This is a piece I wrote 11 years ago for this crappy financial magazine I used to work for. The piece is good though. It’s about Bruce Jackson, an American spy-banker-arms-dealer-policy-wonk, who helped lobby for the eastern expansion of NATO in the 90s and Noughties. I thought I’d post it here considering this week’s NATO conference on further eastern expansion and Russia’s response. The piece was written in 2003, in the middle of the second war in Iraq.
IT WAS THE deal of the year in central and eastern Europe – not a sovereign Eurobond, a corporate high-yield issue or an IPO, but a transaction that emerged from the heart of the military-industry complex. It was the biggest debt financing of the year – a $5.5 billion off-balance-sheet deal arranged by JPMorgan and guaranteed by the US government. You haven’t read about it, because it was to finance Poland’s acquisition of 48 F-16 military aircraft from Lockheed Martin.
That deal was signed in March 2003. The same month it went through, Poland agreed to send about 3,000 troops to Iraq. Euromoney spoke to a banker involved in the syndication of the financing. “We understood what the deal was,” he said. “The US government finances the deal at good rates. In return, Poland supports the US in Iraq.”
Every other eastern European country that has either recently joined or is waiting to join the Nato military alliance also supports the US campaign in Iraq, leading US defense secretary Donald Rumsfeld to praise the birth of “new Europe” and French president Jacques Chirac to tell these countries to shut up.
Man of influence
The figure at the centre of all these events is someone you probably haven’t heard of, but who wields extraordinary political influence in the region – Bruce Jackson. He is a Washington neo-conservative, a member of the Project for the New American Century, and friend and colleague of other prominent neo-conservatives such as deputy defense secretary Paul Wolfowitz and Gary Schmitt, executive director of the Project for the New American Century.
A former investment banker, he’s also president of a private NGO called the US Committee on Nato, one of the most influential in eastern Europe. He has also headed a neo-conservative think-tank called the Committee for the Liberation of Iraq. And he’s a former vice-president at Lockheed. Is he the military-industrial complex conspiracy figure par excellence?
Jackson, through his work for the NGO, has done more that anyone else to get eastern European countries into Nato. First, he lobbied hard in Washington to get the Czech Republic, Hungary and Poland invited in 1999. He advised the heads of these states on how to reform their military forces and civil societies so as to get the invitation, and testified in their support to the US Senate committee on foreign affairs.
In the past two years, he has been equally active in getting most of the other eastern European countries invited to Nato. He has travelled relentlessly, meeting heads of state and foreign ministers in every eastern European country, advising them on how to reform, and helping, this year, Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia and Slovenia to get invitations to join Nato.
None of the accessions was by any means inevitable. It took vision, will and hard work. Jackson recalls: “When we started in 1995, around 70% of editorial boards and 80% of think-tanks were on the record as being opposed to Nato expansion. There was concern Russia would go ballistic if we did expand Nato east. So effectively people were suggesting we do another Yalta, and sacrifice the region to Russia’s interests. So it took us considerable amounts of work. We organized well over 1,000 meetings with senators and Congress. By 1999, we won 89% of the vote. With the second round, almost all the effort came from the countries themselves, trying to accelerate their own reforms and not be left out.”
The fact that in 1995 so many in the west were against Nato expansion makes it all the more remarkable that one man, apparently operating in a private capacity at an NGO he set up, should have had such an influence. As one diplomat in the region says: “All these countries getting into Nato – this was Bruce’s work. He’s a real player in this process.” Continue reading