I worry that people become despondent and walk away from government. I think that’s our biggest danger. Because in the end as we’ve talked about how industries will have endless lawyers and money to pursue lobbying. But they don’t have the numbers of people. Our side has the numbers of people. And if we can just remind people that getting engaged still is what’s going to put pressure on the public figures who don’t want to be embarrassed. Media matters. Bad press matters. Going to town halls and having people yell at you for doing something corrupt matters. And that’s what we need to remember to empower people to take action.” —Danielle Brian

corporatocracy — Economist Jeffrey Sachs described the United States as a corporatocracy in his book The Price of Civilization. He suggested that it arose from four trends: weak national parties and strong political representation of individual districts; the large U.S. military establishment after World War II; big corporate money financing election campaigns; and globalization tilting the balance away from workers. (Source: Corporatocracy, Wikipedia).

Bill Moyers is joined by the heads of two independent watchdog groups keeping an eye on government as well as on powerful interests seeking to influence it. Sheila Krumholz, executive director of the Center for Responsive Politics and OpenSecrets.org, and Danielle Brian, who runs the Project on Government Oversight (POGO), talk about the importance of transparency to our democracy, and their efforts to scrutinize who’s giving money, who’s receiving it, and most importantly, what’s expected in return.

To watch the original broadcast and access the complete transcript, visit Moyers’ website by clicking on the following link. Or watch the 20:31-minute embedded version below and read an abridged version of the transcript, featuring added subheadings, text highlighting and hyperlinks.

Sheila Krumholz and Danielle Brian on How Money Rules Washington, Moyers & Company, May 17, 2013

ABRIDGED TRANSCRIPT

[Introduction by Bill Moyers] – So what does it say about the state of democracy when public health is sacrificed to private profits because our political system has been bought out from under us? No two people are better qualified to answer that question than my next guests.

Now, the two of you have collectively been at this work of public watchdogs for more than 40 years. What have you learned in all that time about how money works?

In US, money spent on lobbying buys influence. Rising payoffs are now the norm

SHEILA – Money buys outcomes. It’s not that money is given as a quid pro quo to purchase a vote. But, well-placed contribution, money spent on lobbying, well-placed former aids now working to lobby are all assets that can be used by private interests to influence policy.

Every cycle, cycle after cycle, the money climbs inexorably up. So it has more than tripled in just the last decade in terms of all told — money going to candidates, political action committees and parties, and also the lobbying and now this secret dark money which is going to newly energized, newly formed political nonprofits that are actively trying to shape electoral outcomes.

Revolving door as senior bureaucrats exit government to enter corporations and vice versa

DANIELLE — Oh, there’s no question that it’s become the norm. And part of the problem with that is that people are less and less outraged. They get sort of used to it, journalists as well. And so I do think that what Sheila’s pointing to in addition to the campaign contributions and lobbying, which people think of when they think of money affecting government, it is also that revolving door that goes on where jobs, where people are leaving the federal government either from the Congress or the agencies and going to the industries that they had been overseeing or vice versa where they are leaving those industries and coming into the federal government.

These are the kinds of things that are really affecting policies. And then you have those same lobbyists who are dealing with legislation who are in the agency level who are also affecting how rulemakings, which is really some of the details that matter most. When a law is passed you then have to get down to the details, or the agency has to figure out exactly what the rules will be that implement that law. So that is one way that rulemakings are established. Sometimes an agency will just establish what new regulations will be without legislation. And either way, those same lobbyists are dealing at the agency level to make sure that their interests are protected.

As long as it’s legal no one questions the morality or ethics of corporate lobbying

SHEILA – It means that organizations — and mostly we’re talking about corporations — understand that Washington is often standing in the way of bigger profits for them. And so they see this as a perfectly legal, entirely common way for their companies to shape policy legislation, even regulation coming out of Washington that will ameliorate the damage and ultimately enhance their ability to turn a profit.

