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Philanthropy & Development

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Del Bharath

on 30 September 2014

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Transcript of Philanthropy & Development

Philanthropy & Development
Does philanthropy promote or hinder development?
By: Del Bharath

Good Philanthropy
Merits continued
Philanthropy gone Wrong
Adelman, C. (2009). Global Philanthropy and Remittances: Reinventing Foreign Aid. Brown Journal of World Affairs, 15 (2). Available through UNO Library on Ebsco database: http://web.ebscohost.com.leo.lib.unomaha.edu/ehost/pdfviewer/pdfviewer?vid=13&hid=119&sid=55e0579a-e4dd-440c-b1cf-398ca0d7cd55%40sessionmgr111

Edwards, M. (2009). Gates, Google and the Ending of Global Poverty: Philanthrocapatalism and International Development. Brown Journal of World Affairs, 15 (2). Available through UNO Library on Ebsco database: http://web.ebscohost.com.leo.lib.unomaha.edu/ehost/pdfviewer/pdfviewer?vid=13&hid=119&sid=55e0579a-e4dd-440c-b1cf-398ca0d7cd55%40sessionmgr111

Edwards, M. (2011, November). The Role and Limitations of Philanthropy. The Bellagio Initiative. Online link: http://www.bellagioinitiative.org/wp-content/uploads/2011/10/Bellagio-Edwards_CP_online.pdf

Faber, D. R. & McCarthy, D. (2005). Foundations for Social Change: Critical Perspectives on Philanthropy and Popular Movements. In Faber, D. R. & McCarthy, D. (eds.), Foundations for Social Change (Introduction, pp. 3-32). Lanham, MD: Rowman & Littlefield Publishers.

Stanford (2013, March 12). Martha Muna: When Philanthropy Goes Wrong. Retrieved from www.youtube.com

TedxGrandRapids (2011, June 6). Salah Boukadoum, Innovate: Philanthropy. Retrieved from www.youtube.com

U.S. Trust (2014, September 5) Philanthropy is Good Business. Retrieved from www.youtube.com
What is Philanthropy?
"private funding in the public interest"
- giving of ordinary people to their favorite causes
- foundations endowed with private funds
Edwards, 2011, p. 3

What is Philanthrocapitalism?
"the use of business and the market to transform philanthropy and aid"
Recent shift in focus in international aid efforts.
Edwards, 2009, p. 35

In last week's posts quite a few students noted that USAID only received about 1% of the budget.
Foundations and other sources of charitable giving are supplemental sources of funding for international aid.
Philanthropy represents private funding instead of public funding.
Examples of Philanthropic organizations:
Ford Foundation
Bernard van Leer Foundation
Rockerfeller Foundation
Bill and Melinda Gates Foundation
Dalit's Foundation
McArthur Foundation
Carnegie Corporation
Vodafone Foundation

Critiques of Philanthropy
Tendency to only disperse funds in small amounts to large numbers of organizations (Edwards, 2011)
"Privatization of foreign policy and international policy-making" (Edwards, 2009, p41) i.e. private citizens being able to have say over policy due to influence of money
Are end goals the same i.e. profit or public good?
Are market methods, social goals, and financial sustainability mutually supportive?
(Edwards, 2009)
Need to be consistent with donor intent

"If philanthropy is serious about meeting the needs [of social movement organizations], it must come to terms with the structural realities of poverty, race, and inequality here and abroad, and it must seek practical, pragmatic remedies" (Neil F. Carlson, as cited in Faber and McCarthy, 2005, p. 3).
Market Empowerment - more personal choices due to increased personal assets
(Edwards, 2009).
Able to generate short-term achievable results.
"New projects make development efforts more sustainable, work in partnership with local institutions and communities, and encourage the poor to become active partners and co-investors in the development process" (Adelman, 2009, p. 23).
Able to leverage the private sector.
Results oriented and has focus on sustainability.
Critiques continued
Resources need to target "highly specific problems that are amenable to market-based solutions such as vaccine development, and some areas of environmental protection" (Edwards, 2009).
"[M]ore humility, less hubris, and a willingness to work together without pretending 'we' are ever in control" (Edwards, 2009, p. 41).
Additional Resources
Check out Council on Foreign Relations at www.cfr.org for manuscripts and videos on topics such as:
Good Philanthropy, Bad Philanthropy, and Their Role in International Development
Philanthropy and U.S. Foreign Policy
Market-focus can be too limited. Markets are for the distribution of goods but not necessarily for the equitable distribution.
"No discernible impact at the macro level on poverty, health or education" (Edwards, 2011).
Methods are too new for real data to "prove" approaches (Edwards, 2011).
Need for more accountability
Efforts can be misguided as shown in this example of "do-gooders responding to the disaster in Haiti in 2010.
Philanthropy is Good Business
Merits of Philanthropy
"Private philanthropy tends to focus more on local ownership of projects, transparency, accountability, sustainable outcomes, and efficient delivery of services" (Adelman, 2009, p. 24).
Engaged leaders are willing and have the resources to take on large scale problems (e.g. poverty alleviation) for system wide changes.
There is less bureaucracy and red tape to deal with, more freedom and flexibility.
Developed successful strategies such as:
developing local initiatives,
requiring co-financing as a measure of commitment
involving peer-to-peer relationships
building local institutions (Adelman, 2009)
Increased involvement and accountability for service receivers. Continuing to involve the local communities for sustainability (Adelman, 2009).
Government aid agencies need to recognize the good of philanthropic organizations and partner with them using new business models that can create prosperity (Adelman, 2009).
Does philanthropy promote or hinder development?
There is evidence that supports either claim. However, with more focus and continued best practices, strides can possibly be made. What I believe is:
" A change can only come, when we stand together as one"

Recommendations continued
Edwards (2011) lists some recommendations for progress while maintaining diversity and strengthening accountability:
Building an ecosystem of philanthropy: enhance and preserve the diversity of funding options from foundations, with (as much as possible) fair access for different issues and communities.
Strengthening the accountability of foundations by diversifying boards with inclusion of independent representatives, and more in-country coordination between governments and the foundations. Coordination mechanisms and codes of ethics can also be implemented.
Continued emphasis on "grassroots organizing and democratic base-building as means for creating deeper forms of democratic civic participation in community and national affairs" (Faber & MCCarthy, 2005, p. 10)
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