There's no denying that the COVID pandemic has become a catalyst for the world to reflect and address other critical challenges, ranging from sustainability and climate change to biodiversity loss and world hunger. The COVID pandemic is a unifying event that emphasises global cooperation, enabling effective vaccines to be developed at record speed. Some believe that such cooperation will be needed for other world problems to be addressed.
Aside from global cooperation, one aspect needed to address these world problems is funding, which includes philanthropic efforts. According to 2021 Candid research, there was $20.2 billion in funding from corporations, foundations, public charities, and high-net-worth individuals to address the COVID-19 pandemic. How can it be utilised effectively to ensure a meaningful impact to address additional problems?
On 10 December 2021, the Lee Kuan Yew School of Public Policy Institute for Environment and Sustainability held a webinar discussion to discuss the question posed above. Moderated by Dr Marina Kaneti, Assistant Professor at the Lee Kuan Yew School of Public Policy, the event invited four esteemed guests; Dr Lee Alexander Risby, Director of Effective Philanthropy of the Laudes Foundation, Dr Kelly Levin, Chief of Science, Data and Systems Change at the Bezos Earth Fund, Dr Cheng Enjiang Program Officer at the Ford Foundation, and Ms Natalie Kennedy, Deputy Director of the Asia Philanthropy Circle.
The spectrum of giving
Recently, two news items made a buzz in the philanthropic community. Elon Musk's Twitter exchanges with David Beasley, UN's food and hunger agency chief, where Elon said he's willing to give up some of his wealth to solve world hunger if the agency could publicly prove exactly where the money is going. This is in stark contrast with Mackenzie Scott's approach to giving, where she promised a "no strings attached" method, meaning that the grantees can spend the money how they see fit without constant oversight.
The panellist agreed that a middle ground approach and flexibility is vital. "Having high accountability regarding how the money is being spent is crucial. However, given how quick the world evolves, you don't want to lock yourself in; there's a need for some level of flexibility since you may need to redefine programmes and goals. It is also critical to establish strong partnerships with grantees and understanding policy effectiveness, are key drivers to the philanthropic approach. This is applied to the Bezos Earth Fund," remarked Dr Levin.
A level of flexibility was again highlighted by Dr Enjiang, who admitted that the Ford Foundation doesn't have very detailed or strict arrangements once a grantee is selected. "In general, we're quite flexible, meaning that agreements can be amended in the middle of the term, depending on the situation and grantee's needs," said Dr Enjiang. He mentioned project extensions and budgetary changes as examples of Ford Foundation's flexibility amid the ongoing pandemic.
Moreover, he said that philanthropy is not just about giving money or donations, but it can be in other forms. "Climate change and sustainability efforts, for example, need to be addressed by experts from different fields that come together to make a comprehensive solution. Again, showing the importance of working together."
Such philanthropic efforts and private investments can be an effective way in solving social problems. Climate change and sustainability are only one of the many examples in action. "If done right, private contributions can go a long way in solving them, as evidenced by climate change and sustainability efforts. For the Ford Foundation, for instance, we monitor closely the deforestation in Indonesia and are finding ways to minimise its impact," explained Dr Enjiang
Regardless of your giving spectrum, for philanthropy to be effective, Dr Rigsby opined that there's a need to have goals and a strategy in place on how to reach them. "In practice, after aligning the goals and strategy with our partners, we go directly to the implementation stage, where we provide support in the form of operational or monetary support so that we can reach the outlined goals agreed previously."
To be public or private?
There are two approaches to consider in fulfilling one's philanthropic efforts, public or private. Public means that your donations and associations to certain causes will be announced to the public domain. Meanwhile, going the private route means that such contributions can be made discreetly without much fanfare, keeping your name low-profile and largely out of the public eye.
According to Ms Kennedy, most philanthropists are very careful in associating their name with a cause. "Our members at the Asia Philanthropy Circle (APC) are very mindful about when they will use their name; what's the intention of putting the weight of their foundation's name behind announcing a grant or a partnership" She added that several members are persistent in keeping it low profile due to the sensitive nature of some of their work. In contrast, the next generation may be more willing to get their names out there, especially regarding the climate crisis.
"They're reluctant at first, but as time goes on, they're more than happy to have a more public profile as they realise they'll need to take a leadership role regarding the climate crisis," said Ms Kennedy.
Ms Kennedy added that the policy environment in Southeast Asia is highly fragmented in that the success of philanthropy in affecting meaningful change is not widely documented. She mentioned the example of the Philippines, where they successfully transitioned away from coal because of philanthropic efforts.
"The Centre can act as a bridge where they produce case studies across the region so that it can be a learning tool for readers and other interested parties on how philanthropic efforts can result in a desired change. Obviously, having a single approach that applies to all is quite difficult, but at least they can learn and adjust each study case depending on their need or region," explained Ms Kennedy
The importance of partnership
As the world's problems have a global impact, the panellist reiterated the need to work together in solving the existing and emerging issues; it's not a one-man operation, "Nobody is going to solve this crisis alone in front of the computer. There's a need for partnerships and learning from one another to solve these issues effectively," Dr Levin reminded.
She further suggested that the Lee Kuan Yew School of Public Policy Institute for Environment and Sustainability can act as a think tank, churning out reports in sectors they're invested in, such as climate change. "Policy effectiveness is necessary to intervene and solve world problems. This is where having a think tank can help; it guides us to make the right policies and make a meaningful impact. However, it's important to note that the reports produced should be in an accessible language that every reader understands not in a peer-to-peer literature style," said Dr Levin.
A similar form of partnership was also mentioned by Dr Enjiang, who opined that the Centre should focus on producing reports concerning China's policies, impact on the world, and investors.
"As the second most influential nation in the region, China's policies and investors' way of thinking will have a huge impact on the region. Therefore, having detailed research about that would be essential to inform the world," Dr Enjiang elaborated.
He highlighted China's common prosperity approach, where big companies such as Alibaba and Tencent are asked to pledge to assist China in creating a more "equitable" society and economy. "This might seem foreign to other nations. That's why having a detailed report on this and other China's policies is critical."
Meanwhile, Dr Risby mentioned Singapore's former Minister for Education, Mr Lawrence Wong's speech about Singapore's goal to reach net-zero emissions and that the Centre can play a role in informing governments about crafting policies. "There's a very fertile space regarding policy and action that the Centre can step into, informing governments about how economic and social policies that are crafted will impact climate and social inequality."
He mentioned that one way to achieve net-zero emissions is by implementing the circular economy approach across industries. But, he admitted that businesses and companies are finding it difficult to weigh the cost and benefits of circularity in their supply chain. The Centre can play an advisor role in that regard.
"In order to reach the target of net-zero emissions, companies should start adopting the circular economy in the next five to ten years, and the Centre can certainly play a part in guiding them to implement it with ease," said Dr Rigsby.
Philanthropic actions are part of the global efforts to address the ongoing problems that have impacted the world. Well-produced research is necessary to inform philanthropists and governments in making policies and donations. Having a think tank like the Lee Kuan Yew School of Public Policy Institute for Environment and Sustainability would be one way to bridge the knowledge gap regarding the impact of philanthropic giving and policymaking.