Saturday, May 31, 2008

'Forget climate change, we should spend on nutrition' - Times Online

If we could incorporate microfinance issues with these basic health issues, vitamin a, zinc, water, etc, the problem of course is that this creates malthusian conundrums, too many children surviving, which strains an already strained food supply, and other scare resources, which puts them at even higher risk of massive famine,etc and onward into the malthusian spiral.

 
 

Sent to you by john via Google Reader:

 
 

via www.timesonline.co.uk on 5/31/08

Forget climate change, we should spend on nutrition'

A nine-year-old boy rests on a bed at the Catarino Rivas hospital in San Pedro Sula, Honduras

(Edgard Garrido/Reuters)

Malnutrition in mothers and their young children will claim 3.5 million lives this year

Mark Henderson, Science Editor, in Copenhagen

TimesOnline readers' verdict I Panel'srankings in full

Chooseyour own priorities on our interactive table

Issues: conflictl globalwarming l diseasel hungerl terrorism

Malnutrition should be the world's major priority for aid and development, apanel of eight leading economists, including five Nobel laureates, declaredyesterday.

The provision of supplements of vitamin A and zinc to children in developingcountries, to prevent avoidable deficiencies that affect hundreds ofmillions of children, is the most cost-effective way of making the world abetter place, the Copenhagen Consensus initiative has found.

Three other strategies for improving diets in poor nations were also namedamong the top six of 30 challenges assessed by the project, which aims toprioritise solutions to the world's many problems according to their costsand benefits.

Efforts to control global warming by cutting greenhouse gas emissions,however, were rated at the bottom of the league table, as the economistsconsidered the high costs of such action were not justified by the payoffs.Research into new low-carbon technologies, such as solar and nuclear fusionpower, was ranked as more worthwhile, in 14th place.

The previous Copenhagen Consensus, held in 2004, also listed global warming asits lowest priority. The exercise was organised by Bjorn Lomborg, thecontroversial Danish statistician who has long argued that though climatechange is real, current approaches to fighting it offer poor value formoney.

Dr Lomborg said: "This gives us the ultimate overview of how global decisionscan best be made and how we can best spend money to do good in the world.Prioritising is hard. It's much easier to say we want to do everything, butunfortunately we have limited resources. We don't just focus on what'sfashionable, but also on what's rational."

The jury of economists chose to emphasise malnutrition, and micronutrientsupplements in particular, because of the major effects that comparativelymoderate financial investments could have.

Around 140 million children suffer from vitamin A deficiency, which can causeblindness, immune system problems and death, or zinc deficiency, which canstunt growth. Supplements of these nutrients, however, are both effectiveand extremely cheap – at 20 US cents per person per year for vitamin A and$1 for zinc.

For just $60m a year, it would be possible to provide capsules of bothmicronutrients to 80 per cent of undernourished children in sub-SaharanAfrica and South Asia, with benefits worth more than $1bn. "Each dollar doesmore than $17 worth of good," Dr Lomborg said.


 
 

Things you can do from here:

 
 

test


Opportunity International Webinars


Dear Opportunity Partners,
 
Join us for a two part Webinar Summer Series on June 3rd and 17th!  If you would like to join us, just scroll down and follow the instructions.  No need to rsvp.
 


    



Operations 101 and 201 . . . A two part summer series!

We report a 98% loan repayment rate and share stories about lives transformed . . . but how does this happen? This webinar series will answer your questions about our operations and provide you with a better understanding of what happens behind the scenes at Opportunity – both through our programs and with our funding. Join us and bring your questions!
Tuesday, June 3rd at 12:00 noon central time
Part I - Operations 101: How do we do it?
Learn how Opportunity International grew to serve 1 million loan clients a year: how loans are made, how loans are used and the role of the loan officers who work with our clients to make it all happen.  We will also discuss why banking has become such an important part of our future and how savings is creating opportunities for even more entrepreneurs to benefit from an Opportunity International microloan.  
Tuesday, June 17th at 12:00 noon central time
Part II - Operations 201: Where does the funding come from?
How do we fund our work? During this session you will learn about how we raise the funds necessary to support our work – both through private donations and investment capital. We will also cover corporate fundraising and share how we land those large grants from foundations like the Gates Foundation. Join us prepared to ask how you as governors can help secure this funding.
 
