Features

The Profit Margin of a Library: Harvard’s Corporatization

No Comments 25 March 2012

By Sandra Y.L. Korn

Two weeks ago, Harvard University Library administrators held a town hall meeting to announce major, imminent changes to the structure of the Harvard University Library. Helen Shenton, executive director of the Library, announced to a bewildered and shocked audience of library employees that the restructuring would involve “voluntary and involuntary layoffs,” and that the workforce “would be smaller.”

In the next week, both Harvard University President Drew Faust and University Provost Alan Garber sent out emails to the entire Harvard student body explaining the planned changes to the library system. Faust described the importance of making “strategic decisions about the digital future” and reforming the libraries to move into the technological age. Garber discussed the ways in which the restructuring would allow innovations to benefit library users.

Shenton’s presentation, these two emails, and the University’s portrayal of this restructuring are laden with discourse about efficiency and profit.  Faust discussed “overhead costs,” “economies of scale,” and the importance of “using our resources to maximum advantage.” Garber talked about “leverage[ing] Harvard’s buying power” by unifying libraries for maximum negotiating positions. Ignoring the fact that Harvard has the largest academic library system in North America, Garber complained, “Harvard spends on average more than twice as much as its peer universities on its libraries.” All three administrators have used the language of corporate management and competition in their discussions of Harvard’s libraries.

Indeed, as Harvard junior Melissa Barber made clear in the Crimson, Harvard’s administration has envisioned the Harvard University Library system as a profit-generating, rather than community-enhancing, institution. In her op-ed “Fat Cats of Widener Library,” Barber satirically notes that “the Harvard Corporation should continue to retract funding from its unprofitable knowledge capital and reinvest in more profitable sectors, like Gatsbyian birthday parties with gourmet cakes the size of the Woodberry Poetry Room.” Unfortunately, this seems to be exactly what the Harvard administration wants to do.

Library workers report that representatives from consulting firm Deloitte have been examining the structure of Harvard’s library workforce in order to assist with restructuring. Deloitte, whose website refers to workers as “human capital,” works primarily with for-profit corporations. A management mentality that views workers this way and treats them as commodities instead of as people is antithetical to a respectful workplace.  Jeffrey Booth, a library assistant at HCL Technical Services and member of the Harvard Union of Clerical and Technical Workers, notes that this mentality has already affected Harvard’s library staff. He says, “anybody that’s working here, whether they’re someone that never questions management or whether they’re someone who rejects the whole setup, are together on one thing. We are not being treated with respect. We are being abused, by having to reapply for jobs, by the lack of transparency, by the lack of open communication.”

Interestingly, the currently planned layoffs are not financially necessary. Indeed, Harvard has already cut library costs: while its collections continue to grow, money spent on staff decreased around $10 million between 2009 and 2010. Booth notes that if Harvard is concerned with maintaining the quality of its world-famous collections, it cannot simply invest in technology: “there are physical collections. Unless you want to burn all the books, you need to circulate the collections, maintain the collections, update the collections, and work on databases used to access the collections.” By choosing to lay people off instead of hiring workers back to already-understaffed libraries, Harvard has prioritized financial gain over quality.

Harvard’s mentality toward library layoffs reflects a broader trend: our administrators act like executives of a competitive corporation. Yet Harvard is not a for-profit company. It does not have shareholders who demand high return on their investment. Instead, it is a nonprofit, which means that it receives tax benefits with the expectation that it will serve the public good. Sadly, the Harvard administration’s approach to and discourse about the library restructuring reflects a more systematic trend that moves institutions of higher education, like Harvard, under a corporate government model. Layoffs to improve “efficiency” are only a symptom of a larger disease: the corporatization of higher education.

Wayne Langley, director of Higher Education organizing for the Service Employees International Union Local 615, notes that this trend has fundamentally altered the way in which universities function. He asserts, “There’s just something fundamentally wrong [when]  taxpayer supported schools care first about profits, second about research, and in a distant third, teaching and education. There needs to be a reordering of priorities.”

Recently, Harvard has changed the way it envisions itself as an employer, as an investor, and as an academic institution. In recent years, Harvard has moved more and more of its workforce to “term” work—where workers are guaranteed only one year of employment—and “temp” work—where workers are often hired through an outside agency and receive few benefits—when it should be hiring full-time and long-term staff.

On the other hand, Harvard Management Company (HMC) pays its top employees millions of dollars per year to manage the hedge funds and direct investments that make up Harvard’s $32 billion endowment. When asked to justify these exorbitantly high salaries, University administrators cite private competition, arguing that they need to compete with Wall Street firms for the “best” fund managers. As a result, HMC’s CEO, Jane Mendillo, is the highest-paid nonprofit CEO in the country. Is Harvard compensating her as a nonprofit CEO, or compensating her as though she were a Wall Street fund manager?

Harvard’s corporate mentality manifests itself in other ways. For example, HMC refuses to deliberately invest any of its money in socially responsible funds, citing the need for maximum returns. It capitalizes on its ability to avoid paying taxes to rent out large sections of Cambridge and Allston. It even owns a profitable hotel by the Charles River, for which it pays no taxes. And, most alarmingly, it has decided to sacrifice its own experienced library workforce for the sake of corporate efficiency.

Langley notes, “People have said that today’s higher education institutions are just hedge funds with libraries. At least in the case of Harvard, they’re dispensing with the library part.” This corporate mentality devalues academic libraries and the academic community. By viewing Harvard as a competitive actor in global markets, the administration is sacrificing exactly what makes a university great: its ability to serve as a space for collaboration between staff, students, and faculty to conduct research and exchange knowledge. However, Harvard as a university is not entirely lost – there are still workers, students, and faculty who care about maintaining a valuable academic community.

So, when workers and students demand “no layoffs at Harvard libraries,” we are of course concerned about the livelihoods of library workers. We are worried about maintaining the strength of the clerical workers’ union, so that the University cannot bypass contractual procedures in deciding when to lay off employees. We are concerned about the quality of services that students and faculty will receive when they use Harvard’s libraries. But most of all, we are worried about Harvard’s vision for itself as an academic institution. If Harvard lays off hundreds of workers for the sake of “efficiency” and “leverage,” then our university will have taken one more giant step along the road to becoming a corporation.

