Non profit
Davos WEF: Bill Gates promotes “creative capitalism”
In his speech at Davos on Thursday 24th January Bill Gates called on capitalism to become creative in providing returns and helping the world's poor. Hear the speech here
di Staff
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.
Hear the speech online: http://gaia.world-television.com