Follow these easy instructions to participate in the Webinar:
 
To test your computer:
At any time prior to the Webinar, you can click the link below to test your connection and make sure your Internet Explorer is set up to participate.  We are using Java.  While most computers already have Java installed, yours may not.  In that case, you will need to install Java.  This will only take a few seconds.  This link will quickly lead you through the installation process.  http://smys5.civi.com/test.html <http://smys5.civi.com/test.html>
To participate:
Step One:
To assure that you will have a successful Web Presentation experience, we recommend that you log on to the power point presentation by clicking on this link http://civi.com/opp1 <http://civi.com/opp1>   about 15 minutes in advance of the presentation. This way you will be sure that your system is compatible with ours before the presentation starts. (For those who like to prepare way in advance, note that you cannot access our page earlier than 11:45 on the day of the presentation.)
 
Step Two:
At 12:00 noon central time call the below phone number. There is no pass code needed. The operator will ask for your first and last name.  This will get you hooked up to the call so that you can hear the presentation and participate in the Q and A session during the call.  Phone Number: 866-548-2699.  You can call in a few minutes early if you like.  [For those dialing from outside the U.S. and Canada, dial 904-596-2360.]
 
If you do not have access to a computer you can always call in and listen to the presentation!

If you need assistance, call our Civicom special tech support person at 877-211-0224 and enter Pass code: 592 821.  (Outside the U.S./Canada, dial: +1-847-597-8069 and enter Pass code: 592 821.) .
 
If you want more detailed instructions, scroll down below my signature.

We look forward to having you on the call with us!
(If you are interested in learning more about or joining our Board of Governors, please let me know.)
 
Sarah Tesch
Manager, Opportunity Partners



Opportunity International
Direct | 630.242.4137
Toll Free | 800.793.9455 x 4137     Fax | 630.645.1458
Email | stesch@opportunity.org <mailto:MyEmail@opportunity.org>     Web | www.opportunity.org <http://www.opportunity.org/>
2122 York Road | Suite 150 | Oak Brook, IL 60523


 
Detailed Webinar Log-in Instructions

1. Simply click on http://civi.com/opp1 Internet Explorer will open, showing you the following:

2. Type in your name and click “next”
3. Your computer will test for Java and you should see something similar to the following:
(If you do not have Java currently installed, it will walk you through installing it.)

4. Click “next”
Your screen should now show the presenter’s screen.
 
If you see the following, it is because you have a “pop-up blocker” (which many of us have due to the Google toolbar):
Simply click where it says “click here to see the host’s screen” and you will then see the presenter’s screen.

 
 
 


------ End of Forwarded Message

Wednesday, May 28, 2008

microfinance meeting

Date: Thursday, May 29th
Time: 5:30pm - 7:00pm
Place: Room 209 on the North end of the CHA building

Willow Creek Medical Trip To Zambia - June/July 2008

This is from the Willow Creek, S. Barrington website under Global Connections. Thought this might be of special interest to John. Maybe John, you even know the MD who's leading the group? ~ Nike

Zambia Medical Team
We have formed a Medical Team to Zambia for June 20 - July 5, 2008. Mike Marschke, MD is leading this team .... Mike currently is a palliative care physician at the University of Chicago and participated in the WCCC medical assessment trip to Zambia in 2007. The team will be serving in Samfya, Zambia alongside our ministry partners . The focus of the trip is to assist in starting up a general medical clinic, the education of medical personnel and volunteers, and also to provide general medical care to the community.

Monday, May 19, 2008

Tony Campolo's Weekly Podcasts

Here is the website for Tony Campolo's weekly podcasts:

feed://feeds.feedburner.com/TonyCampoloPodcast

These are also available on ITUNES.

World’s Poor Pay Price as Crop Research Is Cut - New York Times



 
 

Sent to you by john via Google Reader:

 
 

via www.nytimes.com on 5/17/08

May 18, 2008
The Food Chain

World's Poor Pay Price as Crop Research Is Cut

LOS BAÑOS, Philippines — The brown plant hopper, an insect no bigger than a gnat, is multiplying by the billions and chewing through rice paddies in East Asia, threatening the diets of many poor people.

The damage to rice crops, occurring at a time of scarcity and high prices, could have been prevented. Researchers at the International Rice Research Institute here say that they know how to create rice varieties resistant to the insects but that budget cuts have prevented them from doing so.

This is a stark example of the many problems that are coming to light in the world's agricultural system. Experts say that during the food surpluses of recent decades, governments and development agencies lost focus on the importance of helping poor countries improve their agriculture.

