A FUTURIST PERSPECTIVE 1999 Annual Report Contents... Prelude...... 1 Chairman’s Letter...... 2 President’s Message ...... 3 Vice President’s Letter ...... 4 Research Director’s Report ...... 5 A Futurist Perspective...... 6 Hudson’s Perspectives on Urban Policy ...... 8 Race Relations Workforce Development Education Crime Control Welfare Michigan Urban Policy Initiative Hudson’s Perspectives on Social Policy...... 20 Cultural and Social Issues American Common Culture Civil Society and Cultural Renewal Civil Justice Reform International Religious Liberty Hudson’s Perspectives on Economic Policy...... 25 Campaign Finance Reform Health Care Regulatory Studies Economics Hudson’s Perspectives on International Policy ...... 30 Global Food Issues National Security International Affairs Trade Russia Digital Future Indonesia Special Events and Programs ...... 39 Recognition and Influence ...... 41 Research Staff ...... 44 Board of Trustees ...... 46 Adjunct Fellows ...... 47 Financials and Development ...... 48 Donors...... 50 Hudson Institute is... a private, not-for-profit research organization founded in 1961 by the late Herman Kahn. Hudson analyzes and makes recommendations about public policy for business and government executives and for the public at large. It does not advocate an expressed ideology or political position. However, more than thirty years of work on the most important issues of the day has forged a viewpoint that embodies a futurist orientation, skepticism about conventional wisdom, optimism about solving prob- lems, a commitment to free institutions and individual responsibility, an appreciation of the crucial role of technology in achieving progress, and an abiding respect for the importance of values, culture, and religion in human affairs. Since 1984, Hudson Institute has been headquartered in Indianapolis, Indiana. It also maintains offices in Washington, D.C.; Montreal, Canada; Madison, Wisconsin; Tampa, Florida; London, England; and Moscow, Russia. AN ANNUAL REPORT IS A BACKWARD glance at accomplishments. While Hudson Institute relishes this opportuni- ty to look back—it reveals a rich array of influence and contribution—this world- renowned think tank does so from a future-oriented perch. Encompassing economic, social, spir- itual, and political facets of the local, national, and global communities, see how each Hudson scholar yet again in 1999 translated a futurist’s perspective into practical application.

1 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Chairman’s Letter

by Walter P. Stern

THE YEAR 1999 WAS ONE OF Outlook, our quarterly publica- continued growth for the Hudson tion. In addition, our scholars are Institute; we continued to add to published with increasing fre- our senior staff, we expanded our quency on the op-ed pages of areas of competence—both at major publications—particularly home and internationally—and The Wall Street Journal—supple- we bolstered our financial mented by frequent appearances underpinnings. on television and radio in New Over the years, Hudson has York, Washington, D.C., had a flexible agenda, doing work Indianapolis, and other major in public policy aimed at busi- media markets. Conferences ness, government, and the public have also broadened the impact at large. Known originally for its of our work. futurist and multidisciplinary ori- We have been fortunate to entation, with much of its work receive increased support from centered on national security the corporate world, several lead- issues, it has, over the years, ing foundations, and individual enlarged its agenda—both domes- contributors. With an expanded tically and internationally—with financial base, it is my hope that a flexible focus on the major we will be able to grow existing Walter P. Stern, problems facing our society. In programs as well as address new chairman of board of trustees recent years this led to particular challenges. emphasis on welfare reform, Looking forward, it is my crime control, and educational hope that we may see a reemer- reform in public schools. gence of some of our original pil- Under the leadership of lars: multi-disciplinary research, President Herbert London, national security issues, skepti- Hudson’s research agenda has cism about conventional wisdom, materially expanded. This was optimism about solving problems, accomplished through the addi- and a commitment to the free tion of extremely talented experts market—all with a futurist orien- in a number of disciplines, tation. In the year 2000, we will including technology, regulatory be publishing the books Beyond reform, culture and society, and the Year 2000 and The Future health care policy. Internationally, of Europe, as well as dealing we have worked in such diverse with such issues as the role of areas as Eastern Europe, Russia, technology and the place of ethics Korea, South Africa, and and values in the changing civil Indonesia. society. We have substantially With effective leadership, a increased the impact of our work dedicated staff, and some very through a number of approaches. helpful trustees, I look forward to Among our most important the future of Hudson with one of accomplishments has been the Herman Kahn’s oft-used phrases: growing readership of American “guarded optimism.”

2 H UDSON I NSTITUTE 1999 ANNUAL R EPORT President’s Message

by Herbert London

THE SIGNATURE OF HUDSON on television and radio pro- Institute research is discernable grams in New York, Washing- from the United States to South ton D.C., and Indianapolis. Africa to Indonesia. Welfare Along with the Institute’s reform, crime prevention, tort national and international reform, civic education and fed- impact, efforts in the local eralism are some of the diverse Indianapolis community yielded areas in which the work of important initiatives: our work Hudson researchers influenced in race relations allows a frank policy with considerable impact. exchange of views; our restora- This last year was particu- tive justice project gives youth- larly fruitful, with the ful offenders an alternative to Institute’s work in demand the criminal justice system; and across the nation. Our our comprehensive analysis of American Outlook established the state’s education system itself as one of the premier poli- will—in time—be a catalyst for cy publications, as attested by reform, rigorous standards, and commentary in The Wall Street parental involvement. Journal, Journal of Commerce All of our work lays and Reader’s Digest. Hudson groundwork for a successful Herbert London, president and chief Institute also found itself fea- future. It is in our futurist per- executive officer tured on the pages of major spective that provides the great- journals and newspapers, and est asset to the local and global researchers found eager forums communities. Books dealing with the next century will soon be published to capitalize on the success of Health Care 2020 and Workforce 2020. Also, our researchers realize that the challenges of the future will be different from those in the recent past, as a preoccupa- tion with scarcity gives way to concern over how to deal with abundance. To meet this, Hudson is developing programs on civil society and ethics in the workplace to address the moral and spiritual issues that are emerging in our nation. Clearly we cannot solve every problem, but it is our role to put issues into perspective— to create a context for illumina- tion. To that end, we embrace the new millennium. We are eager to transform that challenge of today into the opportunity of Hudson Institute President Herbert London and former British Prime Minister Margaret tomorrow. Thatcher 3 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Vice President’s Letter

by Curt Smith

FROM PROMOTING A MORE over the course of our culture to advance healthy culture civil society to monitoring an and its increasing coarseness, among various professions and international election to Hudson Institute researchers disciplines. We also will contin- improving ethics in business, will be in the forefront of ue to serve as the host and 1999 was another busy and thought and commentary on development partner with the productive year for Hudson this critical topic. The Institute Foundation for American Institute. The year 2000 will publish a collection of Renewal, a not-for-profit found- promises to be even more essays on the theme of healthy ed by former U.S. Senator Dan engaging as the Institute builds culture, featuring a variety of Coats to identify and highlight on those initiatives and furthers Hudson fellows and adjuncts as the work of nongovernment its research in several key areas. well as noted experts from a organizations focused on meet- One of those key areas variety of perspectives in this ing pressing human needs. where an already-robust field. This book, we trust, will Hudson Institute also envi- research agenda will expand help lay the intellectual founda- sions ongoing research in the even further next year is civil tion for policy initiatives that emerging democracy of Indonesia, where a team of United Nations-sanctioned Hudson election observers joined with the international community to declare the watershed June elections free and fair. We anticipate further activity in Indonesia and in the United States to help this infant democracy set a course toward social stability and economic prosperity. Finally, Hudson joined with Walker Information, an Indianapolis research firm that specializes in business measure- ment instruments (customer satisfaction, employee loyalty, community reputation, etc.) in a nationwide study of the atti- Curt Smith, vice president and chief operating officer, and Susan Darwent, tudes underlying employee administrative assistant commitment. This ground- breaking work enriched the society. This area, which are likely to come forth from all knowledge of our Center for includes such diverse concerns levels of the policy making Workforce Development and as the effect of popular culture establishment. garnered the Institute national on youth violence and the Hudson also will continue media coverage. We look influence of technology on com- its close association with the forward to the international munity, will increasingly occu- Council for Cultural Renewal— counterpart to the study this py our nation as we select new an “organization of organiza- year, and welcome our growing political leadership in 2000. As tions” committed to identifying collaboration with Walker the debate turns to concerns and promoting positive models Information.

4 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Research Director’s Report

by Edwin Rubenstein

HUDSON INSTITUTE ENTERS THE NEW millennium with an expanding international and domestic research agenda, and this past year pro- vided a springboard for that. Internationally, our experts helped to map out a democratic future in Indonesia, orchestrated efforts to rebuild South Africa’s economy and health care system, and set forth a plan to counter criminality in Russia. Domestically, Hudson researchers developed a multi-agency design for crime control, an icono- clastic model for public school reform, and Michigan’s new Urban Homestead Act. What’s more, the enactment of our “Wisconsin Works” was widely hailed as the most successful reform in the nation. Unlike most public policy research organiza- tions, Hudson takes a “hands-on,” ground-up approach to problem solving. Our work in wel- fare reform, education, and housing, for example, combines state-of-the-art policy expertise with an intimate knowledge of local needs, values, and traditions—as well as the political realities. Early on, our researchers assemble teams of local busi- ness people, politicians, scholars, and concerned citizenry to consider policy proposals and map out a process for change. Hudson serves both as an objective source of information and a neutral forum in which competing local interests can forge reform-minded coalitions. A think tank is only as good as its thinkers, and 1999 was a vintage year for bringing new talent to this Institute. We added nationally recognized experts in fields such as campaign Edwin Rubenstein, director of research, and Leslie Swift, finance reform, biotechnology, American culture, administrative assistant health care policy and international trade. Their fields of expertise are diverse, but they all speak the same future-oriented language—thus they bring to Hudson a perspective and practicality unmatched by other research organizations.

5 H UDSON I NSTITUTE 1999 ANNUAL R EPORT A Futurist Perspective

THE MISSION AT HUDSON Institute is to think ahead of the trends and follow information outward past conventional analysis—not only to give a valuable “heads up” but also to shift and steer policy away from the pitfalls ahead. That is why it’s important—and always has been—for Hudson to maintain a futurist’s perspective. During 1999, Hudson researchers delved into urban, social, economic, and interna- tional issues, striving to shed light on future developments. Their work had ramifications locally, nationally, and interna- tionally. Using Indianapolis as a “test lab,” Hudson thinkers explored The Herman Kahn Center underwent major roof renovations in 1999. forums for race relations initia- tives, studied Indiana’s educa- tion systems, and hammered out effective crime control strategies. year, Hudson welcomed (with In Michigan, an urban policy former U.S. Senator Dan Coats) initiative yielded important leg- the new Foundation for American islation which will benefit low- Renewal, which embodies the income families and spur urban type of hands-on self-help and development. The success in the analysis Hudson has always welfare reform efforts in espoused. Wisconsin led to a second phase Beyond U.S. borders, of reform efforts in Florida and Hudson was hard at work defin- elsewhere in the southeastern ing national defense policy in a United States. global setting. Researchers stud- Often policy research was ied and facilitated international conducted with a national focus. relations efforts in Russia, Japan, Getting employers and citizens Korea, China, and South Africa. prepared for the coming changes Actual “hands-on” work included Barb Husk, network administrator in the workforce and health care Hudson’s participation in Indo- Husk on Hudson’s website... dominated a great deal of nesia’s first free election. Hudson research effort. Study and analy- also played an important role in “Knowledge is power! In 1999 sis of regulatory issues and cam- the fight against religious perse- we have attempted to develop paign finance reform provided cution and slavery in Sudan. features on our websites to ever-clarifying insight. The torch None of this happened in help provide our worldwide continued to burn for civil justice a vacuum. Articles, broadcast visitors with a global view that reform, in particular, tort and appearances, seminars, and reaches beyond conventional insurance reform. And new this speeches publicized Hudson’s thinking.”

6 H UDSON I NSTITUTE 1999 ANNUAL R EPORT A Futurist Perspective

findings. Hudson’s voice was heard widely as researchers wrote, testified, and interviewed. Their impact spread quickly and effec- tively through the network of media around the country and the world. Human rights, social health, political wisdom—these were but a few of the gauntlets picked up by the large and diverse Hudson team. The following pages recap the expertise and efforts of some of the best minds in public policy research. Read on. And while looking back over 1999, don’t be surprised to find that you’re taking a peek into the future.

Washington, D.C. administrative staff (l-r): Denise Braye, Melody Campbell, Carol Lynch, Shelley Padilla, Kim Bowling

Hudson in 2020... “Hudson Institute is a think tank devoted to the future. Hudson has already published a book on health care and the workforce in 2020. By the year 2020, we’ll be writ- ing about 2050. Hudson Institute is not only thinking about the future, but helping to shape the future—not only in the year 2020, but every year in the distant future.” Herbert London, president

7 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on Urban Policy

CONSISTENT WITH THE VISION As a result, Hudson’s efforts of founder Herman Kahn, the in 1999 proved the value of an work of Hudson Institute’s vari- open forum for dialogue on race ous urban policy experts is relations, added to the knowl- future-oriented and optimistic. edge bank of the understanding Their work demonstrates a and improvement of Indiana’s belief that collaborative efforts education systems, showed that can indeed yield positive, practi- collaboration can reduce the cal results without dependence amount of crime in society and on a federal government bail- build safer neighborhoods and out. cities, demonstrated successful Working alongside other welfare reform, and created organizations devoted to the homeownership opportunities for study of the workforce, Hudson low-income families. All these researchers illuminated labor activities are contributing to the market difficulties that are economic and social strengthen- pending nationwide and offered ing of America’s cities. analysis and advice. In much of Given their success, the work to date, however, local Hudson’s scholars are now tak- John Weicher, director, or regional communities served ing the lessons learned locally Urban Policy Studies as laboratories—providing test- and informing national and Urban Policy in 2020... ing grounds for race relations international audiences—and in initiatives, crime control strate- the process, working to shape “Whether American cities gies, and welfare and housing urban policy and influence the can reverse the decline of reforms. future. the last half-century depends on whether they can build on the reform efforts of the last decade. The mayors who have started to bring competition and choice to local public services may succeed where the federal government has failed.”

