<h2>Executive Summary</h2><ul><li><p>Economic growth is – and will remain – the single most important engine of India’s longer-term socio-economic transformation</p></li><li><p>Building system-change organisations is a key strategy for addressing complex challenges and creating a lasting impact.</p></li><li><p>Pioneering institutions exhibit strategic, effective, collaborative and sustainable qualities</p></li><li><p>Faster economic growth can be achieved by making it easier to do business, bolstering a country’s human capital, and providing basic public services of a higher quality</p></li><li><p>Many individuals from the corporate sector encounter challenges when transitioning to the social sector, but keeping a few ground realities in mind can help ease this transition</p></li></ul>.<h2><strong>Revolving Doors: A Journey From Private Equity To Public Policy</strong></h2><p>Private equity investor, philanthropist and educator – Ashish Dhawan has worn many hats over the course of his career. He currently runs The Convergence Foundation (TCF), which he set up a few years ago to help drive change at a public-policy level. At a recent online session of the India CEO and CHRO Forums, he shared insights, drawing on his long and varied career, on how business, education and the not-for-profit sectors intersect in India. He also discussed how he used his learnings from the private sector to help build one of India’s leading educational institutions, Ashoka University, and more recently, to establish TCF.</p><h2><strong>From Personal to Institutionalised Philanthropy</strong></h2><p>Philanthropy can be a catalyst for socio-economic transformation as well as an engine for innovation. It serves both to help make government more effective and to promote inclusivity. Its functions range from providing R&D funding for risky ideas to fostering an ecosystem that supports sustainability and shaping and supporting organisations that remain relevant over decades. Established in 2021, TCF is a philantrophic institution with a dual emphasis on economic growth and development on the one hand, and institution building on the other.</p><h2><strong>Transformation Through Growth</strong></h2><p>While many foundations pursue social justice, equality, poverty alleviation and inclusion, TCF’s work centres on the pivotal role of economic growth in surmounting <em>all </em>of these challenges. Historically, rising per-capita income has proven to be the most effective way to eliminate poverty and raise living standards. Inspired by China’s success in reducing poverty through economic development, TCF aims to establish pioneering institutions that are committed to nation-building. It also seeks to drive a more systematic approach to economic reforms. Its operating principles include creating a big-tent platform to foster inclusivity, nurture an entrepreneurial spirit and promote collaboration.</p><p>In a nutshell, ‘pioneering institutions’ have the following characteristics: </p><p>· <strong>Strategic:</strong> They work strategically to influence demand, enhance salience and actively engage in changing the rules of the game.</p><p>· <strong>Effective:</strong> Pioneering institutions are effective at demonstrating results within specific sectors and geographic areas. They monitor effectiveness through robust Monitoring and Evaluation (M&E) processes, and actively seeking feedback from stakeholders.</p><p>· <strong>Collaborative:</strong> They prioritise building a high-quality Board and cultivating a circle of influential champions who can contribute to and support the organisation’s mission.</p><p>· <strong>Sustainable:</strong> Pioneering institutions strive to build a core group of committed individuals who remain with the organisation for over 10 years, contributing to long-term stability and impact.</p><h2><strong>What Does ‘Convergence’ Really Mean?</strong></h2><p>Given that economic growth can be an engine of societal progress, it is vital to build institutions that can drive systemic change while addressing complex challenges. This is no small issue: India’s large number of big and complex issues requires a clear identifation of priority areas. Randomised control trials – the preferred method for measuring programme effectiveness, and therefore making informed decisions – can be tricky to run, but it can help to draw insights/parallels from other, similar programmes elsewhere. TCF focuses on two key pillars of ‘convergence’ that can help catalyse growth:</p><p>· Pillar 1: Promoting ease of doing business through trade liberalisation; policies that encourage both FDI and labour-intensive exports; robust MSME financing; support to sectors like tourism and construction; and eliminating friction in the land and labour markets.</p><p>· Pillar 2: Building human capital and investing in basic public services that are also long-term drivers of growth – such as education, sanitisation, healthcare, electricity and transport. Improving access to nutrition and clean air are also key elements.</p><h2><strong>Transitioning To The Social Sector</strong></h2><p>For individuals looking to move into the philanthropic space, it is important to keep a few ground realities in mind. Just as in business, the 80:20 rule applies here: 80% of the learnings from the corporate world are directly applicable – and can often prove decisive. However, there is still a 20% ‘gap’ to be filled, because some of the more complex societal challenges require a degree of ‘unlearning’. In the social sector, results also often take longer – typically 10-15 years – to materialise, and many situations are beyond anyone’s immediate control. Longevity is thus a key factor, standing in contrast with the corporate sector, where even top leaders may stay in a role for just 3-5 years. In such conditions, a collaborative approach, built on trust, is crucial. The public sector also demands a greater mission orientation and purpose than other roles.</p><p>A key skill is the ability to take a broad and pragmatic approach to filling gaps, resolving challenges and making strategic interventions that promote development in a holistic, sustainable sense. Finally, it is vital to remenber that, while the social sector <em>does</em> offers a profound sense of purpose (which can sometime be elusive in the private sector), sustaining one’s motivation can be a challenge. This is particularly on account of the extended timelines required to drive impact, but also because the social sector is prone to outside criticism. All of the public scrutiny around an organisation’s intentions and outcomes end up adding a layer of complexity to the transition.</p>