Features

Our Entitlement Society

No Comments 25 March 2012

By NKO

In December 2011, former Massachusetts Governor Mitt Romney wrote that the choice between electing a Republican candidate and reelecting President Obama would be a choice between an “Opportunity Society” and an “Entitlement Society.” According to Governor Romney, an “Entitlement Society” is one in which the “government provides every[one] the same or similar rewards, regardless of education, effort and willingness to innovate, pioneer or take risk,” while an “Opportunity Society” is one in which “free people…under a limited government choose whether or not to pursue education, engage in hard work, and pursue the passion of their ideas and dreams. If they succeed, they merit the rewards they are able to enjoy.” The assertion that we are headed towards an “Entitlement Society” is certainly questionable in light of increasing income inequality and the fact that many wealthy Americans pay fewer taxes as a proportion of their income than their employees do. Governor Romney himself enjoys a mere 13.9% tax on his $27 million income. Yet the whole concept of an Entitlement Society relies on the idea that different people have varying amounts of moral desert; though this view may be common, particularly among successful individuals such as Harvard students, it is ultimately based on false premises.

The Rawlsian conception of justice, which supports creating a fair society based on a social contract regulating human cooperation, could do much to inform our current policy debates. How do we determine the rules of a just social contract? John Rawls’s answer is that only people who are free of prejudice, especially the bias of self-interest, can write such a contract. Rawls tells us that a fair social contract should be created by individuals who are put behind a “veil of ignorance,” such that no one would know “his place in society, his class position or social status…nor…his fortune in the distribution of natural assets and abilities, his intelligence and strength, and the like.” Ignorant of their own interests, individuals would come to adopt the principle that “social and economic inequalities are to be arranged so that they are to be of the greatest benefit to the least-advantaged members of society.” No one would want to live in a society in which morally arbitrary factors such as genetics, social and family background, or sheer luck could entirely determine their life’s chances.  Rather, they would favor they a society in which inequality exists only if it furthers the potential of people of all circumstances.

Why are these factors that lead to success morally arbitrary? Quite simply, because they are but of fortunate accidents of birth or social circumstance. So while Governor Romney talks about a society in which people “deserve” what they get, we cannot attribute moral desert to people when their assets are only minimally the result of their choices. Can someone choose to be born into his or her initial position in society? Can someone choose to be born with intelligence or a natural tendency to take risks and innovate, qualities that are biological and genetic in nature? Proponents of moral desert often claim that we choose how much effort we put into achieving our goals and that even those with natural and social assets could surely squander them. But upon closer examination, even effort is largely a product of be born into a family or an environment that cultivates the right attitude for hard work. Since that the factors that contribute to success are not of our own conscious choice, they morally arbitrary and should not be the sole determinants of our fortunes.

Thus, I favor an “Entitlement Society” for the United States, but a different kind of “entitlement” than the one Governor Romney suggests. We must reject moral desert based on merit in the distribution of the share of the social product, for “merit” is but winning the lottery of genetics, family background, and social circumstance. We should rather adopt the Rawlsian paradigm that the share of the social product individuals secure should be an “entitlement to legitimate expectations” under the rules of the social contract. As such, social and economic inequalities must benefit those who are the most disadvantaged: those who did not win the lottery of birth. While we do not deserve the rewards life brings us, we can make a claim to those rewards for fulfilling certain acts under the rules laid forth by the social contract. For example, a doctor would be paid well not because of his skills as a doctor or the effort he has put into becoming a doctor, but rather because paying a doctor an above-average salary would hypothetically benefit the least advantaged members of society by improving their medical care. Even then, the doctor is only compensated to the degree necessary to maximize the benefit to the least advantaged.

Our legitimate expectations would be those that exist under the social contract. So if under the Rawlsian conception a private equity specialist like Governor Romney should be paid $27 million a year (because for some reason this provides the greatest benefit to the least advantaged members of society), then we are obligated as a society to meet those legitimate expectations. But while Governor Romney would be entitled to this money, he would not deserve it. I do not begrudge success, but simply the arrogant notion of a moral claim to success. This arrogant notion is prevalent among our compatriots at Harvard, many of whom believe strongly that they are here out of their own merit. But this is false, for none of us chose to have the qualities that allowed us to join this esteemed institution. Therefore, we can hardly make a moral claim over our accomplishments. This is perhaps something to ponder, for many of us take for granted our “success” in life and place at Harvard.

So, I would challenge Governor Romney’s claim on Rawlsian grounds — that is, neither he nor anyone “deserves” anything, for everything is a product of factors beyond our conscious choice. So, perhaps we should have an “Entitlement Society”, a truly just society in which our institutions disregard these morally arbitrary factors in the distribution of shares of the social product. In this society, individuals would make claims to their shares not according to their intrinsic worth but according their entitlements under a social contract designed to ensure equality, fairness, and true freedom.

Features

Abortion: An American Choice

1 Comment 25 March 2012

By Hannah Phillips

”Don’t get pregnant in America,” advised one of my friends from home early last semester. I was not planning on making pregnancy part of my Harvard experience, but what my well-meaning friend was pointing out was that if I, or any women in America, wanted a ‘termination,’ we would face a series of challenges. In addition to financial burdens, women seeking abortion in the United States are criticized and viewed as stupid for not taking precautions (even though no method of birth control is 100% effective); villified as immoral; and threatened that though maybe not today, abortion could one day become be illegal.

Last month, the Komen Foundation announced that it would cut funding to Planned Parenthood because it performs abortions. While Komen has since withdrawn this decision and apologized for the poor handling of the publicity, this incident highlights the ever-present threat to abortion in America. In Oklahoma this threat is even more frighteningly real. Earlier this month, the state Senate passed a bill that, if passed through the House, would make abortion illegal throughout the state.

I never used to say or even think I that had strong views on abortion because I never believed that I had to. In my country, the United Kingdom, abortion is legal. Period. While some people believe that it is morally wrong, their views do not affect national politics or legislation. Abortion is not featured in party platforms; it’s not debated in Parliament. If I got pregnant in the United Kingdom, I could get an abortion for free from the National Health Service—the name of the UK’s publicly funded healthcare systems. No questions asked.