And so private interests if they are not successful in achieving their legislative agenda in Congress have other opportunities, many bites at the apple, to try to water down regulations that they see as onerous or to otherwise tweak laws as they are actually being implemented by the agencies.

Look at this headline: After a Powerful Lobbyist Intervenes, EPA Reverses Stance on Polluting Texas County’s Water. That’s a story from the news organizations ProPublica reporting that a big energy company wants permission from Environmental Protection Agency, the EPA, for a large-scale mining project in Texas that would pollute a pristine supply of drinking water.

Got a problem? No problem! Cut a deal with Democrat fundraiser and fixer Heather Podesta

So the EPA says no, can’t have it. The big company hires Heather Podesta who’s a big time lobbyist, a big time fundraiser for Democrats who was married at the time to another big Washington Democratic fixer named Tony Podesta, who used to be president of the liberal organization People for the American Way.

Through their connections these two have become the king and queen of influence peddling. Lo and behold, some months after the industry hires Heather Podesta, EPA reverses itself and the company gets an exemption and is allowed to pollute the aquifer. To hell with the public health. This is routine, isn’t it?

Uneven playing field because Big Money has deep pockets that citizen activist organizations can’t match

DANIELLE — And it’s exactly what you’re talking about with the pay to play. So it’s, in this case you have companies that have the money and the resources to hire the lobbyists or the lawyers who will go to battle for their clients endlessly. I mean, those of us who are working on the other side in the public interest realize that when we have our wins which we get industry is going to be there and they’re going to keep going and fighting because they have those endless resources to keep battling back.

Difficult for activist watchdogs to know what’s going on inside a murky payoff system with revolving doors and reverse revolving doors

It’s the question of who is paying those influencers, who is behind that which is often not transparent and part of what we really think is essential is to make these communications even at the agency level. For example, if we could get visitors logs, many of the agencies track electronically if we’re going to visit an agency you’re listed. Those logs are not public. If we could get a better sense of, who are these people who are coming through the door to meet with the people for example at the EPA, we would have a better sense of what was going on.

SHEILA – And that’s especially important because we do know that there are over 12,000 registered lobbyists advocating on behalf of their clients in Washington. And we can see who they are, whether they’ve already spun through revolving door coming from Capitol Hill or elsewhere in government to advocate on behalf of these paying clients and how much they’re being paid. But we also need to see those senior advisors, others who are not technically registered as lobbyists but are in fact doing much the same work, advocating on behalf of a paying private client.

Unfortunately the Lobbying Disclosure Act, which governs disclosure of lobbying activity does not mandate that lobbyists disclose whom they’re meeting with. So they only say, “We lobbied the House of Representatives, or we lobbied the Senate,” which is ridiculous. That doesn’t provide us with a roadmap to exactly who their targets are in Congress

DANIELLE — It’s really I think the revolving door is maybe the most important corrupting element of in Washington because of — you have what we call, in this case that’s a reverse revolving door, right. But either way what you’ve got is people who are coming to the government or to be in public service with an incentive coming from their prior employer in this case.

You know, you’re not forgetting your friends who just gave you a multibillion or a multimillion dollar deal. Or you have people who are in the public service who are anticipating their next step, you know, their public service is essentially a stepping stone in their résumé to make more money. I don’t want that kind of person in my government. I would rather see that we have policies that really slow down the assumption that the reason you’re in government is to help go make money for yourself and for your next business afterwards.

Government loses expertise when public servants exit through the revolving door to join the lobbyists

SHEILA – It’s also damaging because it used to be, I think, that one could aspire to be a senior congressional advisor and that would be the pinnacle of your career, that would be a real achievement. Now young staffers are looking to trade on their investment in public service to leave work on Capitol Hill to go work on K Street for much more lucrative jobs very quickly. They’re not investing that time in public service. So I think that has had a damaging effect and means that the lobbyists are the ones that have the expertise. We’re losing expertise that’s not being developed on Congress, on Capitol Hill, it’s the seat of that is in some cases in K Street.