8 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on Urban Policy Race Relations Initiative

PROMOTING RACIAL UNDER- taken initial steps to establish a STANDING and reconciliation was center on human relations and the goal of Hudson Institute’s community affairs which will Race Relations Discussion Series allow researchers to work pro- in 1999. These monthly sessions jects to encourage racial harmo- featured speakers and panelists ny and equality. who explored topics of particular Members of the 1999 advi- interest or concern to the Indian- sory team included: Jan Clark, apolis community as they relate 100 Black Women; David Coats, Diana Etindi, senior fellow to race relations. Group discus- Greater Indianapolis Progress sion followed these presentations Committee; Joe Epps, Indianap- Race Relations in 2020... on a wide range of issues, includ- olis Black Chamber of “Strides in the area of race rela- ing crime in Indianapolis, eco- Commerce; John Hall, Office of tions during the past 20 years nomic empowerment, subcon- the Mayor of Indianapolis; Sam have aimed at keeping peace on scious racism, education, media Odle, Methodist Hospital/ the surface, but not really dealing perceptions, and the census. Clarian Health; Lyman Rhodes, with deeper issues. Based on cur- The discussion series, which Indianapolis Commission on rent population trends, Indiana- garnered favorable community African-American Males; polis will be a much more cosmo- response, added to the general Charles Ware, Baptist Bible politan city by the year 2020, bank of knowledge on the status College; and Darren Washing- which could exacerbate racial of race relations in Indianapolis ton, formerly with the Indiana problems. We are not, however, and furthered relationships among Commission on African- fated to experience racial con- individuals and organizations who American Males. Hudson repre- flict. Many people are working share a concern about this issue. sentatives on this team were hard to make this a city where To work toward its vision Curt Smith, John Clark, and mutual respect and appreciation for the future, Hudson has Diana Etindi. prevail across racial lines.”

1999 Efforts in Perspective • The newly developed Race Relations initiative opened dialogue on topics critical to the welfare of the Indianapolis community. • Hudson made local and national authorities avail- able in areas of concern to this city. • The Institute established a safe forum for discussion of tough issues. • Through the Race Relations initiative, Hudson forged relationships with individu- als and organizations who Race Relations Advisory team: (clockwise) Diana Etindi, Hudson Institute; Jan Clark, 100 share similar goals for the Black Women; Charles Ware, Baptist Bible College; Joe Epps, Indianapolis Black Chamber future of race relations. of Commerce; John Clark, Hudson Institute; Lyman Rhodes, Indianapolis Commission on African-American Males; David Coats, Greater Indianapolis Progress Committee 9 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on Urban Policy Center for Workforce Development

HUDSON INSTITUTE’S CENTER place, the study of Labor Market for Workforce Development divided Information Systems, and using its labors into three areas of the Internet as a tool for recruit- intense activity during 1999: (1) ment and job placement. research and writing, (2) applica- State and local implementa- tions and (3) consulting efforts in tion of the Workforce Investment response to Workforce 2020. Act of 1998 (WIA) continued to Directed by Hudson Senior generate intense demand for Fellow Richard Judy, the Center’s Hudson services. In more than a research efforts focused on finding dozen states, Hudson advised and the answers to a variety of labor assisted state and local-level efforts market challenges, including: to establish workforce investment boards as required by the WIA. • Worker dearth: How to pros- Tight labor markets across the per in an era of continuing nation spurred regional chambers tight labor markets. of commerce and workforce devel- • Workforce development: opment boards to seek Hudson’s What is it and what will assistance in coping with the make it work better? growing scarcity of workers. • Information technology (IT): Hudson also provided advice and Where will it come from? analysis on workforce issues for Marc Wiehn, research assistant Ernst & Young, Andersen Consult- • Immigration and migration: ing, Johns Manville, TRW, Sun What is the significance for Microsystems, and International Wiehn on workforce the U.S. workforce? development... Harvester, among others. The Center’s research also Sales of Hudson’s popular “Technological advances embraced topics on e-commerce Workforce 2020 continued unabated, and dramatic demographic and the emerging virtual work- and it is now in its fifth printing. changes are the driving factors for the future workforce.”

(l-r) Marc Wiehn, research assistant, Hudson Institute; Dorrie LoBue, Metropolitan Evansville Chamber of Commerce; Richard Judy, senior fellow, Hudson Institute; Robert Quick, president and chief executive officer, Metropolitan Evansville Chamber of Commerce; and Jane Lommel, workforce consultant 10 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on Urban Policy Center for Workforce Development

The proceedings of Hudson’s first underway for the second Workforce 2020 Conference were Workforce 2020 Conference published on the Institute’s web- scheduled for September 2000 in site in early 1999, and planning is Washington, D.C.

1999 Efforts in Perspective • The Center for Workforce ERISS and Walker Information. Development continued to • The Center provided nationally research the effects of a tight known keynote speakers on labor market, and provided workforce and economic devel- consultation on local, state, opment topics to organizations and regional levels for coping and conferences in the United with a present and future States and abroad. “worker dearth.” • The Institute’s for-profit arm, • To fuel research with valuable Hudson Analytics, excelled in data and improve services for studies illuminating the future clients, the Center for Work- of associations, regions, and force Development and Hudson firms, and completed several in Analytics formed “strategic 1999, including “The Future of Richard Judy, senior fellow and alliances” with several other the Vending Industry” and director of the Center for Workforce premier organizations active in “The Future of Mechanical the workforce field, including Engineering.” Development

Workforce in 2020... “Technology, especially e-commerce, will transform the American workplace by 2020. The knowledge and skills demanded by the best- paying and fastest-growing jobs will undergo constant change. People who under- stand that they must contin- ually upgrade and improve their human capital will prosper. Those who don’t, won’t.”

11 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on Urban Policy Education Policy Center

WITH A $740 BILLION DOLLAR tive, the EPC focuses on three budget (or approximately 10 per- primary areas of inquiry: open- cent of the U.S. Gross Domestic ing the education marketplace, Product), there are literally building new schools for new mountains to be moved in the communities, and making education arena—and Hudson Indiana schools among the Institute researchers are right world’s best. To help open the there to assist with the shift. education marketplace, the EPC Hudson researchers have explored how changes in the long had a major impact on the education landscape invited new structural changes in America’s entrants into the education schools, supporting better mea- “market” and what the growing surement of school and student interest in education on the part performance, higher academic of the global investment com- standards, greater parental choice munity could mean for the in school, and the “excellence nation’s schools. To reverse the movement” in education. The trend of large, impersonal, dis- year 1999 marked an important connected schools, the EPC is point in that history of education studying the physical space and research with the establishment location of schools, as well as of the Education Policy Center ways in which schools interact Michael Garber, senior fellow and (EPC) under Hudson Senior with (and leverage the value cre- director of Education Policy Center Fellow Michael Garber. ated by) other community insti- Engaging a futurist perspec- tutions. The EPC also is work- Education Policy in 2020... “Over the next 20 years, The $740 Billion Education Industry American education will take the greatest leap for- Employee Training Postsecondary ward since the mid-1800’s $98 billion (13%) when Horace Mann and his Education Consumer $237 billion (32%) colleagues around the coun- Products & try started the Common Services School movement. As the $13 billion (2%) global economy pays increasingly healthy returns on knowledge, the educa- Child Care tion market will swell, $34 billion attracting top talent and (5%) massive amounts of capital. This seismic shift will unleash a dynamism and creativity that will make American schools among the best in the world.”

K–12 Education $358 billion (48%) Source: Merrill Lynch & Co. 12 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on Urban Policy Education Policy Center

ing to improve its level of under- Garber said. “While there is standing about Indiana’s educa- plenty of opportunity for foot- tion systems and make recom- dragging and back-pedaling, mendations for their improve- schools and school systems that ment through two initiatives. are resistant to change are today Hudson will oversee the most falling under their own weight. comprehensive education study One of the responsibilities of the ever undertaken in Indiana and Education Policy Center is to continue its ongoing presence in help people imagine—and pre- the efforts to improve Indiana pare for—a new education sys- schools. tem that is marked by diversity, “The tide has turned,” competition, and choice.”

1999 Efforts in Perspective • The Education Policy Center education system. With sup- (EPC) explored how changes port from the Christel DeHaan in education provision will Family Foundation, EPC is shift from political to eco- undertaking the state’s most nomic models. comprehensive study of • The EPC studied ways to education. The EPC also Justin Heet, research analyst reverse the trend away from continues its collaboration modern schools which oper- with several Indiana business Heet on education policy... ate on “economies of scale.” leaders to improve Indiana “It’s amazing to think what • The Center facilitated two schools through the Indiana major efforts to improve the Education Information an impact Hudson has had on understanding of Indiana’s Center. the language of education reform over the last 15 years—charter schools, vouchers, continued emphasis on student results. The next task is to describe what these reforms will really mean. What will an educa- tion market look like? How do we recreate the relation- ship between communities and schools in a new era?”

(l-r) Derek Redelman, research consultant; Susan Protsman, administrative assistant; Michael Garber, senior fellow; Justin Heet; research analyst 13 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on Urban Policy Crime Control Policy Center

A “HANDS-ON” PARTNERSHIP of the restorative justice experi- with criminal justice agencies in ment were released in 1999. real-world settings provided the Restorative justice conferences backdrop for Hudson Institute’s bring a young offender and vic- Crime Control Policy Center tim together for a conference, (CCPC) in 1999. Throughout which includes supporters of the year, the Center continued both victim and offender as well its research to identify and test as a trained facilitator and often, promising crime control strategies, a police officer. Key findings including strategic responses to indicated that these conferences violent crime, restorative justice can be successfully implemented practices, reducing illegal drug in an urban U.S. setting. use, and problem-solving policing. Research also is showing that Late in the year the Center victims find the experience released its report on “Targeting important and worthwhile, and Firearms Violence Through participants leave with an Directed Police Patrol,” which enhanced perception of the found that directing proactive police. In addition, offending police patrol at violent-crime youths are being rearrested at hotspots had a significant, posi- much lower rates than counter- Ed McGarrell, senior fellow and direc- tive effect on gun-related vio- parts handled through tradition- tor of Crime Control Policy Center lence. The study also found that al court programs. with appropriate police manage- In 1999, the CCPC began ment and leadership, an aggres- examining the issue of illegal Crime Control in 2020... sive policing style would be drugs in American society. In “I’m hopeful that we will endorsed by local residents. particular, the Center reviewed a learn lessons from the decline Results from the first phase wide variety of strategies for in crime that has occurred during the ’90s and continue to make progress in reducing levels of street crime. At the same time, we are likely to see new forms of crime that span borders and that occur electronically rather than face-to-face. These new forms of crime will raise a whole host of crime control ques- tions. The challenge will be to respond in ways consistent with the rule of law but with- out creating excessive regula- tions and hindering the free- dom of the global market.”

(l-r) Lisa De La Torre, research assistant; Jason Hutchens, research assistant; Ed McGarrell, senior fellow; Kay Crawford, research fellow; and Michelle Bowen, research assistant

14 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on Urban Policy Crime Control Policy Center

reducing the demand for illegal state, and federal criminal justice drugs. agencies as well as community The CCPC continued its groups who analyze the violence crime analysis work through the problem, craft strategies, and Indianapolis Violence Reduction assess and modify these strategies. Partnership (IVRP), acting as Signs of progress were clearly facilitator and research partner. visible as homicides dropped The IVRP involves all local, 25 percent in 1999.

Gun Assaults, Armed Robberies and Homicides in Indianapolis (project period compared to previous 90 days)

87 88 72 75.8 76.6 66 59 44 Kay Crawford, research fellow and project coordinator for restorative North East Comparison Remainder of justice conferences Target Area Target Area Area Indianapolis Prior 90 days Project period Crawford on restorative justice conferences... 1999 Efforts in Perspective “I always visualize the restorative justice conference • The Crime Control Policy debate should be on targeting project as the scales of jus- Center (CCPC) published illegal firearms possession, tice, in that there’s balance. “Targeting Firearms Violence thereby reducing the ratio of It’s a win-win process: the Through Directed Police illegal to legal possession. offenders are held account- Patrol,” a study which found • The Center partnered with able for their actions and are violent crime reductions of 30 former U.S. Attorney General able to make amends, and to 40 percent in target neigh- Edwin Meese of the Heritage the victims are able to partici- borhoods, as well as high lev- Foundation on a policy brief- pate in the process, to voice els of neighborhood support. ing on effective policing at their feelings and have the • Phase one of the restorative Hudson’s Washington office. harm repaired.” justice experiment was com- • Collaborative visitors to the pleted in 1999, showing a CCPC in 1999 included U.S. high level of victim and par- Attorney General Janet Reno, ent satisfaction, as well as top level officials of the Royal the recidivism rate for offend- Canadian Mounted Police, ers lowered by 40 percent. police officials from Australia • A series of articles appeared in and South Africa, and the American Outlook, including chief and command staff of a policy piece suggesting that the Vladivostock, Russia, the focus in the gun control police force.

