Last year's financial collapse caused some wild-eyed observers to once again proclaim the death of capitalism. As always, the markets decided otherwise. After some severe swings—which made a few savvy investors richer than decades of steady growth—they rallied. Now, as multimillion-pound remuneration packages for bankers hit the headlines once more, things in the City seem to have righted themselves more quickly than expected.
But huge swathes of the real economy are still reeling. Banks may be hiring traders on fat salaries, but many small businesses are struggling to get the short-term assistance they need (for useful tips on cashflow, click here). Worse may still be to come as for the first time in years the reality of mass unemployment means millions face up to tough times ahead.
But even against this bleak background, a positive story is emerging.
Capitalism may not be broken, but people seem convinced that it needs fixing. There is suddenly less conviction that short-term self-interest and greed are the best foundations on which to build an economy. This interest in the long-term implications of our investments and a desire for more sustainable business models may sound soft at heart, but both have roots in the hard-headed, free-market concept of enlightened self-interest. The idea of doing good need not be incompatible with doing well. Even Adam Smith might agree. In his first book, The Theory of Moral Sentiments, he wrote that "humanity, justice, generosity and public spirit are the qualities most useful to others".
This generosity is a theme throughout this issue. From the cover story on the business of philanthropy, to a travel venture that helps Kenyan entrepreneurs, to a group of green-energy entrepreneurs, there's a sense that doing something just for the money is no longer enough. As one green-energy entrepreneur puts it: "If you can make money doing good then you shouldn't be uncomfortable with that."
Philanthropy isn't new, but a new breed of philanthropist has emerged, typified by Bill Gates. Having left Microsoft, he has enlisted fellow billionaires in the so-called "Good Club", dedicating his life and fortune, not to mention his organisational skills and influential network, to try to solve some of Africa's worst problems. This desire to help is one thing that appears unaffected by recession.
Richard Cree
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