How 'Catalytic Philanthropy' Could Solve Global Waste

The world faces a looming challenge of handling our waste, an increasing percentage of which is made of plastic, which simply does not go away. Plastic usually accounts for up to 20 percent of a municipality’s waste generation by weight, but by volume, the proportion is significantly higher. Most small communities do not have access to solutions, and this is where "catalytic philanthropy," particularly in the resource recovery sector, can make an enormous impact on peoples’ lives on a global basis.

Catalytic philanthropy refers to an approach in which donors take a structured, active role in addressing some of the world’s biggest challenges. According to one well-known philanthropist, it "has the high-stakes feel of the private market, but can transcend the key market limitations above: The investor doesn’t need a share of the benefits."

The idea is to open the mindset of donating to issues that should be solved by small businesses (as opposed to NGOs) in the developing world, where even basic technology, resources, knowledge and funding are not readily available. If donors are willing to give for education and health, why not also give to solutions that can solve problems that affect education and health but that are run as businesses?