The Institute for New Economic Thinking ( INET ) is a New York City –based nonprofit think tank . It was founded in October 2009 as a result of the Great Recession , and runs a variety of affiliated programs at major universities such as the Cambridge-INET Institute at the University of Cambridge .
129-455: INET was founded with an initial pledge of $ 50 million from businessman and philanthropist George Soros . The Institute has disbursed approximately $ 4 million annually in research grants to students and professors. The Cambridge-INET Institute (co-funded with William H. Janeway ) established an advanced institute for economic thinking at the University of Cambridge , The Cambridge-INET Institute
258-618: A Reuters story, "Soros: not a funder of Wall Street Protests ", was published after several commentators pointed out errors in an earlier Reuters story headlined "Who's Behind the Wall St. Protests?" with a lead stating that the Occupy Wall Street movement "may have benefited indirectly from the largesse of one of the world's richest men [Soros]". Reuters's follow-up article also reported a Soros spokesman and Adbusters ' co-founder Kalle Lasn both saying that Adbusters—the reputed catalyst for
387-439: A Jewish wife in hiding. On one occasion, rather than leave the 14-year-old alone, the official took Soros with him while completing an inventory of a Jewish family's confiscated estate. Tivadar saved not only his immediate family, but also many other Hungarian Jews, and Soros later wrote that 1944 had been "the happiest [year] of his life", for it had given him the opportunity to witness his father's heroism. In 1945, Soros survived
516-506: A Solidarity member would become prime minister. On 19 August 1989, in a stunning watershed moment, Tadeusz Mazowiecki , an anti-communist editor, Solidarity supporter, and devout Catholic, was nominated as Prime Minister of Poland and the Soviet Union voiced no protest. Five days later, on 24 August 1989, Poland's Parliament ended more than 40 years of one-party rule by making Mazowiecki the country's first non-communist Prime Minister since
645-459: A TV press conference, stating that the planned changes were in effect "immediately, without delay," hundreds of thousands of people took advantage of the opportunity. The guards were quickly overwhelmed by the growing crowds of people demanding to be let out into West Berlin. After receiving no feedback from their superiors, the guards, unwilling to use force, relented and opened the gates to West Berlin. Soon new crossing points were forced open in
774-545: A clerk and later moved to the arbitrage department. A fellow employee, Robert Mayer, suggested he apply at his father's brokerage house, F.M. Mayer of New York. In 1956, Soros moved to New York City, where he worked as an arbitrage trader for F. M. Mayer (1956–59). He specialized in European stocks, which were becoming popular with U.S. institutional investors following the formation of the Coal and Steel Community , which later became
903-732: A co-chairman of the super PAC's national finance committee. In June 2015, he donated $ 1 million to the Super PAC Priorities USA Action , which supported Hillary Clinton in the 2016 presidential race . He donated $ 6 million to the PAC in December 2015 and $ 2.5 million in August 2016. Soros launched a new super PAC called Democracy PAC for the 2020 election cycle . By July 2019, he had donated $ 5.1 million to it. Since 2016, Soros has been donating sums exceeding $ 1 million to
1032-501: A drastic change as part of its reform program . The Soviet Union dissolved in December 1991, resulting in seven new countries which had declared their independence from the Soviet Union over the course of the year, while the Baltic states regained their independence in September 1991 along with Ukraine , Georgia , Azerbaijan and Armenia . The rest of the Soviet Union, which constituted
1161-799: A huge short position in pounds sterling for months leading up to the Black Wednesday of September 1992. Soros had recognized the unfavorable position of the United Kingdom in the European Exchange Rate Mechanism . For Soros, the rate at which the United Kingdom was brought into the European Exchange Rate Mechanism was too high, their inflation was also much too high (triple the German rate), and British interest rates were hurting their asset prices. By September 16, 1992,
1290-610: A key factor in the dissolution of the Soviet Union —one of the two global superpowers —and in the abandonment of communist regimes in many parts of the world, some of which were violently overthrown. These events drastically altered the world's balance of power , marking the end of the Cold War and the beginning of the post-Cold War era . The earliest recorded protests to be part of the Revolutions of 1989 began in Kazakhstan , then part of
1419-651: A large part of their 20% performance fees, thereby expanding their stake. By 1981, the fund had grown to $ 400m, and then a 22% loss in that year and substantial redemptions by some of the investors reduced it to $ 200m. In July 2011, Soros announced that he had returned funds from outside investors' money (valued at $ 1 billion) and instead invested funds from his $ 24.5 billion family fortune, due to changes in U.S. Securities and Exchange Commission disclosure rules, which he felt would compromise his duties of confidentiality to his investors. The fund had at that time averaged over 20% per year compound returns. In 2013,
SECTION 10
#17328943633071548-563: A monopoly on power ; namely China , Cuba , Laos , North Korea , and Vietnam . Vietnam, Laos, and China made economic reforms in the following years to adopt some forms of market economy under market socialism . The European political landscape changed drastically, with several former Eastern Bloc countries joining NATO and the European Union , resulting in stronger economic and social integration with Western Europe and North America. Many communist and socialist organisations in
1677-612: A movement that could not be stopped by the rulers in the Eastern Bloc. It was the largest escape movement from East Germany since the Berlin Wall was built in 1961. The patrons of the picnic, Otto von Habsburg and the Hungarian Minister of State Imre Pozsgay saw the planned event as an opportunity to test the reaction of Mikhail Gorbachev and the Eastern Bloc countries to a large opening of the border including flight. After
1806-457: A multi-party parliamentary election and a direct presidential election, which took place on 24 March 1990. The legislation transformed Hungary from a People's Republic into the Republic of Hungary , guaranteed human and civil rights, and created an institutional structure that ensured separation of powers among the judicial, legislative, and executive branches of government. On 23 October 1989, on
1935-538: A peaceful chain reaction, in which the Eastern Bloc disintegrated. This led to mass demonstrations in cities of East Germany such as Leipzig and subsequently to the fall of the Berlin Wall in November 1989, which served as the symbolic gateway to German reunification in 1990. One feature common to most of these developments was the extensive use of campaigns of civil resistance , demonstrating popular opposition to
