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1. Navigating the gray zone: the theoretical dilemma of interest groups impacting public life through lobbying and the threat of corruption

Author:
Mariusz Popławski
Publication Date:
12-2024
Content Type:
Journal Article
Journal:
Nowa Polityka Wschodnia
Institution:
Faculty of Political Science and International Studies, Nicolaus Copernicus University in Toruń
Abstract:
From the very beginning of human civilization, the ones in power were impacted by the others, who tried to gain from a more favorable decision. In order to achieve that, one could have used the correct arguments based on rationality, which, for instance, could have had an economic background. That demands much effort, meaning we should know the person we are trying to convince, learn about the situation, and gather opinions, evidence, and all sorts of data that could be useful. Others could try something risky and illegal – all sorts of corruption, including bribes, embezzlement, nepotism, extortion, kickbacks, etc. The distinction between the two seems straightforward, but only on the surface. If we get deeper into the issue, things get way more complex, and we might find it difficult to draw a clear line since the gray zone keeps growing. The paper concentrates then on the joint history of corruption and lobbying to give us a broad picture of the issue. Secondly, various concepts of the definition are analyzed to understand where we are in terms of the search between the two phenomena. The article ends with conclusions and further research suggestions.
Topic:
Corruption, Government, Lobbying, and Interest Groups
Political Geography:
Global Focus

2. Foreign influence in US politics

Author:
Marco Grotteria, Max Miller, and S. Lakshmi Naaraayanan
Publication Date:
06-2024
Content Type:
Working Paper
Institution:
Nottingham Interdisciplinary Centre for Economic and Political Research (NICEP)
Abstract:
This paper documents that foreign lobbying influences US government spending. We introduce a comprehensive dataset of over 230,000 date-stamped, in-person meetings between agents representing foreign governments and individual US legislators, state governors, and employees of US executive agencies from 2000 to 2018. The data suggest that foreign agents meet disproportionately with individuals important for foreign aid and corporate subsidies, like legislators sitting on powerful congressional committees. Foreign agents also maintain connections with legislators even after they depart powerful committees, providing evidence that meetings do not just reflect short-term quid-pro-quo arrangements. Around meetings, foreign countries receive greater amounts of financial aid. Foreign firms whose governments lobby more often also receive larger corporate subsidies from areas the legislators and governors that they meet with represent. Finally, legislators who meet more often with foreign agents receive both monetary and electoral benefits, while we do not find changes in the political contributions they receive or in their probability of re-election, suggesting that legislators are not punished by their constituents for meeting with representatives of foreign countries.
Topic:
Domestic Politics, Lobbying, and Foreign Influence
Political Geography:
North America and United States of America

3. The Lobbying Battle for Nagorno-Karabakh

Author:
Ben Freeman and Artin DerSimonian
Publication Date:
12-2023
Content Type:
Policy Brief
Institution:
Quincy Institute for Responsible Statecraft
Abstract:
Long before Azerbaijani forces took the Nagorno-Karabakh region by force in September — displacing 100,000 Karabakh Armenians in an act that’s been described as ethnic cleansing — Azerbaijan and Armenia were waging a furious lobbying and influence battle in Washington. A closer examination of the countries’ respective attempts to influence U.S. policymakers before the Second and Third Nagorno-Karabakh Wars provides critical context for understanding Washington’s muted reaction to Azerbaijan’s recent aggression, seemingly at odds with the strong moral position U.S. officials have taken over Russia’s invasion of Ukraine. Azerbaijan has spent years pursuing a course of “caviar diplomacy” in our nation’s capital: using the authoritarian petrostates’ wealth to court officials, journalists, and scholars. Since 2015, the government of Azerbaijan has spent just over $7 million on lobbying and public relations firms registered under the Foreign Agents Registration Act (FARA). Azerbaijan’s agents — like BGR Government Affairs — have conducted vigorous advocacy for Baku’s interests, including continued military assistance to Azerbaijan following the Second Nagorno-Karabakh war in 2020. Azerbaijan’s influence in the U.S. has also been aided considerably by Israel; Baku boasts powerful American-Israeli advocates like Ezra Friedlander as registered lobbyists for its interests. And this only constitutes what’s publicly known which, given Azerbaijan’s history, is likely just the tip of the iceberg. As the Organized Crime and Corruption Reporting Project (OCCRP) has painstakingly documented, the Azerbaijan government has a history of laundering its influence in Europe and the U.S. Azerbaijan’s extensive influence efforts in the U.S. stand in stark contrast to those of the Armenian interests which, until earlier this year, had not had a FARA registered lobbying or public relations firm on their payroll since 2020. Armenia has traditionally relied on its extensive diaspora to garner influence in the West, with repeated successes including a boycott of lobbying and PR firms working for Azerbaijan and President Biden’s recognition of the Armenian genocide. But as the negligible U.S. response to Azerbaijan’s use of military force in Nagorno-Karabakh shows, Washington’s perceived strategic interests continue to trump Armenians’ concerns. As the negligible U.S. response to Azerbaijan’s use of military force in Nagorno-Karabakh shows, Washington’s perceived strategic interests continue to trump Armenians’ concerns. U.S. officials’ overly-cautious and restrained reaction to the lightning offensive against Nagorno-Karabakh and the resulting mass exodus of Armenians from the region seems to reflect a stalemate in the lobbying and influence battle the two countries have been waging in the U.S; it may also be a product of the selective approach to human rights within U.S. foreign policy. No matter how one weighs the precise causes, the effect remains the same: a country used military might to reclaim its territory during a negotiating process, faced little consequences from the U.S., and seems emboldened to continue its aggression in an already volatile region. Time will tell the dangers of that decision.
Topic:
Foreign Policy, Territorial Disputes, Lobbying, and Foreign Influence
Political Geography:
Armenia, Azerbaijan, United States of America, and Nagorno-Karabakh

