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Ray Blanchard is the head of the gender program at Toronto's notorious Clarke Institute. His "contributions" to the field of gender identity issues to date have been:
Blanchard created a system in which only two subgroups of people can get through the Clarke program:
"A man without a penis... is in reality what you are creating."
From a June 2004 article on transsexualism:
A 1984 article in the Toronto Star indicated that between 1969 and 1984, 90% of all people seeking transsexual health services were turned away at The Clarke. The Clarke averaged about 5 acceptances a year, totalling about 100 people. In other words, they denied access to over 900 people during that time. 
Blanchard's program is more like a parole office than a therapeutic setting. It is a system based on mutual distrust, and treats gender variant clients like sex offenders. In fact, Blanchard's program uses the same halls, offices and staff for treating sex offenders. Imagine the dynamic that creates, especially for children. Following in the footsteps of his mentor Kurt Freund, he even subjects clients to the same sort of testing he uses on sex offenders (see plethysmograph: a disputed device).
By selecting for these patients and rejecting the rest, Blanchard has been able to advance his claim that transsexualism is all about sex, rather than gender identity. Blanchard published several articles regarding his theory, which went unnoticed until sexologist Anne Lawrence latched on to them as a form of validation following a 1997 incident in which a sex addiction for surgically modified genitals led to Dr. Lawrence's resignation as an anesthesiologist.
1998 was the year the Clarke Institute lost its federal funding for vaginoplasties, and the year Anne Lawrence wrote the pro-"autogynephilia" essay "Men Trapped in Men's Bodies." Blanchard's sudden irrelevance in the field of gender identity and to indigent patients in Toronto seeking funding for surgery made Anne Lawrence's interest a natural opportunity for teamwork to advance their mutually beneficial agendas.
Following the publication of The Man Who Would Be Queen by J. Michael Bailey, transsexuals and concerned professionals from around the world decided enough was enough with these people and started a public awareness campaign about Blanchard's ties to a conservative-run eugenics think tank and his behind the scenes bullying of peers who disagreed with him. Once his peers at HBIGDA expressed their concerns about Bailey to Northwestern University, Blanchard resigned in protest in November 2003.
Blanchard is going to go down in history as the George Rekers of gender variance. Rekers was one of the most vocal critics of the American Psychology Association's depathologization of homosexuality in 1973, and like Blanchard's 2003 resignation from HBIGDA, Rekers resigned in protest when professional groups started to move away from his point of view. With luck, this will mark the beginning of the end for his school of thought, in the same way Rekers' resignation from the APA in 1973 marked the depathologization of homosexuality.
"Autogynephilia" is a sex-fueled mental illness made up by Blanchard, who defines it as "a mans paraphilic tendency to be sexually aroused by the thought or image of himself as a woman." 
This diagnosis appeals to some transgender people, who see the scientific-sounding term as a way to "elevate" themselves in social acceptability to transsexuals rather than compulsive masturbators, sex addicts, or people with a fetish for possessing a piece of female clothing or anatomy.
Then look at the definition of paraphilia put forth in the textbook
used by Bailey in his Sexuality course (LeVay and Valente, Human Sexuality,
p. 454). LeVays description of paraphilias as problematic sexual
behavioramd "illnesses that need treatment" is a major insight
into their entire project.
As LeVay notes, these guys are angling for an argument that autogynephilia
involves non-consenting adults. They imply that going out in public as visibly
gender variant is a form of exhibitionism that requires responses from others,
and that coming out to friends and family and asking for acceptance is a form
of sexualized humiliation brought on by the very expression of gender variance.
The later someone transitions, or the less acceptance they have in the female social role from mainstream society, the more likely this concept will appeal to them. Among those who regularly attend gender conventions and social events through gender societies, there is a small but vocal group of people who strongly self-identify with this term.
Blanchard lifted his concept from Magnus Hirschfeld and Max Tilke, Die Tranvestiten. Eine Untersuchung über den erotischen Verkleidungstrieb mit umfangreichen casuistichem und historischem Material
A reader writes:
See my section on "autogynephilia" for more on this disputed diagnosis.
Blanchard praises Bailey
[five stars] Man Who Would Be Queen, April 17, 2003
The explosion of rage detonated by the publication of J. Michael Bailey's book,
The Man Who Would Be Queen, has largely obscured an important message of that
book: There are two fundamentally different types of male-to-female transsexualism,
and they are equally valid. The homosexual type are erotically aroused by other
(biological) males, and the autogynephilic type are erotically aroused by the
thought or image of themselves as women.
When I joined the Clarke Gender Identity Clinic in 1980, the literalist interpretation
of transsexualism as the condition of men-trapped-in-women's-bodies reigned
supreme. Many clinicians dismissed all transsexuals with a history of sexual
arousal in association with cross-dressing as "mere transvestites"
and summarily excluded them from consideration for sex reassignment surgery.
This situation was extremely confusing to many male-to-female transsexuals who
desperately wanted to undergo sex reassignment and live their lives as women,
but who thought that their past history of masturbation in women's attire meant
that they were "merely" transvestites.
Fortunately for these patients, the policy of "one erection and you're
out" was never followed at the Toronto clinic. Several of the earliest
patients approved for sex reassignment had been husbands and fathers in the
male role, and they freely reported clear-cut histories of sexual arousal in
association with cross-dressing or cross-gender fantasy. It gradually became
clear to me that for such patients the erotic value of becoming a woman was
the essential motive behind the desire for sex reassignment, and that erection
and ejaculation in women's attire were not simply accidental by-products. I
never saw this as an invalid reason for desiring sex reassignment, I never saw
these patients as some lesser breed of transsexuals, and I never designated
their form of gender dysphoria as "secondary."
During the years when I was publishing the autogynephilia papers, several autogynephiles wrote me to express their relief at learning that there were many others like themselves, and that their feelings of being transsexual were not a delusion. Those articles were published in specialty journals with limited circulations, and it is remarkable that any autogynephiles encountered them at all. Prof. Bailey's book, which is written for a general audience in a clear and accessible style, has the potential to bring the same reassurance to a much larger group of people. The audiences for which this book was intended, which include students, clinical professionals, and laypersons, should not mistake the campaign of disinformation (verging at times on hate-mail) currently being waged by an ideologically-driven group of self-appointed "activists" as the universal view of all transsexual and transgender persons.
APA DIV 44 connection
From an August 2003 CAMH newsletter:
Holding the framed citation is Ray Blanchard. Right is James S. Fitzgerald, Ph.D., President of Division 44 of the American Psychological Association.
The CAMH Gender Identity Clinic is delighted to announce that our clinic received a Presidential Citation from Division 44 of the American Psychological Association (the Society for the Psychological Study of Lesbian, Gay, and Bisexual Issues) at a ceremony on August 9, 2003.
The text of the Citation reads as follows:
Resignation from HBIGDA
Blanchard and DSM
The Diagnostic and Statistical Manual of Mental Disorders published by the American Psychiatric Association lists three "mental disorders" that can be diagnosed in gender variant people: gender identity disorder, transvestic fetishism, and childhood gender nonconformity.
Many are beginning to question whether these diagnoses are really necessary in order to receive health services. Many are even questioning whether these are diseases at all. Because Blanchard and several cronies are heavily involved in the DSM's language about these "disorders," it is likely that we will see a pitched battle about this matter when the next DSM revision is made.
In the meantime, Blanchard's star continues to fade, reduced to eugenicists, old-school sexologists and psychologists, and those self-hating gender variant people who seek a "cure" for their gender variance. The Clarke has been surpassed by several other Toronto facilities offering more flexible and inclusive access to health services. As numbers at those clinics continue to surge, numbers at The Clarke continue to decline, a harbinger of Blanchard's place in history as an interesting curiosity from the waning years when our community was considered disordered and diseased.
Blanchard on fifth estate
In October 2004, Ray Blanchard and his team were featured in a news magazine program on transsexualism, reported by Hana Gartner. Below is a transcript of selected sections:
1. Armstrong J. The Body within, the body without. Globe and Mail, 12 June 2004, p. F1.
2. Newbery L. Trans-sexuals happier after operation, MD says. Toronto Star, 27 November 1984, p. H2.
3. Bailey JM. (Chair), Phenomenology and classification of male-to-female transsexualism.
Symposium conducted at the meeting of the International
Academy of Sex Research, Paris. June, 2000. Slide 38.
4. Rodkin D. Sex and Transsexuals. Chicago Reader December 12, 2003
LINK: 'The Man Who Would Be Queen' Controversy Continues: Professor Blanchard Quits HBIGDA NTAC press release 10 November 2003