Quotes of All Topics . Occasions . Authors
When I was trying to figure out why lives have improved so much in the last 300 years, where we've gone from a third of kids dying before 5 to - by 1990 it was down to 10% - now it's down to 5%. And saying why, over all history, there were smart people, but that number didn't change. Average life span didn't change. What's magical about what's been deemed the Industrial Revolution? It's really energy intensity.
...one of the most inventive forms of creative capitalism involves someone we all know very well. A few years ago, I was sitting in a bar here in Davos with Bono. Late at night, after a few drinks, he was on fire, talking about how we could get a percentage of each purchase from civic-minded companies to help change the world. He kept calling people, waking them up, and handing me the phone to show me the interest.
We [US] are the biggest per person, by a substantial amount, greenhouse emitters, and we give the most foreign aid, not per person but in absolute. This is another issue where hopefully we will take a long-term approach which, even though we sometimes have a hard time doing that, it's easier for us, as a rich country with this kind of scientific depth, than it is for the poor countries who will suffer the problems.
R&D generally has been a bipartisan thing, because in the IT space, in the medical space, the U.S., the benefits to ourselves and the world and our economy have been very, very clear. I'm hopeful we can make a very strong case there. Energy is actually harder; it takes more time to get a product, but if you do it's a very, very big market and the constraints of doing that in a clean way are more obvious all the time.
As I see it, there are two great forces of human nature: self-interest, and caring for others. Capitalism harnesses self-interest in a helpful and sustainable way, but only on behalf of those who can pay. Government aid and philanthropy channel our caring for those who can't pay. But to provide rapid improvement for the poor we need a system that draws in innovators and businesses in a far better way than we do today.
I think Ebola is a great example of where the world really needs to come together. The three countries where this outbreak took place have had a lot of civil war, very weak health systems. And so, it did take a while for people to understand ....that eventually what we saw was a very unique Ebola epidemic. I think it is quite impressive what's being pulled together, and I think we will be able to get this under control.
India just went 3 years with no cases [of polio]. Pakistan is our toughest location right now because some parts of the Taliban have not allowed vaccinators to come in and have even attacked vaccinators. We are hopeful this will get resolved since no one wants their kid to be paralyzed. I spend a lot of time making sure the polio campaign is doing the best it can. We have great computer models that help guide our activities.
Virtually every company will be going out and empowering their workers with a certain set of tools, and the big difference in how much value is received from that will be how much the company steps back and really thinks through their business processes, thinking through how their business can change, how their project management, their customer feedback, their planning cycles can be quite different than they ever were before.
There's a true schizophrenia where if you say to voters, you know, do you think the federal government spends too much money and they should spend less, they say yeah, absolutely. Then you name specific things, like Pell grants for students and they say, no, not that. How 'bout NIH, medical research funding? Nah, you really shouldn't cut that. And pretty soon you've proved that what the American public is against is arithmetic.
I think philanthropy is also growing and catching on. Figuring out how the philanthropy sector, which is quite small compared to the private sector, which is the biggest by far, and then the governments, you know, even in these poor countries over time has to take on these key responsibilities. How does philanthropy accelerate that? Drive the kind of innovations, make sure they get used well. So it plays this kind of special role.
Well depending on the government, you either work through the government, which is ideal, because then you're strengthening their capabilities, or you work through the non-governmental organizations. It's never easy, and you know, it's just about the very basics of health. This is not hospitals. This is just primary health care [in Africa], the most simple things, and even so, getting the supplies out, getting the trained workers there.
(Talking about his first computer) Like all kids we not only fooled around with our toys, we changed them. If you've ever watched a child with a cardboard carton and a box of crayons create a spaceship with cool control panels, or listened to their improvised rules, such as "Red cars can jump all others," then you know that this impulse to make a toy do more is at the heart of innovative childhood play. It is also the essence of creativity.
[Melinda Gates] is a lot of fun to work with. There's some of the people skills that she's better at and cares about more. It'd be a mistake not to think of her as very numerical and interested in the science. I enjoy, if I get ahead of her, say, understanding the immune system, then we can spend a few hours, where I'm going through how amazing it is and interesting, and how that affects our creating new products, so I've always had a partner.
In the same way that when the car got going, people thought it would be an electric car, people thought it would be a steam car. Actually, the dark horse in that race was internal combustion, but because of the energy density of gasoline and discovery of oil in large amounts at that point in first Pennsylvania and then Texas, it won out over those other two, to the point that those other two are actually viewed as obscure footnotes in history.
The interview process tests not what the applicant knows, but how well they can process tricky questions: If you wanted to figure out how many times on average you would have to flip the pages of the Manhattan phone book to find a specific name, how would you approach the problem? If a spider fell to the bottom of a 50-foot well, and each day climbed up 3 feet and slipped back 2, how many days would it take the spider to get out of the well? .
There was a concept a long time ago that you would do a different type of reactor called a "fast reactor," that would make a bunch of another element called plutonium, and then you would pull that out, and then you would burn that. That's called "breeding" in a fast reactor. That is bad because plutonium is nuclear weapons material. It's messy. The processing you have to get through is not only environmentally difficultly, it's extremely expensive.
