Contemporary Philanthropy in Liberal Democracy

Abstract

This thesis critically examines the role of contemporary philanthropy in liberal democracies. Contemporary philanthropic foundations are seen as a force for good; however, they pose a serious threat to the world’s liberal democracies. While there is plenty of literature on the problematic practises of philanthropy, there is no consensus among academics on how to relieve the tension between philanthropy and liberal democracy. Leading philanthropy scholar Rob Reich developed a political theory of philanthropy to resolve this tension. Reich argues that philanthropic foundations can help strengthen liberal democracies by contributing to pluralism and discovery in the production of public goods. He argues they can do so due to their unique position of unaccountability. Reich's work functions as the basis of this thesis. However, it does not limit itself to it. This thesis examines the practice of contemporary philanthropy in the US and Europe and tests Reich's arguments against various theories and the empirical reality of philanthropy. This thesis rejects Reich’s embrace of the unaccountability of philanthropic foundations, arguing that it is precisely the social, legal, and regulatory unaccountability that has led to the problematic practices that harm liberal democracy. This thesis formulates multiple policy recommendations that, when combined, aim to address the combination of problematic practices, laws, and regulations surrounding philanthropy. It treats these problematic practices, laws, and regulations not as disconnected parts of a problem, but as an interconnected systemic web. It does so with the valuable aim of providing theoretical and empirically motivated holistic policy solutions that protect liberal democracy from the problematic practises of contemporary philanthropy while retaining the benefits of benevolent charitable giving.