Posts Tagged philanthropy
I have thus far expressed mixed feelings about the pledge by Bill Gates and Warren Buffett to donate half of their wealth to charity, so I thought it would be fitting to pass on the latest addition to the narrative. According to Bloomberg, Mexican billionaire Carlos Slim recently said that he would prefer to use his money for job creation rather than donate it to [so-called] anti-poverty causes (HT Dambisa Moyo).
Here is Slim’s perspective:
“The only way to fight poverty is with employment,” Slim said at a conference in Sydney today. “Trillions of dollars have been given to charity in the last 50 years, and they don’t solve anything.”
As I’ve mentioned previously, I obviously don’t think philanthropy is “bad,” nor do I think it is something we should necessarily avoid. But if we are talking about addressing the particular concern Slim is pointing to — namely, “fighting poverty” on a global scale — it seems highly convincing to me that increasing employment through traditional investment is usually the most successful solution from a macro perspective. (Could I add any more caveats!?)
But that doesn’t mean it always is (or even that it actually is). There are plenty of counterarguments that leave the solution a bit up in the air for me. For example, philanthropy has the potential to bring plenty of spiritual benefits to the table by funding missionaries, planting churches, and simply promoting Christ-like behavior. Depending on what you believe, such spiritual transformation could indeed lead to Read the rest of this entry »
Bill Gates and Warren Buffett recently pledged to join 40 of America’s wealthiest people in donating at least half of their riches to charity. For Gates and Buffett alone, such a pledge will translate into at least $115 billion in charity.
This sounds wonderful on the surface, but philanthropist Kimberly O. Dennis is a bit skeptical. In last week’s Wall Street Journal, Dennis argued that “the wealthy may help humanity more as businessmen and women than as philanthropists.”
As Dennis explains:
What are the chances, after all, that the two forces behind the Giving Pledge will contribute anywhere near as much to the betterment of society through their charity as they have through their business pursuits? In building Microsoft, Bill Gates changed the way the world creates and shares knowledge. Warren Buffett’s investments have birthed and grown innumerable profitable enterprises, making capital markets work more efficiently and enriching many in the process.
In the end, Dennis’ criticism seems to serve as a simple reminder of which approach is most promising when it comes to bringing about transformative change.
While businesses may do more for the public good than they’re given credit for, philanthropies may do less. Think about it for a moment: Can you point to a single charitable accomplishment that has been as transformative as, say, the cell phone or the birth-control pill?
On this last question there is bound to be disagreement, particularly because we all view value differently. For one person the birth control pill is extremely important. For another, feeding one hungry mouth is Read the rest of this entry »