Thursday, April 19, 2012

Do Business and Islam Mix? Ask Him

The Aga Khan congratulating graduates of a midwife training course in Afghanistan that was sponsored by the Aga Khan Development Network. 

HE is a moderate Muslim religious leader and a descendant of the Prophet Muhammad. He is also a twice-married jet-setter, and he owns hundreds of racehorses, valuable stud farms, an exclusive yacht club on Sardinia and a lavish estate near Paris. 

HE is a moderate Muslim religious leader and a descendant of the Prophet Muhammad. He is also a twice-married jet-setter, and he owns hundreds of racehorses, valuable stud farms, an exclusive yacht club on Sardinia and a lavish estate near Paris. 
In a rare interview, the Aga Khan, who is chairman of the Aga Khan Fund for Economic Development, a for-profit company based in Geneva, says he is more concerned with the long-term outcomes of his investments than with short-term profits. Rather than fretting daily over the bottom line, he says, he tries to ensure that his businesses become self-sustaining and achieve stability, which he defines as “operational break-even,” within a “logical time frame.”

“If you travel the developing world, you see poverty is the driver of tragic despair, and there is the possibility that any means out will be taken,” he says in a telephone interview from Paris. By assisting the poor through business, he says, “we are developing protection against extremism.”
The company’s main purpose “is to contribute to development,” he adds. “It is not a capitalist enterprise that aims at declaring dividends to its shareholders.” Central to his ethos is the notion that his investments can prompt other forms of economic growth within a country or region that results in greater employment and hope for the poor.

Economic developments experts say the Aga Khan’s activities offer a useful template for others — including philanthropists like Bill Gates and George Soros — who are trying to assist the world’s poorest by marrying business practices to social goals, but whose foundation work usually stops short of owning businesses outright in poor countries. 

Resource : http://www.nytimes.com/2007/07/08/business/yourmoney/08khan.html?_r=1&pagewanted=all

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