The budgets of institutions that delivered the world from famine in the 1970s, including the rice institute, have stagnated or fallen, even as the problems they were trying to solve became harder.

"People felt that the world food crisis was solved, that food security was no longer an issue, and it really fell off the agenda," said Robert S. Zeigler, the director general of the rice institute.

Vital research programs have been slashed. At the rice institute, scientists have identified 14 genetic traits that could help rice plants survive the plant hopper, which sucks the juices out of young plants while infecting them with viruses. But the scientists have had no money to breed these traits into the world's most widely used rice varieties.

The institute is the world's main repository of rice seeds as well as genetic and other information about rice, the crop that feeds nearly half the world's people.

But nowadays at the International Rice Research Institute, greenhouses have peeling paint and holes in their screens and walls. Hallways are dotted with empty offices. In the 1980s, the institute employed five entomologists, or insect experts, overseeing a staff of 200. Now it has one entomologist with a staff of eight.

"We've had an exodus here," said Yvette Naredo, an assistant geneticist.

Similar troubles plague other centers in Asia, Africa and Latin America that work on crop productivity in poor countries. Agricultural experts have complained about the flagging efforts for years and warned of the risks.

"Nobody was listening," said Thomas Lumpkin, director general of the International Maize and Wheat Improvement Center in Mexico.

Now, a reckoning is at hand. Growth of the global food supply has slowed even as the population has continued to increase, and as economic growth is giving millions of poor people the money to buy more food.

With demand beginning to outstrip supply, prices have soared, and food riots have erupted that have undermined the stability of foreign governments. World leaders are scrambling to respond. On May 1, President Bush asked Congress for an extra $770 million to pay for food aid and to help farmers improve their productivity.

But cuts in agricultural research continue. The United States is in the midst of slashing, by as much as 75 percent, its $59.5 million annual support for a global research network that focuses on improving crops vital to agriculture in poor countries. That network includes the rice institute.

Robert Bertram, who oversees the funding for the United States Agency for International Development, said he was still trying to stop the cuts and argued that research to improve crop yields was "like putting money in the pockets of poor people, and I mean billions of poor people."

The Agency for International Development is the primary vehicle for the American government to finance development projects abroad. James R. Kunder, its acting deputy administrator, said the agency hoped to reconsider the cutbacks if Congress allows extra money.

Crop by crop and country by country, agricultural research and development are lagging.

The center in Mexico has created drought-tolerant corn for Africa and higher-yielding, disease-resistant wheat for South Asia. But it does not have the money to get the varieties into the hands of poor farmers.

In Africa, where yields have remained stagnant since the 1960s, efforts to bolster them have been hampered by cuts not only in research but also in programs like fertilizer distribution.

Even in the United States, long a world leader in agricultural research, some money has been shifted away from crop-productivity work into issues like nutrition and food safety.

The biggest cutbacks have come in donations to agriculture in poor countries from the governments of wealthy countries and in loans from development institutions that the wealthy governments control, like the World Bank. Such projects include not only research on pests and crops but also programs to help farmers adopt improved methods in their fields.

Adjusting for inflation and exchange rates, the wealthy countries, as a group, cut such donations roughly in half from 1980 to 2006, to $2.8 billion a year from $6 billion. The United States cut its support for agriculture in poor countries to $624 million from $2.3 billion in that period.

"Agriculture has been so productive and done so well, people have kind of lost sight of how fragile it really is," said Jan E. Leach, a plant pathologist at Colorado State University who works with rice. "It's as if we have lost track of the fact that food is linked to agriculture, which is linked to human survival."

Cooperation on Crops

Agricultural research and development work is never done. The demand for food keeps growing. Insects and plant diseases adapt, overcoming efforts to thwart them.

In the 1960s, population growth was far outrunning food production, threatening famine in many poor countries. But then wealthier nations joined forces with the poor countries to improve crop yields. Countries like India and Pakistan embraced new plant varieties, irrigation projects and fertilizer programs in a vast effort that came to be known as the Green Revolution.

Yields soared, and by the 1980s, the threat of starvation had receded in most of the world. With Europe and the United States offering their farmers heavy subsidies that encouraged production, grain became abundant worldwide, and prices fell.

Many poor countries, instead of developing their own agriculture, turned to the world market to buy cheap rice and wheat. In 1986, Agriculture Secretary John Block called the idea of developing countries feeding themselves "an anachronism from a bygone era," saying they should just buy American.