15 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on Urban Policy Welfare Policy Center

HUDSON INSTITUTE’S WELFARE In Orlando, WPC staff Policy Center (WPC) expanded helped with the local Workforce in 1999, opening a regional field 2020 business-driven welfare office in Tampa, Florida, to better reform program. Designed by serve public and private sector the local Orlando Regional officials across the Southeast. Chamber of Commerce and Consequently, Florida was the funded by the state WAGES and focus of a number of the Workforce Development boards, Center’s activities during the the Workforce 2020 program past year, including the state’s explored many of the ideas and welfare reform program: Work issues discussed in the recent And Gain Economic Self- Hudson book, Workforce 2020. Sufficiency (WAGES). A focus for the future in With caseload declines of Florida and across the country nearly 75 percent, Florida offi- will be merging targeted welfare cials during 1999 looked for reform programs with broader fresh insights on the future state workforce policies. In St. ‘post-welfare’ reform age. To Petersburg and the surrounding assist officials in their efforts, Pinellas County area adjacent to WPC staff played an active role Tampa, WPC staff authored a Jay Hein, senior fellow and director of as a member of the statewide request for proposal designed to Welfare Policy Center WAGES executive management bring local welfare and work- committee, helping to shape the force service providers together. future course of a variety of In Indiana, WPC produced a Welfare Policy in 2020... Florida policies from health care documentary to tell the story of “By 2020, welfare will have policies for low-income citizens Indianapolis’ vigorous non-gov- been reformed across to fatherhood programs for all ernment solutions to poverty- America, with much of the citizens. (continued on Page 19) western world following suit. Work will have replaced welfare checks and personal responsibility will be valued over victimization. Responsi- bility for welfare programs will now rest with the states and cities, not federal bureau- crats. These changes will lead to very prosperous times for society’s disadvantaged families.”

Seated (l-r): Rebecca Swartz, research fellow; Jay Hein, senior fellow; Don Jonas, research fellow; Standing (l-r): Diana Etindi, research fellow; John Clark, senior fellow; Maureen Lee, research assistant; Susan Protsman, administrative assistant; Ryan Streeter, research fellow 16 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on Urban Policy Welfare Policy Center

1999 Efforts in Perspective • The Welfare Policy Center (WPC) opened a Tampa, Florida, office to serve both public and private officials in the southeast region of the United States. • The WPC produced a documen- tary regarding Indianapolis’ com- munity-based strategy to make welfare reform successful. • The Center’s staff led three con- ferences in Wisconsin to high- light the state’s efforts regarding fatherhood services, faith-based partnerships, and welfare reform Row 1 (l-r): Don Jonas, Hudson Institute research fellow; Phyllis Busansky, research and evaluation. WAGES executive director; Ken Baker, WAGES director of administration; • In collaboration with Goodwill Row 2 (l-r): Carol Brinkley, WAGES senior policy analyst; Mary Hoppe, Industries of Central Indiana, WAGES communications director the WPC implemented a “Jobs to Careers” demonstration project. • The Center conducted a study of former AFDC recipients to determine how families are far- ing after welfare.

17 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on Urban Policy Michigan Urban Policy Initiative

TURNING ABANDONED HOUSES talking to mayors and other local into owner-occupied homes was officials, business and civic the primary accomplishment of groups, community development Hudson Institute’s Michigan organizations, state officials, and Urban Policy Initiative. Two years legislators in both houses and of sustained effort came to a suc- both parties. From their concerns, cessful conclusion in July 1999 the project team identified aban- when Michigan Governor John doned housing and the need for Engler signed legislation which homeownership opportunities as embodied the recommendations central issues. The team attacked of the Initiative. Ten separate both issues simultaneously by bills, each passed by an over- adapting President Lincoln’s whelming bipartisan majority in Homestead Act of 1862, design- both houses of the legislature, ing an urban homesteading pro- became law. gram that allows families to Launched in late 1997, the become homeowners by moving Initiative produced the first state- into abandoned houses, living in level urban homeownership strat- them for five years, and bringing egy in the nation. At the request them up to code. of Gov. Engler and State Senator In Michigan, the problem of John Weicher, director, Bill Schuette, Hudson created a abandoned housing was especially Urban Policy Studies project team, established an office difficult because of the state’s in Lansing, and went to work— antiquated system for handling Weicher on urban housing in Michigan... “Michigan has enacted the first state-level urban home- ownership strategy; one that helps the state, cities and working poor. We don’t think it will be the last.”

Michigan Gov. Engler (seated) surrounded by sponsors and project team, (l-r) State Sen. Bill Schuette, Hudson Institute Trustee Roy Innis, project director John Weicher, State Rep. Patricia Birkholtz and team members Jeffrey Reno and Patrick Anderson

18 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on Urban Policy Michigan Urban Policy Initiative

tax-delinquent real estate. It takes six years— six Michigan winters—for an abandoned house to work its way through the system. During that time, nobody was responsible for maintenance and upkeep. There had been 1999 Efforts in Perspective many efforts to reform the system, all of • Michigan enacted Hudson’s recommendations them unsuccessful. Hudson’s project team for urban homeownership programs and designed a thorough reform of the tax rever- reform of its property tax system. sion system that is shorter and simpler, pro- • Proposals received overwhelming bipartisan viding more notice of delinquencies to owners support in both houses of legislature. and others with a possible interest in the • Gov. John Engler signed the legislation on July property and ending with a clear title. Cities 22, 1999. can now choose to implement an 18-month • Abandoned houses can now be brought back fast track for abandoned property; all other into productive use before they destroy the property will be processed within three years. community. With a broad coalition supporting the reform, including the mayors of 10 large cities, this system went into force on January 1, 2000.

Welfare Policy Center (continued from Page 16)

fighting. Led by former Indianapolis Mayor Stephen Goldsmith and neigh- Swartz on borhood leaders, these grassroots efforts welfare reform... were showcased from the perspective of “We moved to the second business, church, government and the phase of our work in participants themselves. Wisconsin—from provid- WPC’s longstanding relationship ing technical support and with the state of Wisconsin continued guidance to the state on with conferences on three of the key post-welfare reform challenges: how to the development and involve more low-income fathers in the implementation of W-2, to lives of their children; how government evaluating the program to can most effectively partner with the see what worked and faith community; and how to research what didn’t. As a leader in and evaluate both program performance welfare reform, what hap- and participant outcomes. pens in Wisconsin In addition to regional activity, impacts the policy debates WPC staff conducted research on a nationwide. This is wide variety of welfare-to-work themes, Hudson’s participatory spoke at many conferences, and Rebecca Swartz, research fellow research in action.” responded to many requests for information by the media and government officials.

19 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on Social Policy

PRESERVING AND PROMOTING During 1999, Hudson institutions which embody tradi- unveiled a new initiative to com- tion and culture are all part of bat social problems through vol- Hudson’s futurist perspective. unteerism, civic engagement, and Without the correct foundational grassroots efforts. Hudson blocks for social interaction, a Institute now serves as the fiscal rapidly changing culture can and administrative agent and collapse. headquarters for the Foundation Toward this end, Hudson for American Renewal. From its Institute worked actively in 1999 distinct vantage point in the poli- to help identify and meet the cy and practice of “civil soci- challenges of this prosperous, ety”—and quite in line with its troubled era. This was accom- operating philosophy—Hudson plished through many different offers the Foundation its exper- channels; including written tise in researching and identify- analysis; policy advice on civic ing promising efforts to renew education; promoting citizenship America from the ground up. and national identity; encourag- Social, political, and spiritual ing self-government among citi- issues are barometers for a nation’s zens; as well as active opposition health. Hudson Institute is hard Curt Smith, vice president and to protracted and expensive liti- at work to promote initiatives that chief operating officer gation, overly expensive auto encourage and strengthen personal insurance, and religious persecu- responsibility and commitment to tion and slavery. the common good. Civil society and social policy in 2020... “During the next two decades, Americans will embrace a growing spirituality—though not nec- essarily orthodox theologies—as we search for significance and security in the midst of an era of affluence and volatility.”

Former U.S. Sen. Dan Coats listens to Hudson Institute Senior Fellow John Fonte.

20 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on Social Policy Writings of Norman Podhoretz

NORMAN PODHORETZ also contributed to a sympo- continued to observe and sium in the Weekly Standard analyze American culture and and wrote an essay on Bach politics from his intellectual and Beethoven for the British Social and cultural trends base at Hudson Institute. magazine Prospect. in 2020... During 1999 he devoted a Not confined to the writ- good portion of time to writ- ten word, Podhoretz also did “By 2020 there will be a ing his new book, My Love a great deal of public speaking reversal of some of the Affair With America, sched- in 1999, making appearances social and cultural trends uled for publication in the at Harvard, Yale, Berkeley, and assumed now as firmly summer of 2000. Stanford, among others. He entrenched. The current A prolific article writer, also appeared frequently on religious revival could Podhoretz wrote for several dif- television, interviewed by possibly generate a moral ferent publications, including such hosts as Brian Lamb, revolution, reasserting Commentary, National Charlie Rose, Chris Matthews, traditional moral principles, Review, and four pieces for Richard Heffner, and Ben while the “liberationist” The Wall Street Journal. He Wattenberg. ethos from the countercul- ture of the 1960’s will become commensurably marginalized.” Norman Podhoretz, senior fellow

21 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on Social Policy Center For American Common Culture

NEWLY FORMED IN 1999, HUDSON Institute’s Center for American Common Culture offers policy advice on citizenship and issues concerning the interplay of national identity, civic education, the assimilation of immigrants, and the future of American liberal democracy in the global era. At the request of the elected State Superintendent of Schools of Georgia, Hudson Senior Fellow John Fonte was called upon to assist the state in developing a model civic-character education program. Fonte will be the princi- pal author of two state docu- Hudson Institute Senior Fellow John Fonte ments, a curricular guide, and a meets with The American Legion Executive resources guide that will articulate Director John Sommer. a “Georgia model” of character- John Fonte, senior fellow and direc- civic education that joins moral- public figures such as Edwin tor of the Center for American ethical issues with the academic Meese and Linda Chavez will Common Culture material of the humanities and serve on the Roundtable and help places a particular emphasis on promote its goals. the writings of America’s The Center also will analyze American common culture Founding Fathers. the future of American constitu- in 2020... In 1999, Fonte organized a tional democracy in the new era “During the past several Citizenship Roundtable which will of globalization. For example, decades, a powerful network make the intellectual and moral Fonte will write a chapter in of activists promoted multi- case for a substantively strong and Hudson’s forthcoming book, culturalism over a common ceremonially rich citizenship nat- Beyond the Year 2000, examining American culture. In the uralization process. The Round- potential future challenges to coming decades, it appears table will counter recent efforts to America’s principles, ideas, and that they will emphasize weaken the meaning of American civic culture (and to Western liber- ‘post-national’ arrangements citizenship. The American Legion al democratic institutions in gen- over American citizenship. will join Hudson in the leadership eral) in the coming global era of We must be prepared to of this initiative, and prominent the 21st century. meet this challenge, for the ‘post-national’ is, by defini- 1999 Efforts in Perspective tion, ‘post-Constitutional,’ • The Center for American immigrants into the main- that is, it is beyond the Common Culture is developing stream of American civic life reach of our system of self- a model civic-character, K-12 through a substantive citizen- government within constitu- educational curriculum for ship naturalization process. tional limits.” the Georgia state school • Goals for the future include superintendent. analyzing challenges to the • The Center is making the principles of American intellectual and moral case for constitutional democracy in the civic assimilation of new the coming global era. 22 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on Social Policy Civil Society and Cultural Renewal

AN EVER-GROWING INTEREST social policy formation over the in civil society across the next several decades and has nation marked the 1990s. begun to address the issue While many Americans agreed head-on. that our society had grown too As an alternative to the impersonal and too dependent usual “civil society debate” on an ineffective government which focuses upon greater citi- for its social health, they dis- zen participation in the elec- agreed on which kinds of civic toral process and voluntary sec- engagement provided a solu- tor, Hudson formed a Council tion. Hudson Institute consid- on Cultural Renewal in 1999. ers this debate a central part of The Council regularly gathered a diverse set of leaders to strate- gize about ways to foster greater levels of self-government among citizens by producing long-lasting institutional and Former U.S. Sen. Dan Coats, president professional change. A book of Foundation for American Renewal edited by Don Eberly on the preconditions of a healthy Sen. Coats on civil society... American culture is the first “Strengthening families, result of the Council’s efforts renewing communities, and planned for 2000. providing effective, life-trans- Foundation for American forming help to those in need is essential to our goal of Renewal restoring the soul of America.” Launched in October of 1999, the Foundation for American Renewal was established to pro- Ryan Streeter, research fellow mote the work of local, non- governmental organizations in cult for federal programs. Civic engagement in 2020... combating America’s most Undergirded by the firm pressing social problems. Former belief that every social problem “New technology and services U.S. Senator Dan Coats serves is being successfully overcome will give us the ability in 20 as president of the Foundation, by an organization somewhere years to have a charitable which was created with his in the nation, the Foundation is ‘marketplace’ for all those unused campaign funds. committed to three objectives: rich, retired Baby Boomers. The principles embodied in to promote volunteerism and Future levels of civic engage- the highly influential “Project civic engagement, to educate ment will largely be deter- for American Renewal,” which the public about grassroots pro- mined by how well we design Coats introduced in the U.S. grams that work, and to provide ways for people to feel that Senate in 1995, are at the heart support to effective local organi- they have a stake in our over- of the Foundation. Since the zations. all civic health, and these new 1980s, Coats has advocated the “Government can do many media will play an important ability of local, grassroots orga- things,” Coats said. “It can feed role by enabling us to see nizations—many of which are and clothe the body, but it can- more clearly the results of our faith-based—to conquer prob- not touch the soul and trans- ‘charitable investments.’” lems that have proved too diffi- form life.” 23 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on Social Policy Project for Civil Justice Reform & Project for International Religious Liberty

IN THE WAR AGAINST PROTRACTED tion and slavery in Sudan. His Horowitz on tort reform... and expensive litigation, Hudson efforts also were integral in rais- “If America comes to under- Institute Senior Fellow Michael ing public awareness (in and out stand the magnitude of Horowitz fought steadily on three of Congress) to the great slavery today’s mass-tort case fee fronts: unethical tobacco fees, issue of our time—the annual scandal, critical segments of abusive contingency fees, and trafficking into sexual bondage of our legal, political, and busi- expensive auto insurance. two million women and children. ness systems will escape During 1999, Horowitz was According to Horowitz, legisla- purchase and domination by deeply involved in the growing tion is now advancing through a small cohort of tort debate over the multibillion-dol- Congress that would permanent- lawyers.” lar fees in the state tobacco ly alter the political arithmetic of cases. These fees, if paid, will human-rights issues and take give rise to an elite group of tort historic steps toward closing the lawyers able to spend more on global brothel. politics than the amount now spent by all parties in any given year. Raising awareness through meetings and interviews, 1999 Efforts in Perspective Horowitz worked to show the • The Project for Civil Justice need for reform. He also Reform raised awareness about researched an effective solution— the ethical hazards of the application of the Taxpayer Bill of tobacco fees and explored Rights to mass-tort lawyers. reform solutions. The civil justice reform pro- • The Project also worked toward ject continued to make great state adoption of early offer strides with proposals to cut liti- contingency fee reform, which gation costs while improving vic- would reduce fee payments Michael Horowitz, senior fellow and tim compensation. Auto insur- when defendants make early director of Projects for Civil Justice ance reform was introduced in settlements. Reform and International Religious the House and Senate, and state • Tort reform efforts also worked Liberty contingency fee laws were researched with an eye toward for federal legislation allowing adopting Supreme Court ethics Americans to obtain more International religious rulings in a number of those affordable auto insurance. liberty in 2020... states. Both reforms would radi- • Senior Fellow Michael Horowitz was integral in call- “If America’s religious com- cally cut down attorneys’ fees ing for federal legislation to munities continue their while permitting claimants to be protect women and children growing interest in interna- paid at least as much as they now from international sexual tional human rights, America receive and on a more rapid basis. slavery. will be seen as the great Internationally, Horowitz champion and protector fought against religious persecu- of the two groups whose expanding power will significantly define the 21st century-religious believers and Third World women.”

