Since June, 2003, bio-defense industry world-leader Ronald B. (Ronn) Richard has served as the President and Chief Executive Officer of the Cleveland Foundation, the nation's oldest community foundation. Since January, 2005, Richard has also served as a Director of Emergent BioSolutions Inc. [1], a leading biopharmaceutical company whose marketed product is BioThrax(R) (Anthrax Vaccine Adsorbed), the only FDA-licensed vaccine available for pre-exposure protection against anthrax infection - www.emergentbiosolutions.com [2].
From Richard's Emergent BioSolutions' Directors profile on Forbes.com [1]... from August 2002 to February 2003, Mr. Richard served as president of Stem Cell Preservation, Inc. [3] (a subsidiary of CRYO-CELL International, Inc. [4] that was closed less than a year after Richard left). After leaving Stem Cell Preservation and prior to joining Emergent BioSolutions, Mr. Richard served as a strategic business advisor for IGEN International, Inc. [5] (a biotechnology company acquired by Roche Holding, Ltd. [6], in February 2004). Mr. Richard served as chief operating officer of In-Q-Tel [7], a venture capital fund that provides technologies to the Central Intelligence Agency, from March 2001 to August 2002 (where he worked for President George W. Bush, during 9/11/2001 [8]).
From Intelligence Online [9]:
A year after the Department of Homeland Security (DHS) was set up, its Science and Technology division devotes two thirds of its R and D budget to bio-defense programs that are now viewed as a top priority: $450 million invested in 2003 and 2004 and $600 million in 2005 for prevention of, and response to, biological and chemical attacks. Within the division, the Homeland Security Advanced Research Project Agency (HSARPA, IOL 468) manages the funding of R and D in the private sector. Investment funds that are putting their money on bio-defense technologies (In-Q-Tel, Paladin Homeland Security Fund) and traditional Pentagon suppliers like SAIC have managed to place their men in the DHS and particularly in agencies that have influence over the choice of programs and in defining standards.
Anyone in the world must wonder why this man, largely concerned with global bio-terrorism and U.S. government central intelligence, under the human-rights-obliterating Bush Administration, would be selected to lead a philanthropic organization in Cleveland, Ohio. Regarding Richard's job at The Cleveland Foundation, in my words:
Mr. Richard came to Cleveland to serve the NEO Establishment as President and CEO of The Cleveland Foundation, the NEO Establishment’s innovative venture capital fund. He manages The Cleveland Foundation’s financial, technology and business operations. Beyond oversight of day-to-day operations and responsibilities for evolving and stewarding The Cleveland Foundation’s strategic vision, Mr. Richard quickly established himself as a driving force in shaping The Cleveland Foundation’s technology transfer process. In this role, Mr. Richard worked closely with his counterparts and clients at the NEO Establishment to ensure prompt and effective delivery and insertion of The Cleveland Foundation-sourced technologies into the NEO Establishment community. He also helps to mentor management in the early stage companies in which The Cleveland Foundation invests.
My interpretation of his current job description for the Cleveland Foundation is based on a May 2004 description of Richard's job description at the CIA, as provided by Notre Dame College in their profile of Richard [10], when they awarded him an honorary Doctor of Humane Letters (Ph.D.):
Mr. Richard left Panasonic to serve the U.S. Government as chief operating officer and managing partner of In-Q-Tel, the CIA’s innovative venture capital fund. He managed In-Q-Tel’s financial, technology and business operations. Beyond oversight of day-to-day operations and responsibilities for evolving and stewarding In-Q-Tel’s strategic vision, Mr. Richard quickly established himself as a driving force in shaping In-Q-Tel’s technology transfer process. In this role, Mr. Richard worked closely with his counterparts and clients at the CIA to ensure prompt and effective delivery and insertion of In-Q-Tel-sourced technologies into the U.S. intelligence community. He also helped to mentor management in the early stage companies in which In-Q-Tel invested.
From Wikipedia, regarding In-Q-Tel [11]:
In-Q-Tel of Arlington, Virginia, United States [12] is a not-for-profit venture capital [13] firm that invests in high-tech companies for the sole purpose of keeping the Central Intelligence Agency [14] equipped with the latest in information technology in support of United States [15] intelligence [16] capability.[4] [17] Originally named Peleus [18] and known as In-Q-It, In-Q-Tel was launched in 1999 under the direction of Gilman Louie [19].[4] [17] In-Q-Tel’s mission is to identify and invest in companies developing cutting-edge technologies that serve United States national security [20] interests. Working from an evolving strategic blueprint defining the Intelligence Community [21]'s critical technology needs, In-Q-Tel engages with entrepreneurs [22], growth companies, researchers, and venture capitalists to deliver technologies that provide superior capabilities for the CIA [14], DIA [23], NGA [24], and the larger Intelligence Community. In-Q-Tel concentrates on three broad commercial technology areas: software [25], infrastructure [26] and materials sciences [27].