Only when I started learning about American politics did I realize that I had strong views on abortion. ”If one Supreme Court Judge chose anti-abortion,” my secondary school Modern Studies Teacher said, ”then, effectively, abortion could become illegal in America”. I was shocked. Illegal abortion was something I had never considered before, especially in the most influential and powerful country in the world. When I came to America I realized that my teacher hadn’t been exaggerating. Suddenly, I realized that I did have views; ‘pro-choice’ ones. I was on one side of a very contested debate. A debate that I still feel should be irrelevant.

I understand that some people believe life starts at conception and that one human being does not have the right to take a way another’s life. But, other people believe that life starts when there is a heartbeat, or else at birth. Legalized abortion accommodates all of these views, for it allows women with unwanted pregnancies to make their own choices.  When I talk about abortion, people sometimes ask me, “What would you do if you became pregnant?” I say that I don’t know what I would do. It’s not something I really consider when thinking about abortion laws because it doesn’t matter what I think or what I would do personally. It matters that all Americans should have a choice. To those who wish to outlaw abortion, I say: if you do not believe in abortion, don’t have one. Don’t impose your personal moral views on others. I think that’s what Americans call freedom.

Last week, I spoke to a British friend who recently had an abortion in the UK. Her experience was a positive one. She was 22, had only been with her boyfriend a short while, and had little financial support. She wanted to focus her 20s on building a successful career, not parenting. But, again, it doesn’t matter what her story was. What mattered was that she could choose its ending.

Even from a pro-life perspective, aggression towards women’ health groups such as Planned Parenthood is unfair, for these organizations do much to prevent unwanted pregnancies through access to birth control. A few weeks ago, a Congressional panel on birth control consisted only of men, showing how often women’s voices are silenced when they most need to be heard. The topic of debate was even more preposterous.  It simply does not make sense to exclude birth control from insurance coverage – and thus make it prohibitively expensive – and simultaneously increase barriers to abortion.

Upon coming to America, I did not just find unexpected attitudes towards abortion and birth control; I also realized that the US and UK had very different norms concerning sex education. In Britain, all schools must teach comprehensive sex ed.  I was shocked to discover that in America, where states and districts can decide whether or not the schools teach their students about sex. When policymakers “choose” not to teach children and teenagers about sex, young people don’t have a choice when it comes to the consequences of your imposed ignorance. If young people are not taught about sex, then they are more likely to have unwanted pregnancies. Last year, the Channel 4 in the UK aired  a primetime tv show called The Sex Education Show, which went beyond schools to ‘educate the nation about sex’. That would never happen here. It seems contradictory that America spends a huge amount of energy talking about abortion, yet enforces no mandatory sex education for its future generations.

Yet, even with proper sex education and access to birth control, unwanted pregnancies inevitably happen. It’s also inevitable that different people will react differently to an unwanted pregnancy. If I or any woman becomes pregnant, we should have the right, the freedom, to decide whether to abort or whether to carry the pregnancy to term. This issue does not affect national politics nor does it affect any other person.  In this spirit I end with my British friend’s remarks: “My abortion didn’t affect you. It never, ever will.”

Editorials

Staff Editorial: Responsible Investment at Harvard

3 Comments 25 March 2012

With an endowment of $32 billion, Harvard is the second wealthiest nonprofit institution in the world, following the Vatican. Harvard’s power stems not only from its research, teaching, and reputation, but also from this wealth. If the Harvard Management Company (HMC), which manages the university’s endowment, invests in certain businesses and funds, it can help socially beneficial ventures succeed; if it invests in certain other companies, it can perpetuate social and environmental injustice. Unfortunately, HMC has too often taken the latter path. Therefore, we at Perspective endorse the efforts of a new student group, Responsible Investment at Harvard, which aims to make Harvard’s investment practices transparent, accountable, and socially responsible.

Over the years, there have been numerous campaigns to end Harvard’s least ethical investments, particularly those in companies and countries that have consistently violated human rights. For instance, concerned students, faculty, staff, and administrators have in past years successfully convinced HMC to divest from apartheid South Africa, tobacco companies, and PetroChina, a corporation that partnered with (and provided funding for) the Sudanese government during the genocide in Darfur. Most recently, as a result of pressure from the Student Labor Action Movement (SLAM), Occupy Harvard, and others, HMC announced that it would reconsider its investments in HEI Hotels and Resorts, a company known for its sweatshop-labor practices and legal troubles with the National Labor Relations Board. Single-target campaigns such as these have often achieved great victories, and Perspective supports the current campaign for the university not to reinvest in HEI. However, in order to ensure that Harvard invests responsibly and transparently in the long run, a more comprehensive campaign is necessary.

People concerned with responsible investment often speak in jargon, but while the particulars may be complex, the underlying principles are straightforward. A responsible investment platform requires investors not to invest in companies that endanger people’s health or welfare, violate fundamental rights, or harm the environment. At the same time, they should invest in companies that aid sustainable development and provide valuable jobs, goods, and services while respecting human dignity. For instance, Harvard could invest in companies that are attempting to create permanent jobs in Allston or that are developing affordable medical diagnostic tools for doctors and patients in the developing world. Both transparency and accountability are widely viewed as necessary to ensure consistent responsible investment. For instance, GreenReportCard.org counts “endowment transparency” along with variables such as “climate change and energy” and “green building” when determining the overall environmental sustainability of a college or university. Harvard, unfortunately, gets a C on endowment transparency, which indicates that too many of the university’s investments are shrouded in mystery. Without transparency, neither the Harvard community nor the general public can hold the university accountable.

The Harvard Management Company may view responsible investment as a hindrance to financial success. However, according to Principles for Responsible Investment, a United Nations affiliate, responsible investment practiced strategically can lead to increased long-term returns and decreased long-term risk. Given that these investments produce sustainable growth and don’t have harmful side effects, these benefits are not surprising. It is clear that responsible investments are good for everyone involved.

The student group Responsible Investment at Harvard (RI@Harvard for short) is a coalition of people involved in various environmental, labor, and social justice issues on campus. RI@Harvard is working on several campaigns to transform the nature of Harvard’s investments. In the long term, it intends to convince HMC to adopt a standard protocol for disclosing investments and to incorporate social and environmental concerns into all investment decisions. In the nearer future, RI@Harvard hopes by the end of the semester to create a responsible investment fund for the university, an idea pioneered by Brown in 2007, to which donors can choose to give their money. RI@Harvard intends to convince a large portion of the senior class to donate their senior gift to this social choice fund or “shadow endowment” and to build alumni support for it from there. A social choice fund would represent a powerful first step towards responsible investment generally, for in addition to the concrete result of moving funds, it would demonstrate to the university that this issue is important to a wide cross-section of the Harvard community.

