Australian Parliamentary Inquiry Examines Neoliberal Think Tanks' Influence on Policy and Climate Discourse

A federal parliamentary inquiry in Australia is investigating the financing, production, and dissemination of misinformation and disinformation related to climate change and energy. The inquiry is examining connections between Australian organizations and international influence networks, with a particular focus on the impact of "free-market" think tanks on public policy and debate.

This inquiry delves into the operations of "free-market" think tanks and their impact on public policy and climate debate in Australia.

The Roots of Neoliberalism and the Rise of Think Tanks

The concept of neoliberalism emerged in the 1930s, driven by a need to revitalize traditional liberalism following the seismic events of World War I, the 1929 Wall Street Crash, and the Great Depression. A pivotal moment occurred at the 1938 Walter Lippmann Colloquium, where intellectual giants like Friedrich Hayek and Ludwig von Mises converged to discuss strategies for countering economic planning. This group aimed to renew liberal doctrine, christening their ambitious project "neo-liberalism."

In 1947, Hayek further cemented this movement by organizing the Mont Pelerin Society. This gathering brought together economists and philosophers who shared deep concerns about the burgeoning government intervention in markets post-World War II and the widespread adoption of "Keynesian" policies. Their primary objective was to redefine the state's functions, specifically to limit government interference with market systems, ultimately aiming to win the "battle for ideas."

Friedrich Hayek's 1949 article, "The Intellectuals and Socialism," meticulously outlined a strategy for his followers: influence public opinion by targeting "intellectuals"—journalists, academics, and commentators—who are instrumental in shaping public discourse. Milton Friedman later reinforced this long-term vision, emphasizing that significant policy changes often follow, rather than precede, fundamental shifts in underlying philosophical currents.

Milton Friedman noted: "Only a crisis—actual or perceived—produces real change... the actions that are taken depend on the ideas that are lying around."

Think Tanks as Architects of Public Discourse

Think tanks are specialized organizations engineered to influence public policy debates and mold the broader "climate of opinion." They achieve this through a multifaceted approach: producing various publications, hosting impactful events, and engaging extensively with media outlets to consistently circulate their ideas. These organizations frequently attempt to manipulate the "Overton window," the concept describing the range of politically acceptable ideas, by promoting certain concepts to shift societal values and norms, making previously radical ideas mainstream.

Antony Fisher, deeply inspired by Hayek's work, founded the Institute of Economic Affairs (IEA) in the UK in 1955. The IEA became a hugely influential force in promoting free-market ideas, significantly shaping both public discourse and the views of policymakers. Margaret Thatcher, for instance, famously credited the IEA with creating an atmosphere conducive to her political victory in 1979.

Global Reach: The Atlas Network

Fisher's resounding success with the IEA propelled him to become a prominent "think-tank entrepreneur." In 1981, he established the Atlas Economic Research Foundation, now known as Atlas Network, with the explicit mission to facilitate the global proliferation of free-market think tanks. The Atlas Network currently partners with over 500 such organizations worldwide, including 10 in Australia and New Zealand, demonstrating its vast international footprint.

Neoliberalism's Ascent in Australia

Neoliberal ideas began to gain significant traction in Australia during the 1970s, a period marked by profound economic crises, including the 1973 oil crisis, high rates of inflation, and unemployment—a phenomenon termed "stagflation." This turbulent period presented a prime opportunity for the adoption of "free-market" policies.

Well-known Australians joined the Mont Pelerin Society, and local think tanks subsequently partnered with the Atlas Network. Australian organizations such as the Institute of Public Affairs (IPA) and the Centre for Independent Studies (CIS) have actively campaigned on diverse issues, including carbon pricing and intellectual property rights for tobacco companies. In the US, the Heritage Foundation, another prominent free-market think tank, played a key role in shaping Ronald Reagan's administration and continues to influence policy, notably through Project 2025 for Donald Trump's potential 2024 administration. These interconnected think tanks are also highly active in questioning established climate science.

Australia's Inquiry into Influence Networks

Beyond formally recognized think tanks or Atlas Network partners, other organizations also work to influence Australia's political debate from a free-market perspective. Advance (formerly Advance Australia) campaigned vigorously against the Voice to Parliament and currently advocates against net zero emissions targets. CPAC Australia hosts annual conferences, serving as a significant platform for conservative activists.

The Australian Senate committee on information integrity is currently investigating the role of these extensive networks in disseminating climate change and energy misinformation. Submissions to the inquiry have consistently highlighted the prevalence of misinformation and disinformation, with particular concerns raised about the coordinated use of bots and trolls. The Australian Communications and Media Authority (ACMA) and the Australian Human Rights Commission (AHRC) have both underscored the serious challenges this issue poses to national security and fundamental human rights principles.

Academic Julia Steinberger noted that traditional media can be vulnerable to uncritically broadcasting climate disinformation from affiliates of the Mont Pelerin Society or Atlas Network.

In their submission, the CIS affirmed its connection to the Atlas Network, stating it is based on shared classical liberal ideas, but denied receiving funding or direction on research content. The IPA, meanwhile, questioned the political motivations behind investigating misinformation. Advance detailed its successful social media campaign strategy during the Voice referendum, notably including running contradictory messages for different audiences.

The Evolution of Terminology

By the 1970s, many thinkers associated with the neoliberal movement consciously began to identify as "classical liberals" or "libertarians." They asserted that their principles were not new but rather a renewal of an older, established tradition. They also critiqued figures like John Maynard Keynes, arguing that his proposals for government intervention had corrupted the very term "liberal." This deliberate shift in terminology also served to obscure the novel aspects of their movement.

This strategy involved a "roll-back" of the post-war welfare state and a "roll-out" of new state functions to reinforce free markets through deregulation, privatization, and public asset-stripping, alongside the creation of a global network of think tanks to market these ideas.