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Engaging the poor as customers and suppliers presents an exciting -- and significant -- opportunity to establish newparadigms to bring genuine social change in economically sustainable ways.
Monitor Inclusive Markets report
How banks can help the world's poor
03/07/2010
Op-ed: Alexander Friedman | Financial Times
Global |

In this article, former CFO of Bill and Melinda Gates Foundation, describes four opportunities for foundations, banks, and governments to increase the flow of capital to the social sector.

From original article

These days, it has become something of a trend to demonise capitalists and praise philanthropists. But if we are to make true progress in tackling our most pressing social problems and live up to our moral obligation to help those in extreme poverty, these two seemingly polarised groups need to come together in fundamentally new ways.

We need to stop separating investment decisions from philanthropic giving; the building and giving away of wealth should not be seen as disparate sets of skills. The world's problems cannot be solved either by unfettered markets or by limited pools of philanthropic dollars.

Foundations, banks and governments are missing important opportunities that could dramatically increase the flow of capital to the social sector. In the last decade, new ideas have started to emerge that blend principles of giving and investing and are sometimes described as "venture philanthropy", "social impact investing" or "double bottom line" business. But, these innovations do not go far enough and the major players need to work together in a more coordinated fashion.

Link to original article