2064-524: A profit of $ 1 billion, during the 1992 Black Wednesday UK currency crisis. Based on his early studies of philosophy, Soros formulated the General Theory of Reflexivity for capital markets , to provide insights into asset bubbles and fundamental / market value of securities, as well as value discrepancies used for shorting and swapping stocks. Soros supports progressive and liberal political causes, to which he dispenses donations through
2193-531: A railway porter and as a waiter, and once received £40 from a Quaker charity. Soros would sometimes stand at Speakers' Corner lecturing about the virtues of internationalism in Esperanto , which he had learned from his father. Soros obtained his Bachelor of Science in philosophy in 1951 and a Master of Science in philosophy in 1954 from the London School of Economics. After graduating, he wanted to stay in
2322-669: A special law prohibiting NGOs from taking money from foreigners. I think this should be banned in Turkey as well." In 1997, Soros closed his foundation in Belarus after it was fined $ 3 million by the government for "tax and currency violations". According to The New York Times 1997, the Belarusian president Alexander Lukashenko has been widely criticized in the West and in Russia for his efforts to control
2451-531: A stormy session of the Tenth Plenary Session of the ruling United Workers' Party , General Wojciech Jaruzelski , the First Secretary, managed to get party backing for formal negotiations with Solidarity leading to its future legalisation, although this was achieved only by threatening the resignation of the entire party leadership if thwarted. On 6 February 1989 formal Round Table discussions began in
2580-608: A strategically vital ally marked a dramatic change by the Soviet superpower and a fundamental paradigm shift in international relations , which until 1989 had been dominated by the East–West divide running through Berlin itself. The last Russian troops left the territory of the former GDR, now part of a Federal Republic of Germany , on 1 September 1994. The "Velvet Revolution" was a non-violent transition of power in Czechoslovakia from
2709-472: A variety of jobs and I ended up selling fancy goods on the seaside, souvenir shops, and I thought, that's really not what I was cut out to do. So, I wrote to every managing director in every merchant bank in London, got just one or two replies, and eventually that's how I got a job in a merchant bank." In 1954, Soros began his financial career at the merchant bank Singer & Friedlander of London. He worked as
SECTION 20
#17328943633072838-534: A vice president at Arnhold and S. Bleichroeder resulted in little enthusiasm for the job; business was slack following the introduction of the Interest Equalization Tax , which undermined the viability of Soros's European trading. He spent the years from 1963 to 1966 with his main focus on the revision of his philosophy dissertation. In 1966, he started a fund with $ 100,000 of the firm's money to experiment with his trading strategies. In 1969, Soros set up
2967-483: A younger generation of Soviet apparatchiks , led by Gorbachev, began advocating fundamental reform in order to reverse years of Brezhnev stagnation . After decades of growth, the Soviet Union was now facing a period of severe economic decline and needed Western technology and credits to make up for its increasing backwardness. The costs of maintaining its military, the KGB , and subsidies to foreign client states further strained
3096-471: Is a Hungarian-American businessman, investor, and philanthropist. As of October 2023 , he had a net worth of US$ 6.7 billion, having donated more than $ 32 billion to the Open Society Foundations , of which $ 15 billion has already been distributed, representing 64% of his original fortune. In 2020, Forbes called Soros the "most generous giver" (in terms of percentage of net worth). He
3225-503: Is a Jew who triggered the currency plunge") and implied Soros was orchestrating the crash as part of a larger Jewish conspiracy. Nine years later, in 2006, Mahathir met with Soros and afterward stated that he accepted that Soros had not been responsible for the crisis. In 1998's The Crisis of Global Capitalism: Open Society Endangered , Soros explained his role in the crisis as follows: The financial crisis that originated in Thailand in 1997
3354-717: Is a resident of New York . Born in Budapest to a non-observant Jewish family, Soros survived the Nazi occupation of Hungary and moved to the United Kingdom in 1947. He studied at the London School of Economics and was awarded a BSc in philosophy in 1951, and then a Master of Science degree, also in philosophy, in 1954. Soros started his career working in British and American merchant banks , before setting up his first hedge fund , Double Eagle, in 1969. Profits from this fund provided
3483-494: Is considered by many as the formal end of the communist People's Republic of Poland and the start of the modern Republic of Poland . The Warsaw Pact was dissolved on 1 July 1991. On 27 October 1991 the first entirely free Polish parliamentary elections since 1945 took place. This completed Poland's transition from communist Party rule to a Western-style liberal democratic political system. The last Russian troops left Poland on 18 September 1993. Following Poland's lead, Hungary
3612-876: Is considered to have "officially" ended on 3 December 1989 during the Malta Summit between the Soviet and American leaders. However, many historians argue that the dissolution of the Soviet Union on 26 December 1991 was the end of the Cold War. The impact of these events were felt in many third world socialist states throughout the world. Concurrently with events in Poland, protests in Tiananmen Square (April–June 1989) failed to stimulate major political changes in Mainland China , but influential images of resistance during that protest helped to precipitate events in other parts of
3741-584: Is difficult to establish the total economic cost of the disaster. According to Gorbachev, the Soviet Union spent 18 billion roubles (the equivalent of US$ 18 billion at that time) on containment and decontamination, virtually bankrupting itself. Throughout the mid-1980s, Solidarity persisted solely as an underground organization, supported by the Catholic Church. However, by the late 1980s, Solidarity became sufficiently strong to frustrate Jaruzelski's attempts at reform, and nationwide strikes in 1988 forced
3870-1083: The Alliance of Free Democrats (SzDSz), the Hungarian Democratic Forum (MDF), the Independent Smallholders' Party , the Hungarian People's Party , the Endre Bajcsy-Zsilinszky Society, and the Democratic Trade Union of Scientific Workers. At a later stage the Democratic Confederation of Free Trade Unions and the Christian Democratic People's Party (KDNP) were invited. At these talks a number of Hungary's future political leaders emerged, including László Sólyom , József Antall , György Szabad , Péter Tölgyessy and Viktor Orbán . On 2 May 1989,
3999-551: The Berlin Wall by the people, and sections of the wall were literally torn down. The guards were unaware of what was happening and stood by as the East Germans took to the wall with hammers and chisels. On 7 November, the entire Ministerrat der DDR ( State Council of East Germany ), including its chairman Willi Stoph , resigned. A new government was formed under a considerably more liberal communist, Hans Modrow . On 1 December,
