The elea Way - Preview

elea’s FOUNDATION AND OPER ATING MODEL

1 04

economist Dean Karlan and researcher Jacob Appel refer to a study in India which revealed that a high proportion of microcredits were being used to pay off other debts, rather than to make investments into new entrepreneurial ventures, and that the empowerment of women as a result was not all that clear (Karlan & Appel, 2012, p. 78ff.). The study concluded the obvious, namely that granting credit is a means, not an end, and that somebody does not automatically become an entrepreneur just by having money. 5. For this section see (Wuffli, 2016), 3.4, and 3.5. 6. Whenever we refer to “liberal” in this book, we mean it in the continental European sense (i.e., those who favor individual liberty, free markets, responsibility, and a limited scope of interference by the state). 7. For a perspective on this debate that is rooted in liberal thinking and argues that a deeper look into the causes and dynamics of inequality is warranted, see: (Deaton, 2013). 8. See also: (Reich, 2018). In his critical analysis of philanthropy in the U.S., Reich challenges why donations to schools in wealthy communities that essentially benefit the children of wealthy families should be tax deductible, as they do not benefit society overall. Quite the contrary, they help to increase inequality within the U.S. and, thus, fail democracy, in Reich’s opinion. 9. For another recent and highly critical review of philanthropy, see: (Giridharadas, 2018). The author fundamentally challenges philanthropy for cementing the status quo rather than encouraging radical change in society. He argues in his book that donations by the wealthy help to maintain the status quo rather than encourage radical changes. 10. As elea does not engage in retail fundraising, and, therefore, spends very little on marketing, our administrative expenses are very limited. 11. Among the new initiatives launched as part of this effort was the creation of the elea Center for Social Innovation and the professorial elea Chair for Social Innovation (currently held by Professor Vanina Farber, who co-authored this book) at IMD. References Acemoglu, D., & Robinson, J. (2013). Why Nations Fail - The Origins of Power, Prosperity, and Poverty . New York: Currency. Balandina Jaquier, J. (2011). Guide to Impact Investing: For Family Offices and High-Net-Worth Individuals: Managing Wealth for Impact and Profit.