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Showing posts with label Bill Gates Warren Buffett Fannie Mae Fannie Mac Paul Ormerod Larry Summers. Show all posts
Showing posts with label Bill Gates Warren Buffett Fannie Mae Fannie Mac Paul Ormerod Larry Summers. Show all posts

February 25, 2009

Creative capitalism means private equity

Bill Gates is frustrated. He spoke about world poverty publicly with Warren Buffet at the last Davos conference and the conversation is now to be found in a book, but with the addition of economists weighing in with their views on the subject which makes for interesting reading.
The book has a cumbersome title: Creative Capitalism: a conversation with Bill Gates, Warren Buffet and other economic leaders.
Gates and Buffet both spoke about creative capitalism which means companies that are not just working for their own dime but think far wider than that. For example, I did a project in South Africa for the largest mining company creating a data base of one person “businesses” near to the mines. The mine then hired these people on contract basis for cleaning, typing or temping services in order to support the community through work, not a hand out. People had purpose and money for work. The mine did not need to work in this more fragmented and unpredictable way, but they wanted to help the community.
One if the contributors, Larry Summers, is now an advisor to Obama who cautions this concept of creative capitalism and prefers to let companies pursue their own purpose. Summers cites Fannie Mae and Fannie Mac as a “really good creative capitalism idea” that did not work.
Perhaps Gates and Buffet are onto something says Economist Paul Ormerod who sees creative capitalism as buttressing the legitimacy of democratic capitalism against authoritarianism in China. Private equity is trying to improve its image and are early up-takers of this concept.
Creative is the second name for most Americans. Already, there have been thousands of get-togethers held across America to discuss the health care situation. Obama’s website gave a few starter discussion sheets and suggestions on how to organize each party. The answers to questions were sent back to the White House. There are naysayers, likening this movement to Tupperware parties, but people could add their own material and speakers.
Anyway, what's wrong with Tupperware parties? I see citizens getting involved with their country.
Discussion educates and encourages people to see more than one side. Creative capitalism certainly creates integrity and Bill Gates and Warren Buffet have started this interesting conversation.