Behind the Curtain: What Public Records Can Tell Us About Final Clubs

Blog, Features

Behind the Curtain: What Public Records Can Tell Us About Final Clubs

No Comments 30 October 2011

Harvard’s eight all-male final clubs are notoriously secretive about their operations. But thankfully, the city of Cambridge, the Commonwealth of Massachusetts, and the federal tax code pose a limit on just how much the clubs can hide from public view. Cambridge makes publicly available the assessed value of all properties within the city, meaning that we can find out the value of the clubs’ huge buildings in the square (The Crimson previously compiled a list of  the clubhouses’ values last year; the numbers have since been updated, and those in this post are more recent).

Massachusetts requires all corporations to submit paperwork listing the membership of their corporate boards; that means that, with the exception of the Delphic, the membership of the clubs’ powerful alumni “grad boards” is public, as is, in the case of the Porcellian and Spee, their undergraduate leadership. And because every club but the Phoenix-SK and the Porcellian is organized as a nonprofit for federal tax purposes, their federal tax filings — which list their yearly revenues (and the sources of those revenues), their expenditure levels, their asset holdings, and so forth — are publicly available too. There are some caveats to this (the Fly lost its tax-exempt status this year, and the Delphic appears to only use its nonprofit for limited purposes) but one can generally get a sense of the clubs’ finances from the forms.

Here are the highlights from all three sources, by club:

A.D.

Clubhouse price: $3,742,700

Grad board (as of April 7, 2011):

President – Kenneth Gilbert Bartels

Treasurer – Oscar Kelley Anderson III

Clerk – Benjamin William Hall

Vice President – E. Anthony McAuliffe

Director – Elisha Flagg Lee

Director – Andres Alberto Vivas

Director – Roy M. Roberts

Director – Joseph McGheein

Director – Stephen Mead Jr.

Director – Scott D. Malkin

Director – William N. Thorndike

Director – Christopher A. Heckscher

Director – Lowell Thomas

Director – Barry R. Sloane

Revenue (from August 1, 2006 to July 31, 2007): $180,198

Membership fees: $33,511

Rental income: $59,977

“Restaurant sales”: $59,998

Dividends and interest on investments: $24,869

Other: $1,843

Expenditures: $529,032

Federal excise tax: $269,793

Employee compensation: $115,422

Insurance: $23,242

Food and beverages: $22,963

Restaurant operations: $13,599

Punching: $9,876

Investment advisory: $6,294

Foreign taxes paid: $141

Assets: $1,726,829

Land/buildings and capital surplus: $1,360,683

Capital funds: $390,542

Other: -$24,396

Delphic

Clubhouse price: $1,964,200

Grad board: No information available.

Revenue (from August 1, 2009 to July 31, 2010): $125,575

Investments: $103,103

Expenditures: $110,851

Real-estate taxes: $32,127

Investment-related: $25,178

Water/sewer charges: $21,979

Insurance: $16,620

Assets: $799,777

Land/buildings: $556,059

Securities: $223,777

Other savings: $16,216

Fly

Clubhouse price: $2,239,900

Grad board (as of August 23, 2011):

President – John L. Powers

Vice President – Mitchell L. Dong

Treasurer – John R. Bryant III

Secretary – David R. Morse

Directors:

Charles D. Atkinson III

John R. Bryant III

Mitchell L. Dong

Charles J. Egan, Jr.

Dale Aubrey Jenkins

David H. Morse

Todd C. Ostrow

Jason Perri

Richard Porteous

Joel S. Post

John L. Powers

Eric E. Vogt

William S. Youngman

Tax status: The Fly had its tax-exempt status revoked by the IRS this year. Its last filing is from 1998, and can be accessed here.

Fox

Clubhouse price: $1,573,600

Grad board (as of May 23, 2011):

President – Douglas W. Sears

Treasurer – Griffin Schroeder

Secretary – Matthew Kishlansky

Directors – Sears, Schroeder, Kishlansky

Property managers – Sears, Schoeder, Kishlansky

Revenue (from August 1, 2009 to July 31, 2010): $100,696

Membership fees – $95,142

Expenditures: $101,046

Events – $74,600

Dinners – $8,334

Assets (all in cash): $14,070

Owl

Clubhouse price: $1,822,000

Grad board (as of December 17, 2007):

President – Ian H. Santoro

Treasurer – Todd F. Bourell

Clerk – Shawn A. Hayden

Director – John W. Boynton

Director – Gordon L. Freeman Jr.

