Philanthropic Foundations and Local Policy Making in the Austerity Era: Does Urban Governance Matter?

Abstract

Over the last decades, European cities have been facing serious constraints. In particular, decreasing transfers from central governments, the introduction of domestic 'Stability pacts' and the economic crisis have significantly challenged the capacity of local governments to address societal issues. Within this context, local governments have tried to find new ways by establishing collaborations with a wide range of private actors, including nonprofit organizations and the civil society as a whole. Among these private actors, big philanthropic organizations are gaining prominence, acting as public policy supporters and policy makers. In particular, those philanthropic organizations, which focus the operating activity on single communities, are emerging as potential key actors in local governance, thanks to their capacity to concentrate resourses and efforts in specific and limited territories. For this new emerging role, a recent debate on their impact on local policy making has raised in the last years. This paper aims at presenting the findings of a comparative analysis on the impact that some of the world's biggest philanthropic organizations have produced in two Italian urban contexts. In particular, the comparative analysis of these two cases had the aim of testing a major thesis: the impact of philanthropic foundations on local policy making varies in relation to the consolidated mode of governance within which they operate.

In un diverso Stato?

“…Le loro caratteristiche principali derivano dunque da questa "strana" origine. Sono private, ma obbligate dalla legge a investire il loro patrimonio in settori che si sovrappongono largamente a quelli di cui è titolare il governo locale (Ravazzi 2016). Sono indipendenti dalle banche da cui sono nate, eppure molte ne rimangono le principali azioniste.…”

The gifted city: Setting a research agenda for philanthropy and urban governance

“…The issue of philanthropic influence is even more central in those contexts where urban governance has witnessed either a withdrawal or a substantial reduction in the capacity of national and local governments. As research into the impact of philanthropy in European cities has underscored (Ravazzi, 2016), philanthropy ‘in and for cities’ has progressively taken up a role as public policy supporter and even as a policymaker of its own. This has manifested either via funded decision-making proxies (e.g.…”

Standing in the space between fields: The interstitial power of elites in Italian banking foundations

“…chambers of commerce, foundations, Catholic authorities) are involved in the appointment of their advisors. The fields they intercept include: banks, via filiation and shareholding relationships, and the financial sector more generally; politics, given that a set number of FOB board members must be appointed by local authorities; public administration, in that FOBs are required by law to invest their assets in social services, education, research, art and culture (Ravazzi, 2016); the economic sector, because, since 2003, a large group of FOBs have owned 18.4% of the Cassa Depositi e Prestiti (CDP), 5 a publicly controlled joint-stock company and traditional channel for financing public bodies; furthermore, the critical literature on FOBs suggests that they are the main route by which politics ‘creep into’ banks (Zingales & Perotti, 2012); organized civil society and universities, who are involved in the appointment of the FOBs’ governing bodies and can be beneficiaries of FOB grants; and Italian and European philanthropy. 6 Striving for independence vis-a-vis politics and finance, fortified by their liminal position, helped by historical circumstances 7 and by their remarkable capacity for innovation and adaptation, FOBs have played an outstanding role in policy making, with a repertoire that echoes the so-called new philanthropy.…”