How Lockheed Martin may influence international policy

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How Lockheed Martin may influence international policy

The current CEO of Lockheed Martin is James D. Taiclet[1]. He has been the CEO since June 2020 and the chairman since March 2021. He is a former chairman, president, and CEO of American Tower Corporation, a global real estate investment trust (REIT) and a leading independent owner, operator, and developer of multitenant communications real estate.

Before joining Lockheed Martin, Taiclet served as president of AlliedSignal (subsequently Honeywell Aerospace Services), a company that conducts worldwide aircraft engine and component overhaul and repair, parts sales and distribution, space operations, and technical services. Taiclet is a graduate of the United States Air Force Academy and holds an MBA from the Wharton School of the University of Pennsylvania.

Most importantly, perhaps, is that Taiclet is now a member of the board of directors of the U.S. Council on Foreign Relations (CFR). In a 2022 earnings call, Taiclet assured investors that the “evolving threat level” from North Korea, Iran, Russia, and China would lead the U.S. to “not sit by and just watch it happen” and that policymakers would respond by increasing the defence budget, over half of which goes to defence contractors like Lockheed. A year earlier, Taiclet suggested that regulators should allow greater consolidation of the industry to more closely mirror the largely-state owned weapons industry in China.[2]

As noted above, the CEO of Lockheed Martin is a member of the board of directors of the U.S. Council on Foreign Relations (CFR)[3]. The CFR is a non-profit organization that seeks to foster informed and constructive debate on foreign policy issues. It does this through its publications, conferences, and other events. The CFR does not take positions on policy issues, but its members and fellows are often consulted by government officials and policymakers.

There is no consensus on whether the CFR influences political decision-making in the United States. Some people believe that the CFR has a significant influence, while others believe that its influence is overstated. CFR runs the David Rockefeller Studies Program, which influences foreign policy by making recommendations to the presidential administration and diplomatic community, testifying before Congress, interacting with the media, and publishing research on foreign policy issues[4].

Those who believe that the CFR has a significant influence argue that its members and fellows are often in positions of power and influence. They also argue that the CFR's publications and conferences provide a forum for discussing foreign policy issues and that these discussions can shape the thinking of policymakers.

Those who believe that the CFR's influence is overstated argue that the organization is just one of many voices in the foreign policy debate. They also argue that the CFR's publications and conferences are not always influential and that policymakers often make decisions based on other factors, such as public opinion or the advice of their own staff.

Ultimately, the extent to which the CFR influences political decision-making in the United States is difficult to measure. However, there is no doubt that the organization plays an important role in shaping the foreign policy debate.[5]

Here are some additional points to consider:

  • The CFR has a large and influential membership, including former and current government officials, business leaders, and academics.
  • The CFR's publications and conferences are widely read and attended by policymakers and other opinion leaders.
  • The CFR has a strong track record of influencing foreign policy debates and decisions.

Importantly, some members of the CFR have positions on other boards of directors or hold senior positions in other companies. For example, the current Chairman of the CFR, David M. Rubenstein, is also the Co-founder and Co-Chairman of The Carlyle Group, a global private equity firm. The current Vice Chairman of the CFR, Blair W. Effron, is also the Co-founder of Centerview Partners, a global investment banking firm. And the current President of the CFR, Michael Froman, is also a former U.S. Trade Representative.

 

So, what is the Carlyle Group? The Carlyle Group is a multinational private equity, alternative asset management and financial services corporation based in the United States with $376 billion of assets under management.[6] It was founded in 1987 by William E. Conway Jr., Stephen L. Norris, David M. Rubenstein, and Daniel A. D'Aniello.

The firm invests in a variety of asset classes, including private equity, real estate, credit, and infrastructure. Carlyle developed a reputation for acquiring businesses related to the defence industry. From its founding in 1987, the Carlyle Group has pioneered investing in the defence and national security markets, and through its takeover of companies with billions of dollars in defence contracts became one of the U.S. military’s top vendors, ranking among better known defence firms like Lockheed Martin, Boeing Co., Raytheon Co., Northrop Grumman, and General Dynamics.[7]

The Carlyle Group has a global reach, with offices in 35 countries. The firm's portfolio companies include a wide range of businesses, including aerospace and defence, consumer products, energy, healthcare, industrials, technology, and telecommunications.

The Carlyle Group is a controversial company[8], but it is also one of the most successful private equity firms in the world. The firm has played a significant role in the global economy, and it is likely to continue to do so in the years to come. The Carlyle Group is a complex and multifaceted company. It is a major player in the global economy, and it has a significant impact on the world.

The Carlyle Group is a private equity firm, which means that it invests in companies by buying their shares. However, the firm does not disclose its investments in detail, so it is possible that the firm owns shares in Lockheed Martin through minority shareholdings in other companies that invest in the company.

Some members of The Carlyle Group's board of directors have (or had) close ties to the U.S. government:

  • David M. Rubenstein: Rubenstein is the Co-founder and Co-Chairman of The Carlyle Group. He is also a former White House Fellow and a major donor to Democratic Party candidates.
  • James A. Johnson: Johnson is the former Chairman and CEO of the Federal National Mortgage Association (Fannie Mae). He is also a former U.S. Senator from Connecticut.
  • Frank Carlucci: Carlucci was a former Secretary of Defense and Director of the Central Intelligence Agency. He is also a former U.S. Ambassador to Italy. In The World According to Bush, William Karel interviewed Frank Carlucci to discuss the presence of Shafiq bin Laden, Osama bin Laden's estranged brother, at Carlyle's annual investor conference while the September 11 attacks were occurring.[9] Carlucci was notable during the Regan administration for advocating an arms build-up to hasten the end of the Cold War, a policy that Reagan followed.[10]
  • John J. Hamre: Hamre is the former Deputy Secretary of Defense and President and CEO of the Center for Strategic and International Studies (CSIS). He is also a former U.S. Representative from Connecticut.
  • Richard Armitage: Armitage is a former Deputy Secretary of State and U.S. Ambassador to the United Nations. He is also a former U.S. Representative from Tennessee.

These are just a few examples of The Carlyle Group's board members with close ties to the U.S. government. The firm has several other board members who have held high-level positions in government, including the military, the intelligence community, and the financial sector. Historically, Carlyle has garnered massive levels of influence in the United States and other governmental circles by employing retired officials and using their connections, knowledge, and lobbying ability to plan their investments, especially in the military-industrial complex. Carlyle’s early specialty was military contracting, taking over companies with billions of dollars in military contracts, such as United Defense, Inc. The roster of former government officials (most of those from the United States are also CFR members) who once worked for Carlyle and exemplify this type of access includes:

·         George H. W. Bush,

·         secretary of state James Baker III,

·         Office of Management and Budget director Richard Darman,

·         chairman of the Securities and Exchange Commission Arthur Levitt,

·         Federal Communications Commission chairman William E. Kennard,

·         Bill Clinton White House chief of staff Mack McLarty,

·         UK prime minister John Major,

·         president of Bundesbank Germany Karl Otto Pohl,

·         Philippines president Fidel Ramos,

·         Thai premier Anan Panyarachun, and

·         prime minister of South Korea Park Tae-joon.

Currently, Federal Reserve chair Jerome Powell and Virginia governor Glenn Youngkin, both present CFR members, are Carlyle veterans. In the case of Youngkin, his vast wealth from his years with Carlyle (estimated at $470 million by Forbes) allowed him to spend tens of millions of his own money to hire influential consultants and produce a slick political campaign to define himself favourably and win the election in late 2021. In summary, the Carlyle Group's close ties to the U.S. government have been the subject of some controversy.[11]

Carlyle has been profiled in Michael Moore's Fahrenheit 9/11 and William Karel's The World According to Bush. In Fahrenheit 9/11, Moore makes nine allegations concerning the Carlyle Group Moore focused on Carlyle's connections with George H. W. Bush and his Secretary of State James Baker, both of whom had at times served as advisers to the firm. The movie quotes author Dan Briody, who claimed that the Carlyle Group "gained" from the September 11 attacks because it owned military contractor United Defense.


[5] For detailed information and analysis about the history, nature, activities, and influence of the Council on Foreign Relations, see Laurence H. Shoup, Wall Street’s Think Tank: The Council on Foreign Relations and the Empire of Neoliberal Geopolitics 1976–2019 (New York: Monthly Review Press, 2019); Laurence H. Shoup and William Minter, Imperial Brain Trust: The Council on Foreign Relations and United States Foreign Policy (New York: Monthly Review Press, 1977). https://monthlyreview.org/product/wall-streets-think-tank/

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