The Many Paradoxes of Philanthropy: Book Review of Philanthropy by Paul Vallely

Philanthropy by Paul Vallely is a sweeping, encyclopedic account of philanthropic giving—beginning with the ancient Greeks, traversing the Middle Ages, examining the robber baron era, and delving deeply into contemporary philanthropic models. This 752-page opus took Vallely six years to complete. I was particularly drawn to its exploration of modern philanthropic journeys, which resonated deeply with my own observations.

Though the book focuses primarily on philanthropy in the United Kingdom (UK) and the United States (US), its lessons carry valuable insights for India. The last few decades, defined by the rise of the digital era and globalization, have ushered in unique global philanthropic trends that will influence generations to come. Never before has the world been as interconnected and interdependent as it is today, with philanthropic efforts crisscrossing nations and continents on an unprecedented scale.

The Paradoxes of Modern Philanthropy

Several paradoxes emerge throughout Vallely’s narrative. One striking contradiction is the complex relationship between philanthropy, inequality, and rising global living standards. Globalization commoditized mass manufacturing, making goods more accessible, while digital disruption connected and innovated the world. These forces birthed a new class of wealthy individuals and wealthier nations, such as India and China. Yet, this capitalist-driven progress, while improving living standards for many, has also exacerbated inequality. As Vallely observes:

“Globally, the richest one percent have never held a greater share of world wealth than they do today. By contrast, the share of the other 99 percent has fallen steadily in the last five years, with more and more people in debt, especially the young…. Inequality is worse now than in the time of ‘robber barons’ like Carnegie and Rockefeller.”

Capitalism, which supplanted many communist economies, drives wealth creation and industrial growth but does not inherently ensure equity or equality. This paradox is sobering: the rise of philanthropy is intrinsically tied to the rise of inequality. Yet inequality itself stems from the same incentives that propel global progress and improved living standards.

Another contradiction lies in the impact of Western philanthropy on poorer countries, set against the backdrop of global trade policies. Vallely cites American celebrity philanthropists Bob Geldof and Bono, who discovered in the 1990s while working in Africa:

“Through a complex web of rules, taxes, tariffs, and quotas, the rich world takes far more from the poor [countries] than we give them. For every $1 we give in aid, we take $2 back through unfair trade.”

While this critique initially focused on post-Cold War trade practices, it underscores the long-term, often unintended consequences of global policies. Today, as deglobalization gains momentum, spurred by protectionist measures like those championed by President-elect Trump, it remains to be seen how these shifts will shape India and the wider world.

The debate over wealth taxation in the US provides yet another lens through which to examine philanthropic paradoxes. Vallely contrasts Jeff Bezos’ $2 billion philanthropic donation with the $9.5 billion Amazon reportedly saved through legal tax strategies. This has fueled calls for higher taxes on the wealthy. Yet, a counterpoint remains: is there evidence that increased taxes would be used effectively to build equitable social systems?

Some other sobering facts stand out: fewer than 9% of the world’s billionaires are serial philanthropists. Even in the US, a global philanthropic leader with the highest per capita giving, charitable contributions account for just 5% of GDP. Conversely, the philanthropy sector has grown faster than the business and government sectors in the US. And yet, the collective actions of over 90,000 foundations have failed to transform the basic conditions of the country’s poorest populations. Why is this the case?

A Wake-Up Call

The book also points out upcoming risks which might exacerbate inequality. Artificial Intelligence (AI) while potentially improving the lives of many also has the potential to displace millions of jobs and deepen inequality, potentially sparking social unrest.?

While India may economically benefit from the AI boom, the country already struggles with large numbers of unemployed, underemployed, and unemployable youth. The risk of social upheaval is real. History reminds us that such unrest often targets the wealthy and powerful—consider the European revolutions or the Arab Spring. Could it happen again?

Should We Give Up or Is There Hope?

These contradictions and alarm bells raise a critical question: can philanthropic capital truly solve the world’s most pressing problems? Are the ideologies, blind spots, and rising disruptions too overwhelming? In an era of mounting skepticism and resentment toward modern philanthropists, should the wealthy abandon their efforts and focus elsewhere—perhaps on colonizing Mars?!

Vallely offers a glimmer of hope. He argues that philanthropic capital can serve as a catalyst for policy solutions, fostering research, collaboration, and collective thinking. I agree. For a nation like India, with its ambitions to become a global leader, many challenges are too vast for philanthropy to resolve alone. However, philanthropy can partner with government systems to accelerate progress. Rather than creating parallel systems, perhaps the focus should be on strengthening existing ones.

Moreover, philanthropy can also serve as a mirror, reflecting humanity’s aspirations for a just global society and the systemic changes required to achieve it.

A Balancing Force

Vallely’s book can leave one feeling equal parts pessimistic and optimistic. Despite its many shortcomings, philanthropy remains one of our most powerful tools for addressing systemic inequalities and injustices. It has the potential to catalyze meaningful change—but only if wielded wisely and strategically.

Philanthropy may not solve all the world’s problems, but it can inspire and drive progress. The challenge lies in leveraging it effectively to create a fairer, more just future.

A Collective Vision for the Future

We, at Centre for Social Impact and Philanthropy, recently hosted a webinar on the power of Collaboratives. In that spirit, here’s an idea to consider: a coalition of philanthropists united not by ideology or specific solutions, but by a shared commitment to improving philanthropy itself. This collective could reimagine a fairer society and channel resources toward systemic change through policies and partnerships.

What are your thoughts? How can Philanthropy serve its own goals better?