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Social investment offers hope in UK's 'fiscal wasteland'

26 January 2010
Michael Green

Former civil servant and co-author of The Philanthrocapitalist Manifesto Michael Green

'In today's post-crisis fiscal wasteland, spending more is simply not an option. Yet nor is abandoning the young, the poor, the elderly and the vulnerable'

 

The Philanthrocapitalist Manifesto

The Social Investment Task Force should be reconvened so the enormous potential of social investment can be realised to tackle deprivation, according to a new manifesto.

Launched last night, The Philanthrocapitalist Manifesto was written by former civil servant Michael Green and US business editor of The Economist Matthew Bishop. Together they have also written a book called Philanthrocapitalism: how giving can save the world.

Green told Social Enterprise that the manifesto was put together because none of the political parties had embraced philanthropy or social investment as part of the solution to the UK's social problems.

The manifesto states: 'In today's post-crisis fiscal wasteland, spending more is simply not an option. Yet nor is abandoning the young, the poor, the elderly and the vulnerable.

'Britain needs to find new, more effective ways to tackle the social challenges of the 21st century.'

Green said: 'There is enormous potential in the rise of the social investment movement. The government now needs to do more to move on from the original Social Investment Task Force, which was now ten years ago.'

The manifesto calls for a number initiatives to fulfil the potential of social investment and philanthropy to tackle social problems:

  • The government should reconvene the Social Investment Task Force with a remit to develop proposals for a social equity market, including a social stock exchange.
  • The government should accelerate the implementation of social investment initiatives such as the social investment bank, and widen the pilot programme for social impact bonds.
  • Foundations should lead the social investment movement through active 'mission-related investment' of their endowments. The manifesto states: 'Most foundations still think of their endowments as a source of investment income to fund grantmaking rather than a strategic asset that can be used for social benefit.'

Green said that the aim of the manifesto was to spark debate. Read more here.

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