Report #152: May 2009
Supplement: Insights from the 2009 Global Philanthropy Forum

 1. PHILANTHROPY CALLED ON TO HELP DEVELOPING WORLD DEAL WITH TODAY’S ‘MONUMENTAL HUMAN CRISIS’; TRANSFORM ECONOMIC SYSTEM
There has been little focus on the impact of the current economic crisis on the developing world, according to Ngozi Okonjo-Iweala, Managing Director at the World Bank, who spoke at the kickoff plenary on poverty at the GPF Conference. Ngozi reminded participants that the financial crises followed on the heels of the food and fuel crises and that these three “f” crises added up to a monumental human crisis that has negative effects on education, as families pull their children out of school to work, and on health, as the number and quality of meals decrease. Queen Rania Al Abdullah of Jordan said in her opening keynote that today no society can afford to be protectionist – not in trade or in philanthropy. Similarly, Muhammad Yunus, the Nobel Peace Prize-winning microfinance pioneer, said philanthropy can help global society undergo the fundamental change that it needs. In a closing conversation, Yunus said that this crisis is the deepest we have experienced in a century, but it is also an opportunity to help transform the global economic system so that it no longer excludes the poor or fluctuates from crisis to crisis.

Still, despite opportunities, foundations should think carefully before altering course or changing grantmaking plans. In a plenary on strategy and innovation, William and Flora Hewlett Foundation President Paul Brest cautioned that foundations shouldn’t try to “chase the crises,” but rather should stay focused on long-term strategies.

 2. OBAMA ADMINISTRATION OFFICIALS REPORT ON OPEN-DOOR POLICY FOR PHILANTHROPY; CONSIDER SECTOR A “PARTNER” IN SOCIAL CHANGE
Secretary Hillary Rodham Clinton said in her conference address that economic development is playing an increased role and is now one of the three pillars of foreign affairs, on par with defense and diplomacy. Clinton discussed the State Department’s new commitment to developing strategic partnerships with philanthropists and emphasized that government alone cannot solve all of the problems we face today. Her aim is to have cross-sector collaborations that bring together people who never thought they’d collaborate on global challenges. The State Department’s doors “are wide open again,” she said, calling on philanthropists to walk in, bring ideas and offer innovative strategies. Accompanying her was Ambassador Elizabeth Bagley, who will head up State’s public/private partnership efforts, and is soon to hold a listening tour with Silicon Valley philanthropists organized by the GPF.

At least four other Obama Administration officials called upon philanthropists for the intellectual capital they add, reiterating that the Administration has open-door policy and a desire for partnership. Chief among them was Sonal Shah, formerly of Google.org, who now heads the White House Office of Social Innovation and Civic Participation. The Office works to develop partnerships with states, cities, foundations, NGOs and individuals and eliminate policy barriers to systemic change. Shah emphasized that the Office is “looking to do business differently,” recognizing that philanthropy has flexibility that governments lack. She called on the gathering to help the White House identify programs to bring to scale or replicate with monies from the Social Innovation Fund, which was later announced by the First Lady Michelle Obama.

 3. LIBERIA, RWANDA ALSO OPEN TO INCREASED ENGAGEMENT WITH PHILANTHROPY, CIVIL SOCIETY
At least two other countries, Liberia and Rwanda, are also open to increased engagement with philanthropy and civil society. According to Steven Radelet of the Center for Global Development, the government of Liberia has established a Cabinet-level Philanthropy Secretariat, which has proven to be a model for other countries seeking a coordinated approach to engaging with philanthropists. Also at this panel on post-conflict reconciliation and reconstruction, Rwanda was cited as a country where progress is being made in the wake of the last decade’s devastating ethnic war. Prior to the civil war, women couldn’t own property in the country. Now, according to Rachel Kyte of the International Finance Corporation, with help from philanthropy, the country has the fastest-growing women’s business sector in Africa. In a separate breakfast at the conference, Humanity United leaders joined Liberian Minister Natty Davis in a discussion of the ways in which private donors have collaborated with the government of Liberia.

 4. PHILANTHROPY SHOULD OFFER ‘PATIENT CAPITAL,’ PERSISTENCE IN PARTNERSHIPS WITH PUBLIC SECTOR
The value of public-private partnerships was made apparent throughout much of the conference. At a plenary on partnerships, Jean Case of the Case Foundation argued that philanthropy can offer its “patient capital” and commit to issues for the long haul while working across sectors to address large problems. During the same plenary, Aspen Institute CEO Walter Isaacson spoke of the US-Palestinian Partnership, which seeks to create a thriving civil society – the foundation for peace – in the West Bank and outlined the three major channels through which they act: (1) making small-business loans to local entrepreneurs, which eventually spun off into the Middle East Investment Initiative; (2) working with the Minister of Youth and Sports in the Palestinian Authority to develop youth centers in five places throughout the West Bank; and (3) engaging business leaders to see that the West Bank is a viable investment opportunity. Isaacson emphasized that philanthropy must be persistent in engaging government.

According to Gara LaMarche, President of Atlantic Philanthropies, in addition to engaging with government, foundations must continue to fund organizations that develop policy options and play an advocacy role. At a breakout session on LaMarche argued that foundations have an important role to play in ensuring that good ideas are translated into policy change.

 5. OTHER OVERARCHING IDEAS FOR PHILANTHROPY: EMPOWERING CITIZENS, USING CASH PRIZES TO ADVANCE ISSUES
Beyond a real push for public-private partnering, the conference also highlighted the importance of good governance, the essential role of a vibrant civil society and the method of using cash prizes to spur good ideas – and good actions. Sudanese-born philanthropist Mo Ibrahim of the UK made a compelling argument for working to advance good governance throughout sub-Saharan Africa. The Mo Ibrahim Foundation’s annual award celebrates great leaders. Melanne Verveer, Ambassador at Large for Global Women’s Issues at the State Department, noted at a plenary on health care access that failed leadership is at the heart of almost all problems any society faces. The only way to help resolve the issue is for philanthropy to involve and enable citizens, especially the poor, to hold their leaders accountable.

