On January 29, Confluence Philanthropy hosted an online discussion between Rockefeller Brothers Fund president Stephen Heintz and author-activist Naomi Klein, two dynamic thinkers at the intersection of democracy and capitalism, moderated by Dana Lanza, the Confluence CEO. While the lively conversation provoked new thinking about our approaches to global challenges like climate change, it did not leave time for live Q&A. In a follow-up below, Stephen Heintz tackles some of the questions submitted by members of our audience during the event.
Leadership changes cause inconsistent policies on permanent problems, as in climate change, confusing markets. What can we do?
Dramatic and constant changes in leadership can create policy inconsistency on permanent, profound problems. It can be demoralizing when each administration unravels the policies of the one that came before. But a single election does not mean that our democracy has been either destroyed or restored. We're not going to take our policies, our democracy, or our future where they need to be as a result of one election, or even two.
Elected officials are not the only actors in a democracy. There is the private sector and there is civil society. A clear vision for social change on the part of these other democratic actors can create a clear line that cuts through the zig-zag of policy changes.
We need to start thinking about the day after the election before the campaigns even begin. How are we going to sustain the energy and momentum of progress once we achieve immediate aims? How can we craft policies that can withstand the ebbs and flows built into our political system? We need to nurture democratic culture and participatory spirit to disentangle our policies from our politics.
And I also want to stress again the larger and longer term challenge to the three core operating systems (the nation state, capitalism, and democracy) that we discussed on the call. It’s not just that these core operating systems are showing signs of obsolescence, it's the fact that we rely on them to work effectively together. Our economy and our politics and our use of resources all have to work in harmony and they're now in ragged disharmony. And that's a huge problem for leadership.
Replacing the market system takes time the climate doesn't have. Are we better off repurposing markets to reward sustainability?
I'm certainly not suggesting that we throw out the market system per se—or the nation-state system or democracy, for that matter. What I am happy to throw out is the neoliberal interpretation of the market system that elevates capitalism above democracy; that sees the earth as a giant coal mine; and that views the human being as an atomized, self-interest-maximizing consumer, rather than as a complex human being who exists within a larger community.
Climate change is an existential crisis for this planet and for everything and everyone on it. It is without a doubt the most pressing issue of the next decade—what we do in the next few years will have implications for millennia. We must take immediate action to mitigate the most destructive effects of climate change in the short-term, while simultaneously embarking on longer-term, structural solutions. The short-term and long-term horizons do not preclude one another; they complement each other. They necessitate each other.
Trying to change the practice of capitalism itself is fundamental. If you can influence the practices and behaviors of big centers of financial power, you can advance your social change agenda as well. Businesses need to understand that climate change threatens their near-term financial futures. And they need to understand—and this is a harder rock to push uphill—that because of the enormous influence they wield due to the power of capital, they are actually at risk of a bigger political backlash when people are, ultimately, forced into action.
What role can greater inclusion and diversity among investment decision makers play in creating more inclusive outcomes?
Including more diverse voices in investment decision-making is as important as diversifying your assets. Yes, respectfully articulating disagreement and frustration across divides of perspective and experience can be slow and difficult, but it also yields the best returns. In a rapidly changing world, broadening the range of experiences at the table positions you to better anticipate risk—financial, societal, and reputational—and to better identify and seize new opportunities. Through our Mission-Aligned Investing efforts, the Rockefeller Brothers Fund is seeking more opportunities to invest with fund managers who are women or people of color and in businesses that are female led or minority led. With our grantmaking, the Rockefeller Brothers Fund is investing in bold and creative talent drawn from the rich diversity of humanity and cultivating the immense energy and ingenuity of rising Millennials and Gen Z.
- Stephen Heintz, President, Rockefeller Brothers Fund
