In July, Richard Stengel, editor of Time Magazine, interviewed Bill Gates about his theory of Creative Capitalism. A six-minute video from this interview is available on Time’s website.
Gates passionately believes that technology provides solutions to many of the world’s key problems. He also believes that life changes due to technology can only occur where people can afford the technology. In a speech that he delivered at the World Economic Forum in Davos, Switzerland in January 2008, Gates spoke about Creative Capitalism. In that speech, he defined it as “creative capitalism – an approach where governments, businesses, and nonprofits work together to stretch the reach of market forces so that more people can make a profit, or gain recognition, doing work that eases the world’s inequalities.” Some examples of companies engaging in creative capitalism include: (1) Microsoft – provides low cost or free technology to those who do not have access; (2) Crucell, a Dutch company that holds the patents on a cholera vaccine in the developed world but shares those rights with drug manufacturers in developing countries so that the drug can be manufactured and delivered at very low costs ($1/dose in Vietnam); (3) Iscar, an Israeli metalworking company, that locates its plants in areas where it can employ minorities such as Israeli Arabs; and (4) other companies such as Converse, Gap, Armani, Dell, and Apple that participate in the RED Campaign started by Bono.
Gates’ remarks to the 2008 graduating class of Harvard include a sobering remark: “Melinda and I read an article about the millions of children who are dying every year in poor countries from diseases that we had long ago made harmless in this country…We asked: ‘How could the world let these children die?’ The answer is simple, and harsh. The market did not reward saving the lives of these children and the governments did not subsidize it. So the children died because their mothers and their fathers had no power in the market and no voice in the system.”
Gates has left Microsoft to become Co-Chair of his Foundation. With the more than $50 billion in assets and the similarly-sized pledge to his foundation by Warren Buffett, I hope that his beliefs and financial clout will help governments and corporations partner in efforts similar to those cited in his recent speeches.
