The genius of creative capitalism

"Philanthropy is the refuge of the rich who wish to annoy their fellow creatures" : Oscar Wilde

One wonders what Mr. Wilde's reaction would have been , had he been present at the World Economic Forum, held earlier this year, in Davos ,Switzerland. Of all the momentous developments that the Forum witnessed, none was as novel as the presentation on 'Creative Capitalism' by Bill Gates.

To quote the words of the world's richest man himself:"creative capitalism is an approach where governments, businesses, and nonprofits work together to stretch the reach of
market forces so that more people can make a profit, or gain recognition, doing work that eases the world’s inequities.” Or in other words, it is an approach to reduce the world's social inequities by streamlining personal benefits with the larger social good.

Capitalism is driven solely by the motive of profit. Or how else could it be explained that more research goes into the cure of baldness ,than in alleviating malaria, which kills around 3 million people every year? To expect the corporates to veer from the relentless pursuit of mammon, and foray big-time into addressing the problems ailing the teeming unfed millions, is foolish. What is required is an adequate incentive to lure them into doing some social uplifting ,even inadvertently.

This is where Mr.Gates earnest stentorian enters the realm of naive wishfulness. Mr.Gates opines that showering recognition on any corporate philanthropy, and backing it up with some sweetheart deals from the government would prove pivotal in clinching corporate support. The premise that just recognition is sufficient to ensure corporate involvement in social welfare works is flimsy, to say the least.If recognition had truly been such a powerful motivating force for the market-savvy business houses, the present dearth of capital investment in fighting the problems would have never surfaced. Rather , capitalism needs to reinvent itself in a way that investing in the welfare of the poor not just pays these corporates in terms of the good name earned, but also enables them to develop and tap the $5 trillion market of the poor.After all, money is the name of the game.

What needs to be done is to use the forces of capitalism to empower the poor: don't donate them the dollars, but give them the power to generate the dollars. Capitalism needs to aim at using the technological advancements to compound the efficiency of the low-skilled workers: this increases the purchasing power of the poor , which is a more substantial motive for the corporates. Take the example of cell-phones. A road-side signboard painter can multiply his profits manifold, just by mentioning his cell no. on each hoarding. The use of technology helps him become more efficient in his business, apart from his adding to the revenues of the mobile service provider.

Hence all efforts aimed at increasing the earning ability of the poor, which in turn increases their purchasing power, shall draw the attention of the corporates into making any consequential contribution.
Only this, can truly be termed as creative capitalism.