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'No Such Thing As a Free Gift' Casts a Critical Eye At Gates Foundation (theintercept.com)

theodp writes: The Intercept's Michael Massing takes a look at "How the Gates Foundation Reflects the Good and the Bad of 'Hacker Philanthropy." He writes, "Despite its impact, few book-length assessments of the foundation's work have appeared. Now Linsey McGoey, a sociologist at the University of Essex, is seeking to fill the gap. 'Just how efficient is Gates's philanthropic spending?' she asks in No Such Thing as a Free Gift. 'Are the billions he has spent on U.S. primary and secondary schools improving education outcomes? Are global health grants directed at the largest health killers? Is the Gates Foundation improving access to affordable medicines, or are patent rights taking priority over human rights?' As the title of her book suggests, McGoey answers all of these questions in the negative. The good the foundation has done, she believes, is far outweighed by the harm." Massing adds, "Bill and Melinda Gates answer to no electorate, board, or shareholders; they are accountable mainly to themselves. What's more, the many millions of dollars the foundation has bestowed on nonprofits and news organizations has led to a natural reluctance on their part to criticize it. There's even a name for it: the 'Bill Chill' effect."

34 of 156 comments (clear)

  1. Re:She's Wrong. by edibobb · · Score: 5, Insightful

    Maybe they can do much more good without jumping through the bureaucratic hoops. It's their money. Why do they need to account to Linsey McGoey for the way they spend it?

  2. It's their money... by fred911 · · Score: 4, Insightful

    "Bill and Melinda Gates answer to no electorate, board, or shareholders; they are accountable mainly to themselves."

    What makes anyone think they have a right to an accounting?

    --
    09 F9 11 02 9D 74 E3 5B - D8 41 56 C5 63 56 88 C0 45 5F E1 04 22 CA 29 C4 93 3F 95 05 2B 79 2A B2
    1. Re:It's their money... by Anonymous Coward · · Score: 5, Interesting

      If the foundation is actually doing harm, rather than good, then people should know this and raise a fuss about it so that the directors hear it, if nothing else.

      Charity can be complex, as it turns out. Authentic efforts at providing aid can have unintended consequences. One poignant example is giving free food to communities that are on the edge of starvation. The side effect is that, people eat the free food and spend their pennies on something other than food, which instantly bankrupts the local farmers. It takes quite a long time before the farmers can set up shop again, so now where there was a barely-sufficient food supply, there is no food supply at all, and the dependence on charity is even greater.

      The most effective charity efforts are ones that increase the community's ability to self-sustain. This means increasing their general level of economic activity. Microcredit has a very good track-record at doing this, but is commonly (and incorrectly) criticized as a means of making money off poor people, and of burdening them with financial debt in addition to their other woes. When done right, micro credit has neither of these effects, and much better long-term benefits than just giving away free food.

      Surprisingly, giving away free money has actually been shown to promote healthier, more self-sustaining economies. People think "those poor people will just spend it on booze" which might make sense in a first world country where "the poor" are the mentally-diseased bums that can never and will never hold a job. In reality, when free money is given to members of poor communities, they treat it like gold and use it very wisely.

      My two cents.

    2. Re:It's their money... by Threni · · Score: 2, Insightful

      Always people sitting around doing fuck all, criticising others. "Personally, if I'd earned billions of dollars and was going to spend it on other people, I'd do it this way".

      FUCK OFF! Nobody cares!

    3. Re:It's their money... by Anonymous Coward · · Score: 2, Insightful

      So the problem is that they're not communists?
      Are we supposed to be shocked that the reason a rich guy is giving away money is not because he thinks someone should have taken it away?

    4. Re:It's their money... by phantomfive · · Score: 2, Insightful

      I think it's more a problem of people saying, "Since they are not solving the problems that I see, they are not solving problems and therefore bad."

      Kind of like the blind men holding on to different parts of the elephant, and each describing it drastically differently. We all see different problems in the world because we have different viewpoints.

      For myself, I think the problem of inequality is impossible to solve, and I would not even attempt it. I am willing to fight against poverty, and I do put resources and effort into that problem. That said, if someone else wants to try, good for them.