Additional factors prompted wealthy countries to shift their donations away from agriculture. For instance, advocacy groups criticized some of the environmental problems arising from intensive farming, weakening support for the Green Revolution. And urgent new priorities like the AIDS crisis in Africa captured the world's attention.

Advocates for agriculture fought a losing battle to stop the cutbacks — nowhere more than in the World Bank, the huge institution in Washington that makes low-interest loans to poor countries for development projects.

Adjusted for inflation, the World Bank cut its agricultural lending to $2 billion in 2004 from $7.7 billion in 1980.

The Green Revolution had led to creation of a global network of research centers focusing on agriculture and food production, with 14 institutes — including the International Rice Research Institute — scattered across Asia, Africa and Latin America, in addition to a research office in Washington. The centers, known collectively as the Consultative Group on International Agricultural Research, carry much of the burden of improving crop yields in developing countries.

As the world lost its focus on crops, the budgets of some of the centers were cut. At others, the budgets stayed level or even rose, but donors increasingly directed the money toward worthwhile but ancillary projects like environmental research. Spending fell on the laborious plant-breeding programs needed to improve crop productivity.

As these trends played out, the stage was being set for a food emergency.

From 1970 to 1990, the peak Green Revolution years, the food supply grew faster than the world population. But after 1990, food's growth rate fell below population growth, according to a report by Ronald Trostle, a researcher at the Agriculture Department.

Around 2004, the world economy began growing more quickly, about 5 percent a year. So as the food supply was lagging, millions of people were gaining the money to improve their diets.

The world began to use more grain than it was producing, cutting into reserves, and prices started rising. Early this year, as stocks fell to perilous levels, international grain prices doubled or even tripled, threatening as many as 100 million people with malnutrition.

Slow Recovery for Aid

At the World Bank, agricultural financing has begun to recover. Under a new president, Robert B. Zoellick, the bank has decided to double its lending for such programs in Africa. After President Bush's request to Congress, other wealthy countries are joining the United States in increasing their support.

But the case of the brown plant hopper shows there will be no quick fix for the years of neglect.

The insect is not a new problem. In the 1960s, the rice institute, nestled between jungle and the bustling town of Los Baños, pioneered ways to help farmers grow two and even three crops a season, instead of one.

But with rice plants growing more of the year, the hoppers — which live only on rice plants — had longer to multiply, and became a bigger concern.

The institute responded by testing thousands of varieties of wild rice for natural resistance. Researchers found four types of resistance and bred them into commercial varieties by 1980.

But brown plant hoppers adapted swiftly, and the resistant strains started losing their effectiveness in the 1990s. An important insecticide lost its punch, too, as the hopper developed the ability to withstand up to 100 times the dose that used to kill it.

While the insect was adapting, the rice institute was being gutted.

Its money comes come from government donations, foundation grants and assistance from development institutions like the Asian Development Bank, an affiliate of the World Bank. After peaking in the early 1990s, the rice institute's budget has been cut in half after adjusting for inflation, a reflection of the larger cutbacks in global agriculture.

Several dozen important varieties of rice have been lost from the institute's gene bank through poor storage. Promising work on rice varieties that could withstand high temperatures and saltier water — ideal for coping with global warming and the higher sea levels that may follow — had to be abandoned.

A potential solution is at hand for the plant hopper problem. No fewer than 14 new types of genetic resistance have been discovered. But with the budget cuts, the institute has mounted no effort to breed these traits into widely used rice varieties.

Doing so now would take four to seven years, if money could be found. In the meantime, the hoppers have become a growing threat. China, the world's biggest rice producer, announced on May 7 that it was struggling to control the rapid spread of the insects there. A plant hopper outbreak can destroy 20 percent of a harvest; China is trying to hold losses to 5 percent in affected fields.

"We must stay ahead of rapidly evolving pests — and increasingly, a changing climate — to assure global food security," said Mr. Zeigler, the rice institute's director. "Cutting back on agricultural research today is pure folly


 
 

Things you can do from here:

 
 
Microfinance
Poor people, rich returns

May 15th 2008 NEW YORK
From The Economist print edition

Is it acceptable to profit from the poor?

SINCE CompartamosBanco, a Mexican lender to the poor, went public a year or so ago, a rift has been growing in the booming microfinance industry. To supporters of traditional charitable microfinance—providing loans and other financial services to help lift people out of extreme poverty—the Compartamos initial public offering has come to symbolise an aggressive move by capitalists to profit from the poor. To its backers, on the other hand, the success of Compartamos, despite the recent lacklustre performance of its shares, symbolises how the profit motive can help lift many more people out of poverty than charity alone could ever do.