Director – Shawn A. Hayden

Leaders of “Owl Club Capital Management Inc.” (as of February 4, 2009):

President – Michael C. Kempner

Treasurer – Todd F. Bourell

Clerk – Todd F. Bourell

Assistant Clerk / Vice President – John Crocker

Director – Michael C. Kempner

Director – John Crocker

Director – Todd F. Bourell

Director – Richard F. Conway

Director – Kim Davis

Director – Robert J. Berry

Director – Daniel Stern

Revenue (for year of 2009): $348,416

Membership dues: $288,183

Other contributions: $30,159

Rental income: $26,508

Expenditures: $312,854

Employee compensation: $99,975

Food & beverage costs: $26,509

Event costs: $20,963

Assets: $327,251

Land/buildings: $150,852

Cash: $46,482

Accounts receivable: $121,031

Phoenix-SK

Clubhouse price: $1,275,100

Grad board (as of March 15, 2009):

President – Andrew S. Birsh

Treasurer – George R. Sprague

Clerk – Daryk Pengelly

Director – B. Devereux Barker III

Revenue/Expenditures: Phoenix-SK is organized as a corporation, and not subject to nonprofit disclosure rules; therefore, we can’t access their revenue/expenditure information.

Porcellian

Clubhouse price: $3,092,800

Grad board:

President (Grand Marshal) – Alexander Tilt

Honorary Librarian – Robert M. Pennoyer II

Honorary Treasurer - Heberden W. Ryan

Secretary (Honorary Secretary) – Peter C. Erichsen

Undergraduate leadership (as of February 14, 2011):

Deputy Marshal – Mark A. Pacult

Librarian – George E. Toothman

Treasurer – Alexander C. Auerbach

Corresponding and Recording Secretary – Michael R. Polino

Directors:

Arthur C. Hodges

H. Phipps Hoffstot

William A. Nitze

Alexander Tilt

Robert M. Pennoyer II

Heberden W. Ryan

Revenue/Expenditures: Like Phoenix-SK, the Porcellian is incorporated (as Porcellian Club Inc.) and not subject to nonprofit disclosure rules.

Spee

Clubhouse price: $1,604,200

Undergraduate leaders (as of March 3, 2011):

President – Alexander R. Gerson

Treasurer – Nicholas D. Cuse

Clerk – Matteo D. Zevi

Assistant Clerk – Frederick C. Childs

Director: Alexander R. Gerson

Grad board (as of November 9, 2010):

Graduate President – Arthur C. Anton, Jr.

Graduate Treasurer – Frederick C. Childs

Graduate Clerk – Mark S. Hruby

Revenue (from January 1, 2010 to June 30, 2010; note that unlike other clubs, this covers six months, rather than a year): $127,101

Membership dues: $88,610

Contributions: $27,237

“Program service revenue”: $11,254

Expenditures: $135,331

Employee compensation: $65,281

Cost of restaurant: $35,205

Assets: -$28,767

“Furniture and fixtures”: $28,203

Features

Not Your Average Pool Party

1 Comment 23 October 2011

By Rachel Sandalow-Ash

On Friday, October 21, around 60 students from Harvard College and Harvard Medical School gathered outside the Boston headquarters of Merck & Co., one of the largest pharmaceutical companies in the world. Dressed in swimsuits, flip-flops, and sunglasses—and, in the case of the medical students, white coats—they set up camp on the sidewalk. They lounged in a small inflatable swimming pool and played volleyball and soccer with beach balls. Passersby stared, but as the group gathered up their last straggling members and moved onto Merck’s land to begin their protest, it was clear that their pool party was not just a game; they had a very serious message to deliver.

The Global Health and AIDS Coalition, the student group that organized the event, was pushing Merck to join the Medicines Patent Pool. The Medicines Patent Pool, a UNITAID project, is a market-based program designed to increase access to lifesaving HIV/AIDS drugs in the developing world. Normally, pharmaceutical companies such as Merck are granted exclusive patents over their drugs. In this case, Merck’s monopoly drives up the prices of several key AIDS antiretroviral (ARV) medicines—efavirenz, raltegravir, and ISENTRESS—to such an extent that these lifesaving treatments are unavailable to millions of people in need. The statistics are sobering; there are currently 33 million people living with HIV/AIDS, and nearly two thirds of them do not have access to the drugs necessary to survive. Not only do ARV drugs transform AIDS from a death sentence to a chronic, manageable condition, they also serve an invaluable preventive function; according to a HIV Prevention Trials Network study, starting antiretroviral therapy immediately after diagnosis leads to over a 90% reduction in HIV transmission.

The Patent Pool is intended to remedy the gap between the scientific capacity to provide AIDS treatment to everyone in need and the socially constructed situation in which AIDS drugs are treated as a scarce, expensive commodity rather than a human right. The pool provides an opportunity for pharmaceutical companies and other organizations to share their patents for AIDS drugs to allow for generic drug production and sale in developing countries. Such competition decreases prices by at least 70%, and the companies still get a royalty. Gilead and the National Institutes of Health have already joined the Patent Pool, and many major companies are in the process of negotiations, yet Merck refuses to even negotiate with the Pool. To add insult to injury from a Harvard student’s perspective, Merck boasts of its research and lab partnerships with Harvard Medical School and the Harvard School of Public Health. Merck is essentially using Harvard’s resources to boost its own bottom line at the expense of millions of people in the developing world.

While Merck claims that it already has a tiered pricing system that gives poor countries a discounted price, this system is insufficient to make its drugs truly affordable. Furthermore, according to Doctors Without Borders, this past July Merck halted its price reductions for 49 countries that it termed “middle-income.” Many of these countries, including India, Vietnam, and Colombia, are actually quite poor and suffer from particularly large HIV/AIDS burdens. It is clear that relying on Merck’s private corporate benevolence will not get people the medicines that they need. The Pool would prevent such arbitrary decisions and would make AIDS drugs more universally affordable and accessible. Joining the Pool would not even cause great financial problems for Merck. The company took in $45 billion in revenue in 2010, mostly from its operations in wealthy countries, (according to the US Securities and Exchange Commission), and it had nearly a 25% profit margin. Merck’s refusal to join the pool is one example among many of a corporation that refuses to give an inch for society to gain a mile.

The student protest began in earnest when the pool party moved from the sidewalk to Merck’s lawn, as several Merck security guards looked on with unease.  Carrying signs and beach balls, the students marched around the pool, chanting: “Hey Merck, help us fight; health care is a human right!” “People with AIDS are under attack; what do we do? Stand up! Fight back!” and similar slogans. Several students briefly dropped a banner from the Merck parking lot, but they were forced to take it down. A few college and medical school students spoke about their experiences and the importance of the campaign, and the protest concluded with each participant writing a letter to Merck. A small group then delivered 500 petition signatures to Merck’s door. By the time the protesters left, five police cars were parked outside the building, and a row of officers watched as the students walked back to the shuttle.

This was not an “Occupy Merck” protest, per se. But the presence of the police officers showed that Merck was scared—scared of being publicly exposed for its role in preventing millions of people from accessing essential medicines. It is easy to think of the main “Occupy” issues, income inequality and corporate greed, as primarily American ones. But in many ways, the worst corporate abuses occur beyond our borders, in the most vulnerable countries, and income inequality is far greater on a global scale than it is in this country alone. The fight for the patent pool and access to AIDS drugs also has international traction; for instance, earlier in the month, students at Dundee University in Scotland staged a pool party of their own outside a Johnson & Johnson building. Efforts such as these are invaluable, and as the Global Health and AIDS Coalition continues its campaign, Merck will hopefully agree to join the pool.

Yet, the pool is not the ultimate solution to the systems of corporate influence that greatly harm human health around the world. There is a common belief, enshrined into international law in the World Trade Organization-administered Agreement on Trade Related Aspects of International Property Rights (TRIPS), that corporations are entitled to exclusive patent rights due to their right to property or as a necessary incentive for research and development. However, a large amount of basic research that leads to understanding diseases and developing medicines is actually funded by governments; therefore, this research should serve the public, rather than the private, good. While there are certainly instances in which patents are necessary, the basic laws of supply and demand indicate that allowing for free competition leads to increased quantities and lower prices, two desirable outcomes in the case of AIDS drugs. Unfortunately, TRIPS and other intellectual property laws tend to enrich established corporate interests in the Western world at the expense of emerging economies in places such as India (a center of generic drug production) and, more importantly, the health and welfare of poor people around the globe. So while the Patent Pool is an immensely valuable short-term solution, we can’t rely on corporations choosing to join the Pool. Rather, international patent law must be changed significantly to support, in the words of the Occupy protesters, “human need, not corporate greed.”

Blog

Cartoon: Occupied

No Comments 23 October 2011

“Manhattan, October 2011.”

Editorial: Occupy

Editorials

Editorial: Occupy

No Comments 23 October 2011

There are currently several hundred people camped out in Boston’s Dewey Square, in solidarity with the Occupy Wall Street demonstrators in lower Manhattan’s Zuccotti Park. There have been demonstrations involving thousands of protesters marching through the streets of downtown Boston, stopping traffic and bringing the city to a standstill. Scores have been arrested for acts of civil disobedience, as the campsite has grown and been forcibly constrained once more. And these events show little indication of ending any time soon. What are we to make of this?

The media—along with the politicians and economic potentates the “occupy” protests are addressing—seem to be quite keen on comparing the demonstrations to those of the “tea party” movement. Yes, the movements do share certain centrally important grievances, among them the United States’ startlingly uneven distribution of wealth, and the injustices perpetrated by the political institutions that promote these disparities. But while galvanized by similar—or even the same—causes, the similarities end there.

To begin with, the two movements differ in their origins, which go a long way toward explaining the overall motivation and direction of each. The tea party, though marketed as a grassroots popular uprising—and, in truth, for many it is—was manufactured with the organizational and financial help of large corporations, lobbyists, and the support of Fox News. The Occupy Wall Street movement, on the other hand, was organized by a Vancouver-based not-for-profit magazine, responding to popular resentment among Americans and contemporaneous international movements of similar scope and purpose. Billing itself as “the ninety-nine percent” (which, according to organizers, includes members of the other one percent who support economic justice and equality), Occupy Wall Street and affiliated protests in Boston and nationwide could hardly be more of a movement of the people.

Another major difference lies in the purpose of the protests. The goal of the tea partiers would appear to be getting the government to make life easier—by creating more jobs with higher wages, and improving the value of the dollar, but not by directly providing jobs or money to those in need; government hand-outs are “socialism.” This could be characterized as something of a half-hearted welfare state, in which the government is basically supposed to provide everything, but the citizen can still feel as though he or she is an independent and valuable individual in the American system. As such, according to tea partiers, the wealthy and corporations should not be penalized with higher taxes just because they have done well for themselves.

Those taking part in the Occupy Wall Street protests, on the other hand, believe the extremely wealthy and corporations should be taxed more, because they have made their money thanks to economic policies and regulations that have allowed that money to be made at the expense of the American people. And once the financial crisis hit, according to the Occupy protesters, these corporations and individuals were bailed out, taking still more money from the coffers of the people. If it is on the backs of the overwhelming majority of Americans that this money is made, the Occupy movement argues, why is it wrong that it be taxed for the people’s benefit?

While the basis for the tea party’s vague demands seems to lie outside the realm of the rational, the Occupy Wall Street movement’s demands are logical and altogether possible. They want higher taxes for the wealthiest citizens and for corporations; they want transparency in government and in private economic institutions—which, thanks to taxpayer bail-outs, now ought to be held to the highest standard of accountability; they want reforms that would further separate politics from finance. Occupy Wall Street and associated occupations’ demands have been validated by visits from distinguished academics and thinkers such as Noam Chomsky, Cornel West, and Slavoj Žižek. The strength of the Occupy Wall Street movement, which has enabled it to draw these notables along with thousands of new protesters from all areas of American society, is the desire to end the American culture of corporate greed. Idealistic? Absolutely. Possible? We shall see.

Occupy All the Streets

Features

Occupy All the Streets

No Comments 23 October 2011

By Mark Warren

Beginning last December and continuing throughout the following, eponymous spring of this year, the disgruntled citizenry of Arab world took to the streets in protest of their oppressive governments. These protests—largely acts of civil disobedience such as marches, strikes, and other non-violent demonstrations, though violence was in some instances used in reaction to brutal governmental and military responses—toppled regimes in Tunisia and Egypt, sparked the Gaddhafi-ousting, NATO-backed civil war in Libya, and are in the process of effecting governmental changes or reforms across the region. Of paramount importance, too, is the extent to which these demonstrations caught the attention—and support, in spirit and in military aid—of the international community from the level of governments down to that of the citizen.

On May 15 of this year, protesters marched in Madrid, Barcelona, and some fifty-six other cities across Spain, taking their cues in many respects from the Arab Spring protests and using Twitter to coördinate vast numbers of people across the nation. When police in Madrid beat peaceful protesters with truncheons, protesters returned the following day and set up small camps in public squares, planning to stay only until the following week’s local and regional elections. However, as outrage against political and economic institutions and individuals grew, and as attempts to remove the protesters—now calling themselves “los indignados” or “els indignats” (“the indignant”)—continued, the demonstrators decided to “okupar” (“occupy” or “squat,” in Spanish and Catalan slang) the public spaces instead, adding another sobriquet: “las acampadas” (“the camp-outs”). Fueled by various instances of police brutality, the indignados rallied around immediate social and political issues, such as the austerity measures (generally expected to be cuts in social services and education) demanded of Spain by the European Union as a condition of the bailout, and banks’ foreclosure on families’ homes. Politicians in Spain were keenly aware of the protests, which often came to the seats of power: on June 15, Catalonian parliamentarians had to arrive by helicopter as police used tear gas on demonstrators outside the gates. On the 19th some 200,000 citizens demonstrated peacefully throughout the streets of Barcelona. Their messages adequately conveyed, the camped-out protesters across Spain throughout July decided to dismantle their camps.

Simultaneous demonstrations, with similar motives, similar goals, and similar methods of direct democratic decision-making, took place in Greece and other European nations, both in response to and in conjunction with those in Spain. In Greece the chief cause for the protests was austerity measures demanded by the European Union and the Greek debt crisis, though, as in Spain, many were motivated by broader issues such as unemployment, government corruption, and government apathy toward the desires and needs of the citizenry.

It is against this background of global popular unrest and dissatisfaction with political and financial institutions that the Occupy Wall Street movement was organized throughout July and August. Initially promoted by the Canadian anti-consumerist magazine Adbusters, and drawing on the protests in Egypt and Spain for inspiration (and possibly even for nomenclature: the use of “occupy” to describe the camping out in public squares could be a semantic loan from the Spanish and Catalan “okupar”), the occupation of Wall Street began on September 17, when a few hundred protesters were turned away from Wall Street itself by police barricades. In the following days, protesters returned to Zuccotti Park, two blocks up Broadway from Wall St., where they have since been camped out à la the Spanish acampadas, in a protracted demonstration that has continued to grow in number and scope, inspiring offshoots in cities across the United States.

One of these occupations, Occupy Boston, was born at the start of October in Dewey Square outside of South Station, some three and a half miles from Harvard Square. Students and labor unions have been among the most prominent groups marching, with major demonstrations on October 10 (Columbus Day), leading to over one hundred arrests, and October 15, with more marches and classroom walk-outs planned for the coming weeks. A number of Harvard students have participated in these demonstrations, with about two dozen undergraduates joining in the Columbus Day march as part of the “Occupy Harvard” delegation. Many students participating, from Harvard and from other Boston-area institutions, cite solidarity with workers as a major incentive for protesting; nearly all are protesting economic inequality and its perpetuation by economic and government institutions. “We are the ninety-nine percent,” has been a popular cry.

As in Europe this summer, protesters in Boston, in lower Manhattan, and across the nation are protesting to express their outrage at the mishandling of economic matters by the vaguely defined powers that be. The United States, however, lacks western European traditions of socialism and of broad-reaching welfare states with comprehensive social programs; our history is instead defined by capitalist gluttony and individualistic determinism. Thus, the ultimate goal of the occupy movement is not an adjustment in fiscal policy or a reshuffling of elected officials; rather, it signals the desire for a grand cultural shift away from an environment that fosters the greed that has created today’s poisonous political, social, and economic climate, and toward one that holds social and economic justice as a basic principle, to be recognized by the highest levels of government.

Features

Redistribution of Wealth in the Mainstream

No Comments 23 October 2011

By Ian Kumekawa

This past week, Democratic leaders took increasingly supportive stances on the protests going on in New York, Boston, and in dozens of cities around the nation. Obama administration senior advisor David Plouffe suggested that the frustrations that animate the movements are the same frustrations that are being vented “in living rooms and kitchens all across America.” Yet to its critics, the Occupy Wall Street movement has at its core values that are “dangerously out of touch with the broad mass of the American people.”

In a discussion with Tavis Smiley and Cornel West, one such critic, Fox News anchor Bill O’Reilly, suggested that the protesters want “the government to forcibly seize the assets of these oligarchs…and then distribute it to other people whom they deem worthy of the money the oligarchs have.” “That,” for O’Reilly, “is socialism.”

For better or worse, “socialism” is a dirty word in America, applicable only by those on the so-called fringe. And for better or worse (Perspective thinks for better), it’s true that many socialists have been very keen on economic redistribution. But so, too, were many of the distinctly mainstream economists of the early 20th century, perhaps most strikingly A.C. Pigou, the founder of Welfare Economics.

The curious thing about Welfare Economics is that its pedigree is as far from radical as possible. Pigou, its founder, was a Cambridge academic who, unlike his teacher Alfred Marshall or other reformers of the day, preferred not to visit slums, even on missions of charity. Pigou was a cautious believer in social Darwinism and, like many of his colleagues, was quite hesitant to close the door on eugenics.

Indeed, Pigou seems like an unlikely hero for the left. In his General Theory, John Maynard Keynes, whose legacy now enjoys the affection of the liberal and begrudging respect of most others, singled Pigou out for epitomizing the outdated, Polyannaish optimism that the market would self-regulate and return to a full-employment equilibrium by itself.

These days, Pigou’s name is most associated with greenhouse gas emissions, but not in an Earth First! activist sort of way. Instead, it’s Pigou who is invoked by highly credible, widely respected center-right economists like Harvard’s own N. Greg Mankiw. Mankiw went so far as to form a “Pigou Club” in 2006.

But Pigou and Pigou’s thought have a great deal to offer those calling for redistribution. In his magnum opus, The Economics of Welfare, Pigou wove a theoretical framework in which individual and societal wellbeing were fundamentally at odds. The rich, once rich, Pigou argued, had no rational reason to help the poor, just as a factory owner had no rational reason to stop polluting in the face of profits.

There seems to be a misconception that to embrace traditional economic theories, one must return to the simplicity of Adam Smith’s optimistic dictum that acting in self-interest ultimately provides the greatest possible benefit for society. Pigou’s view is, of course, more realistic than Smith’s. Competition, when the cards are stacked, can hurt losers more than it benefits winners. Some regulation, Pigou thought, was necessary for maximizing economic growth.

But growing the pie, for Pigou, was not the ultimate end. Like generations of Utilitarians before him, he was concerned with effecting “the greatest happiness for the greatest number,” as Bentham described the principle. If the rich weren’t even able to spend all their money, why should the poor not use some of the excess? To that end, distribution was a necessary consideration of any good government. The free market worked well in providing incentives, in calibrating needs, in allowing people to choose within constraints. But it did not necessarily effect the most happiness for the most people.

Pigou lived in a time when income inequality was recognized as a growing trend, but he would likely have been shocked by the concentration of capital in the hands of the wealthiest one percent today. How, in a system ostensibly designed to benefit society, so few should be endowed with so much, would have been hard for him to justify., even from his fairly conservative point of view.

This is not to say that we all ought to adopt a Utilitarian framework. Indeed, for complicated reasons, Pigou himself would probably argue that not all should think in those terms. It is, however, to assert that feeling positively inclined towards redistribution need not be conceived of as a “fringe” position, but a mainstream one. Indeed, redistribution should be considered a tenet of economic thought in the mainstream—by critics, by economists, and by policymakers. It is certainly convenient for the wealthiest one percent, along with those who benefit from that one percent’s continued prosperity, to consider redistribution to be the merely folly of irrational idealists. If, however, we desire a culture that promotes social and economic justice, we must begin to recognize redistribution as an economic concept with roots not in socialist thought, but also in the beliefs of the mainstream, and no less applicable in our day than in Pigou’s.

Features

The Government Must Act Regarding Cyber Security

No Comments 23 October 2011

By Alex McLeese

During the last two years, cyber attacks have come to dominate the headlines. The Stuxnet worm targeted Iranian nuclear reactors. Bradley Manning passed thousands of diplomatic cables to Wikileaks. Members of the Anonymous group hacked numerous websites. A young man suspected of having ties to the Iranian government issued hundreds of fake security certificates. The Chinese government seems likely to have backed attacks on Google and security firm RSA.

In light of such chaos, one might expect the United States government to take decisive action. But both Congress and the Obama administration have avoided taking on the challenges that cyber conflict presents.  Military strategy documents have neglected to mention American offensive capabilities, proposed security regulations for the private sector have been loose and security legislation has languished in Congress unpassed. Harvard-affiliated cyber security experts Richard Clarke and Susan Landau disagree on the extent to which the United States should increase Internet surveillance, but it seems clear that the government must do more to defend the nation against attacks.

Numerous kinds of attackers pose threats. Nation states engage in cyber espionage or cyber war, while non-state actors engage in cyber crime or cyber terrorism. As the past two years have made clear, the United States is vulnerable to all of these kinds of attacks. For years, China has stolen American defense secrets, and it is thought to have planted logic bombs in the American power infrastructure in preparation for a cyber war. American corporations are clearly unprepared to defend their private data and security experts believe that it is only a matter of time before terrorists acquire technological expertise.

The United States possesses unparalleled offensive capabilities to wage cyber war, but it is not well positioned to defend itself against cyber attacks. Because it is the world’s most open and wired society, it faces the biggest defensive challenge. The current gap between American offense and defense is dangerous. Just as the nuclear arms race of the late 1950s and early 1960s created incentives for the United States and the Soviet Union to strike first, so might the superiority of cyber offense to cyber defense precipitate a disastrous conflict.

In their recent book Cyber War, Harvard Kennedy School adjunct lecturer Richard Clarke, who served as security adviser to many presidents, and his co-author Robert Knake suggest several ways the United States could improve its cyber defenses. They argue that the U.S. should focus first on securing its power infrastructure and protecting crucial Defense Department networks. In addition, they propose that the U.S. negotiate with other nations to craft an international treaty that would ban first-strike attacks on civilian infrastructure. Such an agreement would prohibit the worst kinds of attacks without restricting America’s own cyber activities.

The Obama administration has not implemented all of these ideas, but it has taken some first steps. In May, the government proposed several pieces of cyber security legislation. The initiatives would impose stiffer penalties for cyber crime, create incentives for private companies to improve their cyber defenses, and give the Department of Homeland Security increased authority to protect critical networks. The proposal calls for the national agency to work with energy companies, water suppliers, and financial institutions to overcome the most pressing threats. In addition, the legislation proposed international standards to encourage Internet freedom and the protection of intellectual property. The government promised to respond to cyber hacking “as [it] would to any other threat to [the] country.” In some ways, the Obama administration proposals lacked teeth and ignored the real dangers of cyber war. However, they were a move in the right direction.

Five months later, however, Congress still has not passed any cyber security legislation. That is not because laws have not been drafted; when the 112th Congress returned from summer recess, 32 cyber security bills were pending. Melissa Hathaway, a senior adviser at the Harvard Kennedy School’s Belfer Center who led Obama’s Cyberspace Policy Review as National Security Council acting senior director for cyberspace, fears that that the bills will continue to languish in Congress. But she hopes for action along three fronts. First, Congress should modernize laws to allow law enforcement agencies to gather evidence and track criminals in the age of cloud computing. Second, the government should create a national data breach umbrella to protect private and government information. Third, the Federal Information Security Management Act should be based not on compliance with a checklist, but on performance during monitoring tests.

Not only does the U.S. lack cyber security legislation, but it also lacks a clear military strategy regarding cyber war. Clarke has written that the Obama administration needs to acknowledge its offensive capabilities and give answers to the most important strategic questions. For example, it should make clear what the role of cyber war is in military strategy, whether it is acceptable to plant “Trojan horses” or “back doors” in other countries’ networks, whether the U.S. Cyber Command might seize and defend private networks in a crisis, and whether there are some civilian targets the government would not attack. In addition, Clarke believes the government should define its policy regarding Chinese cyber attacks. He has argued that the Obama administration should make public its knowledge of Chinese hacking and create a plan to defend America from constant Chinese attacks.

In the long term, the United States will be forced to decide how to balance privacy and surveillance. In his book, Clarke argues for implementing deep-packet inspection systems in the infrastructure of the nation’s largest Internet service providers. Such systems would be able to detect malicious codes and minimize or deter a cyber attack. However, Visiting Scholar in the Harvard Department of Computer Science Susan Landau, an expert on wiretapping, believes that the dangers of current surveillance systems outweigh the risks. In particular, she argues in her recent book Surveillance or Security? that surveillance mechanisms allow hostile actors to access information they would not be able to otherwise. In the coming months and years, the United States will need to decide whether the security benefits of surveillance outweigh  security risks. As it weighs options for future technologies and Internet architectures, the U.S. should seek to adopt those that allow for beneficial surveillance without its current drawbacks.

The number of cyber attacks is likely to increase in coming years, and the United States remains unprepared to defend against them. The Obama administration must outline a clear military strategy regarding cyber conflict, and Congress must quickly pass cyber security legislation. Partisan bickering over the economy should not distract the government from its essential duty to protect the nation from attack.

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.

Editorials

Editorial: The Fight Continues

1 Comment 06 October 2011

This past Labor Day saw a moving display of support for Harvard’s workers, many of whom are currently in the process of renegotiating their contracts. The demonstrations were successful in raising awareness of the contract negotiations of various groups of workers, which are at different stages in this process. The security guards employed not directly by Harvard but by Securitas, have tentatively agreed to a contract with Securitas that would protect their health benefits at the current cost—despite Securitas’ best efforts to raise the price—and that would include other benefits the workers had fought for. The Harvard food service workers have also also recently agreed to a new contract with the university, with what are generally seen as favorable terms. And, the Harvard custodial workers began their contract negotiations with the university on September 19.

As Perspective explained in a Feburary 2011 editorial regarding the food service workers’ contract negotiations, the key issues at stake deal not only with economics but also with respect. According to Bloomberg, Harvard University is the richest school in the world—and constantly getting richer. Over the past year the university’s investments have appreciated by some 21 percent, pushing the value of the university’s endowment to $32 billion, according to a report released September 22 by Harvard Management Company.

For the university and for anybody affiliated with Harvard, it should be nothing less than an utter embarrassment that the university’s labor situation is so contentious. That the world’s richest university could be unable to provide adequate services and a fair contract for its employees should be seen as an outrage.

There is too much distrust right now between the unionized workers and the university, and while both sides should be commended for eventually arriving at an agreement with the food service workers, the protracted and at times bitter negotiation period does not reflect kindly on the university. The university must understand that the value of treating its employees and its community well cannot be measured in dollars and cents; if it could, certainly it would outweigh the value of the money saved by striking a hard line during contract negotiations with its staff.

The security guards’ and food service workers’ contract negotiations are drawing to a close as of the time of the writing of this editorial. However, Harvard should learn what it can from those experiences and apply that understanding of the community in the upcoming negotiations with the custodial workers. Making negotiations difficult and drawing them out fosters distrust of the university and its management, among its employees, among students, and among members of the broader Harvard community. If the university does not respect the members of its community, the ramifications will go deeper than the bottom line.

Perspective encourages Harvard to make every possible attempt to meet the demands of its workers, for the sake of both sides of the negotiations, and for the sake of the other members of the community who will be affected by the outcome and by the way the university handles itself during the process.

The negotiations with the food service workers provided an opportunity for the university to show its respect for its employees by noting their concerns and acting on them. However, Harvard failed to fully capitalize on that opportunity, instead allowing the negotiations to be drawn out while the university pushed for a more economically favorable deal. The negotiations with the custodial workers will provide another opportunity to do the same; hopefully Harvard will seize the moment and will avoid making the same mistakes.

Don’t Punch (II)

Features

Don’t Punch (II)

No Comments 06 October 2011

By Sabrina Gharib Lee

I first began writing about final clubs because I thought they were on their way out. As a young, hopeful sophomore still new to the ways of Harvard, I believed that once male final clubs were exposed for what they are, they would quickly fall out of fashion. And so I began writing, denouncing the rape-permissive attitudes that pervaded male final clubs, and I held my breath as I waited for the revolution.

Needless to say, I was wrong. Two years after I began writing about final clubs and two hundred and twenty years after the first club was founded in 1791, the clubs are still here in all of their gender-exclusive glory. At some point over the last two years, I stopped holding my breath: I arrived at the realization that final clubs aren’t going anywhere anytime soon because they derive power from larger social structures that condone gender exclusivity and offer long-standing patterns of male control over social space and networks. It is, in other words, no coincidence that Harvard students have largely failed to mobilize around initiatives that protest the male-dominated nature of our social spaces and all the social dynamics that come with them. Final clubs are reflections of the imperfect, unequal world we live in, and as long as those larger social dynamics persist, so, too, in all likelihood, will heteronormative and male-dominated spaces on our campus.

This piece aims to reconceptualize the final club issue by grounding it in this realization. I begin with the question, “What do we do with the knowledge that final clubs’ power is coextensive with larger structures of exclusion?” In answering this question, I advocate for one of three possible courses of action. The first possible course of action, as articulated by Nataliya Nedzhvetskaya, is acceptance: students should accept and participate in final club culture in order to better prepare themselves for the competitive world beyond Harvard.  The second course of action calls for a deprivileging of social issues surrounding final clubs; it asks, “If final clubs are simply one entry point for activism around larger social issues, why not refocus our efforts on more prominent and influential discriminatory institutions?” The final course of action is resistance: it argues that students must engage in acts of resistance against final clubs and attempt to remodel larger social structures and dynamics through practices of everyday life. The remainder of this piece will advocate for this last course of action and argue that because dominant power structures are sustained and perpetuated through the repetition of deeply ingrained social rituals, students must abstain from punching final clubs this fall.

This argument is based in a theoretical framework that lends importance to everyday behaviors. One theorist whose work has shaped this framework is feminist philosopher Judith Butler, who argues that dominant power structures cannot reproduce and sustain themselves, but are both perpetuated and transformed through individual practices. Butler shapes her discussion of gender around the hypothesis that the repetition of certain rituals—wearing a dress, for example—may strengthen and ossify existing social structures, whereas subversive rituals, such as cross-dressing, may precipitate “a crisis of knowledge, a situation of not-knowing” that exposes existing dominant cultural definitions and ideals as tenuous, contested and ungrounded.  Importantly, Butler argues that these subversive practices of everyday life destabilize existing norms and hierarchies and encourage their revision.

Butler’s framework has important implications for the final club issue. Even if punching a male final club will not make or break the club itself, Butler shows us that the ritual of attending a punch event, and of eventually participating in final clubs as a member, helps sustain and ossify the larger social structures and the historical patterns that guarantee the survival and cultural supremacy of final clubs and other discriminatory institutions. On the other hand, not punching a final club by no means guarantees these institutions’ immediate demise; however, abstaining from the process—especially when that decision is made public—is productively disruptive and initiates a process whereby larger systems of exclusion become undermined and open to revision.

Why, then, should Harvard students subscribe to the framework offered by Butler and let it guide their behavior during this punch season? Substantiating Butler’s understanding of everyday life empirically would be difficult indeed, and even if there were a more abundant body of research attempting to explore the validity of Butler’s claim, that research on its own could never put to rest the question at the heart of the final club issue: is the personal political? We all are eagerly awaiting the development of an idea world that will answer that question with certitude, but in the interim, we face important ethical decisions, including the decision of whether or not we punch final clubs or participate in their various rituals. This piece takes the stance that, while we wait for the answer to this question to arise from our experiences, research, and meditations, we must assume that the personal is political, for there is too much to lose if we erroneously assume otherwise. We must, in other words, assume that we have political agency and influence even in our private lives because there is almost nothing to lose if we are wrong and because we stand to gain everything if we are right.

We therefore must not turn away from the final club issue by taking the first course of action (acceptance) or the second (deprivileging final club issues). We must guide our actions with the hope that engaging in acts of resistance against final clubs may disrupt and help redefine social patterns. And we cannot risk accepting or ignoring discriminatory institutions such as final clubs, even if we are addressing related social justice issues in other aspects of our lives, for it is possible—or, according to Butler, probable—that in doing so, we help sustain oppressive historical patterns and ossify existing systems of exclusion.

As a senior, therefore, I arrive where I began as a sophomore: Don’t punch. We must continue with the project of resistance in our everyday lives during the final club punch season, even with the knowledge that such resistance may not effect immediate or concrete changes in the institutions we boycott or practices from which we abstain. In The Practice of Everyday Life, cultural theorist Michel de Certeau observes that individuals, through rituals of consumption and participation, engage in “infinitesimal transformations of and within the dominant cultural economy in order to adapt it to their own interests and their own rules.”  By not punching final clubs this fall and by disrupting the rituals that surround them more generally, we aspire to engage in such transformations and to craft new patterns of behavior through everyday acts of resistance, thus shaping the institutions that define our social landscape instead of letting them shape us.

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