Institute for New Economic Thinking - Misplaced Pages Continue
4128-588: The Central European University in his Hungarian hometown. Soros's extensive funding of political causes has made him a " bugaboo of European nationalists ". Numerous far-right theorists have promoted claims that characterize Soros as a dangerous "puppet master" behind alleged global plots. Criticisms of Soros, who is of Jewish descent , have often been called antisemitic . In 2018, The New York Times reported that " conspiracy theories about him have gone mainstream, to nearly every corner of
4257-558: The Common Market . In 1959, after three years at F. M. Mayer, Soros moved to Wertheim & Co. He planned to stay for five years, enough time to save $ 500,000, after which he intended to return to England to study philosophy. He worked as an analyst of European securities until 1963. During this period, Soros developed the theory of reflexivity to extend the ideas of his tutor at the London School of Economics , Karl Popper . Reflexivity posits that market values are often driven by
4386-527: The Constitution , establishment of a Constitutional Court , the functioning and management of political parties, multiparty elections for National Assembly deputies, the penal code and the law on penal procedures. The last two changes represented an additional separation of the Party from the state apparatus. The electoral system was a compromise: about half of the deputies would be elected proportionally and half by
4515-557: The Estonian Soviet Socialist Republic issued a declaration of sovereignty , which would eventually lead to other states making similar declarations of autonomy. The Chernobyl disaster in April 1986 had major political and social effects that catalyzed or at least partially caused the Revolutions of 1989. One political result of the disaster was the greatly increased significance of the new Soviet policy of glasnost. It
4644-624: The Fall of Communism , were a revolutionary wave of liberal democracy movements that resulted in the collapse of most Marxist–Leninist governments in the Eastern Bloc and other parts of the world. This revolutionary wave is sometimes referred to as the Autumn of Nations , a play on the term Spring of Nations that is sometimes used to describe the Revolutions of 1848 in Europe . The Revolutions of 1989 were
4773-665: The GDR denied travel to Hungary, leaving Czechoslovakia as the only neighboring state to which East Germans could escape. Thousands of East Germans tried to reach the West by occupying the West German diplomatic facilities in other Central and Eastern European capitals, notably the Prague Embassy and the Hungarian Embassy, where thousands camped in the muddy garden from August to November waiting for German political reform. The GDR closed
4902-515: The Open Society Foundations . Between 1979 and 2011, he donated more than $ 11 billion to various philanthropic causes; by 2017, his donations "on civil initiatives to reduce poverty and increase transparency, and on scholarships and universities around the world" totaled $ 12 billion. He influenced the fall of communism in Eastern Europe in the late 1980s and early 1990s, and provided one of Europe's largest higher education endowments to
5031-628: The Republican Party ". György Schwartz was born on 12 August 1930 in Budapest in the Kingdom of Hungary to a prosperous non-observant Jewish family, who, like many upper-middle class Hungarian Jews at the time, were uncomfortable with their roots. Soros has wryly described his home as a Jewish antisemitic home. The family of his mother Erzsébet (also known as Elizabeth) operated a successful silk store. His father Tivadar (also known as Teodoro Ŝvarc)
5160-492: The Siege of Budapest , in which Soviet and German forces fought house-to-house through the city. George and his mother also spent some time hiding with the family of Elza Brandeisz and even attended their Lutheran church with them. When he was 17, Soros relocated to Paris before eventually moving to England. There he became a student at the London School of Economics . While a student of the philosopher Karl Popper , Soros worked as
5289-573: The United People's Party (ZSL) and the Democratic Party (SD), broke their alliance with the PZPR and announced their support for Solidarity. The last communist Prime Minister of Poland, General Czesław Kiszczak , said he would resign to allow a non-communist to form an administration. As Solidarity was the only other political grouping that could possibly form a government, it was virtually assured that
Institute for New Economic Thinking - Misplaced Pages Continue
5418-641: The Volkskammer removed the SED's leading role from the constitution of the GDR . On 3 December Krenz resigned as leader of the SED; he resigned as head of state three days later. On 7 December, Round Table talks opened between the SED and other political parties. On 16 December 1989, the SED was dissolved and refounded as the SED-PDS , abandoning Marxism–Leninism and becoming a mainstream democratic socialist party. On 15 January 1990,
5547-638: The West turned their guiding principles over to social democracy and democratic socialism . In contrast, and somewhat later, in South America, a pink tide began in Venezuela in 1999 and shaped politics in the other parts of the continent through the early 2000s. Meanwhile, in certain countries the aftermath of these revolutions resulted in conflict and wars, including various post-Soviet conflicts that remain frozen to this day as well as large-scale wars, most notably
5676-505: The Yugoslav Wars which led to the Bosnian genocide in 1995 . Labour turmoil in Poland during 1980 led to the formation of the independent trade union Solidarity , led by Lech Wałęsa , which over time became a political force, nevertheless, on 13 December 1981, Polish prime minister Wojciech Jaruzelski started a crackdown on Solidarity by declaring martial law in Poland , suspending
5805-807: The constitution . The South African apartheid , the Pinochet military dictatorship in Chile , and the Suharto regime in Indonesia were gradually declining during the 1990s as the West withdrew their funding and diplomatic support. The First Intifada against Israeli occupation of the Palestinian territories occurred, giving rise of militant movement Hamas . Dictatorships such as Argentina , Ghana , Paraguay , Suriname , Republic of China and North - South Yemen , among others, elected democratic governments. Exact tallies of
5934-417: The devaluation that he would borrow nearly $ 15 billion to defend sterling, we were amused because that was about how much we wanted to sell." Soros was believed to have traded billions of Finnish markkas on February 5, 1996, in anticipation of selling them short. The markka had been put floating as a result of the early 1990s depression . The Bank of Finland and the Finnish Government commented at
6063-421: The late-2000s recession , Soros referred to it as the most serious crisis since the 1930s. According to Soros, market fundamentalism with its assumption that markets will correct themselves with no need for government intervention in financial affairs has been "some kind of an ideological excess". In Soros's view, the markets' moods—a "mood" of the markets being a prevailing bias or optimism/pessimism with which