Critics of Compartamos include Muhammad Yunus, a Bangladeshi economist who won the Nobel peace prize in 2006 for his work in popularising microfinance through the Grameen Bank. He was reportedly “shocked” by the IPO, and has argued that microfinance should be about “protecting [poor people] from the moneylenders, not creating new ones.” Another critic, Chuck Waterfield of Microfin, a provider of software to microfinance institutions, accuses Compartamos of “monopolistic exploitation of the poor”. He alleges that it is charging interest rates of over 100% a year, little different from what illegal loan sharks demand, and that it is deliberately making it difficult for poor borrowers to understand how much they are paying for their loans. He and Mr Yunus are campaigning for the microfinance industry to agree on common standards on disclosing charges to help borrowers.

Compartamos concedes that its rates may seem high—though it reckons they are closer to 70%—but says they are set to allow the bank to grow quickly to meet vast untapped demand in Mexico. Its borrowers have risen in number from 60,000 to around 900,000 in the past eight years. This is hardly an indication of exploited customers. Moreover, it is targeting potential borrowers just outside the mainstream, not the very poorest Mexicans.

A “big win” like the Compartamos IPO was needed to attract lots more capital into the microfinance industry, says Álvaro Rodríguez Arregui, the chairman of ACCION International, a charity that has been helping to spread microfinance since the 1970s. He expects interest rates to fall sharply as the rush of capital that followed the IPO expands supply and intensifies competition—just as it has done in Bolivia, which boasts the first for-profit, but not listed, microfinance institution, BancoSol. For-profit microfinance has been growing fast, including in India where SKS, a lender created by Vikram Akula, a former McKinsey partner, is backed by Sequoia, a leading Silicon Valley venture-capital firm.

ACCION was an early investor in Compartamos, and banked $140m in the IPO (and retains a 9% stake). This infuriates critics such as Mr Waterfield, especially as ACCION has received funding from the American taxpayer via USAID, the development agency. ACCION is reinvesting the money in new microfinance schemes, however. Mr Rodríguez Arregui fears the public fight over profits may scare away investors. Perhaps the best way to help the poor is to acknowledge that charitable and commercial microfinance can co-exist.

http://www.economist.com/finance/displaystory.cfm?story_id=11376809

Evangelicals a Liberal Can Love - New York Times



 
 

Sent to you by john via Google Reader:

 
 

via www.nytimes.com on 5/18/08

February 3, 2008
Op-Ed Columnist

Evangelicals a Liberal Can Love

By NICHOLAS D. KRISTOF

At a New York or Los Angeles cocktail party, few would dare make a pejorative comment about Barack Obama's race or Hillary Clinton's sex. Yet it would be easy to get away with deriding Mike Huckabee's religious faith.

Liberals believe deeply in tolerance and over the last century have led the battles against prejudices of all kinds, but we have a blind spot about Christian evangelicals. They constitute one of the few minorities that, on the American coasts or university campuses, it remains fashionable to mock.

Scorning people for their faith is intrinsically repugnant, and in this case it also betrays a profound misunderstanding of how far evangelicals have moved over the last decade. Today, conservative Christian churches do superb work on poverty, AIDS, sex trafficking, climate change, prison abuses, malaria and genocide in Darfur.

Bleeding-heart liberals could accomplish far more if they reached out to build common cause with bleeding-heart conservatives. And the Democratic presidential candidate (particularly if it's Mr. Obama, to whom evangelicals have been startlingly receptive) has a real chance this year of winning large numbers of evangelical voters.

"Evangelicals are going to vote this year in part on climate change, on Darfur, on poverty," said Jim Wallis, the author of a new book, "The Great Awakening," which argues that the age of the religious right has passed and that issues of social justice are rising to the top of the agenda. Mr. Wallis says that about half of white evangelical votes will be in play this year.

A recent CBS News poll found that the single issue that white evangelicals most believed they should be involved in was fighting poverty. The traditional issue of abortion was a distant second, and genocide was third.

Look, I don't agree with evangelicals on theology or on their typically conservative views on taxes, health care or Iraq. Self-righteous zealots like Pat Robertson have been a plague upon our country, and their initial smugness about AIDS (which Jerry Falwell described as "God's judgment against promiscuity") constituted far grosser immorality than anything that ever happened in a bathhouse. Moralizing blowhards showed more compassion for embryonic stem cells than for the poor or the sick, and as recently as the 1990s, evangelicals were mostly a constituency against foreign aid.