I think that is a large part of the cynicism that’s developed around government. People don’t see it as an honorable profession because the money is playing such an important role. Across the board from left to right people, Americans believe that government has been purchased, that it’s been corrupted by the money.

Recently five Congresspeople pocketed tens of thousands of dollars from private prison corporations

DANIELLE — You know what I found really shocking about the private prison industry is that recently you know, POGO tracks the top government contractors and their misconduct because the government hasn’t until recently actually done that which is shocking in itself. But only in the last couple of years suddenly two of the top government contractors are private prison corporations. That was pretty shocking to me.

And this is happening at a time where we see that there’s all kinds of legislation that is moving in Congress, that is criminalizing at a federal level, especially when it comes to immigration. We are very fascinated by that nexus. And I think it’s really terrifying. It raises the point that we haven’t touched on yet in terms of money in policy which is how much of what used to be done conducted by the federal government, by federal employees has been privatized to government contractors.

And that’s a whole separate way that money is influencing policy where entire agencies are essentially relying on employees that are private sector employees with private sector interests. And they are in many cases really pushing the agenda of those agencies.

Activists’ biggest problem is that the people become so cynical they simply ignore what’s going on

DANIELLE — Well, people need to see it, but then they need to do something about it. And I think that the most important thing for people to remember is that they can do something about it. I worry that people become despondent and walk away from government. I think that’s our biggest danger. Because in the end as we’ve talked about how industries will have endless lawyers and money to pursue lobbying. But they don’t have the numbers of people. Our side has the numbers of people. And if we can just remind people that getting engaged still is what’s going to put pressure on the public figures who don’t want to be embarrassed. Media matters. Bad press matters. Going to town halls and having people yell at you for doing something corrupt matters. And that’s what we need to remember to empower people to take action.

How can ordinary citizens help?

SHEILA – There are organizations like ours which are both credible, offering credible information, non-partisan information through which you can be informed and servicing opportunities to get involved, to take action on specific issues that are happening now

DANIELLE — I think that’s the key is those specific moments of time where it really will matter. And so we have at our website, at pogo.org we have a signup list for people who are joining what we’re calling our good government army of people who really — are willing to join us in being nerdy sometimes and saying “okay, now is the time.” And we get not just the one person, but the one person times 10,000 making a point, the people in that agency will say, “Wow, I didn’t know anyone other than Heather Podesta was looking.”

SHEILA – And whether it’s agency staff or whether it’s members of Congress, they’re not going to risk the liability of being seen as allied with the moneyed interests against the public interests, particularly for elected officials. They know what side their bread is buttered on and it’s the voters who hold, kind of the cards here. We need to make sure that they [members of Congress and their staff] understand that we [watchdogs and citizens] are paying attention. Because it’s those secret deals that are most powerful. When we can expose the money and the players we help neutralize their impact.

FAIR USE NOTICE: This blog, Citizen Action Monitor, may contain copyrighted material that may not have been specifically authorized by the copyright owner. I claim no ownership of such materials. Such material, published without profit, is made available for educational purposes, to advance understanding of human rights, democracy, scientific, moral, ethical, and social justice issues. It is published in accordance with the provisions of the 2004 Supreme Court of Canada ruling and its six principle criteria for evaluating fair dealing.

Fifty-three US organizations unite — Pledge to fight two critical threats to their democracy

Organizations announced they would be jointly working to mobilize after Election Day

No 604 Posted by fw, November 3, 2012

More than fifty U.S. organizations have formed a coalition to address two critical threats to their democracy:

  • the distorting effect of money in U.S. elections, and
  • the wave of efforts to make it harder for Americans to vote.

Under the banner “Money Out, Voters In” the organizations announced that they would be jointly working to mobilize after Election Day to challenge dark money in elections and restore Americans’ voting rights.

