Philanthrocapitalism

"Philanthrocapitalism is by the New York bureau chief for The Economist , Matt Bishop. It looks at the way so many hard-headed businessmen have gone into the humanitarian sphere in recent years. Traditionally, a lot of moguls did their philanthropy by giving money to the opera or to art museums. More recently, partly because of Bill Gates, there’s been a tendency to try to go into issues of global poverty. I think this has had a hugely positive effect, partly because businessmen are very results-focused. They are used to looking at metrics, and being very tough minded about what the most cost-effective way of achieving something is. So in malaria research, for example, a lot of these very wealthy people have not only focused a lot more attention on malaria globally but have also figured out creative ways of distributing nets and targeting malaria in other ways. To me, it’s hugely important – not only because of the money they’ve brought to the field, but also because of the rigorous mindset they’ve brought as well. This is something that Philanthrocapitalism documents very well. In Europe in particular there has been something of a backlash against it – on two bases. First of all, the idea that these are robber barons who stole this money and now you give them credit for doing some good with a small fraction of that money? The second critique is that these are problems that can really only be resolved through government and multilateral action – so why make a fuss over some modest interventions by companies here and there? I don’t buy either critique. If people can give back some money and make a difference then I welcome that. And while I don’t think that the Gates Foundation or any other wealthy philanthropic organisation is going to save the world, I do think it can make a real difference. I’ve seen what the Gates Foundation has done in Mozambique, for example. For those people who are now getting help it’s transformative – and the reality is that governments and the UN aren’t doing the job. If the philanthrocapitalists can fill in some of the gaps, that’s great."