      --
      "First they came for the slanderers and i said nothing."
    5. Re:It's their money... by TapeCutter · · Score: 2

      Proving once again that "no good deed goes unpunished".

      --
      And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
    6. Re:It's their money... by pepty · · Score: 4, Informative

      What makes anyone think they have a right to an accounting?

      Tax laws. As a tax exempt organization, they have to release their 990 at a minimum. Here you go: http://www.gatesfoundation.org... People who donate should expect more information, but the Gates foundation does not solicit donations. Since no one has addressed McGooey's concerns on Gates' spending on public health:

      As McGoey briefly acknowledges, the foundation’s investment of more than $15 billion in this field “has done considerable good.” That seems an understatement. Thanks in part to the Gateses’ strong investment in vaccines for infectious diseases, deaths from measles in Africa have dropped by 90 percent since 2000. Over the last quarter century, tuberculosis mortality worldwide has fallen by 45 percent, while over the last dozen years the number of new malaria cases has dropped by 30 percent. And polio, which in 1988 was endemic in 125 countries, is today endemic in only two. The foundation has also played an important part in fighting the spread of HIV and helping those infected with the virus to lead productive lives. For this, Bill and Melinda Gates deserve much credit.

      The question is, has this been the best use of their money? As McGoey notes, chronic diseases, as opposed to communicable ones, exact a staggering toll worldwide, yet the foundation has invested less than 4 percent of its funding in research on them, and the global health community has largely followed suit. “The failure to combat obesity, cancer and heart disease epidemics in poor nations,” she observes, “has been one of the most glaring mistakes of global development efforts in recent years.”

      So she agrees they have spent their money very effectively, but criticize them for not trying to fix problems in third world countries that have proven to be intractable in first world countries.

      Hokeydokey.

      The Gates Foundation hasn't cured cancer, heart disease, or the obesity epidemic, therefore it is ineffective. Then she criticizes them for not creating primary care infrastructure in third world countries. Until recently, that is, when they started spending money on creating primary care infrastructure.

    7. Re:It's their money... by bws111 · · Score: 2, Insightful

      A favorite target of the 'inequity' crowd seems to be Walmart. And why not, after all their average employee makes about $15K/year, while the CEO makes $26M. Until you do math, that is. There are 2.2M employees. Paying the CEO the same as everyone else, assuming you could find someone to do the job, would result in an extra $10 PER YEAR for each employee. Man, that is sure going to make their lives better.

    8. Re:It's their money... by phantomfive · · Score: 2

      The reasoning behind the inequality movement isn't to help the poor people, rather it's to prevent the rich from having too much power. If you limited the salary of the Walmart CEO to $3million a year, he would still be rich, but wouldn't have as much money to manipulate the government.

      That is the theory, anyway.

      --
      "First they came for the slanderers and i said nothing."
  3. Re:She's Wrong. by doconnor · · Score: 5, Insightful

    The government run school systems and aid agencies have to account for how the money is effecting them.

    Also, Linsey McGoey is fully in her rights to critique how they spend it.

  4. Book misses major points by JoshuaZ · · Score: 5, Insightful
    One of the big apparent complaints is Gates focus on infectious rather than chronic diseases. From the article:

    The same is true when it comes to the foundation’s work in public health. As McGoey briefly acknowledges, the foundation’s investment of more than $15 billion in this field “has done considerable good.” That seems an understatement. Thanks in part to the Gateses’ strong investment in vaccines for infectious diseases, deaths from measles in Africa have dropped by 90 percent since 2000. Over the last quarter century, tuberculosis mortality worldwide has fallen by 45 percent, while over the last dozen years the number of new malaria cases has dropped by 30 percent. And polio, which in 1988 was endemic in 125 countries, is today endemic in only two. The foundation has also played an important part in fighting the spread of HIV and helping those infected with the virus to lead productive lives. For this, Bill and Melinda Gates deserve much credit.

    So far so good.