24 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on Economic Policy

The economy of a society drives it financially, but ramifications are far- reaching into many of its other cul- tural and political aspects. Hudson’s futurist perspective and contrarian analysis provide useful foreshadow- ing. Armed with such information, policymakers have tools with which to fashion better policy. Hudson’s well-known scrutiny of the workforce has produced invaluable insights into the “worker dearth” approaching in the coming decades. Older workers will stay on the job longer, not only because they’re needed, but because increased life expectancy will push back the retirement age. New phar- maceuticals, new medical devices and some incredible new technolo- Edwin Rubenstein, gies will change the face of health director of research care and the avenues through which it is provided. America’s economy Favorable trends show that the in 2020... U.S. economy will continue to grow. With technological change acceler- “In the year 2020, we’ll be ating, Hudson sees that the United amazed at how much we States will become an even more can produce with fewer dominant force in the world econo- workers. Free trade will my. At the same time, despite some become the order of the day early missteps, the government will in most of the world. hold back on intervention, even in Consolidation in the the arena of campaign finance. What does all this mean? telecommunications indus- Control. Direction. try will be beneficial to the Providing these tools is the economy—without any gov- mission of Hudson—in this case, ernment intervention. And, to better the economic future of by the year 2020, political this generation and the generations campaigns will be as depen- to come. dent on special interest money as they are today— but I also think the elec- torate will have a better idea of who is giving what to whom.”

25 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on Economic Policy Project on Campaign and Election Laws

LIKE SO MANY VITAL ISSUES FACING mental issues in liberal democracy, our nation, debate over the issue of featuring leading policymakers on campaign finance reform has become Capitol Hill. extremely polarized. Some view the The Project also conducted its system as plagued by inequality, own research agenda, with Hudson arguing that the wealthy have a dis- Project Director Amy Kauffman tes- proportionate influence on our elec- tifying in August before the U.S. toral process; these erstwhile reform- House of Representatives ers argue that we should level the Committee on Administration on playing field by reducing the amount the constitutionality of proposed of money flowing into the system. legislation before Congress. Others see restrictions on campaign The Campaign and Election spending as a direct threat to person- Laws Project plans to continue an al liberty. Given these fundamental active agenda in 2000. In addition to differences, during the last twenty- regular meetings of the Roundtable, five years there has been no move- the Project will host a major sympo- ment on campaign finance reform. sium on current election laws on the Through a grant from the Pew state level, bringing together an Charitable Trusts and the Carnegie array of leading practitioners, Corporation of New York, the including candidates with experience Amy Kauffman, director of the Project provided a forum for discus- running for office on the state and Project on Campaign and Election sion among leading campaign federal levels, state party chairmen, finance reformers and their most attorney generals, and scholars. The Laws vocal and influential opponents. symposium will be the first major The main thrust of Project efforts national conference designed to Campaign finance reform took the form of the Hudson promote an impartial discussion of in 2020... Institute Campaign Finance whether state campaign laws and Discussion Roundtable, a series of experience can be a model for future “Poll after poll indicates off-the-record discussions on funda- federal practices. widespread dissatisfaction with the current system of financing federal political campaigns, yet there has been no partisan consensus necessary for effective legis- lation. Hudson’s Project on Campaign and Election Laws hopes that facilitating discussion between interested parties on both sides of the issue will bring satisfactory reform in the next few years.”

26 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on Economic Policy Health Care Policy

THE 1999 RELEASE OF HEALTH retirement and all that implies. CARE 2020: The Coming “The Baby Boomers have Collapse of Employer-Provided always had a compelling impact Health Care, co-authored by on society because of their sheer William Styring III and Donald numbers, like a ‘pig moving K. Jonas, had a significant through a python,’ to quote the impact on the national discus- book,” said Bill Styring, co-author sion of health care issues. The and Hudson senior fellow. “The book projected the financial book also examines Social future of the health care delivery Security and Medicare reforms system based on the potential that will be necessary to meet impact of 76 million retiring the needs of the aging Boomers.” citizens. In addition to becoming an Labeled from day one as increasingly popular topic in “Baby Boomers,” this generation meetings among medical and has demanded and received insurance leaders, Health Care much attention. The Boomers 2020 was introduced to the gen- forced school systems to remod- eral public during a book tour el, update, and construct new that included news conferences buildings to accommodate their and panel discussions in Washing- numbers; took the workforce by ton, D.C.; Indianapolis, Indiana; Bill Styring, senior fellow storm; and now they are nearing and Orlando, Florida. Percent of U.S. Population Covered by Employer-Provided Health Insurance Health care in 2020... “By 2020 the huge Baby Boom generation will have caused us to rethink every- thing we now consider ‘nor- mal’ about health care finance and delivery: health insurance will no longer be predominantly supplied through the workplace; fed- eral tax policy will have shifted from subsidizing employment-based insur- Jonas on health care... ance to a system of tax cred- “Debate regarding the future of its allowing everyone to pur- America’s health care system grew chase their own high red-hot during 1999. Health Care deductible health insurance; 2020 gave us the chance to influ- and Medical Savings ence and shape the national con- Accounts will be prevalent.” versation about what our health care system might look like in the coming years.”

Don Jonas, research fellow

27 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on Economic Policy Regulatory Studies

THE NEED TO EXAMINE THE discussed the role they expect impact and process of government competition policy to play in the regulation provided impetus for regulated industries, particularly the creation of Hudson Institute’s as it relates to nondiscriminatory Regulatory Studies Center in 1999. access to the still-monopolized During its inaugural year, the wires that bring electric and com- Center initiated two programs—a munication services into con- seminar series and the publication sumers’ homes. of essays in regulatory policy. The Center launched its pub- The seminar series opened lications program with Hudson with an international conference Fellow Bill Shew’s pamphlet, that brought together legislators, “Yardstick Competition and the regulators, academics, and utility Regulation of Natural executives from the United Monopolies.” Hudson widely dis- States, Great Britain, and tributed this analysis of the possi- Australia to discuss the evolution ble use and abuse of intercompa- of regulatory policy in the new ny efficiency comparisons to era of emerging competition in interested parties in several coun- the electric, gas, water, and com- tries. It was the first of several munications industries. Regulators such scholarly studies. Irwin Stelzer, senior fellow and from Great Britain discussed the director of Regulatory Studies use of intercompany efficiency comparisons in determining the 1999 Efforts in Perspective charge rates of utilities; regulators Regulatory Policy in 2020... from the U.S. laid out methods • A new seminar series stimu- “The one thing that is now used to introduce competi- lated a civilized intellectual certain is that in 2020 the tion at the retail level in the elec- interchange between regula- regulatory dragon will not tric industry; legislators discussed tors and those they regulate. have been slain; it will still the relationship between politics • Seminar discussions provided be with us. The only ques- and regulation and between the a forum for the discussion of tion is whether it will be social and economic goals of regu- new ideas emerging from the tamed sufficiently to avoid lation. In addition, executives universities. increasing inefficiency.” presented the management tech- • The publication and wide niques required in organizations distribution of the first in a facing a competitive environment series of regulatory essays for the first time. provided ideas for improve- Representatives of competi- ment of the regulatory tion authorities, including the process and replacement head of the U.S. Department of wherever feasible. Justice’s Antitrust Division, also

28 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on Economic Policy Economic Studies

HUDSON INSTITUTE CONTINUED challenged the ASX-Reynolds to wield its futurist influence in paper, but Reynolds replied to the international as well as critics in closed-circuit testimony national economic arena during before the Australian Senate, and 1999. the tax reform was ultimately The Australian Stock adopted. Exchange utilized a hundred- Another Hudson project in page study on capital gains taxes, economic studies concerned prepared by Hudson Senior antitrust in general and the Fellow Alan Reynolds. The Ralph Microsoft trial in particular. The tax reform commission acknowl- project reviewed three ways of edged the influence of this looking at antitrust issues: research and used its estimates • the “Harvard school” empha- to demonstrate that a lower tax sis on legalistic matters, rate would not lose revenues. such as witness credibility or This commission ultimately rec- precedents ommended cutting the capital • the “Chicago school” empha- gains tax in half—a much deeper sis on economic theory and cut than previously contemplat- evidence relating to con- ed. Australian Democrats and sumer harm two prominent U.S. economists (continued on Page 32) Alan Reynolds, senior fellow and director of economic studies MAXIMUM U.S. CAPITAL GAINS TAX & REAL TAX RECEIPTS Economics in 2020... “Intellectual fashions come INDIVIDUAL INCOME TAX: and go, yet the basic tools of TAX RATE REAL REVENUES economic reasoning have sur- vived since at least 1776, and MAXIMUM TAX BILLIONS OF 1992 $ $70 will surely continue to serve us well for another 20 years. 60% The topics that economists $60 are asked to investigate, by 50% contrast, are constantly $50 changing. The new digital economy, in particular, will 40% $40 demand a lot of careful study—but it will not require 30% new economics.” $30

20% $20

10% $10

0% $0 63 65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 98e Revenues deflated by the federal government price index.

29 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on International Policy

HUDSON INSTITUTE IS TRULY of Chinese governance. Hudson an international entity. While also participated in the first free much important research is con- elections in the infant democracy ducted on the local and national in Indonesia. Even food produc- level, there is much on the global tion has become an urgent global scene that demands close scruti- issue as problem-solving mass ny and analysis and, sometimes, production through biotechnolo- participation. gy faces fierce opposition on The new millennium marks international fronts. a time when world systems are All of these areas require the increasingly interwoven. Defense forward-thinking analysis that is policies in the United States, Hudson’s forte. Forward thinking Europe, and Asia require careful sometimes requires stepping out- shaping for future security in a side the box, but Hudson does complex technical age. During not shy away from the uncon- 1999 Hudson researchers studied ventional. As a result, a proven these issues and others which track record proves that policy- could have far-reaching ripples, makers worldwide can look to such as the growing criminal ele- Hudson for valuable input—for ment in Russia, the record-high the community, the nation, the U.S. trade deficit, and the future world. Lt. General William Odom (ret.), senior fellow and director of National Security Studies

International Relations in 2020... “American power in all dimensions—military, eco- nomic, political, social, and cultural—is so hegomonic that most Americans do not truly comprehend its enormi- ty. Over the next three decades, the only serious threat to it will be incompe- tent U.S. leadership.”

Hudson Institute Senior Research Fellow Robert Dujarric (right) makes a point to Kiyoshi Sagawa, visiting fellow at Brookings Institution, and other participants during the National Security Studies Department’s monthly meeting in Washington, D.C.

30 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on International Policy Center for Global Food Issues

THE MISSION OF HUDSON the plow of the low-yield Institute’s Center for Global farmer,” said Hudson Senior Food Issues—to generate public Fellow Dennis Avery. support for the modern food During 1999, the Center system, high-yield farming, and also produced dozens of com- wildlife conservation—became mentary pieces and published more urgent in 1999. articles in hundreds of newspa- Controversy over biotechnology pers and magazines and made in food production arrived from numerous TV and radio Europe, focusing much of the appearances countering false Center’s efforts on explaining eco-claims about biotech dan- the potential of genetically gers. Staff members made more modified organisms to achieve than 100 speeches to interested such benefits as curing chronic groups in half a dozen coun- human malnutrition, overcom- tries, and were involved in offi- ing natural farming constraints cial presentations ranging from like drought and acid soils, and Congressional hearings and using wild genes to generate Food and Drug Administration still-higher yields to save still hearings to European meetings more room for nature. of the Codex Alimentarius Dennis Avery, senior fellow and director “It would be a deadly and Commission (the World Trade of Center for Global Food Issues disastrous mistake to apply the Organization’s scientific media- precautionary principle to new tor for food safety). Global food issues in 2020... high-yielding and high-nutri- Biotech food became a “If we are successful in 2020, tional technologies before all of trade issue, increasing the the world will have free trade the world’s children are fed, importance of the Center’s in farm products of all kinds, so before all of its pets are provid- long-term mission on behalf of that it can use its best land to ed for, and before all of its liberalized trade in farm prod- produce the products for which wildlife is fully protected from (continued on Page 32) each acre is best suited. As a result, we will meet the food demand of seven billion peo- Fumento on biotechnology... ple—all more affluent by far than the average people of the “Biotech is exactly the sort of year 2000—without taking any issue I believe Herman Kahn more land away from nature.” had in mind when he orga- nized Hudson—the only differ- ence being that Kahn liked to take a very long view of the future whereas biotech promises so many potential miracles in the areas of food, medicine, industrial produc- tion, and waste clean-up with- in the next few years.”

