National Endowment for Democracy

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The National Endowment for Democracy, or NED, is a U.S. non-profit organization that was founded in 1983, purportedly to help train people in democracy and manage money grants from the U.S. Congress to that effect. Although administered by a private organization, its funding comes almost entirely from a governmental appropriation by Congress. The NED is sometimes referred to as "Project Democracy", an appellation favored by Lt. Colonel Oliver North.^{[citation needed]}

1 Founding of the NED
2 Funding of foreign political parties
3 Source of funding
4 Links with other think tanks
5 Quotes
6 References
7 See also
8 External links
9 References

[edit] Founding of the NED

The NED was first funded by President Ronald Reagan in 1982 and was shaped by an initial study undertaken by the American Political Foundation. [1]

NED was founded with a view to creating a broad base of political support for the organization. NED received funds from the US government and distributes funds to four other organizations; one each created by the Republican and Democratic parties, one created by the Chamber of Commerce and one by the AFL-CIO.

The United States government created the NED as a semi-governmental arm of the U.S. foreign policy. This allows the U.S. government to promote and provide funds to U.S. allied organizations through a third party entity.

The four affiliated organizations are Center for International Private Enterprise (CIPE), the National Democratic Institute for International Affairs (NDI), the International Republican Institute (IRI) and the American Center for International Labor Solidarity (ACILS) or Solidarity Center. NED's long time president is businessman Carl Gershman.

[edit] Funding of foreign political parties

The NED regularly provides funding to opposition candidates in elections in countries other than the USA. It does not directly fund any political party, as this is forbidden by law. However activities such as student "get-out-the-vote" campaigns are funded [2].

Right wing critics such as Pat Buchanan deride the NED as fomenting worldwide democratic revolution and regularly interfering in the affairs of other countries, especially dictatorships and undemocratic regimes. [3]

Left-wing critics contend that the NED only supports candidates with strong ties to the military and who support the rights of U.S. corporations to invest in those countries, and that the NED does not support candidates who oppose investments by US corporations or who promise restrictions on investment rights of US corporations. For example, Bill Berkowitz of Working for Change claims that, "The NED functions as a full-service infrastructure building clearinghouse. It provides money, technical support, supplies, training programs, media know-how, public relations assistance and state-of-the-art equipment to select political groups, civic organizations, labor unions, dissident movements, student groups, book publishers, newspapers, and other media. Its aim is to destabilize progressive movements, particularly those with a socialist or democratic socialist bent." [4]

Supporters of the NED claim that the NED in fact supports a myriad of groups of social-democratic and liberal orientation everywhere in the world. NED also supports, provides training, and consults openly anti-American groups as far as they are committed to the norms and principles of democracy in countries like Indonesia and Ukraine. The NED contends it focuses funding on democracy-minded organizations rather than opposition groups; however it does not support groups that openly advocate communism, fundamentalism, or any dictatorships. Michael McFaul, in an article for the Washington Post, argues that the NED is hardly an instrument of U.S. foreign policy. As an example of this he states that the NED was willing to fund pro-democratic organizations even as the U.S. government was reluctant and has been supportive of non-democratic governments in the region. [5]

[edit] Central America

In 1984, NED funded a Panamanian presidential candidate backed by Manuel Noriega and the CIA. Congress afterwards issued a law prohibiting use of NED funds "to finance the campaign of candidates for public office".

John Stauber and Sheldon Rampton wrote that before the 1990 elections in Nicaragua, "President George H. W. Bush sent $9 million in NED, including a $4 million contribution to the campaign of opposition presidential candidate Violeta Chamorro". Chamorro's party won 55 percent of the vote.

In the 1990 elections in Haiti the NED supported Marc Bazin, providing a big fraction of his total $36 million in campaign funds. Despite this funding, he only obtained 12% of the vote. Marc Bazin had earlier been a World Bank official.

Between 1990 and 1992, NED donated a quarter-million dollars to the Cuban-American National Foundation, the anti-Castro group.

