Tuesday March 19, 2019
Home World Silicon Valle...

Silicon Valley Reconsiders Its Decision to Invest in Saudi Arabia

In the case of Google, it meant discontinuing a U.S. Defense Department contract involving artificial intelligence.

0
//
Saudi Arabia
Saudi Crown Prince, Mohammed bin Salman, center, and Jordan's King Abdullah II second left, attend the Future Investment Initiative conference, in Riyadh, Saudi Arabia, Tuesday. VOA

The controversy over the death of Saudi Arabian journalist Jamal Khashoggi has shined a harsh light on the growing financial ties between Silicon Valley and the world’s largest oil exporter.

As Saudi Arabia’s annual investment forum in Riyadh — dubbed “Davos in the Desert” — continues, representatives from many of the kingdom’s highest-profile overseas tech investments are not attending, joining other international business leaders in shunning a conference amid lingering questions over what role the Saudi government played in the killing of a journalist inside their consulate in Turkey.

Tech leaders such as Steve Case, the co-founder of AOL, and Dara Khosrowshahi, the chief executive of Uber, declined to attend this week’s annual investment forum in Riyadh. Even the CEO of Softbank, which has received billions of dollars from Saudi Arabia to back technology companies, reportedly has canceled his planned speech at the event.

saudi arabia
A demonstrator dressed as Saudi Arabian Crown Prince Mohammed bin Salman, center, with blood on his hands protests with others outside the Saudi Embassy in Washington. VOA

But the Saudi controversy is focusing more scrutiny on the ethics of taking money from an investor who is accused of wrongdoing or whose track record is questionable.

Fueling the tech race

In the tech startup world, Saudi investment has played a key role in allowing firms to delay going public for years while they pursue a high-growth strategy without worrying about profitability. Those ties have only grown with the ascendancy of Crown Prince Mohammed bin Salman, the son of the Saudi king.

The kingdom’s Public Investment Fund has put $3.5 billion into Uber and has a seat on Uber’s 12-member board. Saudi Arabia also has invested more than $1 billion into Lucid Motors, a California electric car startup, and $400 million in Magic Leap, an augmented reality startup based in Florida.

Almost half of the Japanese Softbank’s $93 billion Vision Fund came from the Saudi government. The Vision Fund has invested in a Who’s Who list of tech startups, including WeWork, Wag, DoorDash and Slack.

Saudi Arabia
Aurore Chiquot of SoftBank Robotics Europe extends her hand to a robot during the Future Investment Initiative conference in Riyadh, Saudi Arabia. VOA

Now there are reports that as the cloud hangs over the crown prince, Softbank’s plan for a second Vision fund may be on hold. And Saudi money might have trouble finding a home in the future in Silicon Valley, where companies are competing for talented workers, as well as customers.

The tech industry is not alone in questioning its relationship with the Saudi government in the wake of Khashoggi’s death or appearing to rethink its Saudi investments. Museums, universities and other business sectors that have benefited financially from their connections to the Saudis also are taking a harder look at those relationships.

Who are my investors?

Saudi money plays a large role in Silicon Valley, touching everything from ride-hailing firms to business-messaging startups, but it is not the only foreign investment in the region.

More than 20 Silicon Valley venture companies have ties to Chinese government funding, according to Reuters, with the cash fueling tech startups. The Beijing-backed funds have raised concerns that strategically important technology, such as artificial intelligence, is being transferred to China.

And Kremlin money has backed a prominent Russian venture capitalist in the Valley who has invested in Twitter and Facebook.

 

Saudi Arabia
Tech startup WeWork offers shared space at more than 200 locations in 50 cities worldwide. Pictured is a co-working facility in downtown Los Angeles. The space caters to digital nomads and others who need flexible work space. VOA

 

The Saudi controversy has prompted some in the Valley to question their investors about where those investors are getting their funding. Fred Wilson, a prominent tech venture capitalist, received just such an inquiry.

