Bill Gates, The Mexican

Bill Gates was surpassed in wealth last year by Carlos Slim-Helú, the Mexican billionaire most famous for his position in America Móvil, a Latin America wireless provider.  Instead of putting all his resources into a non-profit foundation, as has Gates, Slim believes that he can wield the power of his businesses to best foment positive change for the lowest quartile of the world’s income.  For instance, building out a wireless network to serve underserved populations might allow fisherman from deep in the Amazon to find out about fish prices downriver, enabling commerce to better serve the local and regional population, as well as allowing communication to facilitate commerce and even payments.  Many people in the third world will experience their first bank account as a wireless payment-enabled cellphone.

Bill Gates has taken a different approach, instead funneling his wealth to the Gates Foundation, which spends money on global health and poverty programs.  Critics berate the Foundation for owning equity positions in firms that aren’t socially responsible.  For example, consider a health clinic sponsored by the Gates foundation in wartorn Chad.  The Foundation might also own a toxic-gas-spewing oil refinery 10 miles away, in-effect poisoning the same people the Foundation wants to help.

This conflict of interest is a tricky situation for any large foundation that invests money.  Socially responsible investing is not black and white, and finding every little conflict in an investment takes a lot of effort and is, at some point, incrementally futile.  The more you dig, the more dirt you find, and the less possible candidates for investments there are.  Not easy when your foundation needs to invest some $40+ billion.

Today, in a speech in Davos at the World Economic Forum, Gates outlined his belief that business can do more to help the underserved, essentially stealing a trick from his pal Slim-Helú.

Perhaps Mr. Gates, in being passed up by the Mexican billionaire, has had a sort of epiphany.

But don’t expect Bill to rock a sombrero anytime soon.

Gates Argues That A New Form Of Capitalism Can Save The World – TechCrunch 

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