Pubdate: Tue, 18 May 2004 Source: Kansas City Star (MO) Copyright: 2004 The Kansas City Star Contact: http://www.kcstar.com/ Details: http://www.mapinc.org/media/221 Author: Deirdre Shesgreen, St. Louis Post-Dispatch Washington Bureau Bookmark: http://www.mapinc.org/decrim.htm (Decrim/Legalization) Bookmark: http://www.mapinc.org/find?179 (Nadelmann, Ethan) Bookmark: http://www.mapinc.org/soros.htm (Soros, George) BILLIONAIRE PLEDGES $12.5 MILLION TO DEFEAT BUSH WASHINGTON - If there's one man Republican campaign strategists are worried about as the presidential campaign gets under way - aside from Democratic contender John Kerry - it is George Soros. A 73-year-old Hungarian-born billionaire, Soros is more financial wizard and self-styled philosopher than political tactician. He made a fortune as a financial speculator and has given much of it away on initiatives designed to cultivate democratic institutions in Eastern Europe and elsewhere. But this year, Soros has a new project: defeating President George W. Bush. He has pledged to spend $12.5 million, and possibly more, to bring his goal of ousting Bush to fruition. That eye-popping pledge had made him one of the biggest donors ever to the Democratic political cause and a lightning rod for Republican critics. "George Soros has purchased the Democratic Party for his own political agenda," David James, a spokesman for the Republican National Committee, said after pulling out a file Republicans have compiled on Soros and firing off several unflattering e-mails about the New York billionaire. Other critics say Soros is using independent political groups to get around new campaign-finance restrictions. For his part, Soros says he's motivated by concerns about America's standing in the world. He has portrayed Bush as nothing less than a threat to American democracy. "Bush is taking us in a very dangerous direction," Soros said in a telephone interview from his home outside New York City earlier this month. "Extremists have gained control (of the administration) after Sept. 11," Soros said, his soft-spoken tone contrasting with the sharpness of his remarks. The administration, he said, has imposed simplistic "might is right" policies that threaten to create more violence against the United States. Soros spelled out this view earlier this year in a book criticizing Bush's foreign policy, "The Bubble of American Supremacy: Correcting the Misuse of American Power." But he didn't leave it at that. "I also put my money where my mouth is," Soros said. Stephen Moore, president of the Club for Growth, a conservative anti-tax advocacy group, said Soros has become "the most feared liberal in the country because he's got these incredibly deep pockets" and is willing to open them to "Bush-hating" groups. Moore said his group has been able to raise several million dollars with a simple but powerful message to GOP donors: "We can't let George Soros buy the presidency." Since last fall, Soros has contributed $9.5 million - with a pledge for an additional $500,000 - to one of these new groups, America Coming Together, and an affiliated group, the Joint Victory Campaign 2004, which are both deeply involved in efforts to oust Bush. He has also contributed $2.5 million to Moveon.org Voter Fund, another group that is working to defeat Bush. Soros said he is open to giving more, but added: "I hope that it won't be necessary." He decided to fund the groups, known as "527s," last summer after he invited a group of Democratic strategists to his house on Long Island, N.Y., to discuss the presidential election. By the end of the day, he had told two veteran Democratic operatives, Steve Rosenthal and Ellen Malcolm, that he would give $10 million to their new organization, America Coming Together. "He said 'I think Democratic donors are despondent. If I come to the table .. I think we can create some excitement about this,'" recalled Rosenthal, chief executive officer of the group. "And he was exactly right. He helped to create a center of gravity on our side." DOMESTIC POLITICS The decision to immerse himself in domestic politics is a new turn for Soros, who as the world's 54th richest man is worth an estimated $7 billion, according to Forbes Magazine. An intense, impulsive man who has been described as both shy and aggressive, Soros was born in Budapest in 1930 and as a child lived through the Nazi and Soviet occupations of Hungary. He fled to England when he was 17 and, after his studies there, came to the United States in 1956, where he made his fortune. Over the next several decades, Soros became one of the world's most successful financial speculators, making millions of dollars for himself and other investors with his bets in the stock and currency markets. Business associates have attributed Soros' success to an innate ability to spot broad economic trends long before others do. In 1992, for instance, Soros became known as "the man who broke the Bank of England," when