“I expect to get more emails like this in the coming weeks as the start-up and venture community comes to grip with the flood of money from bad actors that has found its way into the start-up/tech sector over the last decade,” he wrote in a blog post titled “Who Are My Investors?”

“Bad actors’ doesn’t simply mean money from rulers in the gulf who turn out to be cold blooded killers,” Wilson wrote. “It also means money from regions where dictators rule viciously and restrict freedom.”

This may be a defining ethical moment in Silicon Valley, as it moves away from its libertarian roots to seeing the world in its complexity, said Ann Skeet, senior director of leadership ethics at the Markkula Center for Applied Ethics at Santa Clara University.

jamal Khashoggi
(FILE)- Saudi journalist Jamal Khashoggi at the World Economic Forum in Davos, Switzerland. VOA

“Corporate leaders are moving more quickly and decisively than the administration, and they realize they have a couple of hats here — one, they are the chief strategist of their organization, and they also play the role of the responsible person who creates space for the right conversations to happen,” she said.

Tech’s evolving ethics

Responding to demands from their employees and customers, Silicon Valley firms are looking more seriously at business ethics and taking moral stands.

Also Read: The Truth About The Killing Of Khashoggi Will Be Revealed By The Turkish President

In the case of Google, it meant discontinuing a U.S. Defense Department contract involving artificial intelligence. In the case of WeWork, the firm now forbids the consumption of meat at the office or purchased with company expenses, on environmental grounds.

The Vision Fund will “undoubtedly find itself in a more challenging environment in convincing startups to take its money,” Amir Anvarzadeh, a senior strategist at Asymmetric Advisors in Singapore, recently told Bloomberg. (VOA)

Next Story

“They Don’t Make Prayerful Offerings When They Harvest,” Story Of The Native American Church

“The extraordinary and the phenomenon are not necessarily unexpected, but they are definitely not precluded.”

0
Church
The sun sets over the gateway of peyotera Amada Cardenas's house in Mirando City, Texas. Ironwork reflects core Native American Church values of faith, hope, love and charity. VOA

Back in the day, when the “grandmas and grandpas” of the Native American Church (NAC) needed peyote, they would make a 2,000-kilometer pilgrimage from the reservations of South Dakota to the tiny town of Mirando City, Texas, close to the U.S. border with Mexico. That’s where they could find Amada Cardenas, a Mexican-American woman who at the time was the only peyote dealer in Texas.

Cardenas was not Native American, nor was she a member of the NAC. But she understood how sacred the medicine was to church members and defended its use as a religious sacrament to those who sought to ban it.

Amada Cardenas, holding a basket of peyote, outside of her home in Mirando City, Texas, 1994.
Amada Cardenas, holding a basket of peyote, outside of her home in Mirando City, Texas, 1994. VOA

“After Amada’s passing, the peyote distribution system lost heart and seemed to be about monetary compensation,” said Iron Rope, former chairman of the Native American Church of North America (NACNA) and today chairman of the NAC of South Dakota. He is concerned that the remaining three or four peyote dealers in Texas — all non-Native — don’t give “the medicine” the reverence they should.

“They don’t make prayerful offerings when they harvest,” Iron Rope said. “We’ve heard reports about intoxicated harvesters. Sometimes, the medicine that comes to us was mushy or small, and the harvesting technique was not one that would allow regrowth.”

Careless and sometimes illegal harvesting, along with increased land and resource development in Texas, has led to a decline in peyote’s quality and availability. Prices have gone up, and church members worry the cactus, now listed as a vulnerable species, could become endangered.

In 2013, NACNA began researching ways to conserve peyote and its natural habitat.

Lophophora williamsii, more commonly known as peyote, which grows in the wild in southern Texas and Mexico.
Lophophora williamsii, more commonly known as peyote, which grows in the wild in southern Texas and Mexico. VOA

Pan-Native religion

Peyote, or Lophophora williamsii, is a succulent that contains psychoactive alkaloids and only grows in southern Texas and a handful of states in northern Mexico.