Michael Fumento, senior fellow

31 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on International Policy Center for Global Food Issues

(continued from Page 31)

ucts. Staff members reported to farmers and consumers from the Seattle meeting of the WTO and from countries around the world on farm trade issues. Finally, through major media, the Center also worked 1999 Efforts in Perspective to expose the biggest danger in • The Center for Global Food Issues debunked false claims about the First World food supply: biotech dangers and presented the great potential of genetically bacterial contamination. modified organisms for food production. Research findings showed that • The Center continued its defense of liberalizing trade in farm organic food is grown with ani- products. mal manure, thus carrying • Through commentary, testimony, and peer-reviewed articles, the higher bacterial risk (e.g. salmo- center countered false food scares regarding pesticide residues, nella, e. coli,), while showing nitrates, “endocrine disrupters,” and Gulf War Syndrome, no cancer risk from pesticide among others. residues. • Hudson Senior Fellow Michael Fumento completed one book, Separating Myth from Medicine: Understanding Today’s Top Health Issue, and started another, The Biotech Breakthrough.

Economic Studies (continued from Page 29) • the “Virginia school” empha- appear particularly strong. from Britain to Chile that have sis on interest group politics Proposed “remedies” were often moved away from a one-size- and the personal incentives entirely disconnected from the fits-all national system toward of everyone involved. complaints, yet made perfect greater personal choice among Claims made during the sense in terms of the commer- private retirement plans. Microsoft trial and the nine cial interest of rival companies “There are lessons to be years of investigations leading or organizations of such compa- learned from other countries,” up to that trial were then exam- nies. This report is slated for Reynolds said. “That includes ined from each of those three publication in early 2000. lessons about risks to the work perspectives. In cases where the Reynolds also worked on a incentives of overtaxed future economic and/or technological review of world Social Security workers if the U.S. Social Security basis of assertions appeared systems for the U.S. Chamber system is not adequately and particularly weak, the interest of Commerce. The focus was promptly redesigned for the group pressures sometimes mainly on numerous countries 21st century.”

32 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on International Policy National Security Studies

ASIA, EUROPE, AND AMERICAN of marginal importance to the defense policies—and their mis- United States and failure to fully fires—remained the focus of account for the revolutionary efforts for Hudson Institute’s changes wrought by the Soviet National Security Studies team Union’s defeat. in 1999. Hudson scholars wrote “Notwithstanding the extra- on these topics and hosted ordinary deterioration of Russian numerous visitors from around military capabilities since the the globe to exchange views and collapse of Communism, the ideas. National Security Studies former Soviet Union today Director Lt. General William remains the center of the most Odom and Hudson Senior rigorous, imaginative, and Research Fellow Robert Dujarric focused thinking about asym- also traveled to Europe and Asia metrical counters to American for conferences and meetings military might—few asymmetri- with local officials and scholars. cal options have escaped their This past year marked the notice,” FitzGerald said. 10th anniversary of the Berlin Thus the National Security Wall’s demise, and Hudson Studies team prepared plans for researchers noted that American a study detailing the power of Hong Yunsik, visiting research fellow foreign policy thinkers have only the United States and its allies hindered the U.S. relationship and how this strength should be Hong on national security... with Europe and Northeast Asia used to shape the third millenni- “To strengthen the security since then. According to Hudson um. Mindful of the recent environment in east Asia for Research Fellow Mary Kosovo War, the scope of the 21st century, we exam- FitzGerald, this problem research also will include the ined policy measures which stemmed from a focus on issues future of American foreign policy would enhance the U.S.- (continued on Page 34) Japan-Korea trilateral securi- ty relationship, and researched the feasibility of 1999 Efforts in Perspective a multilateral security arrangement in east Asia.” • Lt. General William Odom’s National Institute on support for a ground invasion Defense Studies’ conference of Serbia during the Kosovo on Asian security in Tokyo. War generated a fundamental • Lt. General Odom’s prize- debate on American policy in winning Collapse of the the Balkans. Soviet Military received favor- • Hudson Institute continued able reviews in numerous its successful series of lun- publications and journals. cheons and dinners on • National Security Studies Japanese-Korean relations in team members participated Washington and Toyko. in conferences and meetings • Lt. General Odom and in Baku, Berlin, Brussels, Robert Dujarric addressed the London, Moscow, Paris, Japan Defense Agency’s Tashkent, and Tokyo.

33 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on International Policy National Security Studies

(continued from Page 33) over the next two decades. In Asian studies, Hudson continued to host well-attended luncheons and dinners on Korean-Japanese relations. Not only did these sessions provide an effective forum for discussing Asian affairs, they also continued to build a network of scholars, officials, and journalists in Asia (e.g., since the fall of 1998 the Washington study group has had a counterpart in Japan). This project, in particular, exemplifies Hudson’s imaginative approach to security studies.

Robert Dujarric, senior research fellow

International relations in 2020... “Strong states will continue to dominate the planet, and military power will remain the most valuable currency Hudson Institute Senior in international relations.” Fellow Lt. General William Odom (left) addresses members of the Korea Japan Study Group in Tokyo about the strategic importance of Korean-Japanese relations. Yoshiko Tanaka (right) organized the program and study group.

34 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on International Policy Hudson’s Various Research Programs

Horner’s International Research The future of China continued to engage the interests of Hudson Senior Fellow Charles Horner. He studied the stress on Sino- American relations as a result of war in the Balkans, continued ten- sions across the Taiwan strait, ongoing revelations of Chinese espi- onage in the United States, and instability in south and southeast Asia. While the United States and China concluded an arrangement designed to facilitate China’s entry into the World Trade Organization, which Horner believes is an indication that some por- tion of China’s “modernization” agenda remains on track, he noted that the ruling regime continued its campaign against both secular and religious dissenters. Horner continued to study issues of societal governance. As the state continued to divest itself of corporate holdings, alternatives were evaluated and power drifted from the center to the provinces. New initiatives for wholesale reform of social services, medical care, and retirement were tested. The enthusiasm of Chinese decision-makers was tempered by the hesitancy and uncertainty among their fellows in the rest of the world, especially more advanced nations. “The issues surrounding the costs of the ‘welfare state’ continue Charles Horner, senior fellow to bedevil even the U.S., Germany, and Japan—all far richer and more sophisticated than China,” Horner said. Horner also served on the Hudson delegation that helped monitor World governance in 2020... the first free election in Indonesia in forty-five years. The change of “For better or for worse, what government in Indonesia, and the announcement by the new presi- used to be called The Project dent that he would give high priority to Sino-Indonesia relations, sig- for World Government will naled a new stage in the frequently troubled relations between the two continue to make important Asian powers. advances as regional organiza- tions like the European Preeg’s International Trade and Finance Research Union and Association of Concern over the U.S. trade deficit—now at a record level—dominat- Southeast Asian Nations ed the efforts of Hudson Senior Fellow Ernest Preeg in 1999. Preeg (ASEAN) expand and nations testified before the congressionally appointed Trade Deficit Review seek more predictable ways of Commission, citing four specific concerns: transacting their ever-more- • the protectionist backlash complicated business.” • service payments on the foreign debt • foreign government leverage against the United States • market volatility against the dollar His full study on the chronic trade deficit and the new interna- tional financial architecture is scheduled for publication in the spring of 2000. Maneuvers on the trade policy front included an essay, “Charting a Course for the Multilateral Trading System: The Seattle Ministerial Meeting and Beyond,” published by The Group of Thirty in September 1999. This piece laid out both short-and long-term proposals for U.S. trade strategy. (continued on Page 36)

35 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on International Policy Hudson’s Various Research Programs

Preeg on chronic current account deficit … “My overarching concern is the failure of the U.S. govern- ment to understand or admit that the chronic current account deficit is a significant problem. A strong dollar continues to be the overriding U.S. policy objective, while the current account deficit is rationalized on spurious analysis about foreign borrowing leading to incremental productive investment.” Ernest Preeg, senior fellow

(continued from Page 35) Preeg’s work on unilateral that country. ing The Economist, Reuters, sanctions kept him engaged “The purpose of the book is U.S. News and World Report, particularly with respect to not only to demonstrate the and Knight Ridder newspapers. Cuban sanctions, which he takeover of Russian government acknowledged have outrun and society by criminal ele- Center for Digital Future their usefulness to U.S. ments but also the deeper rea- moves forward interests. sons why Russia was unable to In 1998, Hudson Institute make a successful transition to Fellow Thomas Lipscomb Satter’s Research on Russia democracy after the fall of com- founded The Center for Digital Russia’s pervasive criminal ele- munism,” said Satter, citing lack Future in New York to advance ment was the focus of research of respect for the individual as the growing number of public efforts by Hudson Senior Fellow the main reason for this failure. policy issues relating to the David Satter. During 1999, he Satter also testified before extraordinary role of informa- traveled extensively in Russia the Commission on Security tion technology in our everyday gathering material for a book on and Cooperation in Europe on lives. On the brink of the Third the growing criminal state in human rights in Russia and Millennium, a select group of before the House International leading business executives, Relations Committee on cor- members of government, opin- ruption in Russia. ion leaders, and scholars con- Devoting much effort to vened in Jackson Hole, writing projects in 1999, Satter Wyoming, to discuss what may published an essay in a leading well be the greatest global eco- daily Russian newspaper, and nomic and social change in articles for American Outlook, world history. At the 1999 the Jamestown Foundation’s Cyber-Rendezvous, world lead- Prism, and the editorial page of ers focused on defining the key The Washington Times. In addi- elements of the new digital tion, he made radio and televi- economy and the Information sion appearances in connection Age. Ira Magaziner headed the with the Russian internal crisis speakers list which also includ- David Satter, senior fellow and the war in Kosovo, testified ed representatives from the before U.S. senators on anti- American Academy in Berlin, Satter on Russia... semitism in Russia, and lec- Federal Communications “As Russia fails to establish a tured at the John Hopkins Commission, Cornell modern democratic society, it University Nitze School of University, Harvard University, is important for us to under- Advanced International Studies. Pepperdine University, The stand the reasons why.” Satter also was interviewed by New York Times, and Deutsche numerous publications, includ- Bank Securities.

36 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on International Policy

John Linantud, Herman Kahn Fellow

Linantud on Europe and Asia... “The study of Europe and Asia is rapidly becoming a strength of the Hudson Hudson Institute President Herbert London and former Rep. Bill Brock discuss trade and Institute since its diverse team of world politics schol- economic policy in the new millennium during a break at the U.S. Chamber of ars contributes common Commerce meeting. sense to debates often domi- nated by partisan thinking.”

Hudson Institute’s international ing fresh hope in a little-sus- little more than national pride commitment highlighted during pected place, namely Indonesia, during the parliamentary elec- where the selection of a new tions on June 7, 1999. Indonesia elections president in October 1999 Almost 90 percent of all eli- The fall of The Wall and the without bloodshed and violence gible voters in Indonesia turned end of the Cold War are spawn- was a first in the nation’s histo- out for the first official democ- ry. In the process, Indonesia’s ratic elections in the country in prospects soared as it slipped the past 50 years. Voters stood out from the long shadow of in line for hours to punch holes the U.S.-Soviet standoff and in their ballots and then watch cheered its first completely as the results were tabulated. In civilian government. After mid-October, Indonesia official- forming a strategic partnership ly elected Abdurrahman Wahid to jointly observe the historic as president of the world’s national election with the fourth-largest country. Indonesia-based Centre for As one of only two official Strategic and International international observer mission Studies, Hudson Institute has coordinators from the continen- emphasized its commitment to tal United States, Hudson Vice international research efforts. President Curt Smith led an After being forewarned the internationally recognized dele- streets could be saturated with gation that included Hudson blood and violence, Hudson sent Senior Fellows John Clark and a delegation to Jakarta, Indo- Charles Horner, former Indiana Yong Geun Kim, visiting research fellow, and nesia, where they were pleasantly Governor Robert Orr, and John Clark, senior fellow and director of the surprised to observe the streets of Hudson Board Member Roy Center for Central European and Eurasian Studies Indonesia were burdened with (continued on Page 38) 37 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson’s Perspectives on International Policy Hudson’s Various Research Programs

(continued from Page 37) Innis. In addition, one month prior to the historic election, Smith and Hudson President Herbert London made an inau- gural trip to Indonesia to show- case the Institute’s growing international commitment, where they had a private meet- ing with Wahid. After monitoring the elec- tion tabulation process and sub- sequent turmoil in East Timor, the Institute participated in multiple briefings on this issue. Most notably, through a joint effort to assist the newly demo- cratic country of Indonesia (l-r) Rep. Jim Moran (D–Va.), Hudson Institute Senior Fellow Ernest Preeg and former develop a strong political econo- U.S. Trade Representative Mickey Cantor discuss the American trade agenda at the my, scholars from Hudson 1999 Next Agenda, a forum hosted by the National Chamber Foundation and Hudson Institute and CSIS addressed Institute in Washington, D.C. Washington-based legislative staff members and internation- al researchers at the Woodrow Wilson International Center. The panelists—including Smith, Horner, CSIS Senior Fellow and Chairman Jusuf Wanandi and former CSIS Executive Director and current Board Member Mari Pangestu— focused their attention on how the world’s fourth-largest coun- try could defuse religious and ethnic tensions, establish new economic institutions, main- tain political stability, secure To address the future of Indonesia and the historic Indonesian presidential elections in military leadership, and con- 1999, Woodrow Wilson International Center and Hudson Institute hosted a panel struct a stable and prosperous discussion for legislative officials and foreign policy scholars in Washington. Panelists market economy. were (l-r) Robert M. Hathaway, director of the Asia Program for Woodrow Wilson The Next Agenda International Center; Jusuf Wanandi, board member and senior fellow of the Indonesian-based Centre for Strategic and International Studies (CSIS); Mari Pangestu, In November, members of the former executive director and current board member of the Indonesian-based CSIS; U.S. Chamber of Commerce Charles Horner, senior fellow of Hudson Institute; and Curt Smith, vice president and board of directors, the National chief operating officer of Hudson Institute. Chamber Foundation and Hudson Institute convened in Washington, D.C. for its second annual Next Agenda program. forecast trade and economic America’s premier business The 1999 forum—“Trade and policy. We are pleased to con- advocacy organization in the the Global Economy 2020”— tinue this partnership with 21st century. 38 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Special Events