RI@Harvard also hopes to reform the Advisory Committee on Shareholder Responsibility (ACSR) and the Corporation Committee on Shareholder Responsibility (CCSR), the two committees that deal (to some extent) with social responsibility in investing. We agree with RI@Harvard that these entities should have more power so that they can move beyond shareholder proxy votes to make real decisions about investments. We particularly support increased power for the ACSR, which consists of faculty, students, and alumni. Perspective also urges the university to increase the student and faculty presence on the ACSR and to create more formal opportunities for students, faculty, and staff to voice their opinions on investments. Hopefully, these changes will make Harvard Management Company more accountable to the entire university population.

As a nonprofit institution, Harvard receives generous tax exemptions because it is assumed to serve the public good. As a center of teaching and learning, Harvard College, according to its mission statement, encourages students to “rejoice in…critical thought…assume responsibility for the consequences of personal actions…promote understanding, and serve society.” The time has come for Harvard to put its money where its mouth is. If incoming students are encouraged (or pressured, according to some) to sign a pledge to uphold the university’s values, then surely the university itself must uphold these values. To promote understanding and critical thought, Harvard should disclose its investments, so that students can think for themselves about whether these investments are just. To encourage students to take responsibility for their actions, the university must lead by example, and take responsibility for the social and environmental impacts of its portfolio. Ultimately, Harvard does not set an example for just its own students; as one of the world’s leading universities, it sets an example for countless for-profit and nonprofit institutions. Thus, responsible investment at Harvard would energize an already-growing movement for responsible investment around the world.

Back Page

God, Money, Music, and Democracy

No Comments 25 March 2012

A Review of Cornel West’s Democracy Matters

By Kelly Maeshiro

Cornel West’s Democracy Matters comes 10 years after his well-known Race Matters, which recharged a national dialogue on race and democracy. In Democracy Matters, as in Race Matters, West focuses on the prospects for democracy, but this time he extends his analysis to areas such as big money, religion, and hip-hop. As always, he critiques capitalist culture, provides a philosophical approach to solutions, and attempts to awaken the “sleepwalking citizenry” and prod us into action.

If democracy is predicated on a certain degree of equality, it is difficult to doubt that our democracy is in shambles: the top 1 percent of earners own 40 percent of the wealth and the 400 richest Americans own more than the bottom 150 million do. West believes that there are three interrelated causes of this inequity: free-market fundamentalism, aggressive militarism, and escalating authoritarianism, all of which stem from the tension between democracy and empire. These competing forces have been present in every era of our national memory. For instance, the early settlers created democracy for themselves, but eradicated 95 percent of the indigenous population. In the early 20th century, progressive President Woodrow Wilson did much to curb corporate power, yet he also promoted segregationist policies. More recently, when the United Sates invaded Iraq, it did so supposedly to spread democracy, but it was really pursuing natural resources and military might. For West, contradictions between democratic and imperialistic impulses inform every aspect of American cultural life.

In examining this tension, West turns his eye first upon American Christianity. He argues that too much of modern American Christianity is the ugly descendant of what he calls ‘Constantinian Christianity’ (a reference to the Christian Roman emperor), a religious movement that has betrayed spiritual ideals for state power. As Marxist scholar Terry Eagelton writes, modern-day Constantinian Christians, the religious right, are more shocked by the sight of the female breast than they are by the gross disregard society has for the poor, and they care more about regulating the bedroom than they do the boardroom. In contrast, Christians who fight for the poor, the dispossessed, the disenfranchised, and the powerless subscribe to what West terms ‘Prophetic Christianity.’ Throughout American history, the tension between Constantinian and Prophetic Christianity has mirrored the tension between empire and democracy. This can be seen in the fact that both sides of the Civil War prayed to the same god, or in that the bible was used both to justify segregation and to empower the fight for civil rights and black liberation. Thus, political disputes are often fought in religious terms, and vice versa: for instance, West writes that the religious right “equated the liberation theology movement, which put a limelight on the plight of the poor, with Soviet Communism”(166). Oftentimes, the religious right provides the high ideals (i.e. One Nation Under God) that American imperialists use to disguise their real motives: power, profit, and status.

West pays particular attention to the ways in which political, religious, and economic struggles have affected youth culture and music; once again, he finds ample evidence of the empire-democracy conflict. Hip-hop, according to West, was born out of legitimate rage against oppressive forces, and originally was a democratic art form that allowed ordinary young people to express their perspectives. Yet, as hip-hop has become profitable, it has been commodified, bastardized, and betrayed so that the songs which used to bring social issues to the public consciousness now drown it with sex, drugs, and violence, with more greed and less humanity. Like Christianity, hip-hop has suffered a Constantinian sell-out of sorts, though this time literally. Ironically, the majority (72%) of people who currently listen to hip-hop are young whites. In West’s terms, corporate America has bled hip-hop from the “chocolate cities” and sold it to the “vanilla suburbs,” much as Constantine bled Christianity and sold it to the state. West emphasizes that we must preserve those traditions – be they music or religion – that we hold dear before they are used against us.

After addressing these narratives of democracy and empire in culture, West turns his attention to possible solutions to our economic and political problems. As usual, he looks to history for inspiration: West, much to our bemusement, sometimes calls himself a conservative, for he believes in turning to our rich democratic history to find ideas for the future. For West, Ralph Waldo Emerson is the “indisputable godfather of the deep democratic tradition in America” (68). Emerson believed that the political constipation of his day would be solved if people practiced Socratic questioning—that is, asked tough and unpopular questions–and through asking these questions formed a new democratic consciousness. According to West, Emerson teaches us that the heart of being a democrat (small ‘d’) is thinking for oneself and being willing to criticize both the self and the polity. While Emerson was, of course, a 19th-century American, his views mirror ancient ideals. To this end, West describes the birth of democracy itself, in Athens in 594 BC, when the peasant demos, angered by the greed of the state oligarchs, demanded political reform and were recognized and incorporated into the Council of Areopagus, the state’s highest governing body. Here we see finally why democracy has been so closely related to imperial greed: it was born out of peasant revolt against a greedy system. Empire is in a certain sense, then, older than democracy. Thus any effort to deepen democracy requires the dismantling of empire; for West, this is our greatest responsibility.

