The budget doctorEconomist William M. Capron ’42 creates finance systems in developing countries.William Capron with his home economicspartner—Peg Morgan Capron ’42.It’s no secret that <strong>Swarthmore</strong> <strong>College</strong>produces extraordinary individualswho lead extraordinarily active and successfulprofessional lives, which oftenextend into their retirement years. Still,how many septuagenarians can claim tohave avoided bombs planted by theTamil Tiger rebels in the streets ofColombo, Sri Lanka; or, while on assignment,admired the freshly regilded“mushroom domes” of Kiev’s churchesstrung out along the banks of the Dnepr;or sailed down the Yangtze River inChina?William M. Capron ’42 can. He did allof this after “becoming inactive” as professorof economics at Boston Universityin 1991. Capron, 78, has worked in SriLanka, Zambia, Macedonia, the Ukraine,and China as a member of a team ofeconomists. Capron’s role has beenadvising the ministries of finance ofdeveloping countries on how toimprove their budgetary systems.“There’s this myth,” says Capron modestly,“that I know a lot about publicbudgeting—and, well, I don’t do a lot tokill the myth.”Besides, it really isn’t a myth. An economicsmajor at <strong>Swarthmore</strong>, Capron’sinterest in government budgeting wasstimulated in Roland Pennock’s seminaron public administration. He graduatedwith high honors in 1942. Capron’scareer since then includes graduatework at Harvard; a stint with the RandCorporation; seven years on the facultyof the Economics Department of StanfordUniversity (where he is still a visitingscholar); and service on the Councilof Economic Advisers in Washington,D.C.The high point of his professionallife, he says, came when he was appointedassistant director of the U.S. Bureauof the Budget under President John F.Kennedy. He was involved in developingthe Great Society programs, in particularthe War on Poverty, but left duringthe Johnson administration when thewar in Vietnam diverted both fundingand the president’s attention from theprograms. Later, as associate dean ofHarvard’s John F. Kennedy School ofGovernment, Capron helped build itsPublic Policy Program. In 1977 heassumed the chairmanship of the EconomicsDepartment at Boston University.During consultation visits of typicallyfour to eight weeks, Capron becomesfamiliar with extreme geographical, climatic,historical, and political differencesin the settings of his workplaces.He describes Sri Lanka, which he visitedin 1991, as a “tragic country,” whoselong-lasting conflict with the Tamils paralyzesthe government and obstructsenduring positive change. A year laterhe was called to Zambia, where withinthe framework of sweeping economicreforms, Zambian finance ministersmade efforts to improve their budgetsystems along the lines suggested bythe American group, yet political instabilityin the country makes consistentgrowth difficult.In Macedonia, a former province ofYugoslavia, in 1993, Capron became“passionate” about a nation eager forautonomous government, but, likemany other Eastern European countries,they are struggling in the midst ofthe transition from a centrally plannedto an openly democratic market economy.No longer mere administrators followingorders from Belgrade, the Macedonianshave become policy-makerswith little experience of making policy.A similar situation exists in theUkraine. Capron bemoans the fact that,because of political gridlock in the parliament,one of the most potentially productivecountries of that part of theworld is languishing. When in China lastsummer and fall, he was surprised tofind a much more decentralized politicalsystem than he had expected. “It’snot run with detailed control from Beijingat all,” he says. “When we hear ofthis communist country with everythingbeing controlled right up there at thecenter—well, it just ain’t so.” Hebelieves that China, though facingformidable challenges as it shiftstoward a market economy, will continueto gain in importance as it becomesmore democratic. “It’s wonderful, fascinating,and absolutely puzzling,” hesays, and he looks forward to returningfor a follow-up visit.Despite the varied national scenarios,Capron says, “I’ve been more surprisedat the similarities than at the differences.”He finds that a common budgetaryproblem in both well-developedand underdeveloped countries is thatthe top political leadership, althoughhaving a general understanding ofwhich areas need improvement, is oftenill informed on how money is actuallyspent and, therefore, incapable ofassessing what remedies should be recommended.“We don’t advise them on specifics,”he says. “We’re not telling them if theyshould run a deficit or not. We’re tellingthem how they can improve the waytheir systems function.” Capron and hisfellow consultants propagate systematicanalysis of public programs; they suggestto the ministries of finance methodsof collecting and organizing informationin such a way that they will be ina better position to make decisions onresource management. At the sametime, they try to balance these moreglobal suggestions by encouraging theidea of decentralizing the detailed managementof the programs down to thelevel where services are actually delivered.Although positive results of his workare not immediately visible, whetherbecause of political unrest or the naturalresistance of bureaucracy to change,Capron hopes that their suggestionswill make a positive difference in time.And it wouldn’t be the first timeCapron has won out in the face of resistance.During his Freshman Week at the<strong>College</strong> in 1938, he met classmate Margaret“Peg” Morgan. “I knew right awaywhom I was going to spend the rest ofmy life with, but she was a slow learner,”he jokes. They have been marriedfor almost 60 years. And she joined himon the Yangzte—“the highlight of myoverseas trips.” Now there’s a systemthat has endured.—Carol BrévartJUNE <strong>1998</strong> 37