What are the top 20 universities in the world that do good materials research that might create carbon fibers to do jet stream kites or new magnets that will allow [energy] generation to be done up there and you just bring the electricity down. You either have to bring down rotational energy, which is hard, or you have to have the generator up there and bring down the electricity. Well, putting the generator up there is hard to do because it's too heavy.
My innovation message, specifically including energy, happened to be the same week that on Monday and Tuesday I announced the Breakthrough Energy Venture Group. Then on that Tuesday afternoon, in December, was when I sat down with him. I explained the US has great science here, this is where the market for these things is going to be. It connects to less pollution, it connects to U.S. jobs, it connects to security, not needing the energy coming from far away.
The dreams of the past - whether it was public TV being rolled into the classroom to teach Spanish, or the film projectors or the videotapes or the computer-aided instruction drill systems - the hopes have been dashed in terms of technology having some big impact. The foundation, I think can play a unique role there. Now, our money is more to the teacher-effectiveness thing, and technology is No. 2, but I'll probably spend more money on the technology things.
We're very enthused about the idea that in the third trimester we actually give the mother a vaccine and her antibodies, the protective things that the immune system makes, actually pass through to the baby, both when the baby is born, and through the mother's milk. Because the baby's immune system is actually not very strong for that first few months, using the mother's immune system to do this - it's a very exciting idea and something that we're investing heavily in.
Our modern lifestyle is not a political creation. Before 1700, everybody was poor as hell. Life was short and brutish. It wasn't because we didn't have good politicians; we had some really good politicians. But then we started inventing - electricity, steam engines, microprocessors, understanding genetics and medicine and things like that. Yes, stability and education are important - I'm not taking anything away from that - but innovation is the real driver of progress.
In the philanthropy game, you're going for different outcomes: saving childhood lives, having kids grow up - because they don't have malnutrition or disease - that they achieve their full potential. We take for Warren [Buffett] things that, because he's very intelligent about the world but doesn't get to go out in Africa and see what we see, we've taken and say to him where we stand and it's basically a very positive report that his gift has made a phenomenal difference.
I hope corporations will dedicate a percentage of their top innovators' time to issues that could help people left out of the global economy. This kind of contribution is even more powerful than giving cash or offering employees' time off to volunteer. It is a focused use of what your company does best. It is a great form of creative capitalism, because it takes the brainpower and makes life better for the richest, and dedicates some of it to improving the lives of everyone else.
Part of the magic of economic growth is how you educate people, and the leading economies have to stay in front of that. From an economic point of view, it affects competitiveness and creates jobs. Or from a social justice point of view, you can take someone in the bottom tier of income and let him compete to be a doctor or lawyer. The education system is the only reason the dream of equal opportunity has a chance of being delivered - and we're not running a good education system.
With the states release today of a set of clear and consistent academic standards, our nation is one step closer to supporting effective teaching in every classroom, charting a path to college and careers for all students, and developing the tools to help all children stay motivated and engaged in their own education. The more states that adopt these college and career based standards, the closer we will be to sharing innovation across state borders and becoming more competitive as a country.
Taking a look back, one big reqret is, I left Harvard with no real awareness of the awful inequities in the world. The appalling disparities of health and wealth and opportunity that condemned millions of people to the lives of despair. I learned a lot here at Harvard about new ideas and economics, and politics. I got great exposure to the advances being made in the sciences. But humanities greatest advances are not in its discoveries, but in how those discoveries are applied to reduce inequity.
You know, development sometimes is viewed as a project in which you give people things and nothing much happens, which is perfectly valid, but if you just focus on that, then you'd also have to say that venture capital is pretty stupid, too. Its hit rate is pathetic. But occasionally, you get successes, you fund a Google or something, and suddenly venture capital is vaunted as the most amazing field of all time. Our hit rate in development is better than theirs, but we should strive to make it better.
Someone in the society has to deal with the reality that there are finite resources and we're making trade-offs, and be explicit about that. When the car companies were found to have a memo that actually said, "This safety feature costs X and saved Y lives," the very existence of that memo was considered damning. Or when you made it reimbursable for a doctor to ask, "Do you want heroic care at the end-of-life," that was a death panel. No, it wasn't a death panel! It was asking somebody to make a decision.
Government investment unlocks a huge amount of private sector activity, but the basic research that we put into IT work that led to the Internet and lots of great companies and jobs, the basic work we put into the health care sector, where it's over $30 billion a year in R&D that led the biotech and pharma jobs. And it creates jobs and it creates new technologies that will be productized. But the government has to prime the pump here. The basic ideas, as in those other industries, start with government investment.
Like many others, I have deep misgivings about the state of education in the United States. Too many of our students fail to graduate from high school with the basic skills they will need to succeed in the 21st Century economy, much less prepared for the rigors of college and career. Although our top universities continue to rank among the best in the world, too few American students are pursuing degrees in science and technology. Compounding this problem is our failure to provide sufficient training for those already in the workforce.
By almost any measure, the world is better than it has ever been. People are living longer, healthier lives. Many nations that were aid recipients are now self-sufficient. You might think that such striking progress would be widely celebrated, but in fact, Melinda and I are struck by how many people think the world is getting worse. The belief that the world can’t solve extreme poverty and disease isn’t just mistaken. It is harmful. That’s why in this year’s letter we take apart some of the myths that slow down the work. The next time you hear these myths, we hope you will do the same.