6192-413: The occupation . Soros later described this time to writer Michael Lewis : The Jewish Council asked the little kids to hand out the deportation notices. I was told to go to the Jewish Council. And there I was given these small slips of paper ... I took this piece of paper to my father. He instantly recognized it. This was a list of Hungarian Jewish lawyers. He said, "You deliver the slips of paper and tell
6321-486: The president . In 1987, the South Korean June Democratic Struggle against the military dictatorship of Chun Doo-hwan occurred after Roh Tae-woo was designated as Chun's successor without a direct election. Not wanting to escalate violence before the 1988 Summer Olympics being hosted in Seoul next year, the government made concessions with the protestors demands , including free elections, amnesty to political prisoners, restoring press freedom and revisions to
6450-420: The 1956 Hungarian uprising, was executed illegally after a show trial. On 16 June 1989 Nagy was given a solemn funeral on Budapest's largest square in front of crowds of at least 100,000, followed by a hero's burial. The initially inconspicuous opening of a border gate of the Iron Curtain between Austria and Hungary in August 1989 then triggered a chain reaction, at the end of which the GDR no longer existed and
6579-422: The 33rd anniversary of the 1956 Revolution, the communist regime in Hungary was formally abolished. The Soviet military occupation of Hungary , which had persisted since World War II, ended on 19 June 1991. On 2 May 1989, Hungary started dismantling its barbed-wire border with Austria . The border was still heavily guarded, but it was a political sign. The Pan-European Picnic in August 1989 finally started
SECTION 50
#17328943633076708-442: The Belarus Soros Foundation and other independent NGOs and to suppress civil and human rights. Soros called the fines part of a campaign to "destroy independent society". In June 2009, Soros donated $ 100 million to Central Europe and Eastern Europe to counter the impact of the Great Recession on the poor, voluntary groups and non-government organisations. Fall of Communism The Revolutions of 1989 , also known as
6837-404: The Communist Party of Czechoslovakia announced on 28 November 1989 that it would relinquish power and dismantle the single-party state. Barbed wire and other obstructions were removed from the border with West Germany and Austria in early December. On 10 December, President Gustáv Husák appointed the first largely non-communist government in Czechoslovakia since 1948 and resigned. Alexander Dubček
6966-491: The Double Eagle hedge fund with $ 4m of investors' capital including $ 250,000 of his own money. It was based in Curaçao , Dutch Antilles . Double Eagle itself was an offshoot of Arnhold and S. Bleichroeder's First Eagle fund established by Soros and that firm's chairman Henry H. Arnhold in 1967. In 1973, the Double Eagle Fund had $ 12 million and formed the basis of the Soros Fund. George Soros and Jim Rogers received returns on their share of capital and 20 percent of
7095-400: The East German holidaymakers were invited to a picnic. When they came to the picnic, they were given gifts, food and Deutsche Mark, and then they were persuaded to come to the West." With the mass exodus at the Pan-European Picnic, the subsequent hesitant behavior of the Socialist Unity Party of East Germany and the non-intervention of the Soviet Union broke the dams. Now tens of thousands of
7224-427: The Eastern Bloc had disintegrated. It was the largest escape movement from East Germany since the Berlin Wall was built in 1961. The idea of opening the border came from Otto von Habsburg and was brought up by him to Miklós Németh , who promoted the idea. The local organization in Sopron took over the Hungarian Democratic Forum, the other contacts were made via Habsburg and Imre Pozsgay . Extensive advertising for
7353-432: The GDR by the Warsaw Pact would restore the communist government and suppress the civilian protests. By 1989, the Soviet government deemed it impractical for the Soviet Union to continue asserting its control over the Eastern Bloc, so it took a neutral stance regarding the events happening in East Germany. Soviet troops stationed in eastern Europe were under strict instructions from the Soviet leadership not to intervene in
7482-419: The Hall of Columns in Warsaw. On 4 April 1989 the historic Round Table Agreement was signed legalising Solidarity and setting up partly free parliamentary elections to be held on 4 June 1989, incidentally, the day following the midnight massacre of Chinese protesters in Tiananmen Square. A political earthquake followed as the victory of Solidarity surpassed all predictions. Solidarity candidates captured all
7611-459: The Oxford Martin School , which was co-funded by James Martin , as well as the INET Center on Imperfect Knowledge Economics (IKE) at the University of Copenhagen . Research programs supported by INET include: The executive director is Robert Johnson , former managing director at the hedge funds Soros Fund Management and Moore Capital Management . George Soros George Soros HonFBA (born György Schwartz ; August 12, 1930)
7740-403: The Parliament adopted a "democracy package", which included trade union pluralism; freedom of association, assembly, and the press; a new electoral law; and a radical revision of the constitution, among other provisions. On 29 January 1989, contradicting the official view of history held for more than 30 years, a member of the ruling Politburo, Imre Pozsgay , declared that Hungary's 1956 rebellion
7869-439: The Quantum Fund made $ 5.5 billion, making it again the most successful hedge fund in history. Since its inception in 1973, the fund has generated $ 40 billion. The fund announced in 2015 that it would inject $ 300 million to help finance the expansion of Fen Hotels, an Argentine hotel company. The funds will develop 5,000 rooms over the next three years throughout various Latin American countries. Soros had been building
SECTION 60
#17328943633077998-528: The Sejm amended the constitution to change the official name of the country from the People's Republic of Poland to the Republic of Poland. The communist Polish United Workers' Party dissolved itself on 29 January 1990 and transformed itself into the Social Democracy of the Republic of Poland . In 1990, Jaruzelski resigned as Poland's president and was succeeded by Wałęsa, who won the 1990 presidential elections held in two rounds on 25 November and 9 December. Wałęsa's inauguration as president on 21 December 1990
8127-403: The Socialist Unity Party of East Germany and the non-intervention of the Soviet Union broke the dams. Now tens of thousands of the media-informed East Germans made their way to Hungary, which was no longer ready to keep its borders completely closed or to oblige its border troops to use force of arms. By the end of September 1989, more than 30,000 East Germans had escaped to the West before
8256-452: The Société Générale and had no insider knowledge of the business, but he did possess knowledge that a group of investors was planning a takeover attempt. Initial investigations found Soros innocent, and no charges were brought forward. However, the case was reopened a few years later, and the French Supreme Court confirmed the conviction on June 14, 2006, although it reduced the penalty to €940,000. Soros denied any wrongdoing, saying news of
