60 People, 60 Stories

The art of investing

By Dr Ray Yip (China Daily)
Updated: 2009-09-30 08:27

Charity organizations are representing those with the fewest resources for access to the opportunities they need to succeed in school and in life.

Philanthropy is an art of investment, for the simple reason that poor people do not have a position in the market. That is why few invest in products for the most vulnerable.

Dr Ray Yip is China director of the Bill & Melinda Gates Foundation.

There are two ways to manage charity work. The first is short term. For example, some charities help those most in need by offering money and materials. The second focuses on the long-term effect by advocacy and supporting work to build up a system that can benefit a larger community.

Both short-term and long-term ways of "investment" are important and should be complementary. But even one of the world's most financially stable charity foundations, with an endowment of $30.2 billion, would not be enough to save the poor and sick in Zimbabwe in a year. Offers of direct donations are not sustainable.

The Bill & Melinda Gates Foundation believes in investing in upstream, such as research in science and technology, to produce good products that can be promoted to the public. One of our principles reads: We take risks, make big bets and move with urgency. We are in it for the long haul.

Like in the business world, philanthropy also needs partnerships.

I have been working with the government and civil society by addressing key global health issues while supporting the planning and development of major foundation projects.

I am often asked why the foundation chose China as one of its four locations outside its headquarters in Seattle, Washington. The answer is simply that China is one of our special tasks. We are here to work with the Chinese government, with preference in raising advocacy and communication rather than big investment.

China, with its economic development at a crucial moment, its practices and lessons learned, can be also a good example for other developing countries.