On November 2, 2012, the US organizations released the following statement:

Money Out Voters In — We Demand Democracy

Within the next week, citizens in every state will come together to cast their votes for President, Congress, and other state and local offices. The right to cast those votes – to elect leaders who represent us – is at the heart of our democratic system. But this year, that right is in danger.

Our system of fair and free elections is under attack on multiple fronts. The Supreme Court’s decision in Citizens United opened the floodgates for special interest money and corporate influence in politics. At the same time, a rash of voter suppression laws in more than 30 states has threatened to make voting difficult, if not impossible, for millions of Americans.

Throughout the history of our nation, powerful politicians and interest groups have tried to block eligible voters from casting a ballot. For much of the twentieth century, they used literacy tests or demanded poll taxes. Today they ask for photo voter ID, or create restrictive voter registration schemes. These laws, combined with the challenge posed by limitless corporate influence, strike at the very core of our democracy.

Our nation’s history has been a journey towards true equality and the promise of a government of, by and for the people. Just as we have overcome many obstacles to achieve that promise, we are now committed to standing up against the pervasive, corrupting influence of an electoral system that auctions offices to the highest bidder and suppresses the vote of millions of Americans.

No matter what happens on November 6th, these threats must be addressed on November 7th and beyond. Together with our allies across the political spectrum, we pledge to fight for the rights of all voters in our nation and to move that much closer to creating a more perfect union. The future of our democracy depends on it.

[Organizations]

  1. 350.org
  2. AFL-CIO
  3. AIDS United
  4. All Education Matters
  5. Alliance for a Just Society
  6. Alliance for Justice
  7. American Sustainable Business Council
  8. American-Arab Anti-Discrimination Committee (ADC)
  9. Asian & Pacific Islander American Vote
  10. Ben & Jerry’s
  11. Center for Media and Democracy
  12. CODEPINK
  13. Common Cause
  14. Communications Workers of America
  15. Constitutional Accountability Center
  16. Consumer Action
  17. CREDO Action
  18. DC Vote
  19. Democracy 21
  20. Democracy Unlimited
  21. Democrats.com
  22. Demos
  23. Ethical Markets Media, Florida
  24. Franciscan Action Network
  25. Free Speech For People
  26. Greenpeace
  27. Institute for Agriculture and Trade Policy
  28. International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, UAW
  29. Leadership Conference on Civil and Human Rights
  30. Main Street Alliance
  31. Move to Amend Coalition
  32. MoveOn.org Political Action
  33. NAACP
  34. National Center for Transgender Equality
  35. National Congress of Black Women, Inc.
  36. National Council of Jewish Women
  37. National Gay and Lesbian Task Force
  38. The New Bottom Line
  39. New Progressive Alliance
  40. People For the American Way
  41. Pesticide Action Network North America
  42. Project Vote
  43. Public Campaign
  44. Public Citizen
  45. Rock the Vote
  46. RootsAction.org
  47. Sierra Club
  48. U.S. PIRG
  49. United for a Fair Economy
  50. United Steelworkers International Union
  51. unPAC
  52. WarIsACrime.org
  53. We the People Campaign
Fair Use Notice: This blog, Citizen Action Monitor, may contain copyrighted material that may not have been specifically authorized by the copyright owner. Such material, published without profit, is made available for educational purposes, to advance understanding of human rights, democracy, scientific, moral, ethical, and social justice issues. It is published in accordance with the provisions of the 2004 Supreme Court of Canada ruling and its six principle criteria for evaluating fair dealing

Big legal battle shaping up in US as more than 200 cities in 15 states pass local ordinances banning fracking

State governments and Big Oil & Gas launching legal challenges to local ordinances

No 536 Posted by fw, July 30, 2012

“As evidence of the public health and environmental risks involved in fracking increases, more and more communities across the country are taking matters into their own hands and enacting local bans on fracking. But the oil and gas industry has found natural gas extraction extremely profitable and is mobilizing its resources to try to retain access to shale beds. By passing “Community Rights bills,” local communities are creatively changing the conversation. By making this an issue of democratic control and local choice, they should increase their chances of prevailing in court. And we expect they will expand their grassroots support in the process, since the right of local self-determination is a strongly held American value.”

