The Role of the Private Sector in Global Governance

Abstract

Philanthropic organizations like the Rockefeller Foundation (RF) and the Bill and Melinda Gates Foundation (BMGF) offer a substantial source of financial resources in global development. This study incorporates these philanthropic organizations into the study of international relations using a paired and structured comparative method to understand whether the RF and the BMGF meet the Busan Principles for aid effectiveness compared to the International Monetary Fund (IMF) and the World Health Organization (WHO). I make the case that while philanthropic organizations meet some principles of the Busan agreement, they are far behind the IMF and WHO. I also discuss how imbalanced participation and hidden power asymmetry are hindering philanthropic organizations and intergovernmental organizations to meet the Busan Principles. This study concludes with a warning that philanthropic organizations are not aligning their work with the country-led framework of the states where they operate and emphasize the growing need to support intergovernmental organizations. Rather than studying philanthropic organizations separate to international organizations, this paper aims to make the case for the inclusion of philanthropic organizations within the study of aid effectiveness. Keywords: Philanthropic organizations, aid effectiveness, inclusive partnership, global governance regime of aid and development