Following the lead of Britain's innovators
As a first-time participant in the Skoll World Forum on Social Entrepreneurship in Oxford recently, I could not help but be awed and inspired by the stories of courage and resilience as, one by one, social entrepreneurs from all corners of the globe took the stage to share and celebrate stories of how they have worked to overcome some of our world's most pressing social and environmental problems.
Billionaire philanthropist Jeff Skoll chose Oxford to host his annual forum because Britain today is the world leader in social innovation. If Hong Kong were serious about supporting social entrepreneurship, it would do well to emulate the establishment of the ecosystem that Britain has put in place to support this sector.
The National Endowment for Science, Technology and the Arts, funded more than 10 years ago by a GBP250 million (about HK$3.2 billion at exchange rates then) endowment from Britain's national lottery, now operates as an independent entity, at no cost to the British taxpayer, to 'find ingenious ways to tackle Britain's biggest challenges, through a blend of practical programmes, research and investment in early stage companies'. Since 1974, the Charities Aid Foundation has operated as an independent body to serve donors and charities while transforming lives and communities around the world. Its Venturesome fund, launched in 2002, offers social enterprises support and debt capital to bridge the gap between grant-makers and traditional banks.
Finally, Britain gave the world its first social impact bond, an instrument that provides a positive financial return to investors based on public-sector benefits. In this case, the bond issued is aimed at reducing the reoffending rate of a group of prisoners. Such an innovative financial contract could only have been designed with the full co-operation and vision of the appropriate government department, in this case, the Ministry of Justice. The success of the social impact bond has led US President Barack Obama to propose a US$100 million pilot scheme to study how similar bonds can be used to solve some of America's social problems.
Hong Kong's HK$71.3 billion budget surplus is the envy of every country in the world; yet its government appears to be starved of inspiration as evident by the recent proposal to hand out HK$6,000 to each Hong Kong permanent resident over the age of 18. For some innovative ideas of what to do with this surplus, Hong Kong should look at its one-time colonial master. After all, even the United States believes it can learn from Britain.
All the British institutions and infrastructure mentioned above can be replicated in Hong Kong. Unlike in Britain, there is no shortage of funds in Hong Kong, whether from the government or the Jockey Club, the local equivalent of the National Lottery.
To secure its future, Hong Kong needs to shift its focus from investing in physical infrastructure to investing in its people. Building the ecosystem to support social innovation is an important first step.
Ming Wong is co-founder and vice-chair of the Social Investors Club in Hong Kong. Follow him on Twitter: @HKSocInvestor
