Divest Terror

The Problem

The states that support terrorist organizations benefit from other Free World sources of funding besides the sale of oil.

Perhaps the most important of these involves huge sums our enemies garner from unwitting American investors. A number of publicly traded enterprises that partner with terrorist-sponsoring regimes raise funds in US capital markets.

A study released in August 2004 by the Center for Security Policy (http://www.divestterror.org/) examined an illustrative subset of this problem - the holdings of America's top 100 public pension funds. This study revealed that:

On average, America's leading public pension systems - representing firefighters, police officers, military personnel and veterans and other government employees - invest between 15% and 23% of their portfolio in companies that do business with state-sponsors of terror.Most public pension systems and university endowments are unable to quantify their resulting exposure to what the Securities and Exchange Commission calls "Global Security Risk."

Few of these funds have taken any steps to inform their beneficiaries about such exposure, let alone taken steps to reduce it by divesting the stocks of companies that partner with America's enemies or through other means.

The Center for Security Policy's study showed that the American pension funds examined had approximately $188 billion invested in companies that partner with terrorist-sponsoring regimes. Of that amount, roughly $73 billion was actually invested in the countries in question. Since money is fungible, it is reasonable to conclude that at least some of these staggering amounts are being used to underwrite terror, ballistic missile, weapons of mass destruction or other threatening activities.

What Needs to Be Done
Individual Americans can spearhead a divestment initiative, to cut the flow of funds to state-sponsors of terror.

1. Organize to reach state officials

• State and local public pension funds should be required by law to divest the stock of any company that does business in terrorist-sponsoring nations.



• Send letters to the governor, state treasurer, leading state senators, and representatives or assemblymen.



• Sample letters can be downloaded from http://www.divestterror.org/.

2. Create a buzz. Send an e-mail to family, friends, neighbors, congregation leaders and members, and business associates to educate them about this issue.

3. Engage the media. Bring this issue to public awareness through local, community, and state media: newspapers, talk radio, and television.

4. Don't take 'No' for an answer.

• Set clear markers and timetables for action.



• Ensure that the media are aware of any commitments that are made - and whether they are met.

Contributor: Christopher Holton