8385-575: The Soros Foundation were the cradle of democratization and that all the NGOs that gravitated around the Soros Foundation undeniably carried the revolution. She opines that after the revolution the Soros Foundation and the NGOs were integrated into power. Some Soros-backed pro-democracy initiatives have been banned in Kazakhstan and Turkmenistan . Ercis Kurtulus, head of the Social Transparency Movement Association (TSHD) in Turkey , said in an interview 2006 that "Soros carried out his will in Ukraine and Georgia by using these NGOs ... Last year Russia passed
8514-408: The Soros Fund and gave investors in the Double Eagle Fund the option of transferring to that or staying with Arnhold and S. Bleichroeder. It was later renamed the Quantum Fund , after the physical theory of quantum mechanics . By that time the value of the fund had grown to $ 12m, only a small proportion of which was Soros's own money. He and Jim Rogers reinvested their returns from the fund, and also
8643-404: The Soviet Union, in 1986, with student demonstrations , and the last chapter of the revolutions ended in 1996, when Ukraine abolished the Soviet political system of government, adopting a new constitution which replaced the Soviet-era constitution . The main region of these revolutions was Central Europe , starting in Poland with the Polish workers' mass-strike movement in 1988 , and
8772-412: The Stasi's headquarters was stormed by protesters. Modrow became the de facto leader of East Germany until free elections were held on 18 March 1990 —the first since November 1932 . The SED, renamed the Party of Democratic Socialism , was heavily defeated. Lothar de Maizière of the East German Christian Democratic Union became prime minister on 4 April 1990 on a platform of speedy reunification with
8901-489: The United States tax code, 26 U.S.C. § 527). The groups aimed to defeat President George W. Bush . After Bush's reelection, Soros and other donors backed a new political fundraising group called Democracy Alliance , which supports progressive causes and the formation of a stronger progressive infrastructure in America. In August 2009, Soros donated $ 35 million to the state of New York to be earmarked for underprivileged children and given to parents who had benefit cards at
9030-488: The West. On 15 March 1990, a peace treaty was signed between the two countries of Germany and the four Allies, to replace the Potsdam Agreement of 1 August 1945 after World War II to return full sovereignty to Germany, which facilitated the reunification. The two German countries were reunified into present-day Germany on 3 October 1990, solving the German problem of two states status, which had existed since 7 October 1949. The Kremlin's willingness to abandon such
9159-596: The bet was estimated at over $ 1 billion. He was dubbed "the man who broke the Bank of England". The estimated cost of Black Wednesday to the UK Treasury was £3.4 billion. Stanley Druckenmiller , who traded under Soros, originally saw the weakness in the pound and stated: "[Soros's] contribution was pushing him to take a gigantic position". On October 26, 1992, The New York Times quoted Soros as saying: "Our total position by Black Wednesday had to be worth almost $ 10 billion. We planned to sell more than that. In fact, when Norman Lamont said just before
9288-501: The biggest protest the GDR ever witnessed. Unable to stem the ensuing flow of refugees to the West through Czechoslovakia, the East German authorities eventually caved in to public pressure by allowing East German citizens to enter West Berlin and West Germany directly, via existing border points, on 9 November 1989, without having properly briefed the border guards. Triggered by the erratic words of regime spokesman Günter Schabowski in
9417-501: The border to Czechoslovakia on 3 October, thereby isolating itself from all its neighbors. Having been shut off from their last chance for escape, an increasing number of East Germans participated in the Monday demonstrations in Leipzig on 4, 11, and 18 September, each attracting 1,200 to 1,500 demonstrators. Many were arrested and beaten, but the people refused to be intimidated. On 25 September,
9546-551: The bulk of the area, continued with the establishment of the Russian Federation . Albania and Yugoslavia abandoned communism between 1990 and 1992, by which time Yugoslavia had split into five new countries . Czechoslovakia dissolved three years after the end of communist rule , splitting peacefully into the Czech Republic and Slovakia on 1 January 1993. North Korea abandoned Marxism–Leninism in 1992. The Cold War
9675-493: The campaign's largest donors. For the 2022 United States elections , Soros was the country's largest donor. He donated $ 128.5 million to support the Democratic Party in the election cycle. According to Waldemar A. Nielsen, an authority on American philanthropy, "[Soros] has undertaken... nothing less than to open up the once-closed communist societies of Eastern Europe to a free flow of ideas and scientific knowledge from
9804-609: The campaigns of progressive criminal justice reform proponents through the Safety and Justice PAC in local district attorney elections. In many districts, such large contributions were unprecedented and the campaigning strategy was "turned on its head" with a focus on incarceration, police misconduct and bail system, according to the Los Angeles Times . Larry Krasner was elected as the District Attorney of Philadelphia with
9933-457: The circulation of Soviet publications that it viewed as subversive. In spite of rumors that the communists were planning a massacre on 9 October, 70,000 citizens demonstrated in Leipzig that Monday and the authorities on the ground refused to open fire. The following Monday, 16 October 120,000 people demonstrated on the streets of Leipzig. Erich Honecker had hoped that the Soviet troops stationed in
10062-569: The communist government to a parliamentary republic. On 17 November 1989, riot police suppressed a peaceful student demonstration in Prague, a day after a similar demonstration passed without incident in Bratislava. Although controversy continues over whether anyone died that night, that event sparked a series of popular demonstrations from 19 November to late December. By 20 November the number of peaceful protesters assembled in Prague had swelled from 200,000
10191-418: The continuation of one-party rule and contributing to pressure for change. Romania was the only country in which citizens and opposition forces used violence to overthrow its communist regime , although Romania was politically isolated from the rest of the Eastern Bloc. The Soviet Union itself became a multi-party semi-presidential republic from March 1990 and held its first presidential election , marking
10320-483: The crisis, a wholly unfounded accusation. We were not sellers of the currency during or several months before the crisis; on the contrary, we were buyers when the currencies began to decline—we were purchasing ringgits to realize the profits on our earlier speculation. (Much too soon, as it turned out. We left most of the potential gain on the table because we were afraid that Mahathir would impose capital controls. He did so, but much later.) In 1999, economist Paul Krugman