Yet that has turned almost 180 degrees. Today, many evangelicals are powerful internationalists and humanitarians — and liberals haven't awakened to the transformation. The new face of evangelicals is somebody like the Rev. Rick Warren, the California pastor who wrote "The Purpose Driven Life."

Mr. Warren acknowledges that for most of his life he wasn't much concerned with issues of poverty or disease. But on a visit to South Africa in 2003, he came across a tiny church operating from a dilapidated tent — yet sheltering 25 children orphaned by AIDS.

"I realized they were doing more for the poor than my entire megachurch," Mr. Warren said, with cheerful exaggeration. "It was like a knife in the heart." So Mr. Warren mobilized his vast Saddleback Church to fight AIDS, malaria and poverty in 68 countries. Since then, more than 7,500 members of his church have paid their own way to volunteer in poor countries — and once they see the poverty, they immediately want to do more.

"Almost all of my work is in the third world," Mr. Warren said. "I couldn't care less about politics, the culture wars. My only interest is to get people to care about Darfurs and Rwandas."

Helene Gayle, the head of CARE, said evangelicals "have made some incredible contributions" in the struggle against global poverty. "We don't give them credit for the changes they've made," she added. Fred Krupp, the president of Environmental Defense, said, "Many evangelical leaders have been key to taking the climate issue across the cultural divide."

It's certainly fair to criticize Catholic leaders and other conservative Christians for their hostility toward condoms, a policy that has gravely undermined the fight against AIDS in Africa. But while robust criticism is fair, scorn is not.

In parts of Africa where bandits and warlords shoot or rape anything that moves, you often find that the only groups still operating are Doctors Without Borders and religious aid workers: crazy doctors and crazy Christians. In the town of Rutshuru in war-ravaged Congo, I found starving children, raped widows and shellshocked survivors. And there was a determined Catholic nun from Poland, serenely running a church clinic.

Unlike the religious right windbags, she was passionately "pro-life" even for those already born — and brave souls like her are increasingly representative of religious conservatives. We can disagree sharply with their politics, but to mock them underscores our own ignorance and prejudice.


 
 

Things you can do from here:

 
 

Putting His Money Where His Values Are - WSJ.com

via online.wsj.com on 5/19/08

Putting His Money
Where His Values Are

Restless Billionaire
Prefers to Invest
'In the Real World'
By ROBERT FRANK
May 19, 2008; Page C1

Nicolas Berggruen became a billionaire through classic value investing. Now, he is switching to a new strategy. Call it "values investing."

With rice farms in Cambodia, windmill farms in Turkey, an ethanol plant in Oregon and glittering new skyscrapers in poor inner cities around the world, Mr. Berggruen is pumping millions of dollars into projects that he hopes will both expand his fortune and alleviate social ills.

"Historically, I've made my money in financials," says Mr. Berggruen, 46 years old, whose net worth is estimated at more than $3 billion. "Now, I'm investing in the real world. I'm investing in the ground, in things that will last for generations and improve people's lives."

[Photo]
Hiroko Masuike/WpN for The Wall Street Journal
Investor Nicolas Berggruen hopes to put his billions to good use, and to turn a profit. 'I'm investing in the ground, in things that will last for generations and improve people's lives.'

Mr. Berggruen's big bet on social investing isn't unique. Richard Branson, the Google founders, Ted Turner and a vast new generation of eco-investors have all espoused world-friendly investing.

The quest is more personal for Mr. Berggruen (pronounced: BerGREWin). After amassing billions and buying all the usual trophies of success -- a Florida mansion on a private island, a luxury condo in New York -- Mr. Berggruen is paring down his material life. He has sold his properties and now lives in hotels. He is about to sell his only car. Because he doesn't have children and is unmarried, he is planning to leave his fortune to a personal foundation and an art museum.

"Living in a grand environment to show myself and others that I have wealth has zero appeal," he says in an interview, standing in a hotel room in New York's Upper East Side. "Whatever I own is temporary, since we're only here for a short period of time. It's what we do and produce, it's our actions, that will last forever. That's real value."

The obsession with legacy is increasingly common among today's super-rich -- even for relatively young billionaires like Mr. Berggruen. "For some of these people, they're growing concerned about how they're going to be remembered," says Russ Alan Prince, president of Prince & Associates, a wealth-research firm that conducted a recent study on legacy. "For others, they've always wanted to do something and they realize that if they don't do it now, they're never going to do it."

