After World War II heavy surplus profits from consolidated industries and the saturation of home markets created a need for either heavy investments domestically (which would have to be. financed through a radical restructuring of the capitalist organization of the economy) or heavy investment expansion abroad. The larger corporations chose to extend their foreign frontiers and today we find such giants as Standard Oil (N.J.), Texaco, Colgate-Palmolive, Singer and National Cash Register deriving over half their profits from foreign sales. Direct investments (outright U.S. holdings in plants and equipment) have skyrocketed from $5 billion to $55 billion between 1945 and the present. Between 1960 and 1965 alone nearly 2,200 companies engaged in about 6,000 separate activities -- primarily construction of new plants and the expansion of existing operations.

As the corporations have extended their overseas operations they have required greatly increased numbers of men to manage their investments: men trained in international law, international business management, diplomacy, languages, public relations and social scientists who are experts in foreign cultures. The corporate financial interests turned to the university to fulfill these needs, offering generous amounts of money, privileges for university administrators and high-level access to the prestigious, exciting world of international affairs in return. Columbia's School of International Affairs was created in 1945 to fulfill these needs.

As indicated on the "Top 22" chart, seven of Columbia's rulers have primary ties to either U.S. corporations or non-profit organizations with an international domain. Grayson Kirk was the first director to join Mobil Oil's board from outside its corporate ranks (in 1950). Mobil Oil is heavily dependent on foreign reserves in North Africa and the Near East for its survival. Frederick Kappel is a director of Standard Oil Company which, derives over half its profits from foreign sales. William Burden's American Metals Climax has extensive mining interests in Southern Africa.

Several of the "Top 22" occupy prominent positions in the cultural penetration winning converts to the American way which facilitates corporate expansion abroad. Kirk and Lawrence Wien are both trustees of the Institute of International Education which handles all U. S. student exchanges and channels foreign students to meet the needs of U. S. business abroad. Other trustees and administrators play key roles in organizations financing foreign cultural and intellectual programs such as the Asia Foundation, African-American Institute, America-Korea Foundation and the Near East Foundation. .

Since the most enlightened elements in the corporate and financial elite (among others) wish to avoid as much as possible the tensions and dislocations caused by war and direct confrontation, they backed the creation of a diplomatic and intelligence apparatus for channeling and manipulating events to make conflict less disruptive. President Kirk's previous contact with the international diplomatic and intelligence community through his academic posts in international affairs and the State Department's security section facilitated Columbia's training of diplomats and intelligence personnel at the School of International Affairs. The role of Columbia administrators and trustees in such foreign policy-making and intelligence organizations as the Council on Foreign Relations, Asia Foundation and CIA are discussed below.

Columbia University also trains specialized technicians and produces some of the new technology needed by these international corporations. For example, the booming offshore oil industry benefits directly from the technology developed at Columbia's Lamont Geological Observatory.

With the recent increase in foreign investments in the Third World and the increased threat (more and more overshadowing the previous "threat" of Soviet communism) of Third World nationalism, U.S. corporate and financial interests have stressed nation-building in the poor countries. By nation-building they mean creating a favorable infrastructure for capital investment. This involves, among other things, penetration and manipulation of those more "primitive" and esoteric societies, and co-opting indigenous elites, and requires anthropologists, sociologists, linguists, political theorists, journalists and psychologists familiar with these societies. The SIA accommodated these needs by adding institutes in Third World studies.