[edit] Venezuela

In 2004, Venezuelan president Hugo Chávez publicized documents which purported to show that the NED funded civil associations in the country, like Súmate (a volunteer civil association founded to promote Venezuela's constitution and democracy), including a tripling of funding from about $250,000 to nearly $900,000 between 2000 and 2001. [6]

María Corina Machado, Alejandro Plaz, and other members of Súmate have been charged with treason and conspiracy by the administration of Hugo Chávez for having accepted NED funds to promote anti-Chávez propaganda during the Venezuelan recall referendum of 2004. [7]

[edit] Western Europe

NED also funded political groups in the democracies of Western Europe in the 1980s. The French newspaper Libération published a report which claimed that the U.S. funded the National Inter-University Union. The United States government disassociated itself from these actions. This has taken place in France, Portugal and Spain amongst many other places. In France, during the 1983-4 period, NED supported a "trade union-like organization for professors and students" to counter "left-wing organizations of professors". To this end it funded a series of seminars and the publication of posters, books and pamphlets such as "Subversion and the Theology of Revolution" and "Neutralism or Liberty".^{[citation needed]}

More recently, the NED has admitted funding the French NGO Reporters Without Borders (RSF), which is specifically active in promoting freedom of press in Cuba, more than some other countries (such as Algeria).^[1]

[edit] Eastern Europe

According to the critics, during the 1990s, NED invested millions of dollars in Eastern Europe to support its vision of economics and the shock therapy program.^{[citation needed]} The NED itself does not fund economic reform programs; NED core grantee Center for International Private Enterprise indeed supports programs aimed at development of private enterprise but this does not account for monetary stabilization programs.^{[citation needed]}

US foreign policy critic William Blum has alleged that the NED engaged in activities intended to destabilize regimes disfavored by the US government, including campaigns in Bulgaria and Albania [8].

[edit] Ukraine, Georgia, Serbia, Slovakia

The NED played a significant role in the 2004 presidential election in Ukraine. In an article in the Washington Post, NED director Nadia Diuk acknowledged that there was a controversy surrounding the involvement of the NED: "Some have sought to portray the events in Ukraine as orchestrated in the West, a model executed with the support of Western pro-democracy foundations.' Comparing this to similar recent interventions in Slovakia, Serbia and Georgia, she writes, "Some commentators believe that the similarity of their actions proves they are part of a U.S.-sponsored plot, an effort to extend American influence throughout the world." Diuk states that critics are overlooking a genuinely "home-grown" aspect to the "election revolts" in these Eastern European countries. She also stated that, "...there was a massive effort by nongovernmental organizations to monitor the vote, whether through parallel vote tabulations, exit polls or reports from domestic observers. These strategies were supported by the reports of Western election observers," and that "all these breakthrough elections have been accomplished with the vigorous participation of civic groups that support free and fair elections by monitoring the media, carrying out voter education, publicizing the platforms of candidates in the absence of a free press, training election observers, conducting polls and so on."

[edit] Others

Fund the Chinese democracy movement.
Funds the National Iranian American Council (NIAC), created in 2000.

[edit] Source of funding

The NED receives an annual appropriation from the U.S. budget (it is included in the chapter of the Department of State budget destined for the U.S. Agency for International Development-USAID) and is subject to congressional oversight even as a non-governmental organization. In the financial year to the end of September 2004 NED had an income of $80.1 million, $79.25 million of which came from U.S Government agencies, $0.6 million came from other contributors, plus a little other revenue [9].

The NED receives a small amount of funding from various foundations, among whom the Smith Richardson Foundation, the John M. Olin Foundation and the Bradley Foundation, which has provided the most to date, nearly $1.5 million in the past 18 years to support the Journal Of Democracy [10]. All three associations are indirectly financed by federal contracts.

[edit] Links with other think tanks

Current and former directors of the Endowment's Board include Lee Hamilton of the 9/11 Commission, former Congressman Richard Gephardt, Richard Holbrooke, former U.S. Senator and Senate Majority Leader Bill Frist, Frank Carlucci of the Carlyle Group, retired General Wesley Clark, Michael Novak of the American Enterprise Institute for Public Policy Research, Dr. Francis Fukuyama of Johns Hopkins SAIS, and U.S. Senator Evan Bayh of Indiana, former chairman of the Democratic Leadership Council.

[edit] Quotes

"A lot of what we do today was done covertly 25 years ago by the CIA" Allen Weinstein in 1991, who helped draft the legislation establishing NED^{[citation needed]}.