Oct 14, 2024 12:36 AM IST
Think tanks must ensure their operations comply with the law and align with the ethical standards expected of entities
In India, there are civil society organisations that continuously draw attention to the fact that the law is not applied equally to the rich and powerful, and yet when they are accused of violating the law, they call it unfair and allege intimidation by the State.
Think tanks are important in shaping public policy and informing decision-makers through rigorous research and analysis. They serve as a bridge between academic knowledge and practical application and provide valuable insights that help address complex social, economic, and political challenges. By engaging in policy advocacy and public discourse, think tanks influence the development of laws and regulations, often working closely with government agencies, non-profits, and the private sector.
But with this influence comes significant responsibility. Think tanks must ensure their research is grounded in evidence and free from biases while maintaining transparency about their funding sources and potential conflicts of interest. Ultimately, the integrity and credibility of think tanks are essential, as they uphold the standards of public trust and accountability in the policymaking process, which is why there is a growing concern about a subset of them wanting to operate under a veil of exceptionalism, believing they are above the law. This issue has come to the forefront with several prominent think tanks receiving notices for alleged violations of the Foreign Contribution Regulation Act (FCRA).
FCRA is designed to regulate the flow of foreign funds to NGOs and non-profit organisations, ensuring that these entities adhere to national interests and legal frameworks. When think tanks, which often operate as non-profits, receive foreign funding but fail to comply with FCRA regulations, it raises significant accountability questions. Reports indicate that certain think tanks attracted ire for not appropriately reporting or using their foreign grants, leading to income tax scrutiny.
This is not just about financial impropriety; it also raises critical questions about the integrity of the research and policy advocacy pursued by these entities and whether they respect the democratic frameworks of the countries in which they operate. Let’s not forget that governance hinges on accountability, particularly for entities that wield influence over public policy and opinion. When think tanks neglect legal obligations, it diminishes trust in their contributions and raises concerns over potential foreign influence on domestic politics.
Some debate around this issue seems to paint this as being very specific to India. This is far from true. Several developed countries have also taken similar action against think tanks that have crossed legal lines. For instance, the legal landscape surrounding think tanks has become increasingly scrutinised in the United States, especially concerning their lobbying activities and funding sources. The Internal Revenue Service (IRS) has laws prohibiting tax-exempt organisations from engaging in lobbying efforts or political campaigning. In the past, the IRS has revoked the tax-exempt status of a think tank for significant violations of these lobbying rules, citing that the organisation engaged in political activities beyond permitted thresholds. This reinforces that adherence to the law is paramount for everyone, especially organisations that aspire to influence public policy.
Similarly, in the United Kingdom (UK), the Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Act, 2014 was adopted to curb undue influence from unaccounted sources. Under this law, think tanks and non-profit organisations engaging in political campaigning during elections are required to register and disclose their funding sources. Non-compliance can lead to significant penalties and restrictions. This framework serves as a reminder that all institutions, especially those registered as non-profit entities, must operate within the boundaries set by law and public expectation. Even in the European Union, calls are becoming increasingly strident for think tanks to disclose their funding sources and expenditures, highlighting the growing recognition that transparency is not merely a best practice but a necessity to maintain public trust.
The recurring theme across these geographies is the essential nature of accountability. Think tanks contribute to democracy by fostering debate and providing expertise. However, they must operate transparently and responsibly. No one can be above the law and be allowed to operate beyond the prescribed legal frameworks.
The recent notices sent to a few think tanks in India will undoubtedly lead to debates about the relationship between think tanks and the law; in fact, some of that debate has already started. A few voices will always call this an attack on freedom of speech and term it a disquieting overreach. But let them pause and reflect that countries demand accountability from all sectors, including intellectually minded and civil society groups. These entities must adopt and enforce rigorous compliance protocols and adherence to all legal requirements. At the same time, nation-States must implement laws in a way that reinforces democratic integrity.
Ultimately, the conversation about think tanks and legal adherence is not just about compliance with regulations — it’s much more about the fundamental values upon which these think tanks stand. Think tanks must ensure their operations comply with the law and align with the ethical standards expected of entities that wield significant influence over the societies they aim to serve. The stakes are high, and so is the need for accountability.
Adluri Subramanyam Raju is chair and coordinator, UGC Centre for Maritime Studies Pondicherry University. The views expressed are personal
Get Current Updates on…
See more