In-Q-Tel functions partially in public, however what products it has and how they are used is strictly secret.[8] [28] According to the Washington Post [29], virtually any U.S. entrepreneur, inventor or research scientist working on ways to analyze data has probably received a phone call from In-Q-Tel or at least been Googled by its staff.[8] [28] The Constitutional repercussions of this disclosure alarm some critics.
Hello, In-Q-Tel staff!
Hello, Ronald Richard!
At The Cleveland Foundation, Richard gives out more money in a year than the entire In-Q-Tel budget (from Wikipedia, in 2005 it was said to be funded with about $37 million a year from the CIA).
From The Cleveland Foundation website [30]:
Established in 1914, the Cleveland Foundation is the world's first community foundation and the nation’s third-largest today, with assets of $1.6 billion and annual grants of $84 million. The foundation improves the lives of Greater Clevelanders now and for generations to come by building community endowment [31], addressing needs through grantmaking [32], and providing leadership on vital issues [33].
Further, from their History of the Cleveland Foundation [34]:
Here at home, Goff’s dream has grown into a $1.6 billion civic-progress fund – engine of collective betterment, collaborative partnerships, and courageous leadership. The foundation has evolved from an institution funded by the wealthy to one endowed by people of all income levels. It serves the region, not just the city. And it has firmly reinforced its commitment to serve as an active and visionary community agenda-setter, not a mere grantmaker.
However, The Cleveland Foundation is not directed "by people of all income levels", as illustrated by the Board of Directors for which Richard works [35]:
- David Goldberg, Chair [36]
- Frank C. Sullivan [37]
- Charles Bolton [38]
- Terri Hamilton Brown [39]
- Tana Carney [40]
- Paul J. Dolan [41]
- Joseph P. Keithley [42]
- Frederick R. Nance [43]
- Sandra Pianalto [36]
- Maria Jose Pujana, M.D. [44]
- James A. Ratner [45]
- Alayne Reitman [46]
- Rev. Dr. Stephen Rowan [47]
- The Rev. Hilton O. Smith [48]
- Ratanjit S. Sondhe [49]
While there are no good measures of the amount of power this board and Richard hold in the Northeast Ohio region, it is safe to say there are no forces more powerful. This power largely controls our regional economy, government, environment and society, which are all failures in nearly every measurable way, except, perhaps, for investors in Bio-Science and polluting, here.
I met Richard once, in a meeting with then-newly-elected East Cleveland Mayor Eric Brewer and former Kent State University Cleveland Urban Design Center planner David Reed, and Richard was quite up-front discussing local politics - he made clear the Cleveland Foundation likes politicians who do what the Cleveland Foundation asks them to do. I believe Brewer listened, as his only real "accomplishments" in office seem to be turning planning in East Cleveland over to the Foundations and powerful establishment interests, leading to planning of a coal-fired power plant in East Cleveland, to benefit many Cleveland Foundation stakeholders united as University Circle, Incorporated [50].
Based on my observations from that meeting, and from the past 5 years observing foundations' influence on this community, under Richard, I observed, on January 10, 2009, in "Preamble: Real Co-op for Open Food, Information and Community Development 2009 [51]", "some people in Northeast Ohio are embedded in processes to control community development and so local foods a certain “foundation” way."
There, I elaborate on the subject:
As an economist, competitive analyst, consultant, entrepreneur and concerned citizen, I've been observing and confronting many barriers to innovation here, for over 15 years, and they must be overcome for the optimization of local entrepreneurship in any opportune economic sectors like local foods and open source social computing, or to do anything paradigm-breaking like REALNEO.US and REAL CO-OP
Rather than nurture open collaboration and entrepreneurship here, leadership has structured strict command and control, top-down systems to keep as much public wealth and power within a small community of close “friends and families”, sprawled throughout the region, supported with foundations of once immense wealth once here, now crumbling like so much of our sprawling infrastructure.
Overcoming these barriers at the community level will redirect sufficient resources to enable progress for an astounding number of stakeholders in many economic sectors now hoping for trickle-down benefits of top-down approaches to economic opportunity, social equity and community building.
We all know how trickle down economics is supposed to work, and that it only benefits those at the top.
I go on to observe:
To proceed developing a healthy, open new economy here, we must analyze, document and eliminate the root causes of economic development failure, starting with the command and control system.
At the very top, the Command and Control strategy of this region is defined through Master Planning by some leadership at the Cleveland Foundation and other foundations, driven by Ronn Richards, Brad Whitehead and many other foundation staff and consultants, empowered by their Fund for our Economic Future and its sprawling affiliate initiatives, influencing many non-profits and their leadership, the Plain Dealer and other media interests present here, Mayor Jackson and many of his appointees and department directors, many Cleveland City Council members, many in their CDCs and their staff and leadership, academics and staff at our universities, many suburban mayors, Governor Strickland, many Northeast Ohio representatives in Columbus and Washington, D.C., and an astounding number of their best friends and family, to benefit many dominant business leaders and major real estate developers with local interests here, who have a dominant control over the top of the pyramid, being the leadership of our many foundations (all hereinafter “They/Them/Their”).