Features

The Green Economy Caucus

No Comments 25 March 2012

A Better Future for Massachusetts

by Alli Welton

On February 13, over 60 people attended the inaugural meeting of the first-ever environmental caucus in the history of the Massachusetts statehouse—the Green Economy Caucus, chaired by Representative Frank Smizik (D-Brookline) and Senator Jamie Eldridge (D-Middlesex and Worcester). According to its mission statement, the Green Economy Caucus aims to “reshape our economy around sustainability and innovation” and to encourage “economic growth and job creation based on sustainable development aimed at improving economic, environmental and social well-being.”

What is notable about the caucus is that it shows that we are moving beyond the point where environmentalists are constantly fighting defensive battles to regulate certain destructive industries and protect our natural resources. The caucus is about creating a system in which economic growth preserves and protects those resources. It represents a new environmentalism. No longer focused mainly on resource conservation, environmentalists are now working for active job creation.

So what exactly is the Green Economy Caucus? For one, a caucus is a regular meeting of legislators that convenes perhaps once or twice each term and has no voting power. This is different from a committee, which has official voting power and determines whether a bill pertaining to its topic will be sent to the whole legislature for a vote. While that might conjure up the image of people just sitting around in a room and talking, caucuses can play important roles in statehouse politics. Caucuses provide an opportunity for legislators to come together and learn from community, businesses, and academic experts about the chosen topic–education is, after all, the first step to action. They also serve as an arena in which legislators can discuss ideas and hash out ways to move forward with concrete policies. Previous caucuses have developed into powerful, well-educated voting blocs on their issue.

Representative Alice Wolf (D-Cambridge) suggested the original idea of a ‘Clean Energy Caucus’ to Mihir Chaudhary ’12 last spring. Chaudhary then worked with other Harvard students from the climate advocacy group Students for a Just and Stable Future to find a legislator to sponsor and chair the caucus, and then to recruit members to attend the meetings. It was Chairman Smizik who suggested that the name of the caucus be changed to the broader and more visionary “Green Economy Caucus.”

What exactly is a “green economy”? According to the United Nations, a green economy is low-carbon, resource efficient, and socially inclusive. Essentially, a green economy is a key component of a fair society in which jobs and industry preserve and protect the resources upon which all our jobs and lives depend. A green economy is, at its core, sustainable – socially, environmentally, and economically.

Massachusetts is already taking steps towards achieving such sustainability. For instance, the state’s clean energy industry currently accounts for 1.5% of employment in Massachusetts, or 64,000 jobs. Last year, the industry grew around seven times faster than the overall state economy. In 2012, clean energy employers are planning to add 10,000 new jobs, an incredible growth rate of 15.4%!

Clean energy is just one of the promising green sectors in Massachusetts. Recycling creates ten times as many jobs in the state, on a per ton basis, as traditional waste disposal techniques such as landfills do. Construction workers are needed to upgrade our public transport system, and to retrofit buildings to make them more energy efficient. Urban agriculture can revitalize economically depressed inner city neighborhoods, as is the goal of Boston Mayor Menino’s recent Urban Agricultural Initiative in Dorchester.

These jobs—and the accompanying improvements in our health and quality of life—are all good reasons for taking action to build a green economy in the state. However, the personal and deadly threat of climate change adds urgency to this mission. Unless we act quickly to develop safe, low-carbon energy sources and phase out fossil fuels, we are putting our health, our economic security, and our very lives at risk.

The Green Economy Caucus is a prescient move by the legislators of Massachusetts to protect their constituents from the dangers of climate change while reaping the economic and health benefits of creating a sustainable society. Other states, and indeed the national government, should replicate Massachusetts’ efforts to act in the interest of its citizens and build a better present and future for us all.

Features

Obama versus the Environment: the Keystone XL Pipeline

2 Comments 23 October 2011

By Alli Welton

Over twelve hundred people have been arrested. Nine Nobel Peace Prize laureates, The New York Times, state governors, members of Congress from both parties, and hundreds of his own grassroots organizers are urging Obama to say no.

What issue could spark unrest so strong and widespread?

A pipeline that, in essence, signals our admission of failure and refusal to continue to fight in the face of climate change. A pipeline that may kill more jobs than it creates; a pipeline whose approval process unveiled serious corruption within the Obama administration.

Keystone XL (KXL) is an export pipeline proposed by Transcanada, a Calgary-based energy infrastructure developer, which would carry oil from the tar sands in Alberta, Canada down to the Gulf of Mexico. Beyond its serious implications for climate change in its continued dependence on fossil fuels, it threatens the source of drinking water for 20 million Midwesterners, the health and livelihoods of indigenous communities, and several important ecosystems. Building KXL would, at best, create only a few thousand temporary jobs and might even increase overall unemployment, despite Transcanada’s attempts to portray it as a boost for the economy.

It is up to President Obama to decide whether or not it is in the nation’s interest to grant the presidential permit required for the construction of KXL. In the past months he has been the target of widespread protests, with environmental organizations resorting to civil disobedience tactics on a scale not seen since the environmental activism of the 1970s.

KXL would transport tar sands oil, which is the world’s most greenhouse-gas-intensive source of fossil fuels.  Bitumen (crude oil) is mixed up with sand; companies pump steam underground to liquefy and extract it in a highly inefficient process requiring large quantities of natural gas. Tar sands are the reason that Canada—with only 0.5% of the world’s population—is the world’s eighth-largest greenhouse gas emitter. The Albertan tar sands are the world’s second largest carbon store, and KXL is seen as the gateway to their further development, making it essentially a proxy for the fight against climate change.

KXL would furthermore run through the aquifer supplying drinking water to 20 million people in the Midwest—a BP-style oil spill could mean disaster in America’s agricultural heartland, and the likelihood of such a spill is frighteningly high. Transcanada’s existing Keystone pipeline is leaking at a rate that is 84 times higher than predicted by its operators, with 22,000 gallons spilled last year alone.

