Put the heat on
For the first time since Sept. 11, Americans have a chance to do something that millions of us have yearned to do: help win the war on terror.
Millions of people who invest in public pension plans can act to deny upward of $70 billion to nations that finance, train, arm and otherwise sponsor terrorist enemies of the United States. The Center for Security Policy, in a report titled “Terrorist Investment of the 50 States” (www.DivestTerror.org), identifies where much of this money goes and through which companies.
There can be little doubt about the effect of keeping such immense sums out of the hands of the Iranian, Libyan, Syrian, North Korean and Sudanese regimes. They would have less money to fund their terrorist allies, less money to buy or build weapons of mass destruction, less money to threaten U.S. interests and allies. It might even precipitate the sort of cash-flow crisis that ultimately destroyed the Soviet Union – catalyzing regime changes where they would do the most good without firing a shot.
How could American investors help bring about these sorts of desirable outcomes? The same way they helped cause an end two decades ago to apartheid in South Africa – divesting stock where it counted. This time, there are roughly 400 companies that could be targeted for doing business with terrorist-sponsoring regimes. The new report shows that the leading American public pension funds alone have invested about $200 billion in such companies, representing on average 15% to 23% of their respective portfolios. The largest, the California Public Employee Retirement System, has about $18 billion invested in 201 such companies.
In a recent letter to the heads of the top 100 American public pension funds and the state officials responsible for them, Sen. Frank R. Lautenberg (D-N.J.) called the business these firms are doing with state sponsors of terror “unconscionable.”
The good news is that subscribers to American public pension plans and other institutional and private investors have real leverage. They can demand that their money be invested only with companies that choose not to do business with hostile governments – through shareholder resolutions, for instance. Should even one of this country’s large public pension funds divest in this fashion, an unmistakable signal would be sent to companies the world over: You can enjoy the benefits of being highly regarded in the American capital market or you can do business with those who sponsor our terrorist foes.
The bad news is that so far almost none of the 87 public pension systems in the center’s study appears to be even interested in acquiring data about which companies in their portfolios have business activities in these rogue states. Worst of all, those with fiduciary responsibility for these funds continue investing heavily in companies partnered with governments helping U.S. enemies.
This situation should be intolerable to all Americans. Correcting it clearly should be part of a comprehensive strategy for winning the war on terror. Investors must do their part.
To read an analysis of the Divest Terror campaign from Thursday’s Washington Times click here.
Mr. Gaffney is the host of Secure Freedom Radio, a nationally-syndicated radio program heard weeknights throughout the country. He is an associate author of highly acclaimed Shariah: The Threat to America and the publisher of over a dozen other books and monographs from the Center for Security Policy Press.
In April 1987, Mr. Gaffney was nominated by President Reagan to become the Assistant Secretary of Defense for International Security Policy, the senior position in the Defense Department with responsibility for policies involving U.S.-USSR relations, nuclear forces, arms control, missile defense policy and U.S.-European defense ties. He acted in that capacity for seven months during which time, he was the Chairman of the prestigious High Level Group, NATO’s senior politico-military committee. He also represented the Secretary of Defense in key U.S.-Soviet negotiations and ministerial meetings.
From August 1983 until November 1987, Mr. Gaffney was the Deputy Assistant Secretary of Defense for Nuclear Forces and Arms Control Policy under Assistant Secretary Richard Perle.
From February 1981 to August 1983, Mr. Gaffney was a Professional Staff Member on the Senate Armed Services Committee, chaired by the late Senator John Tower (R-Texas). And, in the latter 1970’s, Mr. Gaffney served as an aide to the late Senator Henry M. “Scoop” Jackson (D-Washington) in the areas of defense and foreign policy.
Mr. Gaffney holds a Master of Arts degree in International Studies from the Johns Hopkins University School of Advanced International Studies and a Bachelor of Science in Foreign Service from the Georgetown University School of Foreign Service.
Mr. Gaffney’s leadership has been recognized by numerous organizations including: the Department of Defense Distinguished Public Service Award (1987), the U.S. Business and Industry Council’s Defender of the National Interest Award (1994), the Navy League of the United States’ Alfred Thayer Mahan Literary Achievement Award (1999), and the Zionist Organization of America’s “Louis Brandeis Award” (2003), the Western Conservative Summit’s Stephen H. Long Award (2015), the Council for National Policy’s George Washington Military Leadership Award (2016) and the IMPACT Award from Ginni Thomas and United in Purpose (2017).
Mr. Gaffney was born in 1953 and resides in the Washington, D.C. area.
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