That list may seem like everyone in government, industry and community development in the region, but the problem is largely a few power brokers at the top of the pyramid, and their paid lieutenants – the other 1,000s of people carrying out their plan are mostly paid employees in tough times, misdirected by a few hundred “community leaders”, some good but misguided... others corrupt, all who are in pursuit of the $ billions controlled directly by the foundation leaders.
They use Their $ billions to control many $ billions more of public funding, and They attempt to control more daily, and all parties involved are responsible for how that money is allocated and spent.
I conclude:
It is a new day in America, we have a great new President, and we must reposition this region to be worthy of his support, and respect.
To change the economy here for the better, we must challenge the modus operandi of the current Power-Brokers head-on.
Their strategy is simple... they pursue to control all of the government workforce, health, education, social services, research, economic and other community development money and opportunities that come into or through this region, from any sources, that they may, and direct as much of that as possible to inside interests... often with flagrant patronage for direct friends and family.
Through CDCs and other non-profits, a small number of foundation leaders and operatives have developed private workforces of indirect employees controlling $ billions a year in public money, in Northeast Ohio alone. This represents the privatization and misallocation of $ billions in taxpayer economic development and other money to inside interests, with government blessing and assistance, without consulting taxpayers. In fact, all of this has been done behind closed doors.
A current example of their modus operandi in action is exploiting $10s millions of HUD urban redevelopment money through the Cleveland Foundation's Strategic Investment Initiative, benefiting Their friends and closest stakeholders, like the Cleveland Clinic.
They've been doing such things for years, but now They raise the stakes, in exploitation of the difficult economic times here, by attempting to corrupt the good will of our new President.
They have attempted to position their initiatives and leaders to divert to their corporate and institutional interests the $ billions expected in 2009 stimulus dollars for Ohio.
In Their strategic investment initiatives for this most impoverished region, with the most impoverished city in the country, social services and human welfare are lost concepts.
Where is the funding for really valuable education reform, workforce development, small business and distressed homeowner code violation repair loans... real changes where they are needed and have been promised to the people who made Obama our President of the United States of America, for change.
Where is the social equity value added in Their vision for the bottom of the new economy?
Where is there any distinct economic development value added from Their diversion of public money into industrial investments at the top of the old economy?
For this entire century, They have been forcing upon the region an industrial economic development strategy that failed the region from the beginning, and turned measurably disastrous several years ago, when it really took hold.
Their regional economy-depressing economic development initiatives have included the Voices and Choices :community engagement”, Dashboard of Regional Economic Indicators performance tracking system, and resulting SII/Connecting Cleveland 2020/More Sustainable Cleveland economic control directives.
The people behind the strategies are easily identified and network-mapped, and their performance is easily measured.
Why would we look to these people for innovation, vision, leadership or financial integrity, much less solutions to the problems caused by them?
Perhaps, considering the origins and failure of our regional economic development strategy, rooted in 911-era CIA leadership, the better question is why the health, welfare and well-being of the citizens of Cleveland is so largely controlled by The Cleveland Foundation, how did they choose Ronald Richard to be our ultimate leader, and, ultimately, are you satisfied with his planning for your economic future, since 2003?
Does it really matter.
Consider Ohio Governor Ted Strickland's decision, in January, 2009, to appoint Richard "Infrastructure Czar" for the state of Ohio [52]! From a press release from the Governor:
Ohio Governor Ted Strickland today appointed Ronald B. Richard, president and CEO of the Cleveland Foundation, to the position of infrastructure czar for the State of Ohio.
Richard will head a process, in consultation with the state legislature, the federal government, local communities and other partners, to determine the most efficient and effective distribution of the infrastructure component of the federal stimulus funds.
Details from the Press Release explain:
“Ronn’s background in the public, private and non-profit sectors makes him uniquely qualified to serve in this critical role,” Strickland said. “The process he will lead will help identify strategic investments in our state’s infrastructure and cut through red tape so our communities benefit from the immediate impacts of the stimulus package.”
The infrastructure czar will be a temporary, part-time position. As czar, Richard will work with the federal government to ensure that the infrastructure component of the stimulus package is structured in a way that offers the greatest investment opportunities for Ohio, and collaborate with state leaders and local communities to prioritize projects based on their potential for sustainable economic growth. Anticipating a “use it or lose it” approach from the Barack Obama administration, the infrastructure czar will also work to identify any barriers that may inhibit federal funds from being utilized quickly and effectively.
“It is important that we take full advantage of this once-in-a-lifetime opportunity to make major, long-term investments in the future of our state,” Richard said. “As infrastructure czar, I will ensure that we move forward with the stimulus plan in a collaborative, transparent manner.”
Google searches do not find references to any efforts by our state Infrastructure Czar to be collaborative and transparent, since.
How do we as a community put in place at our all-powerful foundations a leadership and strategy that more directly matches the interests and needs of the diverse citizens of our community, and reduces the control the foundations have on our society? As the Washington Post reported, "virtually any U.S. entrepreneur, inventor or research scientist working on ways to analyze data has probably received a phone call from In-Q-Tel or at least been Googled by its staff", so you know Richard and his associates are listening [53].
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