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WHY THE BULL MARKET WON’T STOP • NEXT BIG SPECTATOR SPORT: VIDEOGAMES DECEMBER • 2013 EDITION SPECIAL PHILANTHROPY ISSUE Bill Gates The brains—and wallet—behind the fight against preventable disease p 66 Paul Tudor Jones Solving poverty at home means solving education p 78 Bono The rock star uses commerce to raise money—and fame to sell governments p 66 Ellen Johnson Sirleaf Liberia’s president, a Nobel Peace Prize winner, embraces altruistic capitalism p 98 ENTREPRENEURS CAN SAVE THE WORLD GOVERNMENTS CAN’T ERASE POVERTY NOR CAN BIG CORPORATIONS THESE ARE THE PEOPLE AND IDEAS THAT ARE DOING IT Muhammad Yunus Microloan pioneer, Nobel laureate— and Forbes’ lifetime achievement award winner for social entrepreneurship p 97 Francine LeFrak How a failed movie turned into a job program for Rwanda’s poor Jef Skoll Taking action by telling stories p 54 p 110 Patrice and Precious Motsepe The first African billionaires to join the Giving Pledge p 112 Ray Chambers From The Forbes 400 to the world’s point man on malaria and AIDS p 109 EXCLUSIVE: THE TOP 50 PHILANTHROPISTS WHO ACTUALLY GAVE MONEY Dikembe Mutombo An NBA windfall becomes a health care solution p 107 (VERSUS JUST TALK ABOUT IT) ROBIN HOOD, REINVENTED: WALL STREET’S FAVORITE CAUSE CHANGES COURSE PORTFOLIO: THE BUSINESSPEOPLE TURNING AROUND POVERTY IN AFRICA BILL GATES AND BONO: ON THEIR ALLIANCE OF FORTUNE AND FAME PLUS: BONO’S ODE TO WARREN BUFFETT Liesel Pritzker Simmons The anti-Paris Hilton: An heiress focuses her inheritance on impact investing p 86 Tsitsi Masiyiwa Tapping a telecom fortune to educate HIV orphans p 106 Poverty Warriors: rock star, Nobel Peace Prize winners, $100 billion in net worth and an infinite appetite for taking chances Photographed on June 5, 2013, in the North Delegates’ Lounge of the United Nations ©2013 John Paul Mitchell Systems® “Growing up, we didn’t have a lot of money, but my mother always grew her own vegetables Now we’re bringing generations together helping thousands of families help themselves with Grow Appalachia’s community gardens.” John Paul DeJoria, CEO and Co-founder THE BEST IN PROFESSIONAL SALON HAIR CARE PRODUCTS Guaranteed only in salons and Paul Mitchell Schools paulmitchell.com contents — DeceMBeR 2, 2013 VoLUMe 192 nUMBeR 66 | special report: philanthropy Using the tools of capitalism to save the world’s poorest people 66 | when bill met bono Fame, fortune and fnding solutions A conversation 13 | FACT & COMMEnT by steve forbes The bankruptcy of modern economics LEADERBOARD 16 | MEGA MACAU Transforming muddy swampland into the world’s greatest casino town 20 | SCORECARD Williams flies; Zuckerberg loses friends 22 | EMERGinG EnTREpREnEURS African innovators developing technology to make essential tasks easier Plus: FORBES makeover 26 | THE wEALTHiEST AFRiCAnS Ten tycoons in retail, oil, cement and more 28 | ACTivE COnvERSATiOn How powerful is Vladimir Putin? cover photograph by michael prince for forbes | FORBES DECEMBER 2, 2013 PHILANTHROPY PORTFOLIO Tony Elumelu AGE: 50 NIGERIA CHAIRMAN, HEIRS HOLDINGS THROUGH HIS HEIRS HOLDINGS, NIGERIAN ENTREPRE- TIM PANNELL FOR FORBES neur Elumelu holds stakes in listed bank UBA Group and conglomerate Transcorp, and has interests in power, agriculture, oil, real estate, hospitality and health care He is worth more than $100 million But he is best known these days for his eforts to spread “Africapitalism,” a term he apparently coined, which essentially pins the continent’s future on private-sector-led economic development “Decades of aid and charity to Africa have not significantly reduced the poverty level,” says Elumelu, who started his foundation in 2010, “so we have chosen to address it by encouraging private sector entrepreneurs to create employment.” Through his foundation he is identifying and supporting those entrepreneurs he believes will create jobs and eventually reduce poverty His leadership is getting worldwide attention: USAID selected his group to help guide and support President Obama’s Young African Leaders Initiative He also launched a program with former