10449-444: The day of Black Wednesday, Soros's fund had sold short more than $ 10 billion in pounds , profiting from the UK government's reluctance to either raise its interest rates to levels comparable to those of other European Exchange Rate Mechanism countries or float its currency. Finally, the UK withdrew from the European Exchange Rate Mechanism, devaluing the pound. Soros's profit on
10578-527: The early postwar years. In a tense Parliament, Mazowiecki received 378 votes, with 4 against and 41 abstentions. On 13 September 1989, a new non-communist government was approved by parliament, the first of its kind in the Eastern Bloc . On 17 November 1989, the statue of Felix Dzerzhinsky , Polish founder of the Cheka and symbol of communist oppression, was torn down in Bank Square, Warsaw . On 29 December 1989
10707-403: The fallible ideas of participants, not only by the economic fundamentals of the situation. Ideas and events influence each other in reflexive feedback loops. Soros argued that this process leads to markets having procyclical "virtuous" or "vicious" cycles of boom and bust, in contrast to the equilibrium predictions of more standard neoclassical economics. From 1963 to 1973, Soros's experience as
10836-452: The first Occupy Wall Street protests—had never received any contributions from Soros, contrary to Reuters's earlier story that reported that "indirect financial links" existed between the two as late as 2010. On September 27, 2012, Soros announced that he was donating $ 1 million to the super PAC backing President Barack Obama 's reelection Priorities USA Action . In October 2013, Soros donated $ 25,000 to Ready for Hillary , becoming
10965-645: The first visible cracks in the Iron Curtain appeared when Hungary began dismantling its 240-kilometre (150 mi) long border fence with Austria. This increasingly destabilized East Germany and Czechoslovakia over the summer and autumn, as thousands of their citizens illegally crossed over to the West through the Hungarian-Austrian border. On 1 June 1989 the Communist Party admitted that former prime minister Imre Nagy , hanged for treason for his role in
11094-544: The following Monday's demonstration on 9 October. On 6 and 7 October, Mikhail Gorbachev visited East Germany to mark the 40th anniversary of the German Democratic Republic, and urged the East German leadership to accept reform. A famous quote of his is rendered in German as "Wer zu spät kommt, den bestraft das Leben" ("The one who comes too late is punished by life."). However, Honecker remained opposed to internal reform, with his regime going so far as forbidding
11223-544: The force of liberalization spreading from the east, other Eastern Bloc countries remained openly skeptical and demonstrated aversion to reform. Believing Gorbachev's reform initiatives would be short-lived, hardline communist rulers like East Germany 's Erich Honecker , Bulgaria 's Todor Zhivkov , Czechoslovakia 's Gustáv Husák and Romania 's Nicolae Ceaușescu obstinately ignored the calls for change. "When your neighbor puts up new wallpaper, it doesn't mean you have to too," declared one East German politburo member. By
11352-516: The globe. Three Asian countries, namely Afghanistan , Cambodia and Mongolia , had abandoned communism by 1992–1993, either through reform or conflict. Eight countries in Africa or its environs also abandoned it, namely Ethiopia , Angola , Benin , Congo-Brazzaville , Mozambique , Somalia , as well as South Yemen , unified with North Yemen . Political reforms varied, but in only five countries were Marxist-Leninist communist parties able to retain
11481-486: The government to open dialogue with Solidarity. On 9 March 1989, both sides agreed to a bicameral legislature called the National Assembly . The already existing Sejm would become the lower house. The Senate would be elected by the people. Traditionally a ceremonial office, the presidency was given more powers ( Polish Round Table Agreement ). On 7 July 1989, General Secretary Mikhail Gorbachev implicitly renounced
11610-690: The group effort, opting to personally move forward with his strategy of accumulating shares in four French companies: Société Générale, as well as Suez, Paribas, and the Compagnie Générale d'Électricité . In 1989, the Commission des Opérations de Bourse (COB, the French stock exchange regulatory authority) conducted an investigation of whether Soros's transaction in Société Générale should be considered insider trading . Soros had received no information from
11739-548: The help of a $ 1.5 million ad campaign funded by Soros in 2017. Soros was the largest donor supporting the campaign of George Gascón for Los Angeles County District Attorney in 2020, contributing $ 2.25 million to superPACs in Gascón's favor. Soros gave $ 2 million to a PAC supporting Kim Foxx 's campaign for Cook County State's Attorney in 2020. In the second quarter of 2020, Soros gave at least $ 500,000 to presumptive Democratic presidential nominee Joe Biden , becoming one of
11868-501: The international economic and financial system. In 1988, Soros was contacted by a French financier named Georges Pébereau, who asked him to participate in an effort to assemble a group of investors to purchase a large number of shares in Société Générale , a leading French bank that was part of a privatization program (something instituted by the new government under Jacques Chirac ). Soros eventually decided against participating in
11997-681: The late 1980s, people in the Caucasus and Baltic states were demanding more autonomy from Moscow , and the Kremlin was losing some of its control over certain regions and elements in the Soviet Union . Cracks in the Soviet system had begun in December 1986 in Kazakhstan when its citizens protested over an ethnic Russian who had been appointed as the secretary of the CPSU's Kazakh republican branch . These protests were put down after three days. In November 1988,
12126-514: The majoritarian system. A weak presidency was agreed upon. No consensus was attained on who should elect the president, the parliament or the people, and when this election should occur, before or after parliamentary elections. On 7 October 1989, the Communist Party, at its last congress, re-established itself as the Hungarian Socialist Party . In a historic session from 16 to 20 October, the parliament adopted legislation providing for
12255-622: The markets look at reality—"actually can reinforce themselves so that there are these initially self-reinforcing but eventually unsustainable and self-defeating boom/bust sequences or bubbles". In reaction to the Great Recession , he founded the Institute for New Economic Thinking in October 2009. This is a think tank composed of international economic, business, and financial experts, who are mandated to investigate radical new approaches to organizing
12384-458: The media-informed East Germans made their way to Hungary, which was no longer ready to keep its borders completely closed or to oblige its border troops to use force of arms. In particular, the leadership of the GDR in East Berlin no longer dared to completely block the borders of their own country. The Round Table agreement of 18 September encompassed six draft laws that covered an overhaul of