    The question is, has this been the best use of their money? As McGoey notes, chronic diseases, as opposed to communicable ones, exact a staggering toll worldwide, yet the foundation has invested less than 4 percent of its funding in research on them, and the global health community has largely followed suit. “The failure to combat obesity, cancer and heart disease epidemics in poor nations,” she observes, “has been one of the most glaring mistakes of global development efforts in recent years.” An equally serious shortcoming has been the neglect of primary-care facilities in the developing world. The initial problems that the nations of West Africa faced in combating the Ebola outbreak stemmed in part from the weaknesses in their overall health systems. Interestingly, in late September, the Gates Foundation, together with WHO and the World Bank, announced a joint partnership aimed at improving access to primary care in poor and middle-income countries — a dramatic (if tacit) acknowledgement that the emphasis on fighting individual diseases has been too narrow.

    The primary reason it makes sense to focus on infectious diseases is that once they are gone, they are completely gone. Obesity and other problems don't go away permanently. In contrast if we wipe out malaria or polio, we won't have to deal with it again.

    Note also that every single one of the other major criticisms acknowledges that it is something that the Gates have changed already. For example, the article discusses how a number of the Foundation's early attempts at education reform didn't work well. But they changed what they were doing. So they are already using effective evaluations and metrics to decide things.

    I find it deeply unfortunate that someone spent an entire book criticizing the Gates Foundation when there are far more clear cut wastes of money out there. The Make a Wish Foundation is an example. They spent 58 million dollars last year http://www.charitynavigator.org/index.cfm?bay=search.programs&orgid=4038#.VljSXnsyH3U and millions more came from businesses in parts of wishes to help a tiny number of dying children, whereas if that money was spent effectively on cancer research, there would be fewer children dying. Instead we have an entire book focusing on one of the most effective and efficient charities in on the planet which complains that they aren't efficient enough.

    1. Re:Book misses major points by Anonymous Coward · · Score: 2, Insightful

      Thanks for posting this. It reaffirms my initial thought that this was risible criticism. If anything, the quoted text makes me realize I was too kind and it's not just silly it's actually maliciously stupid.

      So because the Gates spent billions saving actual lives that can be counted and measured they are wrong because instead they should invest money in things that already receive a lot of funding and have been studied for _decades_ like obesity, cancer, etc...

      ...because... that way at the end of the day the Gates will have saved probably 0 lives (cancer and especially obesity are both nearly intractable) versus having literally saved what, millions? Or does she think Gates has infinite money and can spend what he spends now on communicable disease and also spend equally on fucking obesity? Or maybe she thinks if he splits it 50/50 more people won't fucking LITERALLY DIE?

      I'm actually spluttering rage right now. How fucking stupid. If I was Gates I would take it personally and use a small portion of my money to ruin this bitch's life.

  5. The problem is that nothing they give is free... by Anonymous Coward · · Score: 5, Insightful

    It always has strings attached.

    Money provided for:
    education - only Microsoft software used.
    medical - buy only from specific companies or research is still owned by the companies...

    As far as is visible, they are just an extension of Microsoft, but without taxes.

  6. Re:She's Wrong. by Anonymous Coward · · Score: 3, Insightful

    The government run school systems and aid agencies have to account for how the money is effecting them.

    It seems the Gates Foundation didn't fund your school enough.

  7. Shorter version by Kohath · · Score: 5, Insightful

    If you save thousands of people from being killed or maimed by measles, polio, malaria, and other diseases in Africa, but you don't bow your head to the left's concerns over patents, then those people you helped don't matter. You must advance the cause. And the cause is about money, not about whether children are crippled by polio or die of measles.

    And the experiments to improve education threaten to disrupt the cash flow from teachers' union dues. Stop those too.

  8. Books thesis by phantomfive · · Score: 5, Insightful
    Here is the book's thesis:

    The good the foundation has done, she believes, is far outweighed by the harm

    The Gates foundation mainly spends money on education and healthcare. In healthcare, the Gates foundation has spent $15 billion on improving vaccines, etc. This (and money from other sources) has resulted in a reduction of deaths by measles in Africa by 90%. Polio, tuberculosis, and HIV have all been reduced, thanks in part to the Gates foundation.