he made $1 billion by betting against the British pound. But it is another trait that truly separates him from other financial wizards. Stanley Druckenmiller, who ran Soros' flagship Quantum fund for 12 years, described it this way to Soros biographer Michael Kaufman: "You know, the ugly way to describe it would be 'balls.'" "It's really about a sort of courage ... to be willing at the right moment in time to put it all on the line," Druckenmiller says in the book "Soros: The Life and Times of a Messianic Billionaire." Others say Soros has demonstrated that same trait in his philanthropic work, often acting on impulse when he doles out money for untested initiatives and sticking with his bets even if they generate controversy. "I think he's got an instinctive capacity to grasp complex issues and synthesize them. He is also quite fearless when it comes to taking on sacred cows, whether it's in the body politic or popular culture," said Ethan Nadelmann, who with Soros' backing runs a drug policy center that advocates treating drug addiction as a health, rather than a criminal, problem. Nadelmann was specifically referring to Soros' support of initiatives in Arizona and California legalizing the medical use of marijuana, a stance that sparked much controversy. One drug policy expert, Joseph Califano, labeled Soros the "Daddy Warbucks of drug legalization." Soros countered that he was for a "saner drug policy," arguing that the war on drugs was unwinnable. Soros has directed most of his philanthropic energies abroad, pouring nearly $5 billion into a diverse array of projects through his Open Society Institute and a network of other foundations. He began that work two decades ago, with the goal of helping former Eastern Bloc communist countries flourish into democracies. He has given money to the Solidarity movement in Poland, helped pay for a water filtration system in Serbia, and established the Central European University in Budapest. He spent about $1 billion in Russia alone over the last 15 years, giving grants to struggling Russian scientists and helping rural universities connect to the Internet, among other initiatives. CONCERNED ABOUT U.S. Now Soros says he is concerned about the climate in the United States, arguing that the Bush administration's policies threaten to undermine our own "open society." "Some of the language of President Bush himself - when he said those who are against us are for the terrorists - does remind me of Nazi propaganda and the Communists," Soros said, repeating a criticism laid out in his book. "It's a kind of extremism in my view and a very dangerous one because it stifles the critical process. Criticism is unpatriotic." To his admirers, Soros is driven by "this incredible intensity around protecting democracy," as Rosenthal put it. "I believe he was feeling as though he had supported projects around the world to expand and restore democracy and we were losing ground here at home." But his critics see Soros' motivations in a very different light. "Soros and the people that he funds are the threat to an open society," said Moore of the Club for Growth. "An open society means a society that has a light hand of government and doesn't regulate and overtax and protects freedom. ... He wants a government that's going to come in and raise taxes, increase regulation of industry, and that retreats from the war on terror. I think all of those things are extraordinarily dangerous to an open society." Even some campaign reform groups that have previously gotten funding from Soros seem uneasy about his role in the upcoming elections. Fred Wertheimer, president of Democracy 21, a campaign finance reform group that challenged 527s such as America Coming Together, declined to comment specifically on Soros' activities. But, he said, "as a philosophical matter, my own view is that one doesn't want an individual, a group, a candidate dominating elections because of extraordinary amounts of money" they have access to. The ban on large unregulated contributions, he said, is "essential to protect the integrity of our democracy and to protect against the corruption of our democracy." Soros defends his contributions as within the new campaign finance law, which did not mention 527 groups. "While I'm troubled with the role of money (in politics)," he said, "I feel that I am also within the spirit of the law because the law was directed at denying access to special interests." "... Here, I gain no access and I don't represent special interests," he added. But, he conceded, he is at least hoping to get a wider audience for his views about foreign policy and the war on terrorism. "My taking this stance will probably also give me a platform for advocating the policies I stand for and I intend to do so," he said. "I don't expect Kerry necessarily to adopt the things that I would like to see adopted. But I hope that I'll have a better hearing for it." - --- MAP posted-by: Terry Liittschwager