1 / 18

PHILANTHROPICATION thru PRIVATIZATION :

PHILANTHROPICATION thru PRIVATIZATION : A New Approach to Building Charitable Endowments in Developing Regions LESTER M. SALAMON Johns Hopkins University and East-West Management Institute. BACKGROUND. Major efforts under way to foster community foundations in less developed areas

sovann
Download Presentation

PHILANTHROPICATION thru PRIVATIZATION :

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. PHILANTHROPICATION thru PRIVATIZATION: A New Approach to Building Charitable Endowments in Developing Regions LESTER M. SALAMON Johns Hopkins University and East-West Management Institute

  2. BACKGROUND • Major efforts under way to foster community foundations in less developed areas • These efforts are hampered by lack of capital • Growing frustration the result

  3. Meanwhile, enormous privatization sales going forward in same countries Meanwhile, enormous privatization sales going forward in same countries • Hungarian mortgage bank FHB (2007) • Ukraine’s Kryvorishstal Steel Mill (2005) • Kenya Generating Company (2008) • Turkey’s power grid (2006-2008) • Kenya telephone grid sold to Vodaphone in 2008 • 2005-09: $545+ billion of privatization sales

  4. Country Pending Sales 27 Turkey Pakistan 61 Rwanda 10 Georgia 249 Shenyang Province, China 24 Kosovo 40-50 Kenya 26 PRIVATIZATION STILL UNDERWAY PENDING TRANSACTIONS

  5. PENDING PRIVATIZATIONS: KENYA • Kenya Pipeline Co. • Kenya Ports Authority—Eldoret Container Terminal • Chemelli Sugar Co. • South Nyanza Sugar Co. • Kabarnet Hotel • Mt. Elgon Lodge Ltd • Kenya Safari Lodges and Hotels • Agrochemical and Food Corporation • Kenya Wine Agencies • East African Portland Cement • New Kenya Co-operative Creameries • Various power stations

  6. THE OPPORTUNITY • Capturing a fraction of the privatization proceeds for community foundations could revolutionize the foundation landscape of the world • 10% of proceeds of Kryvoriszhstal Steel in Ukraine could have yielded a $480 million Ukrainian community foundation • 10% of proceeds of Kenya-Vodaphone deal would have yielded a $70 million Kenya community foundation

  7. Not Just a Theoretical Idea • Italian banking foundations • Blue Cross/Blue Shield Sales in US • New Zealand Community Trusts • Volkswagen Foundation • Czech Foundation Investment Fund • 415 verified cases so far

  8. THE PROBLEM • Little systematic information • No cross-fertilization of experience • No assembly of best practices • Limited analysis of lessons • No effort to seize the opportunity to build on the experience in other places

  9. An Opportune Moment Defuse opposition to privatization • CEE Survey • Citizen protests Ukraine/China • Sales halted in: Sweden, Germany, France, Italy • Sarkozy dedication of 2007 sale to universities

  10. PtP PROJECT • Build the case for PtP by documenting prior cases • Identify best practices/useful lessons • Disseminate materials/increase awareness • Promote implementation

  11. TWO-TRACK APPROACH Track I: Building the Case • Identify past cases of PtP • Analyze cases, identify best practices • Disseminate results Track II: Implementation Assistance— 3-4 sites

  12. 3 Defining Features • A public or quasi-public asset • A resulting privately controlled charitable endowment • A process of transformation

  13. 5 TYPES Depends on Initial asset State-owned enterprise Other state-owned asset Government lottery Debt swap Quasi-governmental organization (e.g. nonprofit)

  14. NEXT STEPS • Conduct case studies • Form advisory committee • Develop “best practice” guidelines • Disseminate results–conferences/PtP website • Identify pilot test countries • Launch pilot implementations • Chronicle pilot implementation progress/lessons • Publicize & promote further implementation

  15. THE TIME IS RIPE • Increased interest in global philanthropy • Increased resistance to privatization • Business community looking for win-win opportunities • Institutional structure for community foundations in place in many locales Let’s seize the moment!

  16. For further information CONTACT Lester M. Salamon lsalamon@jhu.edu

  17. PRIVATIZATION STILL UNDERWAY DEVELOPING COUNTRIES Proceeds by region, 2005-2008 Source: World Bank Group

  18. PRIVATIZATION STILL UNDERWAY OECD COUNTRIES Proceeds by year, 2006-2009 Source: Privatization Barometer

More Related