The Environmental Impact Statement, which assesses the project’s effect on the environment, does not consider KXL’s effect on wildfires, though it runs through high risk zones, including parts of Texas devastated by fire last summer; it also threatens several important ecosystems. Toxic runoff from the tar sands has led to abnormally high rates of cancer in the already marginalized First Nations indigenous communities downstream. KXL would undeniably aggravate the problem further.

Transcanada works hard to promote KXL, claiming it will create 250,000 to 550,000 jobs. However, Cornell University published a study revealing these numbers to be astoundingly incorrect. The job projections are based on false data, including a $7 billion budget of which only $3-4 billion is relevant to US job figures, $1 billion spent on an already-built pipeline that’s not part of KXL, and an unsubstantiated claim of 20,000 direct construction and manufacturing jobs for Americans. Accounting for these errors, Cornell found that KXL would create no more than 2,500-4,650 temporary jobs within the USA.

Furthermore, the economic impact of KXL might actually be harmful. Because KXL will divert oil now supplying the Midwest, it would likely raise the price of oil in the Midwest by 10 to 20 cents per gallon—a  serious blow to the agricultural economy.  Consequently, KXL may actually kill more jobs than it creates.

The environmental movement has kicked into high gear over KXL. In August, 1,252 people, including several Harvard affiliates, were arrested at the largest nonviolent civil disobedience protests in 30 years, organized by Tar Sands Action Network.  Anti-tar sands fervor has increasingly spread across the country since the protests.  Spontaneous protests against KXL have even arisen wherever President Obama or his aides go, including two at Harvard during IOP events with Jim Messina (campaign manager) and David Axelrod (senior strategist). As mentioned above, nine Nobel Peace Prize laureates, several state governors, and dozens of members of Congress have written to Obama, urging him to reject KXL. Occupy Houston and Occupy Atlanta have marched against KXL, and thousands of people rallied at the final State Department hearings in Washington, DC on October 7. Another rally is planned for November 6 in Washington.

There is speculation that KXL may turn out to be a crucial electoral question. More important to the overall campaign effort than losing the green vote for Obama would be the loss of those same activists with skills and enthusiasm for grassroots organizing, many of whom worked for him in 2008. To what extent would environmentalists actually abandon Obama over KXL?  At the protest during the Institute of Politics event with Jim Messina in September, 30 of the 60 protesters had volunteered for Obama in 2008; only five of them said they would work toward his reëlection if he allowed KXL to move forward.

Now, for the obvious question:  given the strong and well-founded opposition and the implications for his reëlection, why hasn’t President Obama rejected KXL?

One possible—though disappointing and troubling—answer is corruption, which Obama had promised would never exist in his transparent administration.

Cardno Entrix, the company hired by the State Department to complete an environmental review and the public hearings on KXL, is a contractor for Transcanada, which it publicly considers among its major clients.  Senators Bernie Sanders (I-VT), Patrick Leahy (D-VT), and Ron Wyden (D-OR) have all written letters to Secretary of State Hillary Clinton expressing “serious concerns” about the objectivity of the environmental review due to the inappropriate relationships between Cardno Entrix and Transcanada.

This is only part of the story—the corruption runs deeper. Emails reveal that the State Department cheered on Paul Elliot, Transcanada’s top lobbyist for KXL, even gave advice on how to win support for the pipeline. The investigation by Friends of the Earth, a national environmental organization, has uncovered very close ties between the State Department and several other Transcanada lobbyists—many of whom worked previously for the State Department or were major fundraisers for Hillary Clinton’s 2008 election campaign.

President Obama will announce his decision sometime before the end of the year.  Will he risk perpetuating damaging climate change and the loss of hundreds of dedicated campaign organizers for a pipeline with no real benefit to the country?  We hope not.

Features

Harvard’s Unethical Investment in HEI

No Comments 05 May 2011

A Report Prepared by Harvard’s Student Labor Action Movement

HEI Hotels & Resorts, Company Profile

Summary:

HEI Hotels & Resorts LLC is a privately held owner/operator of more than 30 full-service hotels across the US.  Most of HEI’s properties are operated under Hilton-, Starwood-, and Marriott- owned brands. Harvard University owns at least 10% of two HEI funds—HEI Hospitality Fund I and HEI Hospitality Fund II—as indicated by the SEC Form D for each fund.  The total value of these two funds is $699 million.

Business Strategy:

HEI buys hotels in order to turn them around and sell again at a profit. The company describes itself as a “long-term” investor, with an 8-12 year investment horizon.

While it owns a hotel, HEI employs a range of techniques to bring costs down. Employee experiences include:

  • Cutting back on staffing levels—HEI reduces the hours of some workers, lays off others, and even eliminates entire job functions.
  • Shortages in the basic materials workers need to do their jobs—employees report struggling to find enough towels and linens, and workers have encountered shortages of basic cleaning supplies like sponges and vacuum cleaners.
  • HEI’s practices can take a physical toll when they make already-heavy workloads even harder, particularly in housekeeping.
HEI’s University Endowment Funds:

Since 2004, HEI’s acquisitions have been funded by investments from university endowments through private equity funds the company has launched itself. In 2004, HEI raised $274 million

through its HEI Hospitality Fund LP (“Fund I”). With the addition of about $525 million in debt, this real estate fund acquired 12 properties. Fund I’s biggest investors include the Harvard University endowment, the Yale University endowment, and Gary Mendell himself (each of whom contributed more than 10% of total equity).

HEI launched its next fund (“Fund II”) in 2006, raising $425 million in capital. Including debt, the fund was anticipated to acquire approximately $1.5 billion in assets over 36 months. Yale, Harvard, and Princeton each own more than 10% of Fund II.

Between Funds I and II, HEI raised investments from a total of twelve university endowments, with Harvard, Yale, and Princeton contributing the largest amounts.

HEI raised $500 million in early 2008 for its third fund (“Fund III”). This money came from sixteen university endowments. Eighty percent of Fund III’s capital came from previously-invested endowments.

University Investors:

In total, 22 university endowments are invested in HEI’s three funds. Yale, Harvard, Princeton, and the University of Chicago are among the company’s biggest investors, each holding a greater-than-10% stake in one or more of those funds. Other investors include Brown University and the University of Pennsylvania.

