The Unique Role of Philanthropy in Anti-Corruption (Part 2)

In a previous piece about my conversation with Leslie Tsai, Director of Integrity Programs at the Chandler Foundation, I covered the Foundation’s unique anti-corruption work with the International Monetary Fund. In this second of this two-part series, I share some of Tsai’s broader reflections about how to increase collaboration between the anti-corruption community and philanthropists.

Tsai situated the Foundation’s approach in the experience of its donor, Richard Chandler, the New Zealand-born investor and entrepreneur, working in developing nations at a time of political and economic liberalization. Through his investments, Chandler saw the negative impact of corruption on national development, and recognized that good governance and integrity are keys to building shared prosperity. That thinking shaped an evolution that Tsai has seen since joining the Foundation in 2016, as grantmaking to what she terms “basic needs sectors” shifted to greater operational work with governments and multilaterals on governance and anti-corruption issues.

Tsai points out that even when governments are well-meaning and want to enact governance reforms, they do not always have the capacity and capability to do so. Thus the Foundation augments its work with governments by continuing to support certain government and civil society efforts, coupled with targeted capacity building. For example, she noted, the Chandler Institute of Justice was recently formed to provide support to governments in drafting and advancing effective laws and regulations, and the Chandler Institute of Governance works with governments to support a strong public sector.

Tsai would like to see more philanthropy in anticorruption, but she thinks foundations are not following suit because it can be difficult for a philanthropist “to start the giving journey on these issues.” Fighting corruption and improving governance are usually “not what comes to mind when trying to tackle poverty or inequality.” She notes that many philanthropists prefer to fund basic needs because they want to see faster impact. Supporting systems change and tackling root causes is a long-term effort, requiring a great deal of patience; moreover, the results of the work can be unpredictable. Tsai told me that over the years, the Chandler Foundation has had some success pulling in other philanthropists, but recent cuts to international aid and domestic social spending will make the challenge more acute, as foundations feel pressure to fill the gap. Moreover, while some foundations are now shifting to look at systemic issues, much of that funding is trending toward addressing issues such as closing civic space.

Ultimately though, Tsai believes that where aid and basic social services are being cut, it is even more critical to address underlying systems. She thinks that eventually, the foundations that invest in fighting poverty, improving education or health, or other causes – particularly given the current cuts – will realize that good governance not only makes social services and aid more efficient and effective, it also enables lasting, sustainable solutions to the issues that services and aid are designed to tackle.

Marc Schleifer

Governance, Democracy and Economic Development Expert