A new book, Philanthrocapitalists: How the Super Rich Can Save The World, sets out the pros and cons for development aid of the likes of a Bill Gates or George Soros.
The book, by Matthew Bishop, a New York-based business writer for the Economist, and Michael Green, an economist, says philanthrocapitalism - the notion that self-made billionaires can use their business acumen to accelerate development in poor countries - may have taken a hit in the current liquidity crisis.
Bishop and Green say there are definite advantages to involving the very rich in development issues, which are normally the domain of governments, international agencies and not-for-profit aid organisations: “Almost everyone else has to worry about other people in a way that makes them risk averse.”
In contrast to cash-strapped NGOs which must satisfy donors, or international agencies, which often have to cope with a wide range of political sensitivities philanthrocapitalists “can figure out how to make things work,” says Bishop, “and they can be more adventurous.”
But questions have been raised at the World Health Organization concerning the growing influence of the Gates Foundation on policy issues. “The super rich can get it wrong,” says Bishop. “One of the things that we argue for in our book is the need for a new social contract between the super rich and the public. We argue that they need to explain what they are doing and why.”
Both Bishop and Green have received mixed reviews for their book, particularly after the recent collapse of investment institutions like Lehman Brothers.
But Bishop believes the philanthrocapitalists will be given a seat at the table simply because of the money they can provide in a world in which traditional sources of development funding are being stretched increasingly thin. With central banks scrambling to deal with the current crisis, that assessment is likely to become a reality sooner than even the authors predicted.
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The book, by Matthew Bishop, a New York-based business writer for the Economist, and Michael Green, an economist, says philanthrocapitalism - the notion that self-made billionaires can use their business acumen to accelerate development in poor countries - may have taken a hit in the current liquidity crisis.
Bishop and Green say there are definite advantages to involving the very rich in development issues, which are normally the domain of governments, international agencies and not-for-profit aid organisations: “Almost everyone else has to worry about other people in a way that makes them risk averse.”
In contrast to cash-strapped NGOs which must satisfy donors, or international agencies, which often have to cope with a wide range of political sensitivities philanthrocapitalists “can figure out how to make things work,” says Bishop, “and they can be more adventurous.”
But questions have been raised at the World Health Organization concerning the growing influence of the Gates Foundation on policy issues. “The super rich can get it wrong,” says Bishop. “One of the things that we argue for in our book is the need for a new social contract between the super rich and the public. We argue that they need to explain what they are doing and why.”
Both Bishop and Green have received mixed reviews for their book, particularly after the recent collapse of investment institutions like Lehman Brothers.
But Bishop believes the philanthrocapitalists will be given a seat at the table simply because of the money they can provide in a world in which traditional sources of development funding are being stretched increasingly thin. With central banks scrambling to deal with the current crisis, that assessment is likely to become a reality sooner than even the authors predicted.
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This article was produced by IRIN News while it was part of the United Nations Office for the Coordination of Humanitarian Affairs. Please send queries on copyright or liability to the UN. For more information: https://shop.un.org/rights-permissions
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