Both Oars In A forced marriage

Jan 28, 2011

In her article in the January/February issue of The Atlantic, "The Rise of the New Ruling Class: How the Global Elite is leaving You Behind," Chrystia Freeland provides a new vocabulary for understanding the approach to philanthropy being practiced by more and more of today’s global billionaires. This approach differs not only in magnitude, but also in methodology from that practiced by the national multimillionaire captains of industry of the last century.

To make her point about how the culture of big philanthropy has changed, Freeland nimbly replaces the terms plutocrat and philanthropy with meritocrat and social engagement. She argues that the self-made, genius billionaires are different from the philanthropists of the past. They not only want to pay for the bus to the promise land, they want to drive it. In some cases, they are even willing to quit their day job to focus on solving the world’s worst problems. She calls this new generation philanthrocapitalists.   

Freeland credits the term philanthrocapitalism to Matthew Bishop and Michael Green who published a book by the same name in 2008. According to Bishop and Green, philanthrocapitalists (Soros, Gates, Buffet and the like) approach the business of doing good in the same manner that they approach doing good business. The authors gush, “Today’s philanthrocapitalists see a world full of big problems that they, and perhaps only they, can and must put right.”  

If this is really how philanthrocapitalists see the world and their role in it, clearly their personal wealth is not the only thing that is oversized. It also is no surprise that Mr. Clinton wrote the forward to the 2009 edition of Bishop and Green’s book. Who else would think himself tall enough in the world of doing good to put the cherry on top of a book about giants like Gates and Buffet? Mr. Clinton even claims a certain parentage for the movement. He declares, “CGI (Clinton Global Initiative) is, in many ways, the laboratory in which the authors’ ideas about philanthrocapitalism are tested.”

It is not the hubris and superlative claims surrounding the new philanthropy that concerns me the most. That comes with every human endeavor. It is how philanthrocapitalism not only creates a will, but one with enough capital behind it to make sure that it can choose its own way. Big money attracts more money, which eventually narrows the approach to solving social problems.

The easy marriage of two very legitimate, but different pursuits — philanthropy and capitalism — also blurs lines. It argues that the world can improve without authentic conversion or change. It ignores the fact that real, sustainable progress must be transformational for all parties.

The idea that we can all stay as we are while the mega-billionaires make the world right simply by applying their innovative minds and big capital is spurious. Yet, this is the philosophy projected by some of the most popular of the philanthrocapitalists. Case in point: a recent ad in TIME magazine showed Bono and wife Ali Hewson headed to do good in Africa, toting Louis Vuitton bags — not so ironically, the bag of choice for fleeing dictators and their wives with little time to pack up valuables. Evidently, we do not even have to change style to do good.  

Freeland points out that the most “coveted status symbol isn’t a yacht, a racehorse, or a knighthood; it’s a philanthropic foundation…one actively managed in ways that show its sponsor has big ideas for reshaping their world.” It is a bit of a chilling sensation to think they may also be intent on reshaping it in their own image. Evidently, we do not even have to curb our egos to change the world.

Green and Bishop recount an odd scene in their book that takes place at the close of the 2007 CGI meeting: “Shakira’s hips don’t lie — and Bill Clinton can’t keep his eyes off them.” So, never mind all those mothers trying to convince their provocatively-clad daughters that they do not have to put themselves on display to get a man’s attention. Evidently, we do not even have to change our baser instincts to do good.

Maybe we really don’t have to change for the world to improve. Maybe the second coming will be sponsored by Coke, and Jesus will emerge on stage as a tech giant, hedge-fund manager, diva model, sporting a Vuitton original and singing a chart-topping pop song.

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