The Economist‘s New York bureau chief Matthew Bishop, has contributed as guest editor to upcoming September issue of Alliance magazine, a publication about philanthropy and social investment around the world.
Bishop, who also co-wrote the book Philanthrocapitalism with Michael Green, used his platform in Alliance to discuss the challenges that have faced philanthropic organizations since the beginning of the global financial crisis.
In the issue, Bishop wrote an essay based on his book and the changes he has seen in the year since its debut:
“Launching our book, Philanthrocapitalism, just days after the collapse of Lehman Brothers made clear in no uncertain terms to Michael Green and myself that the world had fundamentally changed. For many in the mainstream media, the idea that there was any positive role for the wealthy in solving social problems had been made moot by the collapse of the world’s wealth creation machine and the return of activist big government. Our critics in the non-profit world had great fun with our notion that the sector could become much more efficient by learning from capitalism — a one reviewer wittily described as ‘Lehman Brothers to the rescue.’ Ouch.
Clearly, we underestimated the extent to which the short-termism of for-profit capitalism made it vulnerable to systemic meltdown. Yet, paradoxically…this actually reinforced an underlying theme of the book that we had not made as explicit as we might have done, that the old barriers between sectors are collapsing, creating huge opportunity for everyone to learn from each other.”
Also in the issue, Bishop interviewed Sonal Shah, who leads the new White House Office of Social Innovation and Civic Participation, who was recruited from Google.org to lead President Barack Obama‘s new office.
Read all of Bishop’s essay here.