<h2>Executive Summary</h2><ul><li><p>Economic growth is – and will remain – the single most important engine of India’s longer-term socio-economic transformation</p></li><li><p>Building system-change organisations is a key strategy for addressing complex challenges and creating a lasting impact.</p></li><li><p>Pioneering institutions exhibit strategic, effective, collaborative and sustainable qualities</p></li><li><p>Faster economic growth can be achieved by making it easier to do business, bolstering a country’s human capital, and providing basic public services of a higher quality</p></li><li><p>Many individuals from the corporate sector encounter challenges when transitioning to the social sector, but keeping a few ground realities in mind can help ease this transition</p></li></ul>.<h2><strong>Revolving Doors: A Journey From Private Equity To Public Policy</strong></h2><p>Private equity investor, philanthropist and educator – Ashish Dhawan has worn many hats over the course of his career. He currently runs The Convergence Foundation (TCF), which he set up a few years ago to help drive change at a public-policy level. At a recent online session of the India CEO and CHRO Forums, he shared insights, drawing on his long and varied career, on how business, education and the not-for-profit sectors intersect in India. He also discussed how he used his learnings from the private sector to help build one of India’s leading educational institutions, Ashoka University, and more recently, to establish TCF.</p><h2><strong>From Personal to Institutionalised Philanthropy</strong></h2><p>Philanthropy can be a catalyst for socio-economic transformation as well as an engine for innovation. It serves both to help make government more effective and to promote inclusivity. Its functions range from providing R&D funding for risky ideas to fostering an ecosystem that supports sustainability and shaping and supporting organisations that remain relevant over decades. Established in 2021, TCF is a philantrophic institution with a dual emphasis on economic growth and development on the one hand, and institution building on the other.</p><h2><strong>Transformation Through Growth</strong></h2><p>While many foundations pursue social justice, equality, poverty alleviation and inclusion, TCF’s work centres on the pivotal role of economic growth in surmounting <em>all </em>of these challenges. Historically, rising per-capita income has proven to be the most effective way to eliminate poverty and raise living standards. Inspired by China’s success in reducing poverty through economic development, TCF aims to establish pioneering institutions that are committed to nation-building. It also seeks to drive a more systematic approach to economic reforms. Its operating principles include creating a big-tent platform to foster inclusivity, nurture an entrepreneurial spirit and promote collaboration.</p><p>In a nutshell, ‘pioneering institutions’ have the following characteristics: </p><p>· <strong>Strategic:</strong> They work strategically to influence demand, enhance salience and actively engage in changing the rules of the game.</p><p>· <strong>Effective:</strong> Pioneering institutions are effective at demonstrating results within specific sectors and geographic areas. They monitor effectiveness through robust Monitoring and Evaluation (M&E) processes, and actively seeking feedback from stakeholders.</p><p>· <strong>Collaborative:</strong> They prioritise building a high-quality Board and cultivating a circle of influential champions who can contribute to and support the organisation’s mission.</p><p>· <strong>Sustainable:</strong> Pioneering institutions strive to build a core group of committed individuals who remain with the organisation for over 10 years, contributing to long-term stability and impact.</p><h2><strong>What Does ‘Convergence’ Really Mean?</strong></h2><p>Given that economic growth can be an engine of societal progress, it is vital to build institutions that can drive systemic change while addressing complex challenges. This is no small issue: India’s large number of big and complex issues requires a clear identifation of priority areas. Randomised control trials – the preferred method for measuring programme effectiveness, and therefore making informed decisions – can be tricky to run, but it can help to draw insights/parallels from other, similar programmes elsewhere. TCF focuses on two key pillars of ‘convergence’ that can help catalyse growth:</p><p>· Pillar 1: Promoting ease of doing business through trade liberalisation; policies that encourage both FDI and labour-intensive exports; robust MSME financing; support to sectors like tourism and construction; and eliminating friction in the land and labour markets.</p><p>· Pillar 2: Building human capital and investing in basic public services that are also long-term drivers of growth – such as education, sanitisation, healthcare, electricity and transport. Improving access to nutrition and clean air are also key elements.</p><h2><strong>Transitioning To The Social Sector</strong></h2><p>For individuals looking to move into the philanthropic space, it is important to keep a few ground realities in mind. Just as in business, the 80:20 rule applies here: 80% of the learnings from the corporate world are directly applicable – and can often prove decisive. However, there is still a 20% ‘gap’ to be filled, because some of the more complex societal challenges require a degree of ‘unlearning’. In the social sector, results also often take longer – typically 10-15 years – to materialise, and many situations are beyond anyone’s immediate control. Longevity is thus a key factor, standing in contrast with the corporate sector, where even top leaders may stay in a role for just 3-5 years. In such conditions, a collaborative approach, built on trust, is crucial. The public sector also demands a greater mission orientation and purpose than other roles.</p><p>A key skill is the ability to take a broad and pragmatic approach to filling gaps, resolving challenges and making strategic interventions that promote development in a holistic, sustainable sense. Finally, it is vital to remenber that, while the social sector <em>does</em> offers a profound sense of purpose (which can sometime be elusive in the private sector), sustaining one’s motivation can be a challenge. This is particularly on account of the extended timelines required to drive impact, but also because the social sector is prone to outside criticism. All of the public scrutiny around an organisation’s intentions and outcomes end up adding a layer of complexity to the transition.</p>
