Last
month, the second-richest man in the world, Warren Buffett, gave
the richest man in the world, Bill Gates, $31-billion. But this
was no ordinary investment. Buffett was not investing in Microsoft
but, rather, the Bill and Melinda Gates Foundation, which works
to reduce inequities, largely through funding health and education
work the world over. The result was that the world's largest charity
doubled its value and the foundation is now worth an estimated $60-billion.
At
the same time, I was in New York attending the launch of a more
modest philanthropic cause, namely the launch of the Foundations
for Peace Network. The network brings together funding organisations
from across the globe. Members include foundations from South Africa,
Northern Ireland, Sri Lanka, Colombia, Bangladesh and India. The
reach of the organisation is impressive, the core idea behind it
significant. The network wants to ensure more funding for peacebuilding
work and for this funding to be distributed by indigenous agencies
like themselves rather than international organisations.
This
sounds like a simple idea, but it is a novel one. The philanthropy
of international foundations cannot be scoffed at, but there are
criticisms of some international donors. The writer and activist,
Arundhati Roy, argues that international funding can turn people
into dependent victims and blunt political resistance rather than
contribute to change. In addition, some foundations are criticised
for not challenging those with resources locally, such as the business
community, to contribute to development.
So
what are the solutions for this? This is where the Foundations for
Peace Network provides some pointers. At its core is the belief
that donor money should be coming not only from the international
community and channelled by local funders, but that local sources
should also provide funding. In South Africa, this is a radical
concept because, let's face it, there is limited home-grown grant
making for good causes. Many companies have corporate social responsibility
programmes, but these are generally small and are not seen as essential
to business. Larger domestic foundations in South Africa also tend
to be supported from outside the country. For example, Themba Lesizwe,
which supports organisations helping victims of violence, distributed
R22-million (about $3-million) last year in South Africa. But almost
all this money came from the European Union and the Irish government,
with no domestic support. There are local funds that get support
from some domestic corporations. In the 2004 financial year, the
Nelson Mandela Children's Fund committed R34-million (about $5-million)
to 82 organisations. The Business Trust, which aims to reduce unemployment
and build capacity, has mobilised R1,2-billion from companies operating
in South Africa since 1999. That is roughly the equivalent of R28-million
a year. Although this is a start, given the wealth of the large
corporations in South Africa, it is also an embarrassment. I imagine
that when the Buffett-Gates charity monopoly was announced all sorts
of charitable causes in South Africa licked their lips. But, instead
of simply looking to foreign donors, is it not time for South Africans
to take the lead in their own country? Even at an expedient level,
surely South Africa's largest corporations realise that investing
in the social environment is necessary to ensure economic stability
and help South Africa shake off its 'developing nation' label.
Bill
Gates has vowed to give away 95% of his $46-billion fortune before
he dies, and Buffett about the same. This begs the question: where
are the South African equivalents of Gates and Buffett? Perhaps
the superrich would all do well to remember Buffett's maxim: A very
rich person should leave his kids enough to do anything but not
enough to do nothing. Or even more challenging, the words of Andrew
Carnegie: The man who dies rich, dies disgraced.
For
more information on Foundations for Peace Network, see www.foundationsforpeace.org
Brandon
Hamber writes the column "Look South": an analysis
of trends in global political, social and cultural life and its
relevance to South Africa on Polity, see http://www.polity.co.za/pol/opinion/brandon/.
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