    So what's the problem? According to the author, "The failure to combat obesity, cancer and heart disease epidemics in poor nations,” she observes, “has been one of the most glaring mistakes of global development efforts in recent years." So maybe they could have allocated their resources better.

    In education, the author is upset that the Gates foundation spent money on things that didn't work. For example, they spent billions to create small schools based on the idea that it would give students more personalized attention. Unfortunately, that didn't improve college acceptance rates, so Gates ended the program.

    If the author thinks that "dropping/modifying a program when data indicates it doesn't work" is a bad thing, then I'm forced to disagree heartily with her. In fact, if the only thing accomplished by the Gates foundation is to get people to do that more often, then it will be a huge success as far as I'm concerned. And I'm no fan of Gates.

    --
    "First they came for the slanderers and i said nothing."
    1. Re:Books thesis by hey! · · Score: 3, Insightful

      Well, having worked in both the non-profit sector and in public health, I think the criticisms of the Gates Foundation's public health efforts are malarkey. It's basically an opportunity cost argument and by that standard virtually every charitable foundation is wanting. Why are you spending money on the ballet when there are kids who can't read? Why are you spending money on literacy education when there are kids who don't have enough to eat etc. The problems of the world are endlessly varied and complex, and you can't ask much more of anyone than that they pick a spot and take a whack.

      That said, the idea that spending money on infectious diseases is wasteful is particularly inane. Sure, in some places obesity may result in more premature deaths than malaria, but the fact is nobody really knows how to effectively fight an "obesity epidemic", whereas malaria is clearly eradicable -- and once it's gone, it's gone forever, because P. falciparum has no natural host other than humans. The same goes for communicable diseases for which we have vaccines; we know how to fight those cost effectively, even eradicate them in many cases. The missing piece of the puzzle is money.

      Now criticism of the foundation's education efforts is a lot more warranted. Just like everybody thinks they're qualified to design a website because they have opinions about which sites they like and don't like, everyone thinks they're qualified to redesign the educational system because they went to school. The difference is that Gates has the money to make his bad ideas materialize. It may be hacker philanthropy, but most attempts at "hacks" result in kluges.

      So overall it's a mixed bag. While you do have to give props to Gates for being "the man in the arena", sometimes, unlike in Teddy Roosevelt's famous speech, the man in the arena's failings don't fall exclusively on himself. So while philanthropy is admirable in itself, where the philanthropist's activities impinge on areas of public policy like education his actions should be held up to scrutiny like anyone else's.

      --
      Post may contain irony: discontinue use if experiencing mood swings, nausea or elevated blood pressure.
  9. Easily digestible. by Anonymous Coward · · Score: 2, Insightful

    Wow, this book is a Slashdotter's wet dream. I haven't read it, but if they include conspiracy theories about how Bill is actually somehow making more money off his donations, there will be a whole lot of splooge expelled while reading this book.

    First, it's his money, worst case he's putting it back in the economy to people who need it more. Second, no matter what course of philanthropic work you take there will be some way for someone to criticize it. It's similar to how conspiracy theories work. People ignore the _mountain_ of evidence for an event's explanation and instead nitpick on small details in a chaotic situation. "OMG the firefighter said something slightly off while sitting around in 9/11 chaos, it proves that it was a conspiracy!". Sorry, real life isn't all 1s and 0s.

    Sounds like some idiot who thinks they could do so much more good with someone else's money cherry-picking a bunch of bitter gripes.

  10. Re:It's a Criminal Organisation by bloodhawk · · Score: 4, Insightful

    LOL dude you don't have a fucking clue how tax works do you? this article is really really bad, reads like a whine fest of "they aren't focusing on the areas we want them to therefore anything good they do is outweighed by not doing what we want". She is more than free to create and fund her our foundation and focus on the ills she believes haunts the world instead of bitching about others that are actually trying to help

  11. Re:Fail fast and fail often by phantomfive · · Score: 2

    The fail-fast and fail-often approach could be criticized when applied to human beings.

