Pambazuka News Fahamu Pambazuka News

Search Pambazuka

NEW AWARD!

Pambazuka News has been voted the top website for 2008 in the annual 'Top 10 Who Are Changing the World of Internet and Politics' award organised by PoliticsOnline and eDemocracy Forum.
This is the fourth year running that Pambazuka News has been voted onto the shortlist, where it is once again the only Africa-related website. Pambazuka News is described by PoliticsOnline as
'..a pan-African community of over 1000 citizens - academics, social activists, women's organizations, writers, artists, poets, bloggers, and commentators who together produce insightful and thoughtful analyses that make it the most innovative and influential sites for social justice in Africa... Pambazuka has become the source of authentic voices of Africa's social analysts and activists.'
With thanks to all those who voted for us,
Editors
Pambazuka News

PoliticsOnline

Book Launch: Yash Tandon's Ending Aid Dependence

Tuesday 4 November 2008, 17:00-18:00
At: Chatham House, 10 St James's Square, London, SW1Y 4LE
Speaker: Yash Tandon, Executive Director, South Centre, Geneva.

If you wish to attend the book launch, please register via Donald Temple.

Ending Aid DependenceIn his new book Ending Aid Dependence, Yash Tandon reviews the possibilities for change in the architecture of aid. The author explores the extent to which many developing countries reliant on aid wish to escape dependence, and yet are constrained from doing so. Proposing that moving away from dependence should be at the top of the political agenda of all developing countries, this timely book cautions countries of the global South from falling into the aid trap and endorsing the collective colonialism of the OECD.

Fahamu Books

Ending Aid DependenceYash Tandon (2008) Ending Aid Dependence.
New book from Fahamu
Developing countries reliant on aid want to escape this dependence, and yet they appear unable to do so. This book shows how they may liberate themselves from the aid that pretends to be developmental but is not.

China’s New Role in Africa and the SouthDorothy-Grace Guerrero and Firoze Manji (ed) (2008) China’s New Role in Africa and the South: A search for a new perspective.

Visit the full list of Fahamu books

Pambazuka News Broadcasts

Pambazuka broadcasts feature audio and video content with cutting edge commentary and debate from social justice movements across the continent.

See the list of episodes.


AU MONITOR

This site has been established by Fahamu to provide regular feedback to African civil society organisations on what is happening with the African Union.

Vacancy Advertising rates on Pambazuka News

The rates shown below are for a four week advertisement

Band A - Charities, NGOs and Non-profit organisations with turnover of less than $200,000: $50.00
Band B - Charities, NGOs and Non-profit organisations with turnover of $200,000 - $1,000,000: $150.00
Band C - Charities, NGOs and Non-profit organisations with turnover of more than $1,000,000: $350.00
Band D - Government or Private Sector companies: $500.00

To place an advertisement email: info [at] fahamu [dot] org.

We are willing to waive the charges for not-for-profit organisations in Africa with limited income.

Donate To Help Pambazuka Continue!

Help make sure that subscribers in Africa get Pambazuka News free: every $5.00 helps to ensure a subscription for one year. So donate generously to ensure Africa's best social justice newsletter gets to where it's needed.

Subscribe

Pambazuka News reaches approximately 60,000 people every week. Join the struggle for social justice in Africa - subscribe now!

del.icio.us

Vist Pambazuka News@del.icio.us. Our page on the del.icio.us social bookmarking website.

Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License.

Pan-African Postcard

The Gates and Buffet Foundation Shell Game

Sheldon Drobny (2008-04-10)

http://pambazuka.org/en/category/panafrican/47269

Printer friendly version


Sheldon Drobny looks at the close relationship between Bill Gates' philanthropy and tax-exemption and argues that the "great problems of the world today are a direct result of the wide disparity between the rich and poor."

My background is finance and accounting. As a socially conscious venture capitalist and philanthropist, I have a very good understanding of wealth management and philanthropy. I started my career in 1967 with the IRS as a specialist in taxation covering many areas of the tax law including the so-called legal loopholes to charitable giving. I have known for years that a smart wealthy person could keep control of all his assets without estate or income taxes through cleverly structured charitable foundations. These foundations are perfectly legal and allow the donors to keep absolute control of all their money and power and accumulate enormous appreciation free of taxation. In 1967, the loopholes were outrageous and the law has tightened some of these tactics for the rich. However, the Gates Buffet foundation grant is nothing more than a shell game in which control of assets for both Gates and Buffet remain the same.