Indigenous people have used it ceremonially and medicinally for centuries, as noted by 16th century Spanish missionaries, who condemned it as an evil. Peyote use persisted, however, and by the late 1800s, had spread to present-day Oklahoma, where tribes adapted it to suit their individual spiritual traditions.

In the face of government efforts to ban peyote, peyotists in the early 20th century sought to incorporate as a formal religion. In 1918, an intertribal group established the NAC, which has evolved to include tens of thousands of members across dozens of tribal nations. Members view the church as an important component of healing from historic trauma and reconnecting to tradition.

Peyote was banned in the United States in 1970, but the law was later amended to allow peyote to be used in “bona fide religious ceremonies of the Native American Church.”

Texas allows several peyoteros registered with the U.S. Drug Enforcement Agency to harvest and sell peyote, but only to card-carrying NAC members with proven Native American ancestry.

Peyote buttons are shown in the yard of a peyote dealer in Rio Grande, Texas, Oct. 12, 2007.
Peyote buttons are shown in the yard of a peyote dealer in Rio Grande, Texas, Oct. 12, 2007. VOA

‘A beautiful ceremony’

Unlike other religious denominations, said Iron Rope, the NAC is not a unified theology.

“Different variations of the ceremony have come into play,” he said. “There are Christian aspects to the NAC today and traditional aspects, as well.”

Wynema Morris, a member of the Omaha Tribe of Nebraska and an NAC member, grew up with an understanding of the sacredness of peyote and the religious etiquette surrounding its use.

“It was my own grandfather, Samuel Thomas Gilpin, who actually received peyote early on from the Winnebagos, a neighboring tribe, and passed it on to his sons, my uncles,” she said.

This 1924 photo by Edward S. Curtis is entitled "Cheyenne Peyote Leader." Courtesy: Library of Congress.
This 1924 photo by Edward S. Curtis is entitled “Cheyenne Peyote Leader.” Courtesy: Library of Congress. VOA

Peyote is much misunderstood and maligned, she said, viewed by many anthropologists through the lens of colonial prejudice.

“I don’t like their use of the word ‘hallucinations,’” she said. “You don’t use peyote to get high. You use it to pray and communicate with God — the same God everyone else talks to.”

She described all-night services of prayer, song and meditation.

“The ceremony is beautiful,” she said. “The extraordinary and the phenomenon are not necessarily unexpected, but they are definitely not precluded.”

Sacred gardens

In 2013, NACNA began looking at ways to conserve and sustain peyote for future generations of indigenous Americans, Mexicans and Canadians.

“It was our intent to eventually have our own land and be able to have our own peyote dealer who could understand our concerns as the Native American Church,” said Iron Rope.

The sun sets over "the 605," acreage in Thompsonville, Texas, which the Indigenous Peyote Conservation purchased in 2018 for the conservation of peyote, a sacrament of the Native American Church.
The sun sets over “the 605,” acreage in Thompsonville, Texas, which the Indigenous Peyote Conservation purchased in 2018 for the conservation of peyote, a sacrament of the Native American Church. VOA

In 2017, NACNA and partner organizations formally launched the Indigenous Peyote Conservation Initiative (IPCI). With funding from the Riverstyx Foundation, a nonprofit that supports research of medicinal uses of psychoactive plants, IPCI purchased 245 hectares (605 acres) of land in Thompsonville, Texas, to serve as “Sacred Peyote Gardens.”

Also Read: Practice What You Preach: Celebrities Should Stand By Their Public Image In Private Domain

It is their hope that by 2021, “the 605” will house a nursery, residential and guest housing, and youth training, all supported by peyote sales.

“It’s about generations to come,” said Iron Rope. “To reconnect them to the land and to the medicine. And that’s the healing process that we’ve been missing.” (VOA)