Each year the nonprofit community eagerly awaits the annual Bill and
Melinda Gates letter. This isn’t the
foundation’s annual report - that is released separately later in the year. This is a personal letter by the Gates. I always find it fascinating and write about
it. And what a letter it is this year.
This year this blog will focus on
Philanthropy and there is no better place to start than a discussion about the annual Gates’ Letter.
The theme for this year’s letter
is "3 MYTHS THAT BLOCK PROGRESS FOR THE POOR." Bill writes about the first two and Melinda writes about the third myth.
Bill starts out with a very positive
read on the progress that has been made on an overall basis and makes the
bottom line assessment that the world is a better place and significant
progress has been made. But holding back
continued investment in this success are these myths: the poor will remain poor, that efforts to
help them are wasted, and that saving lives will only make things worse.
Bill and Melinda methodically look at
each of these myths and debunk them.
Myth #1: POOR COUNTRIES ARE DOOMED TO STAY POOR by Bill Gates
Many of the countries we used to call
poor now have thriving economies. And the percentage of very poor people has
dropped by more than half since 1990.
Bill points out countries such as China, Brazil and Botswanna as
examples. Bill specifically takes on
statistics for Africa reporting that more countries are turning toward strong sustained
development, and that 7 of the 10 fastest-growing economies of the past five
years are in Africa. He notes the major
strides in health and education but also the disparity amongst the poorest and
better off African countries and rural and urban areas. The bottom line: Poor countries are not doomed to stay poor. Bill Gates is so confident about this that he
made this prediction which is getting a lot of media attention: By 2035, there
will be almost no poor countries left in the world.
Bill Gates is no Pollyanna and he admits that there will still be poor
people in countries that are becoming self sufficient and countries with serious
political problems may not share in this overall better life for all that he
envisions.
Myth #2: FOREIGN AID IS A BIG WASTE by Bill Gates
Bill says that the stories of what
happens with foreign aid are distorted.
He reports that what he and Melinda have seen is people living longer,
getting healthier, and escaping poverty – partly due to this aid. Bill describes aid as a “fantastic
investment” that lays the groundwork for long term economic progress. He notes that the Gates Foundation has a reputation
for a hard-nosed focus on results, and they partner with government aid
programs and does a lot to help these programs be more efficient and measure
their progress.
Bill says that foreign aid is much less
than people think it is off the top of their head. At $30 Billion it is about 1% of the US budget.
This does not include military aid. The
country with the highest rate of giving, Norway, gives 3%. After a bunch more statistics – Bill’s
letters are always full of facts and figures – he comes to the most profound
conclusion – “healthy children do more than merely survive. They go to school
and eventually work, and over time they make their countries more
self-sufficient. This is why I say aid
is such a bargain.”
Corruption
and Aid Dependence
Bill addresses the role of corruption
but dismisses it as much less than people envision. He also notes that some much touted
corruption is found through audits and thwarted that way.
Another argument from critics is that
aid holds back normal economic development, keeping countries dependent on
generosity. Bill discusses the impact of
different kinds of aid and the value of research and implementing new tools
that lead to economic development. He
says that the money spent today on a Green Revolution for Africa is helping
countries grow more food, making them less dependent as well. That’s why the
Gates Foundation spends over a third of its grants on developing new tools.
The bottom line for Bill: Health aid is a
phenomenal investment. He says: “Let’s put this achievement in historical
perspective. A baby born in 1960 had an 18% chance of dying before her fifth
birthday. For a child born today, the odds are less than 5%. In 2035, they will
be 1.6%. I can’t think of any other 75-year improvement in human welfare that
would even come close.
Above all, I hope we can stop discussing
whether aid works, and spend more time talking about how it can work better
Well
- he has me convinced. But does all this saving lives lead to
overpopulation? Onto Myth #3 written by
Melinda.
Myth #3: SAVING LIVES LEADS TO OVER–POPULATION by Melinda Gates
Melinda writes passionately about this topic saying, “We make the future sustainable when we invest
in the poor, not when we insist on their suffering.” The statistics bear this out as the correlation between
child death and birth rates is strong.
Melinda writes about the role of education and health for women leading
to better lives including having less children as they learn about birth
control and feel more secure about the survival of their children. “Saving lives doesn’t lead to
overpopulation. In fact, it’s quite the opposite. Creating societies where
people enjoy basic health, relative prosperity, fundamental equality, and
access to contraceptives is the only way to secure a sustainable world. We will
build a better future for everyone by giving people the freedom and the power
to build a better future for themselves and their families.”
Bill and Melinda have taken the time to
share their philosophy, their world view and the facts of all the investment
made to make the world a better place.
What do they hope you will do with this information?
·
Tell political leaders that you care about saving lives and that you
support foreign aid.
·
You should know that organizations working in health and development
offer a phenomenal return on your money.
·
The next time someone claims that saving children causes
overpopulation, explain the facts. You
can help bring about a new global belief that every life has equal value.
This infographic from the report captures a lot of information:
This is just a summary. You should
read the whole letter – Click here and enjoy the letter, graphs, videos and
beautiful pictures that Bill and Melinda have shared with us.
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