Philanthropy Helps in Fight Against Global Social Problems

Philanthropy, social entrepreneurship step in when official donors reluctant

Donors more focused on maximizing impact when trying to solve social ills

Government-civil society cooperation key to success, says Bill Clinton

The December 2012 issue of the IMF’s quarterly Finance & Development magazine looks at how private donors are substituting for cash-strapped governments.

New and innovative solutions are just waiting to be discovered and implemented, according to both university professors who study the subject and philanthropists who practice it, such as former U.S. president Bill Clinton, who writes in the issue about finding “new ways to extend the circle of opportunity so that every person—in every country—has the opportunity to succeed.”

Clinton, who now heads a foundation that seeks to coordinate global philanthropic efforts, says corporations are realizing that sales increase when societies and markets are strong, and are increasingly integrating the public good into their business models. Technology allows people to easily donate small amounts via text message or the Internet, “democratizing charitable giving like never before.”

December 2012 issue of F&D features article by Bill Clinton on power of collaborative networks to solve social problems (illustration: Michael Gibbs)

But the biggest transformation comes from what Clinton calls “networks of creative cooperation—where stakeholders from government, business, and civil society have come together to do things better, faster, and cheaper than any could alone.”

The Clinton Global Initiative brings these groups together once a year and asks them to commit to solving one of the world’s most pressing problems. “We make the best decisions when we talk to people who know things we don’t and understand things differently,” says Clinton.

Social entrepreneurs focus on impact

Social entrepreneurs are working to solve development problems such as HIV/AIDS, youth unemployment, and lack of reliable electricity, writes J. Gregory Dees of Duke University.

Dees defines social entrepreneurship as the pursuit of new ways to tackle a social problem, with a range of business models from grant-dependent nonprofits to commercially viable for-profits.

He cites the examples of mother2mothers, a nonprofit that offers mentor counseling for mothers diagnosed with HIV; social enterprise Digital Divide Data, which prepares poor Cambodians for unemployment in the digital data field; and...