For Mr. Berggruen, the transformation follows a life full of eccentricities and unconventional success. The son of Heinz Berggruen, the famed Germany-born art collector who befriended Pablo Picasso, Nicolas Berggruen grew up in France and Switzerland hoping to become a writer. He studied Albert Camus, Jean-Paul Sartre and other existentialists and rebelled against his privileged upbringing.

When he was 17 years old, he moved to New York City to attend New York University. He also started investing with a few thousand dollars of his own money. After graduating -- in two years -- he started investing in stocks, bonds and early forms of private equity.

Soon, he was buying entire businesses. Berggruen Holdings, his wholly owned investing vehicle, has net assets of more than $3 billion, according to Mr. Berggruen, business associates and corporate documents.

One of his biggest victories was FGX, the eyewear company formerly known as Foster Grant, which he acquired when it was declining in value. After making acquisitions, expanding the product lines and shoring up management, he took it public for a big profit.

He also created Media Capital, one of Portugal's largest media companies, after acquiring newspapers, television, radio, magazine and Internet assets. He has since sold the company.

"He's a disciplined buyer," says Martin Franklin, the chief executive of Jarden Corp., the consumer-products giant, and a partner with Mr. Berggruen in several businesses. "Nicolas is one of those guys who turns lemons into lemonade."

Mr. Berggruen was also behind two of the world's largest special-purpose acquisition companies, or SPACs. These so-called blank-check companies raise money through initial public offerings to make acquisitions. A U.S. SPAC he helped launch in December, called Liberty Acquisition Holdings Corp. raised more than $1 billion. A European SPAC he launched in February, called Liberty International Acquisition Co. raised $878 million. Mr. Berggruen is still shopping for companies to buy with both funds.

He has experienced his share of setbacks. One of his earlier SPACs, Freedom Acquisition Holdings, merged with the British hedge-fund GLG Partners Inc. in 2007 to take the fund public. The stock surged initially, but plunged more than 30% in recent weeks after one of GLG's top traders abruptly resigned. Mr. Berggruen, who owns about 6% of the company, says he is disappointed in the loss but confident the stock will bounce back. In 4 p.m. New York Stock Exchange composite trading Friday GLG's stock was down 11 cents to $7.78.

Despite his wealth, the boyish-looking Mr. Berggruen remains a mystery. He has avoided the press and has never appeared on the Forbes list of wealthiest individuals, although he would likely qualify. When a Dutch magazine tried to publish a profile of him several years ago, Mr. Berggruen bought up all the copies and destroyed them.

His personal habits are legendary among friends and colleagues. He works 12-to-14-hour days. He rarely visits his offices around the world, preferring to work in hotel rooms and restaurants. When he is in New York, he does most of his work on his BlackBerry while speed-walking around Central Park.

For Mr. Berggruen, chocolate is a primary food group. He eats two meals a day, one of which usually consists of chocolate cake. When David Bonderman, founder of TPG, the private-equity firm, went trekking with Mr. Berggruen in the Himalayas, Mr. Bonderman rode a horse. Mr. Berggruen bounded up the mountain fueled on chocolate bars.

He is restless to an extreme, logging 250 hours on his Gulfstream IV last year (his biggest indulgence) and visiting more than 80 cities around the world.

Mr. Berggruen's shift to socially responsible investing was gradual. When oil prices started soaring a few years ago, he looked into alternative energy sources. He acquired the Cascade Grain ethanol plan in Port Westward, Ore., the largest ethanol plant on the West Coast.

In researching ethanol, Mr. Berggruen realized that the world's food production -- which was increasingly being used for fuel -- wasn't keeping pace with demand. He formed a team of top agricultural experts and started researching ways of boosting farming productivity.

He bought up hundreds of thousands of acres in Australia, where he plans to grow grains. He is in talks to buy land in various other areas of the world, and he is negotiating with several governments to lease land for farming cassava, corn, rice, olives and other crops.

After his food ventures, Mr. Berggruen realized how many similar social problems could be solved -- or at least targeted -- through investing.

"Government wasn't solving these problems," he said. "So the market has to step in."

