Democratic Capitalism and Philanthropy in a Global Economy
AbstractDemocratic capitalism has become the popular paradigm in the modern world, and it is spreading further through globalization. It is a model based on growth, expansion and constant innovation. However, it is accompanied by social problems which may worsen despite overall gains in wealth. In this paper, we suggest that democratic capitalist societies may benefit from the application of what has been a primarily American institution: Philanthropy. We present the Entrepreneurship-Philanthropy Cycle, which demonstrates the relationship between wealthy entrepreneurs, philanthropic contributions and economic opportunity. As a nonmarket and nonstate mechanism, philanthropy is unique in its structure and operations, and may offer the ideal approach to solving social problems. We suggest that both the internationalization of American foundations, and the growth of domestic philanthropy, can help developing countries offset social problems.
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Bibliographic InfoPaper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2007-056.
Date of creation: 12 Sep 2007
Date of revision:
Philanthropy; entrepreneurship; democratic capitalism; foundation; social problems; India education; social innovation;
Find related papers by JEL classification:
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- P10 - Economic Systems - - Capitalist Systems - - - General
- I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-09-16 (All new papers)
- NEP-CWA-2007-09-16 (Central & Western Asia)
- NEP-ENT-2007-09-16 (Entrepreneurship)
- NEP-HIS-2007-09-16 (Business, Economic & Financial History)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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"The Entrepreneurship-Philanthropy Nexus: Nonmarket Source of American Entrepreneurial Capitalism,"
Jena Economic Research Papers
2007-025, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
- Zoltan J. Acs & David Audretsch & Ronnie J. Phillips & Sameeksha Desai, 2007. "The Entrepreneurship-Philanthropy Nexus: Nonmarket Source of American Entrepreneurial Capitalism," Papers on Entrepreneurship, Growth and Public Policy 2007-09, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
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