4 Ways To Spend $60 Billion Wisely

by William Easterly

In the world of philanthropy, development and foreign aid, it’s not as easy as it sounds. So here are some humble bits of advice for the new Bill and Melinda Gates/Warren Buffett Axis of Altruism:1 The business world and the developing world are worlds apart. Your success in business may make you underestimate the challenges of helping the world’s poorest populations. Just remember, you’ve thrived in the United States, the world’s most dynamic capitalist economy, where people face clear market incentives to invest in your companies and to deliver your products to paying customers. Now, however, you are one of the biggest players — bigger than the generous foreign aid programs of Denmark and Finland combined — in the development business, which is one of the world’s most dysfunctional and bureaucratic industries, and one aimed at helping some of the most dysfunctional and bureaucratic economies.