It is uncontroversial to recognise the extreme inequality that permeates economies globally and nationally. A report from Oxfam posits that 80 individuals now govern more wealth than 50% of the world’s population. This process has continued to accelerate, with single families like the Waltons now controlling more wealth than the entire American public. The winners of this process, the billionaires and private equity funds, now dominate headlines and markets alike. What has yet to penetrate popular discussion is what this vast and unprecedented transfer of wealth, and the power that comes with it, means for everyone else. Moreover, what may it mean for development?
Around 2 decades ago, the term philanthrocapitalism was coined by Economist editor Mathew Bishop, to refer to how business practices could be applied to the field of development. It has been lauded as a step in the right direction for business. A move away from the arm’s length box ticking of Corporate Social Responsibility and towards more meaningful effective change. Certain figures like Bill Gates and Jeff Bezos have publicly adopted philanthrocapitalism, citing a moral imperative to use their wealth for the betterment of the world. Gate’s drive to make inoculation more accessible in the developing world serves as an example of how powerful and transformative these drives can be. However, a serious discussion needs to be had about who is the real benefactor of this movement.
Mark Fisher, in his 2009 book ‘Capitalist Realism’ posits that the world is now dominated by a ‘business ontology’. This is to say that we understand everything through the lens of what is best for businesses. Philanthrocapitalism and private sector development more broadly fits right neatly into this. Modern private sector philanthropy more often than not will be entirely shaped by what is best for donors, rather than attempting to meet the needs of its recipients. Philanthropists and firms often seek short-term results, which can be quickly spun into stories about ‘giving-back’ and ‘doing-good’. Whilst this can have positive effects in the short term it rarely tackles serious problems at their route.
Philanthrocapitalism therefore perhaps positions these firms and individuals as gatekeepers to development, rather than facilitators. The economic dynamic illustrated above plays into this further, as firms and individuals can make or break charities, NGOs and the recipients of their work, depending on whether or not they align with their goals and values. This creates what academics refer to as a ‘NGO Industrial Complex’ entirely dependent on the funding and whims of big donors. One World Together seeks to break down this barrier, whilst still enabling private equity to play its part.
Development is an incredibly complex and controversial process. Often what seems like a simple issue can have tens of contradictory solutions, each with tens of unintended outcomes. This is to say that there is truly no right answer to the question of how we can achieve positive, impactful and long-lasting development. The private sector and its share of wealth is a vital actor in this process. It is certainly no bad thing that those who control so much of the wealth in our world are seeking to do good. But One World Together believes they can do good, better. One World Together is now seeking to challenge businesses to do so, in large part by enabling NGOs and their partners to have more freedom to use the funds provided, without overarching corporate values and interests shaping and restricting projects. To enable firms to facilitate development, rather than just build reputations for developers and themselves.
To help achieve this important goal, One World Together is in the process of developing a new business strategy that seeks to challenge philanthrocapitalism’s short-comings, whilst championing the very real positive change its making. The private sector clearly has a huge amount of influence over development. This power could be used to create radical and effective change, however One World Together believes that the current nature of this process is too inefficient and dependent on what donors want. One World Together hopes to level the playing field, bringing the interests of the recipients to the forefront, unlocking equitable development that puts those who need it in the driver’s seat.
Written by Robert Smith
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