The always incredible ‘China Success Stories’ blog has posted a transcript of James Chan’s speech at The Entrepreneurs’ Forum of Greater Philadelphia. For all American business owners who are looking to cash in on the Mainland, I highly suggest a thorough read of this insightful post.
Bill Gates, the world’s most influential philanthropist, announced today that he will launch a campaign to get China’s wealthiest involved in forging careers in “giving.” Aside from the obvious, there’s a lot of potentially good news here. On a more immediate level, the promotion of philanthropy and subsequent introduction of NGOs has the potential to create tens of thousands of new jobs, incorporate additional college programs and launch specialized schools, necessitate the recruitment of foreign experts, and lure more Chinese nationals to established U.S. institutions that focus on non-profit management.
Awesome, right? Keep in mind that the “good” is rarely altruism in its purest form; philanthropy is big business wrapped up in a shiny package with a glittering velvet bow. If you’re looking for proof, spend a day at Asia Society, buy a ticket for the 2009 Clinton Global Initiative, or check out a few non-profit CEO salaries at CharityNavigator.org. While it’s not Wall Street, you may be surprised to see just how much charity pays off- financially. It is also important to note that the standard-structure NGO does not formally exist in China- yet. Will a U.S.-led approach to philanthropy work on the mainland? While Gates is optimistic, several complex factors will inevitably come into play:
Cultural Differences: The long-held practice in China of “under the table, over the table” may stand to undermine the strength of any newly-formed charitable organization while creating an alternative outlet for corruption. Misallocation and misuse of donations is already a rampant problem for NGOs; I would venture to bet that the operating policies currently in place in the West are not going to work in China. Similarly, it will also be interesting to see how the concept of “face” plays into philanthropy- benefits and charity events could very well mimic heated bidding. And, promises made during one champagne-fueled evening may be easily broken the next over baijiu.
Incompatible Agendas: 2006 was the year of audits for foreign-funded nonprofits in China, which had been targeted due to activities that did not jive with the PRC agenda. Since then, it has become increasingly difficult for any non-profit to conduct business in China, as seen most recently in the AIDS-information crackdown during the Beijing Olympics. HIV is a sensitive topic, and it’s also a high-priority for the Bill and Melinda Gates Foundation. The unemployment situation among China’s migrant workers is sure to gain increasing global attention over the coming months and inevitably, well-meaning groups with “fair” solutions will follow. The PRC, of course, has its own plan. To be honest, I have been pretty impressed with how they’ve handled HIV prevention over the past two years and am hoping that increased foreign involvement does not inspire a dramatic shift.
Transparency: As previously posted, the Gates Foundation recently donated nearly $10 million dollars to a Chinese GONGO that is incredibly difficult to track down. Where that money currently sits is anyone’s guess and how it will be allocated over the next few years remains a mystery. Maybe Bill knows where it’s going but eventually, other important people will begin to ask the same questions that I am, particularly if China embraces philanthropy in a public display of affection. Can there be a balance between Chinese privacy and U.S. transparency? Let’s take this one step further… When “Mr. Wu” donates $50 million yuan to the “Lucky China Foundation” and it ends up on the front page of Renmin Ribao, will everyone collectively think “oh, that’s so nice of Mr. Wu!” Or, will at least one person think “why does Mr. Wu have $50 million yuan to give away?” and decide to do a little rioting?
Notions of Charity: I remember sitting outside of a restaurant with my ex-fiance, who was himself a CCP member of means, when a man with no legs rolled over to our table and shook his nearly empty cup. I dropped a few coins in it and did not otherwise consider my actions. I was then immediately chastised for the dirty and embarrassing “act of giving” that I had just performed. This reaction is not at all unusual in China; an overwhelming majority of its people have never donated and if you’re looking for a handout, you must have done something wrong. How will this translate in the business of charity? Is it possible to motivate a demographic to be more charity-conscious when they’ve only recently lifted themselves out of poverty?
Can America pave the way for a more giving culture in China? Consider this- the U.S. donates more $ annually than any other country in the world. But, it also gives the LEAST % of GDP on foreign aid than any other developed nation. Additionally, failed programs like PEPFAR have had a measurable negative impact on both the countries that reluctantly accepted them and the many, many agencies which facilitated them. And, while the Bill and Melinda Gates Foundation has already done a world of good for much of the world, I sometimes wonder if the organization really knows where all their grants are going (for further explanation, check out ‘Government Site Links to Porn.’)
Despite these concerns, today’s announcement is exciting for both China and the global community. And, if anyone can weather what will surely be a bumpy road, Gates is the perfect candidate. I just wonder if the other Bill is going to join him for the ride.
Do you think Gates will succeed in exporting philanthropy to China? What potential impact will this have on a global level? I’d love to hear from you.
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