Hudson Institute 2008 annual report Hudson Institute is a nonpartisan, independent policy research With offices in Washington and New York, Hudson seeks to organization dedicated to innovative research and analysis that guide public policy makers and global leaders in government promotes global security, prosperity, and freedom. and business through a vigorous program of publications, con- ferences, and policy briefings and recommendations. Founded in 1961 by strategist Herman Kahn, Hudson Institute challenges conventional thinking and helps manage strategic Hudson Institute is a 501(c)(3) organization financed by tax- transitions to the future through interdisciplinary studies in deductible contributions from private individuals, corporations, defense, international relations, economics, health care, tech- foundations, and by government grants. nology, culture, and law. CONTENTS 4 Message from the Chairman, CEO, and President 6 International Security, Foreign Policy, and Global Affairs 20 Economics, Trade, and Science 24 Society, Culture, and Philanthropy 27 Hudson New York 28 Hudson History and Herman Kahn 30 Outreach 33 Hudson Institute Press 35 Support for Hudson 36 Finances 37 In Memoriam 38 Hudson Scholars and Centers 40 Hudson Leadership “Hudson Institute is one of America’s foremost policy research centers, known and respected around the globe, a leader in innovative thinking and creative solutions for challenges of the present and future.” –HENRY KISSINGER 2008 annual report 3 Message from the Chairman, CEO, and President F inancial upheaval, a historic presidential elec- denced by the introduction of significant legislative re- tion, turmoil in the oil markets, and the threat of a form to combat sex trafficking; the willingness of former nuclear Iran dominated the news in 2008. senior administration officials to choose Hudson as the Hudson Institute scholars played a prominent role in venue to discuss openly, for the first time, the failures and critical debates on these and other major policy issues. the successes of the Iraq War; or the increased awareness As early as February 2007, a Hudson forum sounded of radical Islam among policymakers and legislators. warning bells on an impending subprime mortgage cri- This year has been one of extraordinary growth for sis, which months later consumed the world’s attention. Hudson. Six new Senior Fellows, each with first-class By the end of 2008, when the scope of the economic records of significant policy and research accomplish- down turn became apparent, Hudson scholars had al- ment and many with service at the highest levels of gov- ready brought significant expertise to debates over the ernment, joined the Institute. In 2008 we welcomed Seth effectiveness of bailouts, the future of financial regula- Cropsey, former Deputy Under Secretary of the Navy; tion, and the fate of capitalism itself. Our scholars also Douglas Feith, former Under Secretary of Defense for examined the side effects of the crisis, such as the impli- Policy; Christopher Ford, former Deputy Assistant Sec- cations for American philanthropy and the impact on retary of State for Nonproliferation Policy; Rod Hunter, the developing world. former Senior Director for International Economic Pol- In the midst of this economic turbulence, Hudson icy at the National Security Council; Hassan Mneimneh, scholars kept sight of numerous other policy priorities. former Executive Director of the Iraq Memory Founda- Our researchers focused on the intricate challenges to re- tion; and Andrew Natsios, former Administrator of the gional and global security stemming from Islamic funda- U.S. Agency for International Development. Meanwhile, mentalism and terrorism, renewed tensions with an Hudson bid farewell to Husain Haqqani, who was called increasingly hostile Russia, the resurgence of China, a back to public service as Pakistan’s Ambassador to the destabilized Pakistan, and the looming danger of a nu- United States. clear-armed Iran. In Washington alone, we held more than one hundred Hudson’s innovative and nonpartisan scholarship— public conferences—events that drew live broadcast cov- as it has done for nearly fifty years—helps shape and erage from networks including C-SPAN, CNBC, Fox guide public policy. In reading this annual report, you News, CBS, CNN, and Bloomberg TV—and garnered will see the impact of Hudson’s policy research, as evi- press coverage in every major U.S. newspaper. Our New 4 hudson institute ALLAN R. TESSLER KENNETH R. WEINSTEIN HERBERT I. LONDON York Briefing Series hosted twenty-nine high-profile knew and admired him. Odom, the Army three-star expert guests to engage in dialogue with its distinguished general who served as Director of the National Security membership. The Institute’s publications, most notably Agency during the Reagan administration, had been at Hudson’s signature Index of Global Philanthropy and the Institute for more than two decades. Current Trends in Islamic Ideology, were cited by major There will be new challenges for Hudson in 2009, as media outlets around the globe. there will be for our nation