CLARIFYING, DEFINING, new digital economy. expounding and arguing major In Indianapolis, Hudson issues has been a core element of sponsored several community Hudson’s work since its founding events. In addition to monthly days in the early 1960s. Special race relations meetings, Hudson events provided a provocative way continued its quarterly President’s to highlight the work of the Circle dinners. The 1999 speak- Institute, as well as to effect ers were syndicated columnist change. Mona Charen, author and histo- The two keystone events of rian Richard Norton Smith, 1999 were Hudson’s annual Arizona Superintendent of Public James Doolittle Award and the Instruction Lisa Graham Keegan American Dream Award. General and Professor Alan Kors, who Alexander Haig received the discussed his book, The Shadow Doolittle Award at a ceremony in University: The Betrayal of Washington, D.C. for his out- Liberty on America’s Campuses. standing contributions to U.S. Through the course of the national security. James year, Hudson President Herbert Schlesinger provided the keynote London moderated roundtable address. In Indianapolis, Joe and discussions with Indianapolis Sue Paterno received the third community leaders based on the Teresa Rhodes, director of annual American Dream Award following themes: “What the midwest development for their sustained devotion to Next 15 Years Will Bring to their community and for promot- Indianapolis;” “What the Next Rhodes on Hudson’s ing exemplary personal character Mayor Should Know;” and “What and high scholastic standards Central Indiana Needs to Do to programs... among students. Compete in Today’s High-Tech, “Our founder, Herman As part of the annual series of Knowledge-Based Economy.” Kahn, believed that a pri- weekends under the charge of for- Further outreach into the mary objective of future-ori- mer British Prime Minister Lady Indianapolis community included ented policy research is to Margaret Thatcher, she convened briefings by a wide variety of stimulate and stretch the her legion of scholars from Hudson researchers. Hudson imagination and improve around the United States and Senior Fellow Irwin Stelzer spoke perspective. Hudson events England in picturesque St. on the future of the dynamic provide opportunities for Michaels, Maryland, to discuss global economy, Hudson Vice communication to occur issues related to the theme, “Will President Curt Smith and repre- and for the exchange of the 21st century be the American sentatives from Indianapolis- ideas to prosper.” century?” based Walker Information dis- In September, Hudson hosted cussed ethics in the workplace a conference in Jackson Hole, and Crime Control Policy Center Wyoming based on the theme, Director Ed McGarrell briefed “The First Cyber-Rendezvous— members of the community on Defining the Digital Economy.” findings of the restorative justice Hudson Board Member Allan conferences. In addition, Senior Tessler played an integral role in Fellows Richard Judy and Betsy the formation and execution of McCaughey Ross spoke on work- the conference that focused on force and healthcare issues, and defining the key elements of the (continued on Page 40)

39 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Special Events

(continued from Page 39) Lt. General William Odom discussed his most recent book, The Collapse of the Soviet Military. Hudson also hosted several special guests, including British Ambassador Sir Christopher Meyer and Hungarian Ambassador Geza Jeszenszky. Meanwhile, researchers from the Crime Control Policy Center con- tinued their participation and briefings with representa- tives from area law enforcement agencies to analyze crime patterns and develop strategies for crime reduction. The CCPC also hosted special dinners with visiting Russian police officials. In Washington, Hudson hosted several policy briefin- gs and researchers participated in many panel discus- sions. Among them, Hudson sponsored a briefing on the Council for Cultural Renewal with Don Eberly of the National Fatherhood Initiative, a briefing with Senior Fellows Ernest Preeg and Irwin Stelzer on the outlook for Europe and international finance, a book discussion and signing with Senior Fellow Norman Podhoretz on his Penn State University head football coach Joe Paterno book, Ex-Friends: Requiem for a Lost World. There was discusses character and academics during his speech also a briefing with The Congressional Politics of at the 1999 American Dream Award dinner in Immigration Reform co-authors James Edwards and Indianapolis. James Gimpel and Rep. Lamar Smith. In addition to monthly seminars for the National Security Studies department, Hudson Senior Fellow Robert Dujarric host- ed timely briefings addressing “The Situation Inside Yugoslavia,” with Mihajlo Mihajlov of George Washington University and “Tomorrow’s Conflicts and America’s Armed Forces,” with Ralph Peters, U.S. Army (Ret). Also participating in various Washington D.C.-based seminars were Dr. Chung Oknim and Mr. Sugawa Kiyoshi of Brookings Institution; General Robert W. Sennewald, U.S. Army (Ret.); Major General Yamaguchi Noboru, Japanese Ground Self-Defense Forces; Professor Yoshizaki Tomonori, National Institute for Defense Studies; and Lt. Colonel Richard Bogusky, U.S. Army. These activities represent a mere sampling of Hudson’s efforts to Hudson Institute Board Chairman Walter P. Stern (right) discusses national provide opportunities for ideas to security issues with (l-r) General Alexander Haig, Hudson Institute flourish in a communicative and open Assistant Vice President for External Affairs Mark Pflum and James environment where dissent and Schlesinger. General Haig was the 1999 recipient of the James H. Doolittle diversity are embraced. Award in Washington, D.C.

40 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Recognition and Influence

FROM BIOTECHNOLOGY TO THE democratic elections of Indonesia, the influence of Hudson Institute’s future-ori- ented research reached out into the far corners of 1999. The tireless and extraordinary efforts of Hudson researchers also grabbed the media’s atten- tion. The Institute became widely recognized throughout the country for its cutting-edge findings on domestic and inter- national public policy issues. As the new millennium Hudson Institute President Herbert London (center, left) shares a laugh about the dawned, Hudson’s quarterly future with Tri-County Jobs for Ohio Graduates Executive Director Doug Domer (far magazine—American Outlook right) before production for “A Kid’s Life in the 21st Century” begins. Other panelists (circ. 15,000)—provided a voice included (l-r) Washington Post National Correspondent Juan Williams, former United of optimism as it confronted Nations Ambassador Andrew Young, Eli Lilly and Company Senior Vice President the hurdles facing the global community. American Outlook Mitchell Daniels, and The Lincoln Center for the Performing Arts Chairperson Beverly featured articles by Hudson Sills. (Not shown: Ohio Governor Robert Taft.) scholars and nationally renowned public policy experts, year in print. Hudson scholars William who collectively provided a In conjunction with Styring III and Don Jonas co- glimpse of the future. Forging American Outlook, Hudson authored Health Care 2020: ahead, American Outlook will Press produced a wide variety of The Coming Collapse of increase its publication frequen- publications throughout the Employer Provided Health cy from quarterly to bimonthly year to showcase Hudson’s Care, which took the pulse of by the end of 2000, its third diverse research results. the future of America’s health care delivery system. This book was rolled out in the summer Society and culture in 2020... of 1999 to key audiences in “The television culture, from Washington, D.C.; Orlando, which we are now emerging, was Florida; and Indianapolis, one of declining authority and Indiana. In the urban policy social cohesion. The coming arena, the Crime Control Policy Internet culture—characterized Center released a study on by diverse communications media promising strategies for reduc- ing firearms violence. Hudson sharing a single delivery point— centers and researchers also will be marked by a search for a produced numerous other exec- shared national purpose and utive briefings, newsletters, and agreement on first principles.” reports on economic, welfare reform, and agriculture issues. S.T. Karnick, editor-in-chief, When Hudson researchers American Outlook were not penning their ideas (continued on Page 42) 41 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Recognition and Influence

(continued from Page 41) throughout the past year, they ABC, BBC, Bloomberg, CBS, were discussing their research on CNBC, CNN, C-SPAN, Fox national television and radio. News, MSNBC, National Public Consequently, Hudson’s overall Radio, NBC, PBS, Reuters, and media citations received a boost Voice of America, to name some. of more than 30 percent. Further getting the word out, Moreover, the marketing com- Hudson’s diverse research staff munications department’s efforts placed op-ed articles and handled pushed Hudson’s ranking for interviews from a wide variety of media citations among similar national and international news- think tanks from 12th to 9th. papers, magazines, and wire Researchers extrapolated on services. These efforts yielded dozens of national programs, citations in hundreds of publica- including “The Rush Limbaugh tions, including Business Week, Show,” “Nightly Business Chicago Tribune, Chicago Sun- Report,” “20/20,” and the “John Times, Dallas Morning News, McLaughlin Show,” among others. Forbes, Fortune, Investor’s Other Hudson-related interviews Business Daily, Journal of and news coverage appeared on Commerce, Los Angeles Times,

Mark Pflum, assistant vice president, external affairs

Pflum on Hudson’s influence... “Over the past two years we have made a concerted effort to improve our products and to produce research that is interesting, relevant, and important. We are seeing the fruit of this effort through increased support and addi- tional media attention.”

Row 1 (l-r): Michael DeSanto, executive director, marketing communications; Mark Pflum, assistant vice president, external affairs and personnel manager; Teresa Rhodes, director of midwest development; Curt Smith, vice president and chief operating officer; Row 2 (l-r): Kevin Hurley; publications intern; Cynthia Lawson, marketing communications specialist; April Smekens, administrative assistant; S.T. Karnick, director of publications and American Outlook editor-in-chief; Bayard Russell, marketing communications intern; Pat Hasselblad, director of executive administration and special events; Susan Darwent, administrative assistant; Peter Alig, publications intern 42 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Recognition and Influence

The London Sunday Times, oriented social commentators, Milwaukee Journal Sentinel, drawn from sectors ranging from National Post, The New York the arts to politics, which Times, New York Post, Orlando answered questions that, in Sentinel, Tampa Tribune, Time, truth, will only be solved U.S. News & World Report, USA through time. The live discus- Today, The Wall Street Journal, sion before an audience of Washington Post, Washington approximately 700 northeast Times, and many others. Ohio students and their parents Hudson research analysts and addressed how teachers and fam- scholars also frequently consult- ilies can introduce and foster ed with government officials on role models, describe a solid Capitol Hill and in state work ethic, and promote lifelong capitols on timely public learning and productive citizen- policy issues and, occa- ship for their children. The pro- sionally, provided expert gram is scheduled to be aired on testimony. In addition, local public broadcasting stations In The News many of the Institute’s across the country in 2000. scholars served on Hudson Institute kept with 705 national advisory boards its roots and continued to pursue 668 and task forces and as the opportunities offered through 655 advisors to foreign gov- state-of-the-art technology. As ernment leaders—partic- Hudson’s interests continued to ularly those in developing circle the globe, the realization countries. grew that different centers needed 405 Meanwhile, no one websites to purvey in-depth infor- can predict what the mation. In 1999, the Welfare future holds. However, Policy Center and the Center for that didn’t stop a handful Workforce Development devel- of America’s leaders— oped their own websites linked 123 including Hudson to www.hudson.org. Institute President Never content with a June–Sept. Oct. ’98– Feb.–May June–Sept. Oct. ’99– Herbert London and lengthy review of their successes, 1998 Jan. ’99 1999 1999 Jan. ’00 Hudson Board Member Hudson researchers continue to Mitchell Daniels—from provide ground-breaking research gathering for a PBS special, titled for governments as well as the “A Kid’s Life in the 21st business community. Hudson Century.” Sponsored by Kent firmly believes that the domi- State University and Tri-County nant perspective for the future Jobs for Ohio Graduates, London of public policy includes this moderated the panel of future- Institute’s research.