The only difference is that the accumulation of wealth by these two will be much more massive because they will no longer have to pay any taxes.

The Gates Foundation now has about $60 Billion under the control of the wealthiest people in America. They do not have to sell any of their positions in the stocks that they put under the tax-exempt umbrella. Furthermore, they can vote their stock holdings the same as if they did before and they can make the same investment decisions about their considerable corporate holdings. Both Buffet and Gates exhibited the most predatory capitalistic practices as corporate executives and investors. Microsoft and Berkshire Hathaway are not models of socially responsible capitalism. That being said, this foundation will be in the long run richer than the Catholic Church, which has accumulated wealth and power for over 1500 years. However, the results will be exactly the same. They will never liquidate enough of their assets to do any real good for the most onerous problem we have as humans; the worldwide poverty that is caused by the great disparity between the haves and the have-nots.

The Gates Foundation and the Catholic Church have the same goals. They are to keep the legacies for which they were created. For Bill Gates and Warren Buffet it is the control and legacy of family wealth as in the ancient days of the Pharos of Egypt. And by not paying any taxes, Gates will be more powerful than the Pope. I realize that this foundation has done more for disease research and education than any single government institution. But, that is just a condemnation of how little rich countries do for the less fortunate. And the United States is one of the worst examples of how little it does for its own people.

The great problems of the world today are a direct result of the wide disparity between the rich and poor. But, it is hard for the wealthiest to even look at this as an issue of most importance. Catholic Charities do a lot for the poor and I am sure that the Gates Foundation will do a lot for diseases of the poor. But, that is merely a band-aid for one of the symptoms of poverty. The real issue today is poverty.

The governments that keep their people in abject poverty while their leaders are obscenely rich from oil revenues cause many of the problems in the Middle East. But, even the poorest of their people now have access to satellite TV and Internet information that shows these people how much they are being exploited. The simple answer that they hate us for our freedom is absurd. They hate us because they see the wealthy and powerful as the cause of their suffering. As was the case in Germany in the 1920s, even a cultured society can succumb to irrationally violent leaders if they are hungry and poor. It is a human problem that we saw occur in a 1st world country. The 1968 movie, The Shoes of the Fisherman {1} was a fictional account of a new Pope who had the conscience to solve world poverty by giving away all the Church's assets. Below is a summary of the plot from www.imdb.com

“After twenty years in a Siberian labor camp, Kiril Lakota, the Metropolitan Archbishop of Lvov, is set free. The Catholic Archbishop is released and sent to Rome, where the ailing Pope makes him a Cardinal. The world is in a state of crisis - a famine in China is exacerbated by United States restrictions on Chinese trade and the ongoing Chinese-Soviet feud. When the Pontiff dies, Lakota finds himself elected Pope. But the new Pope Kiril I is plagued by self-doubt, by his years in prison, and by the strange world he knows so little about. This movie contains extensive information about Catholic faith & practice, as a television news reporter steps in from time-to-time to explain the procedures involved in selecting a new Pope.”

The movie was not great but it did emphasize the point I am making in this piece. Unless wealthy people and governments around the world recognize the threat that poverty has on humanity, our chances of survival are markedly decreased. And unless the major wealth of the world is used to help feed its people, the diseases caused by poverty will never be cured. The prevention of diseases, both physical and mental, caused by hunger and poverty are the real dangers we face. And with all the concentrated wealth, we have the capacity to give everyone enough to survive and still leave the wealthy with plenty of luxuries. If Bill Gates gave $29 Billion away and kept only $1 Billion he would still have a wonderful life. If he gave it to Sally Struthers, she could probably feed the world.

*Sheldon Drobny was the co-founder of Air America Radio. He is also the Chairman and Managing Director of Paradigm Group II, a venture capital firm specializing in socially responsible businesses. This article first appeared in Common Dreams (www.commondreams.org) in August, 2006

**Please send comments to editor@pambazuka.org or comment online at www.pambazuka.org


Readers' Comments

Let your voice be heard. Comment on this article.




ISSN 1753-6839 Pambazuka News English Edition http://www.pambazuka.org/en/

ISSN 1753-6847 Pambazuka News en Français http://www.pambazuka.org/fr/

ISSN 1757-6504 Pambazuka News em Português http://www.pambazuka.org/pt/

© 2008 Fahamu - http://www.fahamu.org/