The benefit of cash prizes to advance an issue or need was an idea repeatedly touted at the conference. Tom Siebel of the Siebel Foundation announced in a conference address his foundation’s preliminary plans to establish an Energy-Free Home Challenge, a two-phase, $20 million competition set to launch in the fall. The goal is to entice scientists to design homes that will renew the energy used and have market appeal. In a “GPF Moment,” Ayah Mahgoub of the Center for Global Development talked briefly about the Center’s “Cash on Development” aid program, through which philanthropists can reward governments for achieving social outcomes, such as graduating from school by “plussing up” aid.

 6. SPECIFIC INSIGHTS FROM THE CONFERENCE’S FIVE MAIN FOCUS AREAS
A. Poverty
Especially in a time of crisis, the best people to invest in are the poor. At a plenary on poverty, Deepa Narayan of the World Bank, lead author of a new study Moving out of Poverty: Success from the Bottom Up, called on philanthropists to change their beliefs and assumptions about the poor. She argued that the poor are inventive and entrepreneurial and that it is essential to empower them in a way that allows them to achieve a certain level of resiliency. Maria Otero of ACCION added that the practice of microfinance has helped change how societies view the poor and emphasized the importance of providing the poor with access to a variety of financial products, so that a family can cast a wide safety net around itself.

B. Education
In her opening keynote, Her Majesty Queen Rania Al Abdullah of Jordan argued that education is among the most powerful mechanisms to alleviate poverty and promote health, tolerance and peace. She emphasized that quality education requires the involvement of all societal sectors and challenged conference participants to create more innovative partnerships for investing in education abroad. At a plenary on policy, investment and philanthropy in post-conflict zones, Olara A. Otunnu, President of the LBL Foundation for Children, spoke passionately about the importance of quality education in enabling children and societies to grow. He noted that those affected by destruction invariably say that their most pressing desire is education for children. Nonetheless, education, especially at the primary level, is rarely given sufficient attention. At a breakout session about preparing students for a global world, M. Christian Bender of the Brighter Choice Foundation noted that improving schools and the quality of education need to be tackled in tandem with – and not after – efforts to address poverty.

C. Health
At a plenary on expanding access to healthcare, Nancy Ann DeParle, Director of the White House Office for Health Reform, called on foundations to offer their ideas and insights to help ensure that domestic health care reform actually takes place. Julio Frenk, Dean of the Harvard School of Public Health, added that philanthropy should help foster a fundamental discussion about health care reform in the United States, engaging a wide swath of the population on the issue. Drawing on his past experience serving as Mexico's Minister of Health and helping to move the country toward universal health care, Frenk emphasized the critical role philanthropy can play in ensuring that the resulting reform doesn't just benefit those elites who had the greatest influence on shaping it.

D. Climate Change
According to Nachiket Mor of India’s ICICI Foundation for Inclusive Growth, green energy has not yet become an attractive investment, in large part due to the small demand for wholesale supply of green power, especially in rural areas. At a plenary on financing green enterprise, Mor expressed concern about the over-segmentation of the green energy market, from wind to solar to biomass, and argued that philanthropy could help to identify, perhaps even rank, which technology is right for particular situations and market contexts. At this plenary, Christine Ebbs Singer of E+Co discussed her organization’s experience in making clean energy a sustainable enterprise. With a return on investment of 3 percent, philanthropists consider the organization too successful to warrant additional funding, but it’s not considered successful enough for business investors, who demand a higher return before committing funds for scaling up.

E. Post-Conflict Rejuvenation
At the post-conflict plenary, Olara A. Otunnu of LBL Foundation for Children argued that post-conflict development should be considered an opportunity to transform society and address the distortions that gave rise to conflict in the first place. Furthermore, Otunnu emphasized the importance of improving the community’s mental health, helping citizens get back on their feet psychologically.

In the same plenary, Peter Buffett of the NoVo Foundation called for more “stability dollars,” or money to help countries progress to a level that ensures they won’t falter easily. Such support centers on helping women become prosperous, respected and educated members in a society. He further added that donors should travel to post-conflict zones to see what is actually happening and what is needed – listening and working with the country’s residents, instead of deciding from afar. “You don’t know if you don’t go,” he reasons.

Of Related Interest

Proceedings Published from Last Year’s GPF Conference
At this year’s Global Philanthropy Forum Conference, the organization released the transcripts from last year’s conference in one published monograph, Human Security, Human Rights and the Shared Responsibility to Protect: A conversation between elders and emerging leaders. The 2008 transcripts include a

• keynote by Archbishop Desmond Tutu, followed by a panel discussion ;
• conversation with Richard Branson of Virgin Group discussing the creation of The Elders ;
• moving remarks and a performance by singer, philanthropist and AIDS activist Annie Lennox ;
• a discussion of the Responsibility to Protect by then-professor Samantha Power and Crisis Group CEO Gareth Evans ;
• a panel on the role of communications with philanthropist and founder of Participant Productions Jeff Skoll, musician Peter Gabriel and Facebook's COO Sheryl Sandberg ;
• and a discussion of transitional justice with Kerry Kennedy, Ken Roth and Paul van Zyl and Zainab Salbi of Women for Women International who argued that women need to be included at the negotiating table in post-conflict situations, a theme later picked up by Ireland's former president Mary Robinson.