How do American universities make their money? | Counting the Cost

Summary

This week's 'Counting the Cost' on Al Jazeera examines various pressing economic and political issues. The show begins with a spotlight on university funding in the US, where protests are demanding divestment from Israel due to its conflict with Gaza. The program explores the potential financial and moral impacts of such divestment, referencing past successful campaigns against apartheid South Africa and fossil fuels. The discussion also touches on the challenges universities face in divesting from specific entities. Next, the show shifts to the economic ramifications of the ongoing war in Ukraine, with a focus on the US and its allies' efforts to hold Russia accountable for its invasion. This includes a legislative move that could lead to Russia paying reparations, which has raised concerns about potential retaliation and legal challenges. The program also highlights the global response to the conflict, with a particular emphasis on the role of China and India in the current economic landscape. The potential for Russia to leverage its relationships with these nations is a key point of discussion. The episode then delves into the tech industry, with a feature on the potential US ban of TikTok over national security concerns. The potential legal and economic fallout of such a ban is explored, including the impact on small businesses that rely on the platform for marketing. Finally, the show addresses the broader implications of these issues for international relations, particularly between the US and China. It raises questions about the future of global trade and the potential for retaliatory measures if tensions continue to escalate.

Takeaways

• 📚 **University Divestment Movement**: Protests across US universities demand divestment from companies complicit in Israel's war on Gaza, highlighting a student-led movement for ethical investment.
• 🏛️ **Institutional Response**: Universities like Columbia and USC face calls to divest, with varied institutional responses ranging from dialogue to arrests, reflecting the complexity of the issue.
• 💵 **Financial Mechanisms**: Universities rely on endowment funds, investing in diverse assets; students are pushing for transparency and ethical reallocation of investments.
• 🌎 **Global Divestment History**: There's a precedent for successful divestment, as seen with South Africa's apartheid, although the Israel-Palestine situation presents unique challenges.
• 🤝 **International Sanctions**: The call for boycotts and sanctions on Israel is echoed globally, with activists targeting multinational corporations supporting Israel, impacting their sales and stock values.
• 🏗️ **Rebuilding Ukraine**: The US and allies seek to hold Russia financially accountable for the invasion of Ukraine, with proposals to use frozen Russian assets for reconstruction.
• 🚨 **Russian Retaliation Threat**: Moscow warns of retaliatory measures if its state assets are confiscated, highlighting the delicate balance of international financial power.
• 🛡️ **Legal and Moral Stands**: Divestment efforts are as much about moral stances as financial impact, aiming to influence public opinion and potentially foreign policy.
• 🚫 **TikTok Ban Threat**: US legislation targets TikTok over data privacy and security concerns, with the potential for a nationwide ban if ByteDance doesn't divest.
• 🛒 **Economic Impact on Businesses**: A ban on TikTok could affect millions of American businesses that utilize the platform for marketing, as well as the app's significant job support.
• 🌐 **Global Trade Dynamics**: The conflict's impact on global trade is significant, with shifts in investment and export focus, particularly towards China and India.

Q & A

What is the primary demand of the protesters at major American colleges regarding their universities' investments?

The protesters demand that their universities disclose and divest from investments in companies they believe are complicit in genocide, particularly those linked with Israel's war on Gaza.

What is the total endowment fund of Columbia University, and what are the protesters' demands concerning this fund?

Columbia University has an endowment fund of nearly $14 billion. Protesters want the university to divest from companies linked with Israel or those profiting from its war on Gaza.

How have some universities responded to student protests regarding divestment from Israel?

Some universities have refused to divest, while others have offered to make investments in health and education in Gaza. There have also been instances of arrests and expulsions, as well as more conciliatory approaches, such as agreeing to speak with protesters.

What is the historical context of student activism targeting university endowments?

In the 1980s, student activists successfully persuaded universities to divest from apartheid South Africa. More recently, universities have divested from fossil fuels and private prisons.

What is the potential financial impact on universities if they choose to divest from Israel?

While the financial impact may be minimal, the moral and ethical ramifications are significant. Divestiture campaigns often become debates about moral and ethical issues, potentially influencing public opinion and American support for Israel's military activities.

What is the economic challenge faced by the boycott movement in the occupied West Bank?

Israel's control over the economy, including water, fuel, electricity, and restrictions on imports and exports, makes it difficult for Palestinians to fully participate in a boycott. However, they aim to inflict economic losses on Israel and support local businesses.

What is the estimated financial need to rebuild Ukraine, and who is expected to bear the cost?

The World Bank estimates that $411 billion is needed to rebuild Ukraine. The US and its allies want Moscow to pay for its invasion, and Congress has passed a bill that could allow Kiev to use some of Russia's frozen assets.

What is the potential legal repercussion for the US and its allies if they seize Russia's assets?

Seizing Russia's assets could set a dangerous precedent, potentially leading to new lawsuits against the US and its allies for war reparations. Russia has threatened to retaliate, and there are concerns about the legality of such actions under international law.

What are the concerns surrounding TikTok's operations in the US, and what actions have been taken by the US government?

Concerns include the potential for the Chinese government to access sensitive user data and the possibility of the app being used for misinformation and election interference. President Joe Biden signed a bill that could lead to a nationwide ban on TikTok if its Chinese owner, ByteDance, does not divest from the app.

What are the potential consequences for American businesses and jobs if TikTok is banned in the US?

TikTok helps generate billions of dollars for over 7 million American businesses and supports more than 224,000 jobs. A ban could disrupt these economic contributions and require businesses to find alternative marketing platforms.

What are the broader implications of a potential TikTok ban on US-China relations?

A ban could further strain US-China relations and may prompt retaliatory measures from China. It also raises questions about the precedent it sets for international technology regulation and data privacy concerns.