    The only criticism I could reasonably see is that the children were harmed when the school was shut down too quickly. This doesn't seem to be the case, though....the students seem to have been transferred back to larger schools.

    Does the book recommend the fail fast approach?

    It should.

    --
    "First they came for the slanderers and i said nothing."
  12. Re: She's right. by Anonymous Coward · · Score: 2, Funny

    You're calling him an idiot and you didn't even notice the club?

  13. Re:David Koch and NPR by Anonymous Coward · · Score: 3, Informative

    Nova

    Looks like you lied. I'm the guy that fact checks liberals when they claim something that is black/white and can be without spin. Nearly 100% rate at proving them liars.

  14. Ahh yes by Sycraft-fu · · Score: 3, Insightful

    "They are acting liberal but not liberal ENOUGH! They don't subscribe to precisely my kind of politics, so I need to hate on what they do."

    People like the author piss me off. They aren't interested in any actual good, they are just interested in their agenda being pushed.

  15. Re:Oh really? by reboot246 · · Score: 2

    They're surrounded by water and they still ration fish. Wow, what efficiency!

  16. Re:Oh really? by fustakrakich · · Score: 4, Insightful

    California is on the coast and they're rationing water...

    --
    “He’s not deformed, he’s just drunk!”
  17. Re:It's a Criminal Organisation by bws111 · · Score: 2

    What a crock. Everyone has their own reasons for doing whatever they do. Some people do good things to please another person, some do them because they believe in an afterlife, some do them for their own egos, some do them to look good. Who the fuck cares what the motivation is? Important things are being done, and people's lives are better for it.

    Then there are people like the author, and you, who try to build up their own pitiful egos by tearing down others. The only difference in the two approaches is that the philanthropist actually accomplishes something positive for others, and you don't.

  18. Gates Foundation and Indian Television by bayankaran · · Score: 4, Interesting

    Last week I was at a post production studio in Mumbai. The editor was working on an Indian Hindi TV series - MAIN KUCH BHI KAR SAKTHI HOON (I Can Do Anything.) https://www.youtube.com/user/mkbksh
    The show is set in rural India, follows the usual Hindi or Indian cinema/television melodramatic hyperventilating style. Here is the beef...rather than inane plots on good versus evil, bad mother in laws and familiar Indian TV soap tropes, this show had female protagonists who were bucking the system and bringing out change in the society.
    The familiar style they used made sure a majority of the audience will feel comfortable.
    Gates Foundation was one of the Producers. This is thinking out of the box...you need a bit of 'good old propaganda' to support you when you go to rural communities to change their perception on unhealthy practices.

    --
    Tat Tvam Asi
  19. Re: Oh really? by chispito · · Score: 4, Informative

    I realize you're being facetious, but I still want to remind people that the Golden State produces a ridiculous percentage of the country's produce that is not corn or wheat. That's where most of the water goes, even during severe droughts. http://www.slate.com/articles/...

    --
    The Daddy casts sleep on the Baby. The Baby resists!
  20. Bill Gates failed elementary statistics by bingoUV · · Score: 3, Interesting

    For all his "geek" status, Bill Gates (with his foundation) failed elementary statistics. He succumbed to the law of small numbers and idiotically pushed for smaller schools for a long period spending a lot of time, money and energy convincing policy makers that the small schools will make students better.

    They thought so only because frequently among the best performing schools were small schools. Idiots didn't notice that among the worst performers were ALSO small schools - small samples just lend themselves to a higher variability.

    Read details here - http://marginalrevolution.com/...

    If a lot of money is spent by non-accountable idiot organizations , it is not only not good for society but actively harmful.

    --
    Bingo Dictionary - Pragmatist, n. A myopic idealist.
    1. Re:Bill Gates failed elementary statistics by AthanasiusKircher · · Score: 2

      For all his "geek" status, Bill Gates (with his foundation) failed elementary statistics. He succumbed to the law of small numbers and idiotically pushed for smaller schools for a long period spending a lot of time, money and energy convincing policy makers that the small schools will make students better.
      ...
      If a lot of money is spent by non-accountable idiot organizations , it is not only not good for society but actively harmful.