43 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Research Staff

Alex Avery Donald Jonas Research Assistant Research Fellow Dennis Avery Richard Judy Senior Fellow Senior Fellow Director, Center for Global Food Issues Director, Center for Workforce Michelle Bowen Development Research Assistant President, Hudson Analytics John Clark Amy Kauffman Senior Fellow Research Fellow Director, Center for Central European Director, Project on Campaign and and Eurasian Studies Election Laws Kay Crawford Yong-Geun Kim Research Fellow Visiting Research Fellow Lisa De La Torre Marie-Josée Kravis Research Assistant Senior Fellow Denis Doyle Natalie Kroovand Senior Fellow Criminologist Robert Dujarric Maureen Lee Research Fellow Research Assistant Diana Etindi John Linantud Research Fellow Herman Kahn Fellow Mary FitzGerald Edmund McGarrell Senior Fellow Senior Fellow John Fonte Director, Crime Control Policy Center Senior Fellow Lt. General William Odom Director, Center for American Senior Fellow Common Culture Director, National Security Studies Michael Fumento Kathleen Olivares Maureen Lee, research assistant Senior Fellow Research Assistant Kelley Gaffney Norman Podhoretz Criminologist Senior Fellow Lee on Hudson’s research Michael Garber Ernest Preeg Senior Fellow Senior Fellow environment... Director, Education Policy Center Alan Reynolds “Working at Hudson Institute Gary Geipel Senior Fellow Senior Fellow Director, Economic Studies affords me an opportunity Justin Heet Betsy McCaughey Ross to shape public policy on Research Analyst Senior Fellow Jay Hein David Satter important issues facing our Senior Fellow Senior Fellow country today.” Director, Welfare Policy Center Irwin Stelzer Yoshiki Hidaka Senior Fellow Visiting Senior Fellow Director, Regulatory Studies Yunsik Hong Ryan Streeter Visiting Research Fellow Research Fellow Charles Horner William Styring, III Senior Fellow Senior Fellow Michael Horowitz Rebecca Swartz Senior Fellow Research Fellow Director, Project for Civil Justice John Weicher Reform Senior Fellow Director, Project for International Director, Urban Policy Studies Religious Liberty Marc Wiehn Jason Hutchens Research Assistant Research Assistant

as of February 15, 2000 Senior Administration Pat Hasselblad Mark Pflum Curt Smith Director of Executive Administration Assistant Vice President, External Affairs Vice President and Chief Operating and Corporate Secretary and Personnel Manager Officer Deborah Hoopes Edwin Rubenstein Ken Weinstein Chief Financial Officer Director of Research Director, Washington, D.C. office Herbert London and Senior Fellow President 44 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Research Staff

America and the nation’s capitol in 2020... “Washington, D.C. will decrease in importance over the next 20 years as the Internet empowers individuals and encourages innovative state and local solutions to policy prob- lems. Maintaining a sense of national identity and purpose in the face of this devolution will be difficult, especially as it will coin- cide with an ever greater social libertarianism.” Rebecca Cline, librarian Yoshika Hidaka, visiting senior fellow

Ken Weinstein, senior fellow and director of Washington, D.C. office

Row 1 (l-r): Pat Hasselblad, director of executive administration and special events; Herbert London, president and chief executive officer; Curt Smith, vice president and chief operating officer; Deborah Hoopes, chief financial officer; April Smekens, adminis- trative assistant; Row 2 (l-r): Edwin Rubenstein, director of research; Susan Darwent, administrative assistant; Mark Pflum, assistant vice president for external affairs and personnel manager; Leslie Swift, administrative assistant

45 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Hudson Institute, Inc. Board of Trustees

Walter P. Stern, Chairman* Marie-Josée Kravis* Honorary Trustee Vice Chairman of the Board Senior Fellow Capital Group International, Inc. Hudson Institute Dan Quayle New York, New York New York, New York Phoenix, Arizona Daniel F. Evans, Jr., Esq., Andre B. Lacy Vice Chairman* Chairman, President, and Chief Executive Trustees Emeriti Partner Officer Baker & Daniels LDI, Ltd. James H. Dowling Indianapolis, Indiana Indianapolis, Indiana Chairman Emeritus, Managing Joseph M. Giglio, Vice Chairman* Herbert I. London* Director/Latin America Burson-Marsteller Professor President and Chief Executive Officer Miami, Florida Northeastern University Hudson Institute, Inc. Englewood Cliffs, New Jersey Indianapolis, Indiana Kenneth Duberstein J. M. Olin Professor of Humanities Pat Hasselblad, Corporate Secretary Chairman and Chief Executive Officer New York University The Duberstein Group Director of Executive Administration New York, New York Washington, D.C. Hudson Institute, Inc. Indianapolis, Indiana Robert H. McKinney Pierre S. du Pont IV Chairman and Chief Executive Officer Jeffrey T. Bergner Director First Indiana Corporation Richards, Layton & Finger Chairman Indianapolis, Indiana Wilmington, Delaware Bergner-Bockorny, Inc. Washington, D.C. John M. Mutz Roger D. Fisher Vice Chairman Linden S. Blue* Williston Professor of Law, Emeritus PSI Energy, Inc. Harvard Law School Vice Chairman Indianapolis, Indiana Cambridge, Massachusetts General Atomics San Diego, California Neil H. Offen, Esq. Craig L. Fuller President Mitchell E. Daniels, Jr.* President and Chief Executive Officer Direct Selling Association National Association of Chain Drug Stores Senior Vice President, Corporate Strategy Washington, D.C. Alexandria, Virginia and Policy Eli Lilly and Company Steuart L. Pittman, Esq.* Alexander M. Haig, Jr. Indianapolis, Indiana Senior Counsel Chairman and President Shaw, Pittman, Potts & Trowbridge Christel DeHaan Worldwide Associates, Inc. Washington, D.C. Washington, D.C. President and Chief Executive Officer C D Enterprises, Ltd. Ian M. Rolland* Bernadine P. Healy, M.D. Indianapolis, Indiana Fort Wayne, Indiana President Thomas J. Donohue* Irving Schatz American Red Cross Washington, D.C. President and Chief Executive Officer President The Chamber of Commerce of the United Hudson House Company Professor Donald Kagan States of America New York, New York Fellow, Department of Classics Washington, D.C. Wallace O. Sellers* Yale University Joseph Epstein Vice Chairman, Enhance Financial New Haven, Connecticut Lecturer Services Group Inc. Harold D. Marshall Northwestern University Solebury, Pennsylvania President and Chief Operating Officer Evanston, Illinois Roger D. Semerad Associates First Capital Corporation Gay Hart Gaines Bluemont, Virginia Dallas, Texas Palm Beach, Florida Beurt SerVaas Daniel C. Searle Frederick W. Hill Chairman of the Board Director Kinship Corporation Chairman SerVaas Incorporated Northbrook, Illinois McCallum Hill Limited Indianapolis, Indiana Regina, Saskatchewan, Canada Max Singer Paul G. Stern Allan B. Hubbard President Partner Thayer Capital Partners President The Potomac Organization, Inc Washington, D.C. E & A Industries, Inc. Chevy Chase, Maryland Indianapolis, Indiana Allan R. Tessler* Jay Van Andel Roy Innis Chairman and Chief Executive Officer Co-Founder and Senior Chairman Amway Corporation National Chairman International Financial Group, Inc. The Congress of Racial Equality Wilson, Wyoming New York, New York Edward Wanandi Jane Kahn Chairman and Chief Executive Officer Chappaqua, New York Trailmobile Corporation Chicago, Illinois Paul J. Klaassen* Chairman of the Board and as of February 15, 2000 Chief Executive Officer Sunrise Assisted Living Fairfax, Virginia *denotes Executive Committee member

46 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Adjunct Fellows

Patrick L. Anderson Deborah Daniels Allan Hubbard B. Jeffrey Reno President Attorney at Law President Department of Political Science Anderson Economic Group Kreig, DeVault, Alexander & E & A Industries, Inc. Michigan State University Lansing, Michigan Capehart Indianapolis, Indianapolis, Indiana East Lansing, Michigan Mr. Zachery J. Anderson Indiana William Hudnut, III Leslie Rubin Los Angeles, California Christopher DeMuth The Urban Land Institute Indianapolis, Indiana James C. Bennett President Washington, D.C. Peter Rusthoven, Esq. President and Director American Enterprise Institute George Keyworth, II Partner Washington, D.C. Internet Transactions Santa Fe, New Mexico Barnes & Thornburg Transnational, Inc. Paula Dobriansky Joel Kotkin Indianapolis, Indiana Vice President, Washington Alexandria, Virginia Los Angeles, California Ernest Schneider Jeffrey Bergner Director Croton on Hudson, New York Council on Foreign Relations Irving Leveson President Washington, D.C. Marlboro, New Jersey William Schneider, Jr. Bergner-Bockorny Frank Luntz President Washington, D.C. Mary Eberstadt International Planning Services Luntz Research Companies Washington, D.C. Arlington, Virginia Louann Bierlein Arlington, Virginia Education Policy Advisor James R. Edwards, Jr. William B. Shew Bruno Manno Office of the Governor Springfield, Virginia Washington, D.C. Baton Rouge, Louisiana Emily Feistritzer Annie E. Casey Foundation Baltimore, Maryland Eugene Shirley Mark Blitz, Ph.D. Director President Department of Government National Center for Paul Marer, Ph.D. Pacem Productions, Inc. Professor of International Claremont McKenna College Educational Information Los Angeles, California Claremont, California Santa Fe, New Mexico Business Indiana University The Rt. Hon. Ian Sproat Ken Bode Jason M. Fink, Esq. Fordham New York, New York Bloomington, Indiana Medill School of Journalism Downham Market Northwestern University Chester E. Finn, Jr. Robert McNulty Norfolk, Great Britain President Evanston, Illinois Manhattan Institute Stephen F. Starr Washington, D.C. Partners for Livable Places Cecil E. Bohanon Chairman, Central Asia Washington, D.C. Professor of Economics Frank Gaffney, Jr. Institute-Paul J. Nitze Ball State University Director James Nehf School of International Muncie, Indiana Center for Security Policy School of Law Studies Charles Bonser Washington, D.C. Indiana University Johns Hopkins University Indianapolis, Indiana Director James L. George, PhD. Washington, D.C. Indiana University Contributing Editor, Naval Karl O’Lessker Mike Sutton Bloomington, Indiana Forces Bloomington, Indiana Home Office MONCH Publishing Group John O’Sullivan Police Research Group Andrew Bush Potomac, Maryland New York, New York New York, New York London, England Michael Lee Gradison Young-ho Park Richard K. Thompson Andrew Caranfil Indianapolis, Indiana President Senior Research Fellow Indianapolis, Indiana NorthSouthEastWest Igor Grazin Korea Institute for National Kenneth Tomlinson Consultants College of Business Unification Springbrook Farm Forest Hills, New York Administration Seoul, Korea Middleburg, Virginia University of Notre Dame Lawrence Patrick, Jr. Frank Carlucci Notre Dame, Indiana Ed Turner Chairman Jaffe, Raitt, Heuer & Weiss, PC Editor-at-Large David Gress The Carlyle Group Detroit, Michigan CNN America, Inc. DUPI Washington, D.C. Washington, D.C. Denmark C. Gregg Petersmeyer John J. Cohrssen Bethesda, Maryland Alexander Weiss Michael Heiss Arlington, Virginia Peter Pitsch Assistant Professor, Assistant Professor of Law Department of Criminal Celeste Colgan IU School of Law at Principal Vice President, Human Pitsch Communications Justice Indianapolis Indiana University Resources Indianapolis, Indiana Washington, D.C. Bloomington, Indiana Halliburton Company Richard Porter, Esq. Wade Horn, Ph.D. R. Adm. Gary Wheatley Dallas, Texas President Kirkland & Ellis U.S. Navy, Retired Bruce S. Cooper National Fatherhood Initiative Chicago, Illinois Virginia Beach, Virginia Professor, School of Education Gaithersburg, Maryland Richard Rahn Anthony Wiener Fordham University Janos Horvath President Tenafly, New Jersey New York, New York Department of Economics Novecon Kenneth Cutshaw, Esq. Butler University Washington, D.C. Richard Williamson Smith, Gambrell & Russell Indianapolis, Indiana Walter Raymond, Jr. Partner Atlanta, Georgia John Howard, Esq. Senior Advisor Mayer, Brown & Platt Chicago, Illinois Carol D’Amico Vice President, Law U.S. Association of Former Ivy Tech State College Tenneco, Inc. Members of Congress Indianapolis, Indiana Greenwich, Connecticut McLean, Virginia as of February 15, 2000

47 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Financials and Development

MOVING UNDER THE STEADY HAND OF Herbert London’s leadership, Hudson Institute has remained committed to the ideals of founder Herman Kahn’s futurist vision. While focused on Hudson’s tradition of future-oriented projects, the Institute’s research staff has been able to pursue a wide variety of projects made possible by an increase in unrestricted funds. Overall, project-based funding (restricted revenue) represented 56 percent of Hudson’s total budget, down from 64 percent the previous year. Meanwhile, donations for (l-r) Nancy Hamilton, payroll/benefits administrator; Deborah Hoopes, general operating support (unrestricted chief financial officer; and Marilyn Morris, accounting assistant revenue) increased to more than a third (37 percent) of the Institute’s total revenue, compared to 27 percent last year. This remained consistent at three percent of total revenue. increase in unrestricted revenue has granted Interest and income from the sales of publications and Hudson greater flexibility. other materials generated the remaining revenue. Government grants and contracts As a direct result of continued aggressive fund rais- ing and donor acquisition activity, fiscal year 1999 saw unrestricted revenue climb to more than $2.8 million. While the Institute’s restricted research grants dipped slightly, total operating income from all sources exceeded $7.7 million for the year. Operating income surpassed expenditures by $65,000 in 1999, an increase from the $47,000 deficit in 1998. As in years past, Hudson management worked diligently in 1999 to keep administrative expenses to less than 20 percent of overall costs. We missed our tar- get in 1999 by a mere 7/10 of one percent, but still more than 79 cents of every Hudson dollar directly supports public policy research. Hudson’s overall fund balance, a measure of the Institute’s financial resources—including cash reserves and its endowment—once again rose to an all-time high. At the end of 1999 we realized a gain of 24 percent to nearly $5.6 million. The accompanying table provides a summary of Hudson Institute’s 1999 financial operation. For further information, please contact Hudson Institute’s Development Office. Hudson Institute welcomes financial contributions and donations of cash, stock, trusts, bequests, or real property for both its annual giving program and its endowment. Our supporters include individuals, small (l-r) Richard Garris, office services coordinator; Sergio businesses, corporations, and foundations. Stojkovich, facilities manager; Susy Cochran, reception- During the course of 1999, Hudson utilized techno- ist; Barb Husk, network administrator logical advancements to make contributing to the 48 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Financials and Development

