Reassigning public wealth in Brazil

Marcos Kisil

The process of PtP has unlocked large funds for charitable use. It might now do so in Brazil via its privatization agenda and serious corruption problems

According to Lester Salamon, the Philanthropication thru Privatization (PtP) Initiative is designed to explore and promote the potential for building or strengthening permanent charitable endowments. It is intended to do this by capturing portions of the billions of dollars in privatization transactions taking place in countries throughout the world and dedicating them permanently to social, cultural and environmental purposes and strengthening civil society institutions.

In Brazil, the PtP issue has a particular complexion, due in part to the government’s privatization agenda and in part to widespread corruption. Both questions are related.

PtP involves a range of transactions in which public or quasi-public assets are transformed, in whole or in part, into charitable endowments under the control of autonomous charitable institutions. Some of the world’s largest and most reputable foundations have resulted from, or been enlarged by, a PtP process. Examples include Germany’s Volkswagen Foundation, Italy’s foundations of banking origin, New Zealand’s network of ‘community trusts’, Belgium’s King Baudouin Foundation, and close to 200 health conversion foundations in the US.

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