One Thing: The Financial Reality Behind Campus Calls to Divest
May 5, 2024
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CNN Business Reporter Matt Egan discusses the campus calls for divestment from Israel-linked businesses. They explore the history of divestment protests at Columbia University, the challenges universities face in divesting, and the limited impact of divestment on public companies. They also discuss the effectiveness of divestment protests in bringing awareness and social change.
Students demand universities divest from businesses linked to Israel for perceived injustices.
Historical divestment movements serve as symbolic gestures against controversial practices.
Deep dives
Protests for Divestment and their Impact
Students on campuses like Columbia University are engaging in protests for divestment related to Israel's activities, demanding their universities to sever ties with entities supporting Israeli actions. These protests focus on calling for a ceasefire, ending academic relationships with Israel, and divesting from companies linked to the conflict. Despite facing challenges in impacting stock prices or university decisions, these movements aim to raise awareness and make a moral statement against perceived injustices.
Transparency and Challenges of University Investments
The students advocating for divestment raise concerns about the transparency of university investments, especially in relation to connections with companies involved in controversial activities. Universities, despite having substantial endowments, may indirectly invest in areas that conflict with student beliefs. While demands for financial transparency and divestment are met with resistance from some institutions, instances like Brown University agreeing to vote on divestment represent significant milestones.
Historical Context and Lessons from Past Divestment Movements
The podcast underlines the historical impact of divestment movements, citing Colombia University's past divestment from companies linked to apartheid in South Africa. Although such movements may not always immediately affect stock prices, they serve as symbolic gestures and platforms to voice opposition to certain practices or policies. By exploring past successes and challenges associated with divestment movements, the podcast sheds light on the complex dynamics surrounding university investments and ethical considerations.
In recent weeks, several colleges have called in police to break up pro-Palestinian encampments that have popped up on campuses across the country. While demands from students vary from school to school, one of the most common is for universities to divest from Israel-linked businesses and entities. In this episode, we hear about the history of divestment protests at Columbia University and how these campaigns would play out in practice.