Billionaires Buying Democracy

On Monday Nov. 30 the ARCO Forum hosted its most heavily attended event of this year: a speech by George Soros called "The Crisis of Global Capitalism: Open Society Endangered." With over 700 people in attendance, security had to shut down the building 15 minutes into Soros' speech in order to prevent more people from packing into the overflowing room.

It is hardly surprising that so many people showed up to hear the billionaire philanthropist speak. After all, investment banking is one of the most popular fields for graduating seniors and economics is the most popular concentration at Harvard. Soros spoke at a campus divided between seniors pursuing economic success and those pursuing social ideals.

While his words gave hope to seniors who think they can make millions and then save the world, the very fact that the world is increasingly turning to rich men like Soros, Bill Gates and Ted Turner to solve its problems is troubling. The power to change our world's fate should not rest in the hands of a few cutthroat capitalists.

Soros made his billions as a financial speculator, moving money around the world in different currencies in order to make a profit. At the high point in his career he made $1 billion short-selling the British pound, and became known as the "Man Who Broke the Bank of England."

It is natural for those who are getting the short end of the stick in any situation to complain. But it is not often that those who are wildly successful within the current system actively oppose it. Yet in spite of the way he made his money, Soros is now preaching a doctrine directly opposed to the fundamentals of modern economics which he has practiced so successfully.

At his Harvard speech, he said: "When success takes precedence over integrity and politics is dominated by money the political process deteriorates fueling the resentment against politics and government in general in a self-reinforcing process. The situation is even worse when we look at the world at large."

This from a man who owes his reputation for being a man of integrity (not to mention his reputation in general) to his success, and who fuels governments of his choosing with more monetary aid than the United States?

But don't call Soros a hypocrite. He donates money to what he values: expansion of religious pluralism, freedom of the press and democracy.

What worries those of us who value freedom and equality in society is not Soros the man. After all, he gave photocopiers to Hungary to foster freedom of the press; and he isn't building nuclear weapons or launching terrorist campaigns like some of the other richest men in the world. What is scary is the system which could create a Soros, or others who seem to single-handedly fund the good works of the world.

Soros advocates government intervention in order to protect and promote those things which the free market ignores, what he calls "intrinsic values." But when Soros writes that "society needs institutions to serve such social goals as political freedom and social justice" (as he did in a January 1998 Atlantic Monthly article) the world recognizes him as becoming one of those institutions. Instead of a world government, or international rules of practice, men who have become blindingly wealthy using cutthroat practices in the global economy have become institutions of great power. These men are either a George Soros or an Osama bin Laden. Soros uses his wealth for what most consider common good. Bin Laden has used his millions for terrorist purposes.

The world is now relying on several mega-wealthy men to solve the its problems, and is jeopardized by others. If governments are taken out of the equation we will end up being governed by philanthropists and terrorists, warring against each other with increasingly large fortunes.

This may be a drastic view of the future--after all, we still have a United States government. Still, Soros and philanthropists like him are not just modern-day Good Samaritans, they are symbols of how out-of-control the global economy has become.

When Ted Turner is bailing out the United Nations and the United States is refusing to pay its dues, it is a clear sign that governments are losing power and money is stepping in to pick up the difference. Why did so many show up to see Soros? He has been incredibly successful, a man who is a model for many Harvard students. But in his own words two Mondays ago, "The need to succeed has swamped our concern with the common good."

And who is to change this? Soros points the finger back at us. "The initiative must come from those people and those countries which have been successful in the global competition," he told the ARCO crowd.

How can we change the world? If we set out to make millions like Soros, even if we succeed, we are only increasing the inequality of wealth in the world. But if we follow Soros in word and not deed, we might help our government create policies and rules which can allow global capitalism to operate in a universal framework of law. Money must not be allowed to replace politics, and financial influence is no replacement for democracy. Having men like Soros call the shots creates a global aristocracy.

Until equality and restraint in global markets are achieved, Soros and bin Laden are able to give every government a run for its money, one by promoting democratic ideals without the constraints of the democratic process, the other, by seeking to destroy the fragile institutions we have in place.

Meredith B. Osborn '02 resides in Greenough Hall.