12513-555: The moribund Soviet economy . Mikhail Gorbachev succeeded to the General Secretary of the Communist Party of the Soviet Union and came to power in 1985. The first signs of major reform came in 1986 when Gorbachev launched a policy of glasnost (openness) in the Soviet Union, and emphasized the need for perestroika (economic restructuring). By the spring of 1989, the Soviet Union had not only experienced lively media debate but had also held its first multi-candidate elections in
12642-514: The new name because it is a palindrome and because of its meaning. In Hungarian, soros means "next"; in Esperanto it means "will soar". Soros was 13 years old in March 1944 when Nazi Germany occupied Hungary . The Nazis barred Jewish children from attending school, and Soros and the other schoolchildren were made to report to the Judenrat (" Jewish Council "), which had been established during
12771-550: The newly established Congress of People's Deputies . While glasnost ostensibly advocated openness and political criticism, these were only permitted within a narrow spectrum dictated by the state. The general public in the Eastern Bloc was still subject to secret police and political repression . Gorbachev urged his Central and Southeast European counterparts to imitate perestroika and glasnost in their own countries. However, while reformists in Hungary and Poland were emboldened by
12900-467: The newly independent countries. A 2017 study found that a grant program by George Soros which awarded funding to over 28,000 scientists in the former Soviet republics shortly after the end of the Soviet Union "more than doubled publications on the margin, significantly induced scientists to remain in the science sector, and had long-lasting [beneficial] impacts". His funding of pro-democratic programs in Georgia
13029-569: The number of democracies vary depending on the criteria used for assessment, but by some measures by the late 1990s there were well over 100 democracies in the world, a marked increase in just a few decades. A wave of strikes hit Poland from 21 April then this continued in May 1988. A second wave began on 15 August, when a strike broke out at the July Manifesto coal mine in Jastrzębie-Zdrój , with
13158-414: The outside world". From 1979, as an advocate of ' open societies ', Soros financially supported dissidents including Poland's Solidarity movement, Charter 77 in Czechoslovakia and Andrei Sakharov in the Soviet Union . In 1984, he founded his first Open Society Institute in Hungary with a budget of $ 3 million. Since the fall of the Soviet Union , Soros's funding has played an important role in
13287-532: The pan-European picnic, Erich Honecker dictated the Daily Mirror of 19 August 1989: "Habsburg distributed leaflets far into Poland, on which the East German holidaymakers were invited to a picnic. When they came to the picnic, they were given gifts, food, and Deutsche Mark, and then they were persuaded to come to the West." But with the mass exodus at the Pan-European Picnic, the subsequent hesitant behavior of
13416-490: The people that if they report they will be deported". I'm not sure to what extent he knew they were going to be gassed. I did what my father said. Soros did not return to that job; his family survived the war by purchasing documents to say that they were Christians. Later that year at age 14, Soros posed as the Christian godson of an official of the collaborationist Hungarian government's Ministry of Agriculture, who himself had
13545-538: The planned picnic was made by posters and flyers among the GDR holidaymakers in Hungary. The Austrian branch of the Paneuropean Union , which was then headed by Karl von Habsburg , distributed thousands of brochures inviting them to a picnic near the border at Sopron. After the pan-European picnic, Erich Honecker dictated the Daily Mirror of 19 August 1989: "Habsburg distributed leaflets far into Poland, on which
13674-403: The political affairs of the Eastern Bloc nations, and remained in their barracks. Faced with ongoing civil unrest, the SED deposed Honecker on 18 October and replaced him with the number-two-man in the regime, Egon Krenz . However, the demonstrations kept growing. On Monday, 23 October, the Leipzig protesters numbered 300,000, and remained as large the following week. The border to Czechoslovakia
13803-464: The previous day to an estimated half-million. Five days later, the Letná Square protest held 800,000 people. On 24 November, the entire Communist Party leadership, including general secretary Miloš Jakeš , resigned. A two-hour general strike, involving all citizens of Czechoslovakia, was successfully held on 27 November. With the collapse of other communist governments, and increasing street protests,
13932-490: The profits each year. In 1970, Soros founded Soros Fund Management and became its chairman. Among those who held senior positions there at various times were Jim Rogers, Stanley Druckenmiller , Mark Schwartz, Keith Anderson, and Soros's two sons. In 1973, due to perceived conflicts of interest limiting his ability to run the two funds, Soros resigned from the management of the Double Eagle Fund. He then established
14061-465: The protests attracted 8,000 demonstrators. After the fifth successive Monday demonstration in Leipzig on 2 October attracted 10,000 protesters, Socialist Unity Party (SED) leader Erich Honecker issued a shoot and kill order to the military. Communists prepared a huge police, militia, Stasi , and work-combat troop presence, and there were rumors a Tiananmen Square-style massacre was being planned for
14190-534: The rate of $ 200 per child aged 3 through 17, with no limit as to the number of children that qualified. An additional $ 140 million was put into the fund by the state of New York from money they had received from the 2009 federal recovery act . Soros was an initial donor to the Center for American Progress , and he continues to support the organization through the Open Society Foundations. In October 2011,
14319-550: The revolutionary trend continued in Hungary , East Germany , Bulgaria , Czechoslovakia , and Romania . On 4 June 1989, Poland's Solidarity trade union won an overwhelming victory in partially free elections , leading to the peaceful fall of communism in Poland . Also in June 1989, Hungary began dismantling its section of the physical Iron Curtain . In August 1989, the opening of a border gate between Austria and Hungary set in motion
14448-511: The seats they were allowed to compete for in the Sejm . In the Senate they captured 99 out of the 100 available seats, with the one remaining seat taken by an independent candidate. At the same time, many prominent communist candidates failed to gain even the minimum number of votes required to capture the seats that were reserved for them. On 15 August 1989, the communists' two longtime coalition partners,
14577-515: The seed money for Soros Fund Management , his second hedge fund, in 1970. Double Eagle was renamed Quantum Fund and was the principal firm Soros advised. At its founding, Quantum Fund had $ 12 million in assets under management , and as of 2011 it had $ 25 billion, the majority of Soros's overall net worth. Soros is known as "The Man Who Broke the Bank of England " as a result of his short sale of US$ 10 billion worth of pounds sterling , which made him