However, Brown University declared this winter that it will make no new investments in HEI. Brown’s Advisory Committee on Corporate Responsibility in Investment Policies declared that the university will not invest “until the Corporation is confident that HEI adheres to our high standards regarding respectful and humane treatment of workers, and that workers at HEI-operated hotels are able to seek union representation without fear of intimidation.”

Harvard’s Investment in HEI

The SEC Form Ds for the HEI Hospitality Funds show that Harvard University’s endowment has invested in the first two of the three HEI’s funds.  These public documents do not specify the exact amount Harvard has invested, but do indicate that Harvard has invested at least 10% in these funds.  As the total of the first two funds is $699 million, Harvard has at least $69.9 million invested in HEI Hotels and Resorts.

Injury, Intimidation, and Wage disparities at HEI Hotels

California Wage and Hour Laws

In August 2010 workers at the HEI managed Embassy Suites in Irvine, California filed suit for $120,000 worth of back pay they say they are owed as a result of years worth of missed breaks. In October 2010 workers at the HEI owned Hilton Long Beach who also filed suit saying that they were routinely denied the 10 minute breaks mandated by California law. Both cases are currently being investigated by the California Department of Industrial Relations. It is expected that the Irvine Embassy Suites case will make its way to court by March of 2011.

Anti-Union Intimidation

Currently, HEI is facing charges in front of the National Labor Relations Board on behalf of the workers at HEI’s Embassy Suites Irvine. These charges include:

●      reductions in workers’ schedules

●      interrogation and unlawful surveillance of workers

●      prohibiting workers from posting pro-union materials and leafleting at the hotel’s property

●      telling workers not to communicate with the public about working conditions, and

●      suspending a worker for pro-union activity.

In 2008 and 2009, HEI spent almost $170,000 on an anti-union consultant called “Persuasive Communications” with the purpose of “helping employers express their position on unions and union representation persuasively and openly.”

HEI has also settled charges with the National Labor Relations Board’s General Counsel over charges of intimidation, coercive statements and threats, and creating the impression of surveillance. Settlements include:

●     A 2009 settlement of charges involving HEI’s Le Meridien in San Francisco over alleged illegal intimidation and surveillance.

●     A 2010 settlement of charges involving the Sheraton Crystal City that led to the reinstatement of union leader Ferdi Lazo.

Wages and Benefits at HEI Hotels

The average hourly wage for a housekeeper is $9.74 per hour at the Embassy Suites Irvine, and $9.75 at the Hilton Long Beach. Housekeepers at the Sheraton Crystal City earn as little as $10.24 an hour. This is well below the US 2010 federal poverty line for a family of four. Yet managers are paid handsomely. Documents filed in an age discrimination lawsuit filed against HEI revealed that the general manager of Le Meridien San Francisco was promised $235,000 per year beginning in November 2008, and was eligible for a bonus incentive with a target of 25% of his salary. When HEI’s Brian Mayer was offered a position as Senior Vice President in 2008, his offered base salary was $280,000 per year, with a target bonus of 30% of his salary (up to 50%) and ability to invest in HEI funds.

Of the 38 full-service hotels in San Francisco, only seven are not unionized, including HEI’s Le Meridien San Francisco. Although Le Meridien is very similar to the Omni San Francisco a few blocks away, employees face very different working standards. At the Le Meridien, approximately 180 employees currently staff a 360 room hotel, a significant decrease from the 225 workers employed when HEI first purchased the hotel in 2006. In contrast, the Omni employs 326 workers for a 362 room hotel.

Increased workloads can take a physical toll when they make already-heavy workloads even harder, particularly in housekeeping.

Hotel housekeeping is physically strenuous work: Workers in hotels across the country report work-related injuries and pain—from pulled tendons and pinched nerves, to carpal tunnel and back pain. According to a study of company records covering thousands of employee injuries, hotel housekeepers face an injury rate of 10.4%, almost double the injury rate for non-housekeepers (5.6%).

In a survey of more than 600 hotel housekeepers in the U.S. and Canada, 91% said that they have suffered work-related pain. 77% said their workplace pain interfered with routine activities.

Rushing to finish cleaning rooms per day leaves housekeepers even more vulnerable to injury, and often leaves workers without time to take breaks or eat lunch.

While working jobs that put them at risk for injury, many workers struggle to meet the increasing monthly premiums required to participate in HEI’s health care plans. Some forgo health insurance altogether—doing without for themselves and relying on government assistance for their children.

In San Francisco, where most of HEI’s competitor hotels are union, housekeepers clean 13 rooms per day. In Arlington, Virginia, where fewer competitors are union, housekeepers have been required to clean as many as 32 rooms per day.

Our Request to the Harvard Management Corporation:

We call on Harvard to:

1) Refuse future funding of HEI Hotels & Resorts and any of its hotel funds until:

a) HEI complies with all applicable federal, state, and local labor laws;

b) HEI maintains strict neutrality regarding workers’ right to freedom of association, and HEI hotels maintain an environment free of intimidation for workers exercising their legal right to organize; and

c) No employees of HEI hotels are on strike or have publicly called for boycotts of their hotels at the time of proposed re-investment.

2) Make a public statement calling upon HEI to respect workers’ rights and abide by the 3 conditions outlined above.

3) Speak with leaders of other universities and encourage them to do the same.

A Letter to Those in Charge of Harvard’s Investments

Features

A Letter to Those in Charge of Harvard’s Investments

No Comments 05 May 2011

Dear Harvard Management Company and Student-Faculty Advisory Committee on Social Responsibility,

We are writing to ask Harvard to discontinue any future investments in private equity funds of the company HEI Hotels and Resorts. In February, the Brown University President and Corporation decided that Brown University would no longer invest in HEI, citing “a persistent pattern of allegations involving the company’s treatment of workers and interference with their efforts to unionize” inconsistent with Brown’s standards of socially responsible investment. We believe that Harvard should hold its investments to the same ethical standards as other Ivy League universities and ask that the Harvard Management Company declare non-reinvestment in HEI this season.

As students at Harvard, we are expected to behave in a socially responsible manner. We may only hope that this university uses its own immense economic and political power to advance causes beneficial for the university’s reputation of social responsibility and justice in society.