British prime minister Tony Blair to help African governments develop their private sectors, starting with Sierra Leone 108 | FORBES DECEMBER 2, 2013 Ray Chambers AGE: 71 UNITED STATES SPECIAL ENVOY, UNITED NATIONS MALARIA IS ONE OF THE WORLD’S MOST PROLIFIC KILLERS, CLAIMING MORE THAN 650,000 VICTIMS—MANY OF THEM CHILDREN—EACH YEAR THOSE DAVID YELLEN FOR FORBES it doesn’t kill are often left with permanent brain damage and lifelong learning difculties In African countries where the parasite is the most widespread, annual economic losses directly attributable to malaria are estimated to be 1.3% of GDP But malaria is also a fixable problem: We know what causes it (a bite from an infected anopheles mosquito), and we know how to prevent it (bed nets, indoor insecticide spraying) Since 2008 former Forbes 400 member Ray Chambers has made it his business to eliminate this scourge As the United Nations’ Special Envoy for Malaria, Chambers works tirelessly both to mobilize funds (nearly $5 billion and counting) and to coordinate antimalaria eforts with UN agencies, governments and partners among global health’s big players (the Gates Foundation, Unicef, the Global Fund) It’s working: Over the last five years malaria deaths in sub-Saharan Africa have fallen 33% “Our goal is to bring deaths to as close to zero as possible,” says Chambers, who in March took on the responsibility for the UN’s other millennium health development goals, including addressing the issues of HIV, tuberculosis and child mortality DECEMBER 2, 2013 FORBES | 109 PHILANTHROPY PORTFOLIO Francine LeFrak UNITED STATES FOUNDER SAME SKY biggest real estate empires (the family fortune stands at $5.6 billion) by satisfying middle-class demand for housing in the post-WWII economic boom Her brother Richard now runs the operation while Francine focuses on philanthropy LeFrak first attempted to produce a feature film on the Rwandan genocide in 1999, but when she failed to interest Hollywood she decided she could more on the ground She started Same Sky in 2008 as a trade initiative that pays Rwandan women 15 to 20 times the average subSaharan wage to crochet beads into jewelry sold at Saks Fifth Avenue and Bergdorf Goodman “I didn’t realize when I started it would totally consume my life And as much as I give to them, they give triple to me,” says LeFrak The jewelry is expensive, but she argues that the premium is part of the idea “Haven’t we had enough of cheap labor? Do you realize that one in ten families has a storage unit in America? What are we doing with all this crap? You have a diferent relationship when you open your drawer and there’s something that’s been made by a woman in Rwanda, and you know by wearing it, you’re changing her life.” So far 40,000 pieces of jewelry have been sold, benefiting 160 Rwandan women 110 | FORBES DECEMBER 2, 2013 TIM PANNELL FOR FORBES LEFRAK’S FATHER, SAM, BUILT ONE OF NEW YORK’S Enter to win at ForbesTravelGuide.com • nights at Mandarin Oriental, Miami • Roundtrip domestic airfare for two • 3-day usage of an Aston Martin V8 Vantage • Dinner for two and Five-Star Cocktail at Azul restaurant • Couples’ spa experience for two • Daily breakfast for two ASTON MARTIN V8 VANTAGE COURTESY OF HERTZ DREAM CARS SWEEPSTAKES SPONSORS NO PURCHASE NECESSARY Internet access required Promotion ends January 6, 2014 at Noon ET Open to all legal residents of the 50 United States (including the District of Columbia) Must be at least 18 years of age to enter Void where prohibited Total ARV of all prizes is $7,325 See Official Rules at http://www.forbestravelguide.com/sweepstakes/miami-weekend-official-rules © 2013 Five Star Travel Corporation All Rights Reserved PHILANTHROPY PORTFOLIO Patrice Motsepe AGE: 51 SOUTH AFRICA CHAIRMAN AFRICAN RAINBOW MINERALS aire, earned the bulk of his $2.7 billion fortune from African Rainbow Minerals (ARM), the conglomerate he founded shortly after the end of apartheid In 1999 he and his wife, Precious, set up the Motsepe Foundation Its focus is education, small business and rural development, partnerships with religious organizations, and projects to support the