“A simple matter of discrimination”James Hormel ’55 still waits for a Senate vote on his nomination.President Bill Clinton’s nomination ofJames C. Hormel ’55 to be U.S.ambassador to Luxembourg has languishedin the Senate for more than sixmonths because of opposition by asmall number of lawmakers who arguethat Hormel, who is openly gay, will promotea gay rights agenda in the tinyEuropean country. In March SenateMajority Leader Trent Lott rejectedpleas from 42 senators to lift “holds”that four senators have used to block avote on the nomination.Hormel, who has been a member of<strong>Swarthmore</strong>’s Board of Managers since1988, is chairman of Equidex Inc. in SanFrancisco. The firm manages Hormelfamily investments and philanthropy.After graduating from <strong>Swarthmore</strong>,Hormel received a J.D. from the Universityof Chicago Law School and laterserved as assistant dean of studentsthere. He has been active in Democraticpolitics and was appointed by PresidentClinton as alternate U.S. representativeto the U.N. General Assembly, receivingeasy Senate confirmation in 1997. Hormelhas also been a delegate to the U.N.Human Rights Commission. He was afounding member of the Human RightsCampaign.Hormel is a member of the board ofdirectors of the American Foundationfor AIDS Research and serves on theboard of the San Francisco Symphony.In mid-May an effort was being madeby the administration to force a floorvote on the ambassadorial nomination,which had been reported out of the ForeignRelations Committee in November1997. As he awaited Senate action, weasked Hormel to comment; he told the<strong>Bulletin</strong> that he could not discuss thenomination pending confirmation.But his son, James C. Hormel Jr., hadno such constraints. The younger Hormel,37, argued in the following editorial,which was published in severalnewspapers across the United States,that his father should be confirmed.Jim Hormel ’55 was easily confirmed fora U.N. post, but some senators want toblock his appointment to Luxembourg—because he’s gay.When I was 11 years old, my father,James C. Hormel, told me that hewas gay.I didn’t find this an easy bit of informationto digest, but I heard my father’sgreat concern for how this disclosurewould affect his son. This was not alifestyle choice. Being gay was part ofhis personal makeup, something he hadstruggled with greatly his whole life.Now President Clinton has nominatedmy father to be U.S. ambassador toLuxembourg. This has made us, as afamily, quite proud. When my father satbefore the Senate at his confirmationhearing, the entire family—including mymother and stepfather—attended toshow our unified support. After hearingnothing but high praise from committeemembers and other senators, we feltsure that a vote of approval would follow.A week later we learned that severalsenators had placed “holds” on thenomination. The reason, they said, wasthat they thought my father would usehis position as ambassador to further a“gay agenda.” This delay in the confirmationprocess gave other senatorstime to launch a smear campaign.My father has dedicated a majorityof his work throughout his life to philanthropyand diplomacy. He is committedto helping others. His qualifications as adiplomat have never been disputed.For these reasons I have concludedthat those senators blocking his nominationdo so as a simple matter of discrimination.Those who oppose my father’s nominationon the premise that sexual orientationaffects “family values” are notfamiliar with the strength of our family.While I was growing up, my father nevertried to influence my sexuality in anyway. What he did teach me was kindness,acceptance of others, honesty,self-esteem, and standing up for whatyou believe.I have just returned to Californiafrom Washington, D.C., with my father,three of my sisters, my brother, twobrothers-in-law, my wife, two nieces,one nephew, and my father’s partner.We were in Washington for a meetingabout our family’s foundation, whichmy father established to encourage usto participate in philanthropy.He has taught us through his owngiving, to organizations like <strong>Swarthmore</strong><strong>College</strong>, the Holocaust Museum, VirginiaInstitute of Autism, the Universityof Chicago, the American Foundationfor AIDS Research, the Breast CancerAction Network, and the San FranciscoSymphony, that to give as a family isone more way to strengthen our ties.My father’s agenda for our family isto encourage closeness and integrity.His agenda as ambassador to Luxembourgis to represent our country. It justso happens that he is gay. The Senatedeserves the opportunity to act on theAmerican agenda—to deliberate andvote on my father’s nomination.—James C. Hormel Jr.Reprinted by permission of the PacificNews Service.JUNE <strong>1998</strong> 43