The foregoing passage is the concluding paragraph from an article by OMB Watch, a nonprofit research and advocacy organization formed in 1983 to track federal budget, taxation and government performance, access to government information, and regulatory policy. OMB watch is a treasure trove of reports.

The rest of the article appears below in a slightly modified version. Alternatively, you can read the full original piece by clicking on the following linked title.

Local Officials Standing Up to Protect Their Communities from Fracking, OMB Watch, July 24, 2012.

Local officials from more than 200 municipalities in 15 states, including city councils, town boards, and county legislatures, have banned natural gas drilling that uses hydraulic fracturing, commonly referred to as fracking. These officials have decided that fracking poses an unacceptable risk to the drinking water, health, and future of their communities. However, state governments and corporations have started legally challenging these efforts, a move that would strip the power of democratically elected local governments to establish quality-of-life protections their constituencies want.

Background

Natural gas fracking is an extraction process in which a well is drilled and sand and fluids are pumped underground at very high pressure to cause fissures in the shale rock that contains methane gas; the well brings the gas to the surface for sale. Numerous toxic chemicals are typically added to the mixture, including benzene (a known carcinogen), toluene, and pesticides, among other harmful substances.

The process has been linked to contamination of drinking water, and the fluids involved in the process create public health and environmental hazards. Drilling each well brings an increase in air and noise pollution, as drilling equipment, water, sand, and chemicals are trucked in and gas is piped out. New studies link fracking-related activities to contaminated groundwater, air pollution, and health problems in animals and humans. A recent study from the Colorado School of Public Health found that those living within a half-mile of a natural gas drilling site faced greater risks of health problems – such as headaches, dizziness, eye irritation, fatigue, and cancer – than those who live further away.

Local Fracking Bans and Moratoriums

Local communities across the country, tired of waiting for state or federal protections,are passing bans or moratoriums on fracking activity within their local jurisdictional boundaries. Many of these new laws also prohibit other activities related to the fracking process, such as the storage, use, treatment, and disposal of wastewater. In fact, in New York State alone, more than 90 towns and counties have passed local ordinances banning drilling and other fracking-related activities.

Supporters of local bans explain that blocking fracking gives their towns a chance to enact safeguards to protect the water supply, maintain infrastructure, and minimize the impact large-scale drilling will have on their towns. For instance, Creedmoor, NC, which passed a fracking ban in January, sits at the headwaters of Falls Lake, which is the primary source of drinking water for Raleigh and several Wake County towns. Mayor Darryl Moss and other council members approved the ban so steps could be taken to protect the reservoir. Creedmoor officials also expressed concerns about the impact of heavy trucks and worried about falling property values. “Our roads are already strained now and this will add more stress than is needed,” Moss said.

Legal Challenges to Local Fracking Bans

Local bans have not turned out to be the simple solution that many communities were hoping for. Increasingly, corporations and state governments have been challenging the local ordinances with lawsuits. For example, the Anschutz Exploration Corporation slapped the town of Dryden, NY, with a lawsuit for passing a local fracking ban, arguing that the state’s interest in developing its energy resources preempted the town’s authority to regulate land use. In Middlefield, NY, the legal challenge to the town’s ban came from the president of Cooperstown Holdstein Corporation, a dairy farm, arguing that the town was unfairly blocking the company from using its resources. In both of these cases, the towns argued that banning drilling fell within their rights to regulate local land use, and trial judges agreed. However, both companies have appealed the rulings.