arts and sports Funds are being funneled through a series of 22 grassroots community forums In January the Motsepes became the first Africans to sign the Giving Pledge “There is an African tradition called ‘Ubuntu,’ ” he says “It means that my success and wellbeing are dependent on the success and well-being of others. … You can’t have abject poverty coexisting side by side with opulence and wealth for the long term.” He adds: “You need to help those who have done well create a future You need a middle class, and government can’t create that alone.” F 112 | FORBES DECEMBER 2, 2013 JONATHAN TORGOVNIK/GETTY IMAGES FOR FORBES THE JOHANNESBURG MINING MAGNATE, SOUTH AFRICA’S ONLY BLACK BILLION- FOrBeS lIFe travel Half meet-up, half bacchanalia, The Yacht Week has evolved into a floating rite for the young and affluent BY J.J Colao O n an evening last August, at an outdoor club perched just above the lapping waters of the Adriatic Sea on the Croatian island of Hvar, I found William Wenkel hard at work As a pink sunset lingered on the horizon, the 33-year-old CEO of European Travel Ventures happily poured a 4.5-liter bottle of vodka for the guests at his private table, which that night included a Silicon Valley venture capitalist, a Los Angeles musician and a smattering of his Swedish friends Next to us a reveler sprayed magnums of champagne onto the 400 international partygoers below, all dancing to chestthumping electronic music Wenkel gestured 114 | FORBES dEcEmBER 2, 2013 to the crowd and yelled into my ear: “Imagine doing this for 12 weeks in a row!” Welcome to The Yacht Week, a seven-day tour of select seaside locales that Wenkel’s company ofers in the Mediterranean throughout the summer, before moving on to Thailand and the British Virgin Islands come winter The idea is simple and, for twentysomethings of a certain inclination, irresistible: a week with friends on a sailboat, complete with a skipper, a sampling of idyllic ports and a full schedule of all-night parties For about $750 per person, groups book a boat online and join an armada of up to 50 other yachts It’s a bit like spring break but geared toward young professionals with means And with a strictly enforced 50-50 male-to-female ratio On week 11 of the summer season, I joined the fotilla for the most popular route, the southern islands of Croatia just of the coast of the city of Split It was in these waters that Wenkel and nate hathaway Spring Break For Grownups Small world, big party: The Yacht Week’s international revelers pursue a seven-day jaunt around Mediterranean islands FOrBeS lIFe travel portant for us not to be ‘the party organizers,’ ” Wenkel explains But it’s clear why some might take a diferent view A 2009 promotional video features scenes of the young and beautiful behaving badly in a paradise of Mediterranean sun, yachts and seaside parties The reality does not fall short On the first night of my trip the company took over a portside club in the town of Trogir Though few left before a.m and an ambulance arrived for one partygoer who fell of a table, crew members assured me that this would be the most low-key night of the week They were correct The next day included the sunset party on Hvar, followed by a a.m boat trip to a beachside club on a small island Wenkel and Biörklund, who have spent eight years at this, darted in and out of the various festivities, occasionally avoiding the bedlam by taking a boatful of friends to more secluded locales And as their own tastes change, the two are eyeing a diferent clientele They recently secured a 25-year lease on Fort George, a 19thcentury fortress built by the British during the Napoleonic Wars Wenkel can barely hide his pride in the place, which sits high on a peninsula, overlooking two natural bays on the Croatian island of Vis The company is spending $2 million, funded out of profits, on a two-year restoration to convert the property into an events space and cultural hub, complete with in-house chef, historian and art exhibitions The goal is to attract older vacationers with more refined tastes This new approach is smoothing the way with the Croatian authorities “They take us more seriously because it’s more in line with the kind of tourists they want,” observes Biörklund Some nights at least The Yacht Week still takes over the fort for two nights each week during the summer, bringing with it the throbbing music and partying masses “There’s something young people all over the world have in common,” Wenkel laughs “Everyone says, ‘Let’s have a quiet night.’ But William Wenkel and Erik Biörklund, proud lessors of a 200-year-old Croatian party fort it never happens.” F MIChaeL aMMe his cofounder and COO, Erik Biörklund, came up with the idea while skippering charter sailboats in 2005 “It was such an awesome job,” reminisces Biörklund, 32, a Nordic archetype with windswept blond hair “The only thing missing was good friends.” So he and Wenkel persuaded their charter company to reserve ten boats for their buddies the next summer Both were completing engineering degrees in their native Sweden, and they spent the winter promoting the trip By spring they had recruited 254 people to fill 27 boats for a week in August “I had like $220,000 going through my private bank account,” remembers Wenkel As word spread, the trip swelled to 57 boats the next year When the two filled 95 boats in 2008, they decided they had a business on their hands Today their London-based company rents out 1,100 boats to 9,000 customers each year, bringing in $9 million in sales A fifth of the clientele comes from the U.S., but the rest hail from 60 diferent countries, including Egypt, India and the Philippines (Only 1.6% are from Sweden.) The average age is 27, and though the trip is reasonably priced, attendees tend to be moneyed There are business school students and finance types from the U.S., well-heeled South Americans en route to Ibiza and Oxford graduates letting of steam Wenkel started two companies and served as an artillery officer in the Swedish navy before starting The Yacht Week, while Biörklund held down a corporate gig at a Swedish media conglomerate The two like to emphasize those backgrounds during business dealings “It’s im- 116 | FORBES dEcEmBER 2, 2013 treNDING What the 55 million Forbes.com users are talking about For a deeper dive go to FoRBES.CoM/lIFESTYlE INNOVATIONS 3-D PRINTING CoNTRaBaND Move: Government agencies try to limit spread of dangerous and illegal digital-printing shapes (guns, say) Countermove: Free app appears to disguise blueprint shapes before download. COMPANY FaCEBooK’S ERoDING Cool well, that was fast Facebook admits its popularity among teens is slipping One issue: who wants to share a social network with his parents? CURRENTS THE all-CaSH HoUSE nearly half of September’s U.S home sales were in cash the bad news for families in tight lending conditions: an onslaught of institutional investors in residential real estate. 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Silver iron Series $ 49+9sh $ 99 89value Hybrid Design from Driver to Sand Wedge! 100% Satisfaction Guaranteed 888.833.7371 wedgewoodgolf.com DECEMBER 2, 2013 t: (866) 650-1500 www.vintageview.com FOR MARKETPLACE ADVERTISING, CALL 212-206-5563 THOUGHTS FINAL THOUGHT A fruitful investment: Five minutes’ thought, daily, of others —B.C FORBES ON PHILANTHROPY You just work day and night if the cause in your heart is justifed You just go out and drive yourself to get the money And you have fun doing it It’s a real rush The people I particularly dislike are those who say “I’m going to leave it in my will.” What they’re really saying is “If I could live forever, I wouldn’t give any of it away.” —JoN huNtsmAN sr There are eight rungs in charity The highest is when you help a man to help himself —mAimoNiDes “ ‘Who serves best,’ the speaker was quoting, ‘profts most You have often heard that it is more blessed to give than to receive Well, that’s literally true—even in business!’ A keynote—a thesis, as it were And if incident were needed to verify the thesis, it would seem that the career of Kalamazoo Vegetable Parchment Co founder Jacob Kindleberger furnishes ample proof.” —From the Dec 15, 1928 issue oF ForBes OTHER THOUGHTS FROM THAT ISSUE: THE IDEAL SKYSCRAPER “To the amazed visitor from abroad, gazing at the famous skyline, the skyscrapers of New York seem almost a magic evocation, whose sufcient reason is beauty But no Aladdin’s wand raised these terraces and towers into the blue It is the high price of land that has forced them to neighbor the clouds.” FORGING AHEAD IN THE SKY “In all, 160 concerns are now manufacturing aircraft in America This, startlingly enough, is four times as many as are manufacturing motor cars.” 120 | FORBES dEcEmBER 2, 2013 Smoke that cigar, enjoy that Château Lafte 1989 But (mostly you guys) acknowledge your good fortune at having been born in the ’40s, ’50s or ’60s, entering the maledominated workforce 25 years later and having had the privilege of riding a credit wave and a credit boom for the past three decades And now it’s time to kick out and share some of your good fortune —BiLL Gross A large part of altruism, even when it is perfectly honest, is grounded upon the fact that it is uncomfortable to have unhappy people about one —h.L meNcKeN If a free society cannot help the many who are poor, it cannot save the few who are rich —JohN F KeNNeDY No one would remember the Good Samaritan if he’d only had good intentions—he had money as well They asked Jack Benny if he would something for the Actors’ Orphanage— so he shot both his parents and moved in —mArGAret thAtcher —BoB hoPe SOURCES: THE COLUMBIA DICTIONARY OF QUOTATIONS; THE INTERNATIONAL THESAURUS OF QUOTATIONS; THE LAST WORD ON MAKING MONEY; NYTIMES.COM; PIMCO.COM; A TREASURY OF JEWISH QUOTATIONS ÒI’m positive about my future And the strategy to get there.Ó 88 % OF ENVISION® PLAN HOLDERS FEEL THEY ARE ABLE TO LIVE THE LIFE THEY PLANNED Wells Fargo Advisors offers the Envision process, a unique planning tool that helps us get to know your specific needs and goals in order to create your tailored investment plan Monitoring your progress is easy You’ll always know if you’re on course to reach your financial goals Find out what having an Envision plan can for you by visiting envisionyourgoals.com today INVESTMENTS • PLANNING • RETIREMENT Investment and insurance products: • NOT FDIC-Insured • NO Bank Guarantee ã MAY Lose Value â2012 Wells Fargo Advisors, LLC Member SIPC Wells Fargo Advisors is the trade name used by two separate registered broker-dealers: Wells Fargo Advisors, LLC and Wells Fargo Advisors Financial Network, LLC, Members SIPC, non-bank afliates of Wells Fargo & Company All rights reserved Envision® is a registered service mark of Wells Fargo & Company and used under license RESULTS ARE BASED ON A SURVEY CONDUCTED BY HARRIS INTERACTIVE FROM JULY-SEPTEMBER 2012 AMONG 606 INVESTORS WITH FINANCIAL ADVISOR RELATIONSHIPS NOT INDICATIVE OF FUTURE PERFORMANCE OR SUCCESS NOT REPRESENTATIVE OF THE EXPERIENCE OF OTHER CLIENTS 0513-05129 [87651-v3] a1520 Breguet, the innovator Classique Hora Mundi - 5717 An invitation to travel across the continents and oceans illustrated on three versions of the hand-guilloché lacquered dial, the Classique Hora Mundi is the first mechanical watch with an instant-jump time-zone display Thanks to a patented mechanical memory based on two heart-shaped cams, it instantly indicates the date and the time of day or night in a given city selected using the dedicated pushpiece History is still being written B R E G U E T B O U T I Q U E S – N E W Y O R K F I F T H A V E N U E 6 - 6 – N E W Y O R K M A D I S O N A V E N U E 212 8 - 014 B E V E R L Y H I L L S 310 - 911 – B A L H A R B O U R 6 -10 61 – L A S V E G A S 70 73 - 74 – T O L L F R E E 7 - - 5 – W W W B R E G U E T C O M ... “Follow FORBES on Twitter: only to see how other celebrities are much better of by being dead Get inspired.” FORBES, NOVEMBER 18, 2013 28 | FORBES dEcEmBER 2, 2013 FORBES, NOVEMBER 18, 2013 It... www.copyright.com Use of Forbes content without the express permission of Forbes or the copyright owner is expressly prohibited Copyright © 2013 Forbes LLC All rights reserved Copyright © 2013 Forbes LLC All... subscriptions: visit www.forbesmagazine.com; 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