Philanthrocapitalism

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  1. Philanthrocapitalism: Corporate Social Responsibility
    • –Minimum ‘do no harm’ -’ eliminating harmful practices according to human rights declarations and labour laws. –
    • Re-invest profits in society through philanthropy
    • Use  business to encourage community development e.g. Unilever soap marketing to reduce diarrhoea
  2. Philanthrocapitalism: Why is there a current interest and New Partnerships?
    • Rise of BRICs - changes in global power structures (at a nation state and government level) - a reshuffling of "who gives what"
    • Government spending under pressure due to austerity
    • Global threats e.g. CC, inequality and water scarcity
    • Growth in individual wealth
    • Corporations under fire
    • Social innovation and social enterprises and social investing which requires more private wealth unlocked
  3. Philanthrocapitalism: "Small business is good business"
    • The private sector as the "engine of growth" (DFID)
    • Multinationals and donors celebrating the "bottom of the pyramid"
  4. Philanthrocapitalism/private aid: UN Global Compact
    • 2000
    • World's largest voluntary corporate responsibility initiative
    • 6,200 participants
  5. Philanthrocapitalism: Direct Giving: the critique
    • Competition between the NGOs who spend more time on building up profiles and less on disbursement
    • Perverse implications for poverty allevaition: NGOs do in fact have to charge interest (rates estimated at around 30%)
    • Loans disbursed before they are committed
    • The importance of stories
    • Ambiguous links to empowerment
  6. How much interest do NGOs typically charge?
    Rates estimated at around 30%
  7. Gates Foundation: Basic Facts:
    • Grants Paid since 2000: $36.7 billion
    • 2015: $4.2 billion
    • Over 100 countries, including US
  8. Philanthrocapitalism: Gates Foundation: Programmes:
    • Policy and advocacy
    • Global Development: large scale agriculture, micro finance, water sanitation
    • Global Health: 
    • US: Housing and community empowerment
  9. Issues and debates over philanthrocapitalism:
    • Desire for market to work better for capital
    • Focus on technology and modernisation
    • Unaccountable because of sources of funding
    • Short term results
    • Working independently from government
    • Ignore power
  10. Philanthrocapitalism: What did DFID claim about the private sector?
    The private sector as the "engine of growth"
  11. Philanthrocapitalism: Rise of new Philanthrocapitalism quote:
    • "We are at the dawn of an era of mass philanthrocapitalism. It is an opportunity to create a new partnership of philanthropists, businesses and social entrepreneurs with government to build a better Britain for the 21st century"
    • Matthew Bishop, US Business Editor of the Economist
  12. Philanthrocapitalism: Who said ""We are at the dawn of an era of mass philanthrocapitalism. It is an opportunity to create a new partnership of philanthropists, businesses and social entrepreneurs with government to build a better Britain for the 21st century"
    Matthew Bishop, US Business Editor of The Economist
  13. Philanthrocapitalism: How does the WB define Corporate Social Responsibility?
    The WB defines Corporate Social Responsibility (CSR) as the commitment of business to contribure to sustainable economic development, working with employees, their families, the local community and society at large to improve their quality of life, in ways that are both good for business and good for development
  14. Philanthrocapitalism: How can foreign investors contribute to economic growth? And how does this link with CSR?
    Foreign investors can contribute to economic growth through capital, technology transfer, access to specialised skills and through their ability to integrate production across several countries

    Those businesses that are committed to socially responsible practices can have an even greater impact. They can reinforce the poverty reduction strategies of the country in which they are operating, contribute to environmental sustainability and promote core labour standards and human rights
  15. Philanthrocapitalism: Corporate Social Responsibility and relationship to philanthropy?
    Corporations should take ethical or moral responsibility for their social and environmental impacts on all their various "stakeholders": employees, consumers, citizens or communities who live in the places where hey operate and the general public
  16. Philanthrocapitalism: Corporate Social Responsibility and relationship to philanthropy? bullet points
    • Minimum do no harm - eliminating harmful practices according to human rights declarations and labour laws
    • Re-invest profits in society through philanthropy
    • USe business to encourage community development e.g. Unilever soap marketing to reduce diseases
    • CRITIQUE: The idea of trickle down/can be used for tax avoidance
  17. Philanthrocapitalism: What is the critique of the CSR and relationship with philanthropy?
    • The idea of trickle down
    • Can be used for tax avoidance
  18. Philanthrocapitalism: A new alignment? Quote
    • "Never before have the objectives of the international community and the business world been so aligned. Common goals, such as building markets, combating corruption, safeguarding the environment and ensuring social inclusion, have resulted in unprecedented partnerships and openness among business, government, civil society, labour and the UN. Many businesses recognise the need to collaborate with international actors in the current global context where social, political and economic challenges (and opportunities) - whether occurring at home or in other regions  affect companies as never before"
    • UN Global Compact
  19. Philanthrocapitalism: Direct giving: the critiques:
    • Competition between the NGOs who spend more time on building up profiles and less on disbursement
    • Preverse implications for poverty alleviation: NGOs do in fact have to charge interest (rates estimated at around 30%)
