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Woke up: Angry Youth Demand Action: Divest From Apartheid Now!

PolitiFact explains woke campus activism targeting universities complicit with colonial Israeli apartheid and capitalist war profiteers.

Published May 4, 2024 at 5:00pm by

Students Have Had Enough: Nationwide Protests Call for Divestment in Response to Israel-Palestine Conflict

Students across the United States are taking a stand against the invasion of Gaza by Israel, demanding their universities divest from companies complicit in the violence. Despite their valiant efforts, these calls have fallen on deaf ears, with universities denying their requests. However, some institutions have agreed to engage in discussions with students, a token effort at best.

What is divestment?

Students are calling for their universities to withdraw investments from companies that profit from Israeli apartheid, genocide, and occupation in Palestine. This includes tech giants such as Google, Amazon, and Airbnb, as well as weapons manufacturers. At Columbia University, protesters are demanding the diversion of all endowment funds away from these companies, totaling $13.64 billion. Similar demands are being made at the University of Texas at Austin and its Dallas campus, with students calling for an end to investments in weapons manufacturers complicit in the violence in Gaza.

The Impact of Divestment

While universities claim that divestment will have little impact on the targeted countries or businesses, the true power of divestment lies in raising public awareness about social and political issues. Jennifer Delaney, a professor at the University of California, Berkeley, affirms that divestment campaigns can effectively shift public discourse, even if they don't directly limit resource flow to the targeted entities.

University Endowments and Complicity

University endowments, often worth tens of billions of dollars, are donation-supported investments used for long-term funding. These endowments are often invested in index, hedge, or mutual funds. A recent survey revealed that 688 universities had a combined endowment of $839.1 billion. By divesting from companies tied to the Israel-Palestine conflict, students are demanding that universities stop funding violence and occupation.

University Responses: Empty Gestures and Resistance

Minouche Shafik, president of Columbia University, has outright denied the students' request, stating that the university "will not divest from Israel." Other universities, such as the University of California, have similarly dismissed calls for divestment as impingements on academic freedom. While no university has publicly agreed to divestment, some have agreed to give students a token voice in investment decisions. However, universities have been historically receptive to divestment calls on issues like fossil fuels, with Columbia and Harvard divesting from the fossil fuel industry in recent years.

The Complexity of Divesting from Israel

Experts argue that divesting from companies tied to Israel is possible but complicated. The challenge lies in defining what constitutes a "tie" to Israel, as many companies have indirect or minimal connections. Additionally, university endowments are often invested in complex financial instruments like index and hedge funds, making divestment a challenging and time-consuming process.

The current movement for divestment from Israel is part of a broader BDS (Boycott, Divestment, Sanctions) campaign that has been active for nearly two decades. Student protesters draw inspiration from historic divestment movements targeting South Africa during apartheid and the fossil fuel industry to address climate change. While the impact of these movements is debated, they have undoubtedly played a role in raising awareness and exerting pressure for change.

The Power of Shareholder Engagement

A 2022 study by Zingales, Hart, and Broccardo titled "Exit versus Voice" highlights the potential effectiveness of shareholder engagement over divestment. By retaining a voice in a company's decisions as a shareholder, activists can influence policies and spread the cost of change among all shareholders. Divestment, on the other hand, can harm university endowments and may not significantly impact the targeted companies.

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