      While this did happen, what's your alternative? We could "do nothing," and simply live with the current system, where things don't get better.

      Or, I suppose we could depend on an "accountable" organization. Like what? Government is the most common answer.

      Yes, government is "accountable" to voters in a way that a private foundation is not. On the other hand, this "accountability" has very specific effects that can also be problematic, such as:

      - Government is often conservative from a policy perspective by nature, since major change risks alienating voters who have voted for you in the past. Government is thus often slower to adopt changes.

      - Government certainly also screws up in ways just like your Gates Foundation example. I think this is pretty well known.

      - "But," you say, "government is accountable." Yes, but what does that actually mean? What it means is that politicians will do their best to get re-elected. As already mentioned, this tends to work against effective change. It also tends to work against correcting bad change.

      Imagine if the federal government in the U.S. had tried what the Gates Foundation did here. Within a few years, there would be a couple states that got special contracts to manufacture special stuff for these "small schools." Then the senators and representatives from those states would now be invested in this scheme (since the program brought "jobs" to their state, and voters care disproportionately about their jobs, whether the policy is effective or not). So, whether it worked or not -- they would fight to block legislation to dismantle it. Depending on how powerful they are and what committees they are on, it could take decades before a program like this would be dismantled.

      That's what your "accountability" by voters gets you.

      Now, the next possible answer I expect is for you to say, "Well, that's the problem with BIG government. You do things at the federal level, and you get massive bureaucracy. If you instead emphasized LOCAL government, people would have to be in touch with specific effects on the community."

      And that's true to an extent. But the problem with insular small governments is that they often don't have the resources to implement big changes (even if they are needed)... and frankly many of them tend to end up corrupt and dysfunctional as well. Many people have this idealistic vision of local government as the place where "real" governing happens, and only if we gave back most power to small governments, everything would be fixed.

      The problem is that this argument is based on the same statistical flaw you brought up in your post. It's true that many small governments tend to be more responsive and less dysfunctional than the federal government, but that's mostly selection bias. It's very easy for a small local government to be taken over by wackos too, and this happens in a lot of places.

      I'm NOT saying I have better answers or that we shouldn't be concerned about lack of accountability in the Gates Foundation. On the other hand, I think charitable organizations do add something to the mix of new ideas, and sometimes what they do can take the lead for governments. I'm NOT convinced by your argument that they necessarily do more harm to society than good.

  21. Re:She's Wrong. by ShanghaiBill · · Score: 2

    Also, Linsey McGoey is fully in her rights to critique how they spend it.

    Sure, but keep in mind that she has a much bigger incentive to be negative, than to be positive. Far more people will buy her book if she says philanthropy is harmful, since then the readers can feel smug and superior about doing nothing.

  22. Re:It's a Criminal Organisation by nukenerd · · Score: 2

    Gates foundation has saved millions of lives

    You should keep reminding yourself that Gates obtained vast amounts of that money crookedly - I would say the vast majority of it. He and his company found themselves in a position of being able to exploit a monolpoly, and continue with dirty tricks to the preent day.

    So his wealth did not materialise from thin air (or in a differnt analogy, got dug up from hiding in the ground like oil or coal). Most of his wealth came by illicit transfer from other people. How do you know that those other people would not have made better use of their money? I have given money to charities, but they have been charities of my choosing, not Gates'. By your logic, it would be fine if someone robbed banks as long as they dropped some in the charity box on the way out the door.

  23. Re:The problem is that nothing they give is free.. by drinkypoo · · Score: 2

    Medical: When working in 3rd world countries, those strings are absolutely necessary or the money just goes into mansions and swiss bank accounts.

    It's actually much worse. If you don't play the Big Pharma Strong IP game, you can't get help from the Gates Foundation. And if you do, and then you have an outbreak of something expensive to cure in your country, you have two choices. You can make the medication yourself, and eventually end up with the world bank owning your country. Or you can pay whatever the market demands for the medication, and you can end up with the world bank owning your country.

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"