January 24, 2008
Bill Gates Promotes 'Creative Capitalism' to Aid the World's Poor
By Ian Wilhelm
The philanthropist Bill Gates today called for a new “creative capitalism” to help the poor and said he plans to push companies to do more to solve social inequities.
During a speech at the World Economic Forum, an annual gathering of business and political leaders in Davos, Switzerland, the co-founder of Microsoft said unfettered capitalism has primarily raised the living standards of the rich and not done enough to benefit the world’s 2.5 billion impoverished people.
“The world is getting better, but it’s not getting better fast enough, and it’s not getting better for everyone,” he said. “We have to find a way to make the aspects of capitalism that serve wealthier people serve poorer people as well,” he said.
He said foundations and other nonprofit groups lack the money to care for all of those not benefiting from global markets. “If we’re going to find a sustainable way to help those who can’t pay, we have to use self-interest and caring — capitalism and philanthropy — to direct attention to people who have been left behind,” he said.
For example, he suggested that businesses develop more products and services for those who live in developing nations in Africa and elsewhere.
“Such a system would have a twin mission: making profits and also improving lives for those who don’t fully benefit from market forces,” he said.
He noted several models for creative capitalism, such as a partnership between the World Health Organization and an Indian pharmaceutical company to sell a meningitis vaccine to African nations at cheaper cost than other vaccines.
While some business people may be skeptical of his plan to “stretch the reach of market forces “ to help the needy, Mr. Gates pointed out that Adam Smith, the father of modern capitalism, had similar ideas.
A New Role
The philanthropist’s use of the bully pulpit comes as he prepares to make the transition to working full-time at the Bill & Melinda Gates Foundation, the $33-billion charitable fund he set up with his wife in Seattle.
In an interview with The Wall Street Journal, Mr. Gates said one of his duties at the foundation would be to help persuade more corporations to embrace his idea of socially beneficial ventures that make money.
Mr. Gates will be making the full switch from businessman to nonprofit leader in about six months and joins the foundation as its programs grow significantly.
In an interview with The Chronicle in June, Melinda Gates said that by 2009 the grant maker plans to be awarding $3.2-billion a year thanks to massive gift from Warren Buffett. The chairman of the Berkshire Hathaway investment company pledged roughly $36-billion two years ago to the Gates Foundation, which focuses on global health, improving American education, and fighting poverty abroad.
Last year, the fund also announced that it would close 50 years after the last one of its trustees — the Gateses and Mr. Buffett — dies.
Ms. Gates said they gave the philanthropy an end date because the immediate future holds great opportunities to solve the social and medical problems facing the world.
In his speech at Davos, Mr. Gates reiterated that optimism.
“In the coming decades we will have astonishing new abilities to diagnose illness, heal disease, educate the world’s children, create opportunities for the poor and harness the world’s brightest minds to solve our most difficult problems,” he said.
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An old saying witch says a lot .. “give a man a fish he eats for a day teach him to fish and he eats for a life time”
if instead of handing out charity(gifts) ..put together a group of people with the expertise to develop programs to solve
the problems I rather doubt that most if not all governments would not allow anyone to do what needs to be done..
— Don Rhodes Jan 25, 12:48 AM #
Mr Gates transformation into the world’s quintessential 21st century philanthropist and leading thinker about the nexus of business and values in inspirational.
— lennybruce Jan 25, 06:13 PM #
Bill Gates is a true American, an outstanding, selfless citizen!
— carmela Jan 27, 02:34 PM #
Where is the Digg.com button?
— Jennifer Jan 29, 03:24 PM #
Bill and Melinda Gates have the right idea by giving back to the community… perhaps any of you readers might like to join in on an effort like that. We are a new start up Non-Profit called With Wings and a Halo – R.E.A.C.H. a Child! And are expanding across the Midwest already in our second month in operation and hope to go Nationally by the end of 2008. We donate Children’s Books to children in crisis situations thru the local Police and EMS. For more information on how you can get involved go to www.withwingsandahalo.org Our advise is to start doing something to help others, life is too short!
— Paul S. Gilbertson, Co-Founder Jan 29, 06:48 PM #
Regards comment No 1 by Don Rhodes. I think you just described the work of Oxfam world wide. They are that group of experts supplying the tools for sustainable improvement – including taking on governments to do so. http://www.oxfam.org/
— Malcolm Sproull Jan 31, 06:41 PM #
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