4. The Emirati Lobby in America

Author:
Ben Freeman
Publication Date:
12-2022
Content Type:
Policy Brief
Institution:
Quincy Institute for Responsible Statecraft
Abstract:
The United Arab Emirates (UAE) has exerted considerable influence in its region in recent years and has also been a major factor in U.S. foreign policy. The UAE military and its proxies fought for years in Yemen and still maintain significant influence there, despite a 2020 pledge to withdraw from the devastating conflict. The UAE and other Gulf states have normalized relations with Israel under the auspices of the Abraham Accords. The UAE also continues to receive billions of dollars worth of U.S. military equipment and weapons. On the soft power side, the UAE played host to World Expo 2020, also known as the Expo 2020 Dubai, a cultural event that brought together representatives from nearly every country in the world. A small army of U.S.–based lobbyists working on behalf of the UAE has played a role in all these events, and in nearly every aspect of U.S. foreign policy in the Middle East. Based on an exhaustive analysis of all Foreign Agents Registration Act (FARA) documents filed by organizations registered to work on behalf of UAE clients in 2020 and 2021, this brief offers a number of key findings regarding legal lobbying activities of the UAE in the United States.
Topic:
Foreign Policy, Government, Soft Power, and Lobbying
Political Geography:
Middle East, United Arab Emirates, United States of America, and Gulf Nations

5. The Lobbying Battle Before the War: Russian and Ukrainian Influence in the U.S.

Author:
Ben Freeman
Publication Date:
07-2022
Content Type:
Policy Brief
Institution:
Quincy Institute for Responsible Statecraft
Abstract:
• Russian President Vladimir Putin’s fateful decision to launch a full-scale invasion of Ukraine has united much of the world in condemnation of this unprovoked assault on a sovereign nation. In Ukraine, the war has already caused rampant destruction, the deaths of thousands of civilians, and the displacement of millions, while tens of thousands of soldiers on both sides of the conflict have been killed or wounded. The U.S. has imposed crippling sanctions on Russia’s energy and financial sectors while providing tens of billions of dollars in military assistance to Ukraine. • Behind the headlines of these U.S. foreign policy decisions lies a major, but little-discussed, factor in foreign policy: lobbying. Nearly every action the government has taken regarding Russia and Ukraine has been the object of considerable attempts at influence by U.S.-based lobbyists for Ukraine and Russia. Based on an exhaustive analysis of all Foreign Agents Registration Act (FARA) and Lobbying Disclosure Act (LDA) documents filed by organizations registered to work on behalf of Ukrainian and Russian clients in 2021, this brief offers a number of key findings, including: ° Nine organizations were registered under FARA to work on behalf of Russian clients in 2021, while 11 were working for Ukrainian clients. ° Those organizations reported making just 21 contacts on behalf of their Russian clients and 13,541 contacts on behalf of their Ukrainian clients. ° Russian clients paid over $42 million to firms representing them, (although $38 million of this went to Russian state media), while Ukrainian clients paid just over $2 million to the firms working on their behalf. ° Ukrainian lobbying efforts add up to more than four times the amount of work the Saudi lobby (among the largest foreign lobbies in Washington) and other prominent groups have reported in any year—due in large part to a notable gap in transparency. ° The pro-Ukraine lobby appears to have achieved far more contacts than the pro-Russia lobby with less money spent, an anomaly that could be explained by the pro-Russia lobby using a less transparent statute—the LDA—for reporting its lobbying efforts and the greater zeal shown by some pro-Ukraine lobbyists.
Topic:
Foreign Policy, Influence, Lobbying, and Russia-Ukraine War
Political Geography:
Russia, Ukraine, Eastern Europe, and United States of America

6. Why the CHIPS Are Down: Stock Buybacks and Subsidies in the U.S. Semiconductor Industry

Author:
William Lazonick and Matt Hopkins
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
The Semiconductor Industry Association (SIA) is promoting the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act, introduced in Congress in June 2020. An SIA press release describes the bill as “bipartisan legislation that would invest tens of billions of dollars in semiconductor manufacturing incentives and research initiatives over the next 5-10 years to strengthen and sustain American leadership in chip technology, which is essential to our country’s economy and national security.” On June 8, 2021, the Senate approved $52 billion for the CHIPS for America Act, dedicated to supporting the U.S. semiconductor industry over the next decade. This paper highlights a curious paradox: Most of the SIA corporate members now lobbying for the CHIPS for America Act have squandered past support that the U.S. semiconductor industry has received from the U.S. government for decades by using their corporate cash to do buybacks to boost their own companies’ stock prices. Among the SIA corporate signatories of a letter to President Biden in February 2021, the five largest stock repurchasers—Intel, IBM, Qualcomm, Texas Instruments, and Broadcom—did a combined $249 billion in buybacks over the decade 2011-2020, equal to 71 percent of their profits and almost five times the subsidies over the next decade for which the SIA is lobbying. In addition, among the members of the Semiconductors in America Coalition (SIAC), formed specifically in May 2021 to lobby Congress for the passage of the CHIPS for America Act, are Apple, Microsoft, Cisco, and Google. These firms spent a combined $633 billion on buybacks during 2011-2020. That is about 12 times the government subsidies provided under the CHIPS for America Act to support semiconductor fabrication in the United States in the upcoming decade. If the Congress wants to achieve the legislation’s stated purpose of promoting major new investments in semiconductors, it needs to deal with this paradox. It could, for example, require the SIA and SIAC to extract pledges from its member corporations that they will cease doing stock buybacks as open-market repurchases over the next ten years. Such regulation could be a first step in rescinding Securities and Exchange Commission Rule 10b-18, which has since 1982 been a major cause of extreme income inequality and loss of global industrial competitiveness in the United States.
Topic:
Science and Technology, Regulation, Legislation, Strategic Competition, Subsidies, and Lobbying
Political Geography:
United States of America

7. Shadow Lobbyists

Author:
Rocco d'Este, Mirko Draca, and Christian Fons-Rosen
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
Special interest influence via lobbying is increasingly controversial and legislative efforts to deal with this issue have centered on the principle of transparency. In this paper we evaluate the effectiveness of the current regulatory framework provided by the US Lobbying Disclosure Act (LDA). Specifically, we study the role of ex-Congressional officials who join US lobbying firms in positions that could be related to lobbying activity but without officially registering as lobbyists themselves. We find that firm lobbying revenues increase significantly when these potential ‘shadow lobbyists’ join, with effects in the range of 10-20%. This shadow lobbyist revenue effect is comparable to the effect of a registered lobbyist at the median of the industry skill distribution. As such, it is challenging to reconcile the measured shadow lobbyist effect with the 20% working time threshold for registering as a lobbyist. Based on our estimates, the contribution of unregistered ex-Congressional officials could explain 4.9% of the increase in sectoral revenues, compared to 24.0% for the group of registered officials.
Topic:
Corruption, Government, Politics, Regulation, Money, Lobbying, and Revolving Door
Political Geography:
North America and United States of America

8. Beyond the Global Financial Crisis: Structural Continuities as Impediments to a Sustainable Recovery

Author:
Ziya Önis and Mustafa Kutlay
Publication Date:
01-2012
Content Type:
Journal Article
Journal:
All Azimuth: A Journal of Foreign Policy and Peace
Institution:
Center for Foreign Policy and Peace Research
Abstract:
There has scarcely been a day in the last three years when we have not read depressing headlines in the newspapers about the global economic crisis. The current turmoil, which many experts concur in seeing as the worst jolt to the world economy since the Great Depression, is pushing the parameters of the established system to its limits. One could say that we see, in the short-term measures taken against the crisis at the time, an effective anti-crisis strategy. But ironically, the promptness with which these short-term measures were enacted prevented adequate questioning of the dominant paradigm which had caused the crisis. As a result, the structural problems leading to the crisis were not reduced. Despite the occurrence of the deepest economic crisis to be experienced since the Great Depression, the present economic emergency did not shake the neoclassical economic paradigm as strongly as was needed. A puzzle that this study aims to solve arises here: Why and how has the conventional wisdom survived and reproduced its intellectual hegemony even after the “most devastating economic crisis” since the Great Depression?
Topic:
Economics, Economic structure, Global Financial Crisis, Recovery, Lobbying, and Regulatory Capture
Political Geography:
Global Focus