Institute easier than ever. For dinners held in Washington, example, we expect contributions D.C., which provide excellent via our website—www.hudson.org opportunities to meet with and —to grow exponentially in the talk to Cabinet-level and other coming years. federal policymakers. Friend’s Circle ($50) Trustee’s Circle ($25,000) This is the basic level of mem- Members of this elite Circle bership to acquaint you with our receive all other benefits and are work. Friends of Hudson receive: entitled as well to private brief- American Outlook, the ings to discuss a topic of their Institute’s quarterly magazine of choosing with appropriate experts reporting and analysis on critical from Hudson’s research staff. public policy issues; Visions, the For more information about Institute’s periodic newsletter; Hudson’s annual membership as well as other special commu- program and other giving oppor- nications throughout the year. Deborah Hoopes, chief financial officer tunities, please contact our Patron’s Circle ($250) Development Office. The Internal Revenue Hoopes on Hudson’s In addition to receiving Hudson Service has determined that fundraising... publications, Patrons receive Hudson Institute is a tax- invitations to join scholars and “This past year we concen- exempt organization under staff from Hudson and other trated much of our efforts Section 501(c)(3) of the Internal institutions at informal policy toward increasing our donor Revenue Code. Contributions to briefings and special events. base of unrestricted givers. In Hudson Institute are tax- the coming year, we want to deductible to the extent allowed Benefactor’s Circle ($500) add significantly to our endow- by law. A copy of our letter of In addition to receiving the ment. This will allow Hudson determination from the IRS is above benefits, Benefactors to expand its research program.” available upon request. receive prerelease copies of all books and major policy papers Key Financial Data during their membership year. FISCAL YEAR REVENUE 1999 1998 President’s Circle ($2,500) U.S. government contracts $ 220 $ 202 In an even more rewarding rela- Restricted grants & other contracts $4,312 $4,127 Unrestricted grants & donations $2,850 $1,797 tionship, President’s Circle Interest & Income from endowment $ 289 $ 187 members are invited to quarterly Other $ 73 $ 182 dinners at the Herman Kahn Total revenue $7,744 $6,495 Center in Indianapolis. These events feature distinguished EXPENSES Direct research expense $4,584 $3,879 guest speakers and afford oppor- Other research expense $1,505 $1,370 tunities to interact with emi- External affairs and administrative $1,590 $1,293 nent scholars, policymakers, and Total expenses $7,679 $6,542 business leaders. Excess of revenue and support over expenses $ 65 ($ 47) Chairman’s Circle ($10,000) Net assests at beginning of year $4,519 $4,044 Contributions to endowment $1,000 $ 522 Chairman’s Circle members not NET ASSETS AT END OF YEAR $5,584 $4,519 only receive all the above bene- *All dollar figures in thousands. Fiscal year ends September 30. fits but are invited to biannual 49 H UDSON I NSTITUTE 1999 ANNUAL R EPORT 1999 Donors

TRUSTEE’S CIRCLE Organizations Fred C. Tucker III S. William Gouse Archer Daniels Midland Catherine H. Graham Individuals Organizations D & DF Foundation Douglass P. Graham Jean I. and Charles H. Brunie Central Soya Company, Inc. Dow AgroSciences Larry Groves John H. Darlington, Jr. Gohmann Asphalt & Const., Inc. Elanco Animal Health Peter D. Guerrant, III Walter P. Stern Maple Leaf Farms, Inc. First Indiana Corporation Charles E. Halaska Allan R. Tessler Rickert Industries, Inc. Eugene & Marilyn Glick Robert E. Hall Organizations Foundation FRIEND’S CIRCLE Bruce Haller Arizona Public Service Company Global News & Communications Individuals Sandy H. Halo The Lynde & Harry Bradley Helping Fund Jim Anderson Danny A. Harding Foundation Indianapolis Colts, Inc. Thomas G. Armbuster Homer Hargrave, Jr. Capital Group Companies, Inc. The Jean & E. Floyd Kvamme Matthew T. Ashe Jack O. Harshman Carnegie Corporation of New York National City Bank, Indiana Robert L. Austin Clarence A. Haverly The Annie E. Casey Foundation Sunmark Foundation Nancy M. Bannick Hilton E. Heineke Conseco Services, LLC United Migrant Opportunity Robert C. Bartleson C. Rex Henthorn Christel DeHaan Family Walker Information Leonard C. Bastian Charles M. Herzfeld Foundation The Watt Family Foundation Thomas T. Bauman Roger Holmes The William H. Donner Windway Capital Corporation Pauline P. Baynes Randall Hough Enron Corporation The Young & Rubicam Foundation Milford Bennett Brad R. Hughes Fieldstead & Company Young & Rubicam, Inc. Leonard M. Berkowitz Tom Charles Huston F.M. Kirby Foundation, Inc. C. Harold Hutcheson BENEFACTOR’S CIRCLE Donna L. Boggess General Atomics William A. Boncosky C. Howard Jansen Greater Orlando Chamber Indviduals Gene P. Bond Paul H. Kennard The JM Foundation Martin L. Andreas Harry E. Bovay, Jr. Russell R. Kerr The Robert Wood Johnson J. Robert Baur Charles W. Bower Samuel H. Knoll Foundation William J. Beard Alonzo H. Boyd, Jr. Kurt Koester Johnson & Johnson Carolyn S. Cox Eleanor Brant Dennis E. Kroll W.K. Kellogg Foundation Steven R. Davis Alan R. Brill John A. Kruppenbach Lilly Endowment, Inc. Daniel R. Efroymson William L. Brown Michael C. Lady Monsanto Company Mark W. Everson Burton E. Burton John Laflen National Chamber Foundation Alan Greenway Dan Butterbrodt Tamara K. Lawson Novartis Crop Protection, Inc. Henry A. Kissinger Mel Canterbury Pat LeMahieu John M. Olin Foundation, Inc. R. A. Lenon Virginia L. Carrell Harold S. Levenson The Pew Charitable Trusts Michael D. McCormick John J. Carter Norman R. Lindskog Pfizer, Inc. Robert H. McKinney Douglas L. Cassman Dorothy Linke Smith Richardson Foundation Steuart L. Pittman, Esq. Ward S. Cayot Elsa M. Little Sarah Scaife Foundation Jack Ragle Adolph Clausi Mary L. Locke The Starr Foundation Elton T. Ridley W. Frank Cobb, Jr. Nick Longworth Walton Family Foundation, Inc. Charles C. Roberts Benjamine Cohen Wayne C. Lusvardi Roger D. Semerad Bob Colwell Robert H. Lutts CHAIRMAN’S CIRCLE John L. Stavert Joseph A. Cook Thomas M. Lyon Individuals Maynard Toll, Jr. Frederick L. Corban J. Kurt Mahrdt, Jr. W. Michael Wells Charles Adler Peter G. Couladis Teresa Malgue John C. Wohlstetter, Esq. Robert D. Orr William W. Cravens Arthur L. Mathews John W. Wynne Philip J. Rauch John J. Creedon Margaret N. Maxey Robert K. Zelle Theodore R. Stanley J.R. Crist Carolene Mays Karl R. Zimmer, Jr. John T. Crone David A. McCormick Organizations William K. Zinke Kenneth A. Cutshaw, Esq. Edward L. McMillan Center for Self-Sufficiency Organizations Edward P. Czapor Sean M. Mead Direct Selling Association Ackerman Foundation Doug Daugherty Joseph D. Meier Earhart Foundation Cosco Americas, Inc. Charles F. de Ganahl Sue Melinoskas General Electric Fund The Indiana Pension Conference William Defouw Sinclair L. Melner General Motors Corporation John F. Devaney William Merschman The Gilder Foundation PATRON’ S CIRCLE Terry L. Dillon Jean M. Mersereau IPALCO Enterprises, Inc. Individuals Kevin P. Donnelly Wayne A. Miller The Summit Charitable Leonard Brooks Spencer Douglas Kenneth N.C.B. Moore World Trade Center Institute Edmund M. Burke Joyce M. Dubay George A. Morton PRESIDENT’S CIRCLE G. Thomas Carlino Robert C. Durbin J. Kendrick Noble, Jr. Alexander S. Carroll Helmer N. Ekstrom John R. Norris Individuals Don Clift William J. Ellenberger Lumir S. Palma Jeffrey T. Bergner Robert P. Crowner Timothy L. Eller Peter Pardini W. Alan Dayton Terry L. Eaton J. Scott Enright Joseph A. Pickard Janice Ball Fisher Margot L. Eccles Robert R. Everett Charles Poinsatte John W. Fisher Alan S. Freemond, Sr. Arthur Ezerins Richard A. Poinsatte Stanley Gaines James M. Frische Robert J. Fast Edward L. Probst Roger Hertog John W. Galbraith James E. Favell John M. Raber William H. Hurt Samuel S. Glazier John N. Ferris Lloyd M. Raymond Andre B. Lacy C. Paul Hilliard Tim Flanagan William B. Rice Herbert I. London Daniel D. Hoyt Doug Fodge Robert E. Richardson Jack May Alfred D. Kneessy Leonard R. Fouts W. Eugene Roberts Joseph L. May Robert B. Mikesell Jerry Franz Thomas E. Roney Jeremiah Milbank, Jr. Robert G. Nathan Donald E. Funk Richard L. Russell Arthur E. Rasmussen Michael P. O’Neil James M. Gartland, Jr. James L. Sailors Nathan E. Saint-Amand Leland E. Ott James L. George, Ph.D. Michael R. Sandler Richard W. Weekley Amy Sherman Fritz H. Goldbach Charles K. Seven

50 H UDSON I NSTITUTE 1999 ANNUAL R EPORT 1999 Donors

Jack R. Sharkey Anita M. Derouen G. Leonard Shea Richard A. Deyo Rita J. Simon Roger S. Donway William J. Skinner Kurt W. Ehnle James B. Steichen J. W. Elbert Eugene L. Step Barbara Estes Richard D. Stern Tyler J. Farney Jacqueline K. Stone Gregory G. Gallaway John E. Storer, Jr. R. William Gesink Donald M. Strauss John G. Gregory Raymond C. Tanner Jeff Greseth 1% Lucille R. Thompson Marion W. Griffin Christian E. Trummel Danleigh Halfast 4% 3% Elon T. Van Buren Charles L. Harper Victor V. Veysey Jack W. Harris Neil F. Walter Charles E. Harrison Richard W. Warshaw C. Lowell Harriss Glenn G. Wattley Thomas M. Haynes Susan Welch John Hewett Larry D. Welch, USAF (Ret.) Derrick Hill Clyde A. Wheeler Jane Hill Gladstone T. Whitman Helmut Hittinger 37% 55% William E. Whitmer Dagfinn Hokstad Howard R. Youse J. B. Hollister, Jr. Arthur Zabarkes F. G. Holman Marjorie P. Zeigler Keith Inskeep Erich Isaac Organizations Darryl Jahn Akey, Inc. Erik N. Jansen Colusa Elevator Company Mark Jansen Force Construction Company, Inc. Erik Jansen Frick Services, Inc. Daniel Jordet G & G Associates Margaret Jurkiewicz Greater Kansas City Chamber Jerry Keller Hoxton Foundation, Inc. James Koller Indiana Farm Bureau, Inc. Theodore E. Lang Kazaan Fertilizer, LLC Paul Layden U.S. government contracts Emma & Julius Kleiner Foundation Llewellyn Lloyd-Davies Marion Oral & Maxillofacial Donald Luke Restricted grants & other contracts Mitchel & Scott Machine Company Arthur C. Marquess, Jr. Ray Brothers & Noble Canning Porter J. Martin Unrestricted grants & donations Tenkoz, Inc. Gary Matteson SUBSCRIBERS Frank M. Mayo Nevin J. Mindlin Interest & Income from endowment Individuals Eugene Morel Edward Adair David Muscat Other John Ahlrichs James M. Neill Rick Alcocer Annora Nelson Paul Appell Patricia Newman Max Austin Joseph D. Ofengender Robert Baarsch Daniel J. O’Malia Ben Bammes John Oxton D. Banks Philip Paarlberg Leon Barnard Horace Paarlberg Peter Vanden Bosch Cook’s Division of P & H Patricia Bassett Steven Pahl William P. Villano Defense Intelligence Agency Pauline P. Baynes Richard L. Pierce Mordecai Waxmanai Franklin & Marshall College Curt Behrends William Richards Perry L. Weed Hicksville Public Library Jackie Wienhorst B. R. Blankenship Clark B. Rollins, Jr. Holland Library John Foster Bruce Clark Wilson Robert Romonoasky Indiana University Dennis Campbell Harold Rood Donald R. Wilson Lake Park High School Dist 108 John Campbell Gregory J. Roth Robert K. Winter Michael W. Chilton Michael Sampogna Dorothy Witwer Library Acquisitions L. Kent Christensen Peter Savodnik Richard Wood Madison Co. CAREE Cons., Ag. Frederick J. Clark Irwin Savodnik Paul A. Wood Mesa Public Library Frederick J. Clark, III Denise E. Smith Ann Woroniak Montcalm Community College Andrew R. Cochrane Anthony Spina, Ph.D. Organizations New York Public Library Guy E. Conkey, III Dennis C. Stanfill Agri-Nutrition Services, Inc. Pioneer Hi-Bred International Allen B. Craven Brian Starry Biotechnology Industry Purdue University Library William H. Cummings Jacob Stein Organization St. Louis Park Branch Library Fred Davis Anne A. Taylor Carbondale Community High Stillmeadow, Inc. John Davis Colleen Tigges School Edmund de Rothschild Pat Tigges Cleveland Public Library Strecker Museum Jack Debolt William J. Tillett Commonwealth of Virginia UCLA Serials Dept/YRL Gene Dement Phyllis O. Tilson Comm. College of Southern University of Wisconsin George M. Dennison Rene J. Tricou Nevada Woodworth Library

51 H UDSON I NSTITUTE 1999 ANNUAL R EPORT Acknowledgments

Copywriting: Lynnell Nixon-Knight Photography: Shawn Spence Photography Contributing Photography: Steve Barrett Photography B&L Photography R. Brent Smith Photography MediaWright Photography Sylvia Johnson Photography Shingo Tanaka U.S. Chamber of Commerce Design and Production: MJM Design Printing: White Arts, Inc. Project Management: Hudson Institute Marketing Communications Department

Hudson Institute staff at corporate headquarters in Indianapolis

52 H UDSON I NSTITUTE 1999 ANNUAL R EPORT

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