Time for the University of Minnesota to Divest from the Sudan Did you know that there is a movement to get all major institutions in the United States to divest from companies doing business in Sudan and that the University of Minnesota as well as other institutions in the state of Minnesota have refused to do so thus far? On July 23, 2004, the U.S. Senate and House of Representatives unanimously declared that ongoing atrocities perpetuated by the Sudanese government against its own citizens amounted to genocide. Since that date, 400,000 have died, 2.5 million have been displaced and nearly 4 million are hungry and subjected to constant threats of rape, assault and death. According to the Sudan Divestment Task Force, several major universities have divested from companies doing business in Sudan. - In April 2005 Harvard announced its decision to divest from PetroChina, a company doing business in the Sudan. - In June of 2005, Stanford announced it would divest from PetroChina, Sinopec, ABB, and Tatneft, all doing business in the Sudan. - In November 2005, Dartmouth announced it would divest from six oil-related companies doing business in the Sudan. - In November 2005, the University of California came forward with a plan to divest from four companies doing business in the Sudan: PetroChina, Sinopec, Tatneft, and ABB. - In February 2006, Amherst announced it was divesting from 19 companies doing business in the Sudan. Yale announced it was divesting from 7. - On February 25th, Brown University?s governing board voted to divest from companies whose business activities can be shown to be supporting the Sudanese government. The University of Minnesota has not divested. We believe the University's investments are inconsistent with its stated goal of becoming a world class institution. We think the University has not divested for a reason. While the University has a solid investment department, led by Chief Investment Officer Stuart H. Mason, its endowment funds are managed by external money managers. None of these external money management firms are owned by Africans or African Americans. This is symptomatic of an environment where opportunities to take a stand on important issues affecting persons of color are missed, contrary viewpoints are not valued, and mistakes are carefully hidden. Thus, the University admits to investing in companies doing business in Sudan, but not domiciled in Sudan. The University claims that, since these companies are not domiciled in Sudan, their investments are morally and ethically sound. This is, of course, a spineless excuse and a meaningless and irrelevant distinction: these investment activities support genocide, period. We recognize that the University needs to earn money on its investments to fund, among other things, its local economic development effort, the Northside Partnership. But we believe the University should move with all deliberate speed to divest. We suggest doing so using a two step process: 1. Use the Targeted Divestment guidelines developed by the Sudan Divestment Task Force: "Developed in consultation with foreign policy experts, asset managers, third-party research firms, and other institutions, these guidelines allow for maximum impact on the government of Sudan while minimizing harms to both Sudanese citizens and to the University." Essentially the guidelines suggest divesting from companies that: a. Contribute to Sudanese government revenue, b. Impart minimal benefit to the Sudan's underprivileged, and c. Have demonstrated no substantial corporate governance policy regarding the Darfur situation. 2. Look for positive investments in the region. We suggest reviewing all University contacts and projects in East Africa for possible positive linkages. Seeking information, feedback and assistance from local persons of Sudanese, Ethiopian and Eritriean descent may be a way to help: they have a perspective on this issue that cannot be found elsewhere. Making this insight available to a national audience may be a way to add real value and, at the same time, add to the University?s reputation. Finally, we suggest the University seek to invest in an IMF or World-bank backed microfinance project in the region. The investment department needs guidance, from the University?s President and Board of Regents, to take these next logical steps. Once the University has divested, perhaps State of Minnesota and Twin City pensions funds can be convinced to do so. They are still investing in companies doing business with the Sudan and are well behind the curve on this issue. On Wednesday September 27, "a resolution by Philadelphia Controller Alan Butkovitz to divest pension funds in companies conducting business in Sudan was passed by the city's Pension Board." On Monday September 25, California Governor Arnold Schwarzenegger "signed legislation to end state investments in Sudan in an effort to pressure that nation to stop genocidal violence in its Darfur region." At core this inaction reflects the dysfunctional state of race relations in the Twin Cities. This is deeply ironic for a town whose most famous politician was twenty years ahead of his party and his country on matter of race. Sadly, the best-of his-generation, forward thinking leadership provided by former Minneapolis Mayor Hubert H. Humphrey is sorely needed and long forgotten. CONTACT