14706-576: The takeover was public knowledge and it was documented that his intent to acquire shares of the company predated his own awareness of the takeover. In December 2006, he appealed to the European Court of Human Rights on various grounds, including that the 14-year delay in bringing the case to trial precluded a fair hearing. On the basis of Article 7 of the European Convention on Human Rights , stating that no person may be punished for an act that
14835-468: The time they believed that a "conspiracy" was impossible. During the 1997 Asian financial crisis , the prime minister of Malaysia, Mahathir Mohamad , accused Soros of using the wealth under his control to punish the Association of Southeast Asian Nations (ASEAN) for welcoming Myanmar as a member. With a history of antisemitic remarks, Mahathir made specific reference to Soros's Jewish background ("It
14964-464: The union, and temporarily imprisoning all of its leaders. Although several Eastern Bloc countries had attempted some abortive, limited economic and political reform since the 1950s (e.g. the Hungarian Revolution of 1956 and Prague Spring of 1968), the ascension of reform-minded Soviet leader Mikhail Gorbachev in 1985 signaled the trend toward greater liberalization . During the mid-1980s,
15093-605: The university and work as a professor, but his grades were not high enough, prompting him to work for an investment firm in London. In a discussion at the Los Angeles World Affairs Council in 2006, Alvin Shuster, former foreign editor of the Los Angeles Times , asked Soros, "How does one go from an immigrant to a financier? ... When did you realize that you knew how to make money?". Soros replied, "Well, I had
15222-469: The use of force against other Soviet-bloc nations. Speaking to members of the 23-nation Council of Europe, Mr. Gorbachev made no direct reference to the so-called Brezhnev Doctrine , under which Moscow had asserted the right to use force to prevent a Warsaw Pact member from leaving the communist fold. He stated, "Any interference in domestic affairs and any attempts to restrict the sovereignty of states—friends, allies or any others—are inadmissible". The policy
15351-574: The workers demanding the re-legalisation of the Solidarity trade union. Over the next few days, sixteen other mines went on strike followed by a number of shipyards, including on 22 August the Gdansk Shipyard , famous as the epicentre of the 1980 industrial unrest that spawned Solidarity. On 31 August 1988 Lech Wałęsa , the leader of Solidarity, was invited to Warsaw by the communist authorities, who had finally agreed to talks. On 18 January 1989, at
15480-599: Was a lawyer and a well-known Esperanto author who edited the Esperanto literary magazine Literatura Mondo and raised his son to speak the language. Tivadar had also been a prisoner of war during and after World War I until he escaped from Russia and rejoined his family in Budapest. His parents married in 1924. In 1936, Soros's family changed their name from the German-Jewish "Schwartz" to "Soros", as protective camouflage in increasingly antisemitic Hungary. Tivadar liked
15609-557: Was a popular uprising rather than a foreign-instigated attempt at counterrevolution. Mass demonstrations on 15 March, the National Day, persuaded the regime to begin negotiations with the emergent non-communist political forces. Round Table talks began on 22 April and continued until the Round Table agreement was signed on 18 September. The talks involved the communists (MSzMP) and the newly emerging independent political forces Fidesz ,
15738-713: Was considered by Georgian nationalists to be crucial to the success of the Rose Revolution , although Soros has said that his role has been "greatly exaggerated". Alexander Lomaia , secretary of the Georgian Security Council and former Minister of Education and Science, is a former executive director of the Open Society Georgia Foundation ( Soros Foundation ), overseeing a staff of 50 and a budget of $ 2.5 million. Former Georgian foreign minister Salomé Zourabichvili wrote that institutions like
15867-429: Was critical of Soros's effect on financial markets: [N]obody who has read a business magazine in the last few years can be unaware that these days there really are investors who not only move money in anticipation of a currency crisis, but actually do their best to trigger that crisis for fun and profit. These new actors on the scene do not yet have a standard name; my proposed term is "Soroi". In an interview concerning
15996-552: Was endowed with $ 3.75 million grant from the Keynes Fund for Applied Economics, Isaac Newton Trust, and the University of Cambridge Faculty of Economics. In January 2011, the INET partnered with the Centre for International Governance Innovation to support research in economic theory and innovative projects. Similar collaborations exist with the INET at the Institute for New Economic Thinking at
16125-402: Was next to switch to a non-communist government. Although Hungary had achieved some lasting economic reforms and limited political liberalization during the 1980s, major reforms only occurred following the replacement of János Kádár as General Secretary of the communist Party on 23 May 1988 with Károly Grósz . On 24 November 1988 Miklós Németh was appointed prime minister. On 12 January 1989,
16254-487: Was not a criminal offense at the time that it was committed, the court agreed to hear the appeal. In October 2011, the court rejected his appeal in a 4–3 decision, saying that Soros had been aware of the risk of breaking insider trading laws. Until the 2004 presidential election, Soros had not been a large donor to U.S. political campaigns. According to OpenSecrets , during the 2003–2004 election cycle, Soros donated $ 23,581,000 to various 527 Groups (tax-exempt groups under
16383-639: Was opened again on 1 November, and the Czechoslovak authorities soon let all East Germans travel directly to West Germany without further bureaucratic ado, thus lifting their part of the Iron Curtain on 3 November. On 4 November the authorities decided to authorize a demonstration in Berlin and were faced with the Alexanderplatz demonstration , where half a million citizens converged on the capital demanding freedom in
16512-641: Was particularly unnerving because of its scope and severity ... By the beginning of 1997, it was clear to Soros Fund Management that the discrepancy between the trade account and the capital account was becoming untenable. We sold short the Thai baht and the Malaysian ringgit early in 1997 with maturities ranging from six months to a year. (That is, we entered into contracts to deliver at future dates Thai baht and Malaysian ringgit that we did not currently hold.) Subsequently, Prime Minister Mahathir of Malaysia accused me of causing
16641-693: Was termed the Sinatra Doctrine , in a joking reference to the Frank Sinatra song " My Way ". Poland became the first Warsaw Pact country to break free of Soviet domination. The 1980's revolutions occurred in Western Bloc regimes as well. In February 1986, the People Power Revolution in the Philippines peacefully overthrew dictator Ferdinand Marcos and inaugurated Corazon "Cory" Aquino as
#306693