Workers at HEI Hotels have been organizing around issues of low wages, poor benefits, workplace injuries, missing compensation and lacking breaks.  HEI has also been accused of anti-union activities. The attached report details the unethical nature of HEI’s business plan and explains a history of intimidation of union activists, low wages, and poor benefits in HEI-managed hotels. We expect the ACSR to conduct its own investigation into HEI’s labor practices and corroborate the facts that we have collected.

Brown University’s President and Corporation decided in February 2011 not to reinvest in HEI Hotels and Resorts. The Brown ACCRIP (Advisory Committee on Corporate Responsibility in Investment Policies) recommended that Brown “refrain from reinvesting in HEI until the Corporation is confident that HEI adheres to our high standards regarding respectful and humane treatment of workers, and that workers at HEI-operated hotels are able to seek union representation without fear of intimidation.” Students at other universities like Yale, the University of Pennsylvania, Princeton, Notre Dame, and the University of Chicago have also urged their universities to stop investing in HEI.

Many students also support non-reinvestment in HEI. The February 8, 2011 Crimson Staff editorial declared, “This should go without saying, but Harvard should advocate for workers’ rights in the companies it invests in. Unions play a valuable role in maintaining fair working standards for employees, and the allegations that HEI is hindering their presence within its hotels should call Harvard’s relations with the company into question.”

As members of the Student Labor Action Movement, we request that the Advisory Committee consider the following report and requests and vote to maintain Harvard’s standards of ethical investment.

Sincerely,

Naimonu James, 2014; Sandra Korn, 2014; Neal Meyer, 2011; William Whitham, 2014; Madeline Zhu, 2014

The following Harvard student groups have also added their support to this letter:

Student Labor Action Movement

Environmental Action Committee

Progressive Jewish Alliance

Students for Choice

The Final Network

Features

The Final Network

2 Comments 14 April 2011

By Andrew Sabl

A former graduate student of mine at UCLA emailed recently to ask me, as someone who went to Harvard, whether the final clubs were as important to most male undergraduates as portrayed in The Accidental Billionaires (or The Social Network, largely based on that book). I told him that it depended: for those undergraduates who had certain ideas of what Harvard was about, hell yes. For those who despised those ideas, hell no.

But that was really a partial answer, to a partial question. While most final clubs’ membership (in my time at Harvard, all of them) includes only male undergraduates, their influence extends much further. And it affects even those who would rather ignore their presence.

When I was in college, there were plenty of male students—plenty of female ones too, but when it came to final clubs, they were out of luck—whose goal in life was social status (or, even more poignantly, social climbing); achieving business success through knowing the right people; and/or meeting in congenial and inebriated circumstances pretty, status-insecure women who weren’t picky about gender equality: women could enter the clubs during party evenings only, through side or back doors, and, I’m told, were screened ruthlessly for looks.

Guys like that were very concerned about getting into the clubs. I knew some who were very bitter, like Mark Zuckerberg as portrayed in The Social Network, when they didn’t. And while I never knew any undergraduate women who bragged about being fond of final club parties, I found out later that a great many whom I didn’t know were in that category. It seems there were lots of double-reverse-Groucho Marxists who very much wanted to attend clubs that wouldn’t have them as members.

Many of the rest of us, especially those with liberal politics, had no use for the clubs at all.  One of my faculty colleagues, who transferred to Harvard his junior year, told me after seeing The Social Network that he was baffled by the film’s focus on final clubs, as he had hardly noticed them while he was there and didn’t know anyone who had. He was in a sense extremely fortunate. My own involvement with the clubs was, both personally and politically, more direct.

One of the easiest decisions I ever made in my life occurred my sophomore year, when I was punched for the Spee Club (I never found out why, but presumably old prep-school ties were to blame) and immediately tossed the invitation in the trash.  The reason I did this was simple: we didn’t have recycling in the Houses back then.

But my involvement with final clubs didn’t stop there. I wasn’t just a random male undergraduate but an editor of Perspective and good friend of Lisa Schkolnick, its founder, who sued the Fly Club for sex discrimination. I wrote a piece for Perspective saying that since the clubs’ main purpose was business connections, they should count as business organizations and should therefore be subject to civil rights laws. The Massachusetts Commission against Discrimination, to put it mildly, did not agree; it tossed the case out on its ear.

On reflection, I think that decision was right. But even if all-male final clubs should have stayed legal, they were not benign. Their effect on both campus life and the larger society was both substantial and pernicious, and I have no reason to believe that it’s changed. In my day, and now, critics have often focused on how the clubs treat women—and rightly so. But we should also worry about what the clubs do to Harvard culture, and to the pipeline into the country’s elites.

When shortly after college I published an opinion piece in the Boston Globe (adapted from one in Perspective) about anti-intellectualism at Harvard, an alumnus wrote me to say that he’d always thought there were two Harvards. One was devoted to intellectual inquiry and expanding one’s horizons; the other, to more or less the opposite: an exclusivity founded not on curiosity and diversity, but on birth and class.  I suppose that for members or would-be members of the second Harvard, final clubs were Nirvana (in the literal sense of being a state of nothingness: the rest of us described their purpose as “paying a great deal of money for the privilege of drinking with people who pay a great deal of money for the privilege of drinking with you”). But the vague cachet attaching to the clubs can make members of the first Harvard feel somehow left out—when it should be the other way around.

Nor should we forget that the clubs’ biggest reason for existence is their alumni network. And the point of the network is not drinking with fellow drinkers, but selecting for very lucrative and powerful jobs. It was an open secret in my time that there was a direct line from the Porcellian to major investment banks (especially Salomon Brothers, the firm made famous by Michael Lewis’ book Liar’s Poker). With Wall Street becoming ever more influential in our economy and our politics, we shouldn’t forget who gets the inside track to Wall Street. Talent and brains count for a great deal—but so does privilege. Remember the final clubs the next time an investment banker blathers on about meritocracy.

When it came to male students at Harvard (or “gentlemen of Harvard,” as the Porcellians in The Social Network charmingly put it), our own chosen approach to life determined whether the clubs were either all-important or merely self-important. But regardless of whether we coveted membership or didn’t, their self-importance had consequences for the rest of us.

Andrew Sabl, A.B. summa cum laude ’90, Ph.D. ’97, is Associate Professor of Public Policy and Political Science at UCLA, and a former Editor-in-Chief of Perspective.

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