But what is lobbying in the United States? It is corrupting politicians and civil servants with money and material benefits by private interest groups that wish the government to heed their way. Lobbying is a multibillion-dollar industry, conducted both in Washington and in state capitals.
These days, the full force of U.S. lobby efforts is aimed at President Barack Obama’s healthcare initiative, which is being torn to shreds by interest groups paying off politicians to vote their way. It also includes a mounting media campaign to create doubt in the public mind. Never has Washington witnessed such an unabashed display of money power.
While the United States has long lectured others about the evils of corruption and black money, it has turned a blind eye to its own corruption. On the healthcare issue elected officials are being bought and sold to switch their allegiance. A similar initiative was shot down by private interest groups when former President Bill Clinton attempted it 15 years ago.
The current initiative has gotten nowhere in the last six months. If it succeeds at all, it will be in a truncated version with controversial provisions taken out.
Lobbyists in the second quarter of this year alone have spent US$166 million to shoot this initiative down. By the time it comes to a vote in Congress, costs may be anywhere from US$4-500 million. This is a tremendous sum of cash going into politicians’ pockets.
Both proponents and opponents of the healthcare initiative on both sides of the aisle have received money from a coalition of healthcare providers, insurance companies and drug companies.
Take for example the conservative Democrats, called the Blue Dogs, who are among an important middle-ground group of both parties in this fight. They have taken millions to stick to the middle ground. House Ways and Means Committee Chairman Charles Rangela, a Democrat, has taken US$1.6 million from healthcare industry lobbyists. The Republican representative on the same committee has taken $1 million from the same lobbyists.
This U.S. style of corruption is legal. Special interest groups who provide these sums claim them as business expenses and proudly show them in their tax filings.
The healthcare industry is not the only one corrupting elected officials in Washington. Other interest groups push their own agendas; there are six lobbyists for each legislator in Washington, all registered with the government. In 2008, lobbying expenses amounted to about US$3.3 billion.
There are 14,800 registered lobbyists in the United States, who operate under various lobby groups and under the flags of well-known registered companies. Senior and more influential lobbyists are paid in excess of $400,000 a year, with juniors starting at under $70,000. All their expenses are paid, which makes lobbying an attractive profession.
All this is a natural outgrowth of democracy. A dictator can order people around and have his way all the time, but in a democracy power is divided.
“Earmarks” are specific to U.S. democracy – the addition of items to a spending bill for a specific project, location or institution. If a bill put forth by the administration or Congress cannot pass, additional legislators may be bribed to support it by adding money earmarked for specific projects in their constituencies. This happened when the “bridge to nowhere” was built in Alaska at a cost of about $250 million.
Dozens of unnecessary spending projects are undertaken every year to favor one interest group or another. Lobbyists make sure their paymasters get their way. The Congressional Research Service, a private watchdog group, totaled earmarks from 1994 till 2004 at $53 billion.
There is a strong connection between lobbying and political contributions. Although direct corporate contributions for political campaigns are strictly forbidden, corporate influence peddling continues unabated. Any interest group or trade guild seeking influence in the corridors of power maintains a steady stream of cash to the election campaign of one politician or another.
By the end of the year healthcare lobbyists alone will have spent half a billion dollars to block the public option from the Obama initiative. In a democracy it is legal to oppose the ruling party’s initiative. In the United States there is no limit on how much can be spent to oppose an initiative; this makes the country as corrupt as any in the world.
Party conventions, although publicly financed, are playgrounds for future influence peddlers. This is where people are nominated for upcoming elections. Behind the scenes there is intense jockeying for key advisory jobs, which could lead to Cabinet posts, especially in politically sensitive portfolios.
Private interest groups spend tons of money during the conventions, pushing for people they trust to get advisory jobs. Lobbyists also form the central core of the election campaign staff. Without their unique knowledge and skill base it would be hard to run an election campaign. Lots and lots of money is spent.
All told it is bribery and corruption on a grand scale, but unfortunately it is all legal.
It is the rare retired White House official that does not become a lobbyist. Their unique knowledge and background make them prime candidates for influence peddling. It is a pity that former government officials become key influence peddlers.
Therefore, lobbying in the United States is a sophisticated name for corruption and bribery. Corporations call it a legitimate business activity, but it is no different from corruption in third world countries. It is hard to tell who is more corrupt. In calculating this, lobbying costs must be included. This would probably put the United States and most Western democracies on a par with most third world countries.
--
(Hari Sud is a retired vice president of C-I-L Inc., a former investment strategies analyst and international relations manager. A graduate of Punjab University and the University of Missouri, he has lived in Canada for the past 34 years. ©Copyright Hari Sud.)







Thank you Hari Sud