In some prior cases, courts have ruled in favor of corporations, holding that local bans are preempted by state law. For example, in June 2011, Northeast Natural Energy sued the city of Morganton, WV, for an ordinance banning fracking within the city or one mile outside of city limits. A state trial court judge ruled in favor of the energy company, holding that the state has exclusive control over oil and gas development and that the town “didn’t establish that fracking threatened the community’s right to clean air and water.”

In 2006, the U.S. 5th Circuit Court of Appeals ruled in favor of Energy Management Corporation, holding that the City of Shreveport, LA, did not have the right to ban drilling within 1,000 feet of its lake. The ruling reversed the decision of a federal district court, which had found that Shreveport was within its rights to enact a ban in an effort to protect its city’s water supply.

States and Local Communities Struggle over Rights

Some state officials are seeking to legislatively strip local communities of their ability to control whether fracking can occur in their areas. A number of states have passed or are considering legislation that would establish that state decisions on natural gas drilling preempt, or override, any local decisions. In Idaho and Pennsylvania, legislators have made clear commitments to expanding gas production. In an effort to ensure local concerns do not jeopardize this expansion, Pennsylvania legislators passed Act 13, a law that preempts the authority of local governments to ban gas drilling. Seven municipalities in Pennsylvania have challenged the constitutionality of the law. In Idaho, state legislators passed House Bill 464 in March, which forbids local communities from enacting ordinances to prohibit gas drilling.

CELDF leading the challenge of state regulatory laws tilted in favor of corporations

In efforts to establish a better legal position for communities to win preemption challenges, a new strategy has emerged. Local communities have begun passing community-rights ordinances. In April, Las Vegas, NM, passed a “Community Bill of Rights,” which seeks to elevate the civil rights of the community and of its natural resources. The ordinance declares “the right of all residents, natural communities and ecosystems to water from natural sources, to unpolluted water for use in agriculture, the rights of natural ecosystems to exist and flourish, and the rights of residents to protect their environment by enforcing these rights.” Las Vegas enlisted the support of the Community Environmental Legal Defense Fund (CELDF), a Pennsylvania-based organization, to draft its ordinance.

CELDF has been helping community groups and municipalities create rights-based ordinances, which focus on a community’s rights – i.e., a community’s right to local self-government, rights to clean water, and rights of community members over corporations. According to CELDF, most fracking bans that have been overturned by the courts are based on state regulatory laws. For this reason, when a corporation sues a local municipality, the laws are stacked on behalf of the corporations, and the legal battle focuses on the violations of a corporation’s civil and constitutional rights. But, with a rights-based ordinance, the legal battle would instead be focused on the community’s democratic right to self-governance. Over 100 communities across the United States have adopted CELDF-drafted laws.

“I would rather be sued than poisoned” says citizen

Despite potential legal action by industry and/or states and the considerable monetary costs that accompany such battles, communities continue to see local bans as a necessary step to protect their communities. Lee Einer, a Las Vegas, NM, resident, says of the risk of legal challenges, “I would rather be sued than poisoned.” Besides, Einer said, “even if the ordinance is struck down, the city will be protected until that point.”

Conclusion

As evidence of the public health and environmental risks involved in fracking increases, more and more communities across the country are taking matters into their own hands and enacting local bans on fracking. But the oil and gas industry has found natural gas extraction extremely profitable and is mobilizing its resources to try to retain access to shale beds. By passing “Community Rights bills,” local communities are creatively changing the conversation. By making this an issue of democratic control and local choice, they should increase their chances of prevailing in court. And we expect they will expand their grassroots support in the process, since the right of local self-determination is a strongly held American value.

Fair Use Notice: This blog, Citizen Action Monitor, may contain copyrighted material that may not have been specifically authorized by the copyright owner. Such material, published without profit, is made available for educational purposes, to advance understanding of human rights, democracy, scientific, moral, ethical, and social justice issues. It is published in accordance with the provisions of the 2004 Supreme Court of Canada ruling and its six principle criteria for evaluating fair dealing