and the world. Hudson has Hudson also made significant progress in strength- not been immune to the difficulties brought on by the ening its management infrastructure. Enders Wimbush economic downturn. But in true Hudson fashion, we was appointed Senior Vice President for International hold strongly to the belief that we have the ability to Policy and Programs to consolidate Hudson’s growing make a difference. The three of us will continue to work international field of expertise. The Institute also recon- hard with our colleagues on the Board of Trustees, schol- stituted its development office to build its general ars, and staff to provide an invigorating environment for fundraising capacity and increase focus on project-based out-of-the-box thinking and to extend our sights for funding. A dedicated events and audio/visual coordina- what is possible in the future. Hudson scholars have tor was appointed to further professionalize our public gained respect for questioning conventional wisdom in outreach. their quest to reach the heart of a problem, while recog- The year 2008 was also a year of significant loss for nizing the importance of values, culture, and religion. Hudson. We note with sorrow the passing of longtime These accomplishments keep us optimistic about Trustee Wally Sellers and newer Trustee Tom Whitehead. human kind’s ability to overcome the seemingly insur- They both brought insight and dedication to the Board mount able. Above all, we are proud to belong to an in- and will be sorely missed by all. Former Senior Fellow stitution that cultivates workable public policies to William Odom’s death was a great loss to those who promote global freedom, prosperity, and security. ALLAN R. TESSLER KENNETH R. WEINSTEIN HERBERT I. LONDON Chairman of the Board of Trustees Chief Executive Officer President 2008 annual report 5 International Security, Foreign Policy, and Global Affairs H udson Institute was founded in 1961, a strong analytic framework that challenges the conven- in the middle of the Cold War, when world affairs were tional wisdom through a strategic approach to policy dominated by the life and death struggle between the So- linked with an abiding respect for the critical role of his- viet Union and the free world, perhaps the most danger- tory in human affairs, a deep knowledge of the impact of ous era in human history due to the advent of nuclear culture on politics, and proper appreciation of the central weapons. To face this unprecedented intellectual chal- importance of technology and demography as driving lenge—under the guidance of Herman Kahn—Hudson factors in international politics. As during the height of scholars devoted their attention to shaping U.S. nuclear the Cold War, our scholars are guided by the same faith deterrence theory and policy through such seminal pub- in the ability of sound thinking and reasoned analysis to lications such as On Escalation and Thinking About the help us navigate through today’s challenging times. Unthinkable. At the same time, the world was on the verge of the greatest expansion of economic activity and technological advances in history, which would spread the dynamism of liberal capitalism around the globe. International and National Today’s world is marked by new challenges. The rise Security of Asia, the unstable security architecture of the former Soviet sphere of influence, significant ferment in the Is- ¶ The Center for Technology and Global Security was es- lamic world, and the enormous challenges to the global tablished under Director and Senior Fellow Christopher econ omic system now pose enormous threats. Ford in September 2008. Ford joined the Institute di- In the face of these challenges, Hudson scholars con - rectly from his position at the Department of State as the tinue their tradition of important research in fields that U.S. Representative on the Nuclear Non-Proliferation include the future of Islam, religious freedom and human Treaty (NPT). He brings his expertise to the study of pro- rights, international development, energy security, tech- liferation issues, including production capacity, emerging nology and global security, political-military affairs, and future threats, and alternatives to conventional disarma - national security strategies, as well as region al-based ment dynamics. analysis focused on Canada, Latin America, Europe, Asia, Central Asia, and the Middle East. ¶ Hudson continued its assistance on the Project on Hudson research in all these fields is characterized by National Security Reform (PNSR), a multiyear, multi- 6 hudson institute “There are a small handful of institutions that helped us win the Cold War, and Hudson Institute is one of them. But Hudson continues to look ahead imaginatively to the problems and the solutions of the future. Hudson gives us the intellectual tools for the next great challenge.” –MARGARET THATCHER institutional forum to develop recommendations for the occasion of the release of Douglas Feith’s New York substantial regulatory, statutory, and congressional Times bestselling book, War and Decision: Inside the Pen- re forms.