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I believe there are more instances of the abridgment of freedoms of the people by gradual and silent encroachment of those in power than by violent and sudden usurpations. (attributed)

-James Madison

The Capitalist's Philanthropy

It has been clearly demonstrated many times over that a person can successfully pursue profit without an appreciation for the morality of capitalism itself. It is therefore refreshing whenever an outrageously successful entrepreneur is able to exercise that very human tendency toward altruism in a way that actually supports the capitalist system that allowed said entrepreneur to become outrageously successful - thereby helping others toward their dream of outrageous success. Don't give a man a fish; teach him to fish.

Today's Boston Globe carries such a story:

The founder of eBay and his wife have donated $100 million to Tufts University, the school's largest gift ever, but also one with a unique twist: All the money will be invested in microfinance, which involves tiny loans as low as $40, designed to help poor people in the developing world start small businesses, such as selling hand-woven cloth or goat's milk.
Pierre and Pam Omidyar intend the gift to generate healthy returns for their alma mater and in so doing to demonstrate to other investors that microfinance deserves a hefty infusion of private capital, not just charitable and government dollars. Tufts and the Omidyars believe that the gift is the largest private allocation of capital to microfinance by any individual or family.

I came across this story at The American Thinker.

Tufts is not to undertake charity with the hundred mil. It is to invest the money in expectation of a return, just as it invests the other funds in its endowment. But Tufts is required to invest in micro-loans in less-developed economies, where a shortage of capitalism impoverishes the people... And that is precisely what the ultimate third world beneficiaries need: not charity, but help in becoming capitalists.
This is a wonderful example. Now, it is up to Tufts University. All of us should watch carefully how this program works, and draw lessons for the future.
In the meantime, congratulations to Mr. and Mrs. Omidyar and to Tufts University. You have done a wonderful thing.

Posted by Wulf on November 4, 2005 at 10:38 PM

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Microfinance, provided on a commercial basis, is self-evidently good. But that does not mean that we should welcome the stampede to subsidize microfinance. There are not strong arguments - either in principle or from evidence - that this is the best ... [Read More]

Tracked on November 7, 2005 4:46 PM

I believe there are more instances of the abridgment of freedoms of the people by gradual and silent encroachment of those in power than by violent and sudden usurpations. (attributed)

-James Madison

The Capitalist's Philanthropy

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