    • Loans disbursed before they are committed
    • The importance of stories
    • Ambiguous links to empowerment
  20. Philanthrocapitalism: How many small businesses has KIVA helped?
    800,000 businesses
  21. Philanthrocapitalism: How many countries does KIVA work in?
    84 countries
  22. Philanthrocapitalism: How much do KIVA raise?
    Raise $1 million every 3 days
  23. Philanthrocapitalism: How much have KIVA raised? total
    $850m as of 2016
  24. Philanthrocapitalism: What is the return rate for KIVA?
    98.5%
  25. Philanthrocapitalism: How many lenders are there on KIVA?
    1,450,000 as of 2016
  26. Philanthrocapitalism: KIVA overall
    • Small loans to entrepreneurs
    • Helped 800,000 small business in 84 countries
    • Donate to informal economy in countries
    • Technology can connect the world which it previously didnt
    • People who were previously excluded are now included - microloan
    • Raise $1 million every 3 days - $850 million as of 2016
    • Non profit organisation loan and works with field partners
    • Can reinvest the money again - 98.5% return rate on the loan
    • 1,450,000 lenders as of 2016
  27. Philanthrocapitalism: "Small business is good business" Banking and mobile phones example
    "More than 2.5 billion have no bank accounts or insurance - services that can mean the difference between surviving and thriving. Small businesses account for over 45% of all employment in developing countries. Their growth is vital to creating jobs and increasing prosperity - yet they are typically stymied by difficulty in raising finance" (DFID, 2011)
  28. Philanthrocapitalism: How many people in the world dont have bank accounts or insurance?
    Over 2.5 billion people
  29. Philanthrocapitalism: What % of employment is because of small businesses?
    Small businesses account for over 45% of all employment in developing countries
  30. Philanthrocapitalism: "Small business is good business" example - health care provision
    • "Overcoming capacity constraints and increasing efficiency"
    • In Mozambique, preventative malaria treatments have fallen from one in every 2 women to just 3 in 20 because of bottlenecks in the supply of medicines. We are mobilising private sector expertise to help overcome capacity constraints in supply chains and help to plan for medicine needs... Where public authorities choose to involve private enterprise (commercial and not for profit) in the provision of public services there may be opportunities to drive up efficiency and innovation by linking ayment to delivery and performance" 
    • DFID 2011
  31. Philanthrocapitalism: How much money does Bill Gates have?
    $79 billion
  32. Philanthrocapitalism: When was the Bill and Melinda Gates Foundation launched?
    Launched in 2000
  33. Philanthrocapitalism: When did Bill GAtes start to work full time for the foundation?
    In 2008
  34. Philanthrocapitalism: WHat are the aims of the Bill Gates foundation?
    Aims of the foundation are globally, to enhance healthcare and reduce extreme poverty, and in America, to expand educational opportunities and access to information technology
  35. Philanthrocapitalism: Endowment of Bill Gates foundation as of 2014?
    $44.3 billion
  36. Philanthrocapitalism: How many countries does the Bill Gates Foundation operate in?
    Over 100 countries
  37. Philanthrocapitalism: How much the Bill Gates Foundation donate to maintain its charitable status?
    Must donate funds equal to at least 5% of its assets each year to maintain a charitable status
  38. Philanthrocapitalism: How much was donated to water and sanitation by the Bill Gates Foundation?
    • US$650million to water and sanitation between 2008 and 2015
    • Donated over $6.6 billion for global health
  39. Philanthrocapitalism: How much have deaths dropped from measles?
    Deaths from measles in Africa has dropped by 90% since 2000
  40. Philanthrocapitalism: Bill Gates foundation: Global for Campaign Justice - more info
    • Foundations relationship with business and genetic modified crops - change must be farmer led and adapted to local conditions
    • They need tools and training, access to markets to sell their surplus and crops that can survive flooding and grow in droughts
  41. Philanthrocapitalism: Bill Gates Foundation - Genetically Modified Crops - more info
    • Arent working in the US
    • Wheat resistance, pest resistance and African farmers cant afford these seeds (can only afford these seeds through microfinance and force them into a debt cycle)
  42. Philanthrocapitalism: Bill Gates - more info
    • Richest person in the world - $79 billion
    • Bill and Melinda Gates Foundation launched in 2000 and is the largest private foundation in the world - 2008 - full time foundation
    • Aims of the foundation are globally, to enhance healthcare and reduce extreme poverty and in America, to expand educational opportunities and access to information technology
    • It has an endowment of $44.3 billion as of December 2014 in over 100 countries
    • Seeks to apply business techniques to giving makes it one of the leaders in venture philanthropy, though the foundation notes itseld that the philanthropic role has limitation
    • Getting rid of the diseases of children under 5 - 25 years ago, 12 million children due each year, now its 6 million. Target malaria (600,000 a year)
    • Must donate funds equal to at least 5% of its assets each year to maintain charitable status
    • 2008-2015 - US$650 to water and sanitation (Donated over $6.6 billion for global health)
    • 2011 - Reinvest the Toilet challenge - developing a hygienic, stand alone toilet
    • 2014 - Gates Foundation released "flexible funds" in the order of US$50 million to UN agencies and other organisations involves in Ebola
    • Deaths from measles in Africa have dropped by 90% since 2000
    • Global for Campaign - foundations relationship with business and genetic modified crops - change must be farmer led and adapted to local conditions
    • They need tools and training, access to markets to sell their surplus and crops than can survive flooding and grow in droughts 
    • Genetically modified crops - arent working in the US, wheat resistance, pest resistance and African farmers cant afford these seeds (can only afford these seeds through microfiannce and force them intoa  debt cycle)
  43. Philanthrocapitalism: New Philanthrocapitalism: Issues and debates:
    • Hegemonic, underpinned by desire for market to work better for capital - using business thinking to incorporate poor farmers into markets
    • Changing nature and extension its relationship with the market
    • Focus on technology and modernisation
    • Unaccountable because of sources of funding and governance structures
    • Short term results - works in ways that undermine long term development
    • Working independently and undermine government and international aid architecture
    • Ignore power and can emphasise trickle down
    • Programme on whims
    • Can be used for tax avoidance
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Philanthrocapitalism
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