One area was real estate. An avowed urbanist, Mr. Berggruen started investing in projects aimed at reviving decaying inner cities. He is working with partners to buy up large parcels in downtown Newark, N.J., to build a mixed-use development with offices, homes and retail. He is launching similar developments in India, Turkey and Israel, working with top architects such as Richard Meier, David Chipperfield and Kazuyo Sejima.

Mr. Berggruen is also making plans for his foundation, which will target a wide array of social problems. One of the few things he is still acquiring for his personal life is art, which he says will withstand the test of time and eventually be given back to the public through a museum.

"The art I buy now goes to storage," he says. "I don't have a home to hang it in."

Write to Robert Frank at robert.frank@wsj.com


Things you can do from here:

Economist.com

via www.economist.com on 5/19/08
How to help the poorest

Springing the traps
Aug 2nd 2007
From The Economist print edition



The Bottom Billion: Why the Poorest Countries are Failing and What Can Be Done About It
By Paul Collier



Oxford University Press; 224 pages; $28 and £16.99

Buy it at

Amazon.com
Amazon.co.uk

THIS slip of a book is set to become a classic of the "how to help the world's poorest" genre. Its author, Paul Collier, an Oxford economics professor, has spent 30-odd years puzzling mainly over sub-Saharan Africa and trying to work out why so many of its 48 countries have become basket cases. Crammed with statistical nuggets and common sense, his book should be compulsory reading for anyone embroiled in the hitherto thankless business of trying to pull people out of the pit of poverty where the "bottom billion" of the world's population of 6.6 billion seem irredeemably stuck.

Mr Collier reckons that most of the bottom billion live in 58 countries, 70% of them in Africa and most of the rest in Central Asia. Since the 1990s, more than 4 billion people in the poor world have begun to move out of the depths of poverty, some of them very fast. But the countries where the poorest live have barely grown at all since the 1970s.

Most of them are caught, as Mr Collier describes it, in one or more of four traps: wars, in which 73% of the poorest have been caught at one time or another; natural resources gone wrong (think of Nigeria and its oil), which accounts for about 30%; landlocked with bad neighbours (look at Chad); and the bad-governance-in-a-small-country trap (too many to name).

What comes most convincingly out of Mr Collier's book is that aid from the guilt-ridden West is not the answer, or at least not the main answer, and certainly not aid as it has so often been disbursed. For sure, aid has not been useless. "A reasonable estimate is that over the past thirty years [aid] has added one percentage point to the annual growth rate of the bottom billion," he writes. "Aid has been a holding operation preventing things from falling apart."

But Mr Collier is sceptical about the mantra of doubling aid to Africa, as the rich countries' leaders grandly promised at Gleneagles in Scotland two years ago. "The statistical evidence generally suggests that aid is subject to what is called 'diminishing returns'," he writes. Take Nigeria. Over the past 30 years or so, it has received some $280 billion "with depressingly little to show for it". Plainly, vast dollops of aid have gone down the drain. In one of many statistical cameos, he cites a study showing that only 1% of €20m of aid sent to Chad actually reached the rural health clinics that were its intended target.

The rich world should concentrate, he argues, not on throwing aid at Africa, whether in budget support or projects, but on taking measures to encourage growth, above all through improving trade. The poor billions of East Asia have begun to race out of poverty not because of aid (very few received much) but because the conditions were created for their countries' economies to grow.

Mr Collier has an array of suggestions, all of them sensible, though some are unlikely to be taken up soon. For instance, he makes a bold case for military intervention to restore order in failing states (like Somalia); "the typical cost of a civil war", he calculates, is "around $64 billion." He also lists a raft of laws that should be enacted by Western governments, and of charters, mainly for poor countries to sign up to, that would provide a framework for setting things on the right track. Five suggested charters—for natural resources revenues, for democracy, for budget transparency, for post-conflict situations, and for investment—set out the sort of norms which, if adhered to by rich governments and poor ones, would help hoist the poorest out of their traps.

In the past two years, two famously opposing clarion calls, one from the aid-loving left, the other from the aid-is-always-wasted sceptical right, have been trumpeted. The one, Jeffrey Sachs's "The End of Poverty", exaggerates the value of aid, especially in the massive dollops he proposes. The other, William Easterly's "The White Man's Burden", rightly mocks the delusions of the aid lobby but exaggerates the negative aspect. Mr Collier, though tending towards the second view, steers a masterly course between the two.

The Bottom Billion: Why the Poorest Countries are Failing and What Can Be Done About It.
By Paul Collier.
Oxford University Press; 224 pages; $28 and £16.99

Things you can do from here: