Warren Buffett is a remarkable friend and mentor to both Melinda and me, and we have learned so much from spending time with him and working with him on foundation projects. A few years ago Warren suggested that he, Melinda, and I should get together with some of the most generous givers in the country and see what we could learn from them. We started out by having dinners where everyone talked about why they give, what they are passionate about, and what they wish they could do better. The dinners evolved into discussions of the challenges of giving effectively. It became clear that there was a lot of collective knowledge and that we could inspire each other and in some cases work together. There was a strong sense we should broaden the discussion to a larger group including people who were earlier in their giving career.

This led to the idea of the Giving Pledge. It is simply a commitment to give the majority of your wealth away during your lifetime or through your will. We hope that over the long term it will encourage people to start earlier, collaborate more, and make their giving even more impactful.

We are excited that 58 people have already joined the Giving Pledge. You can see the letters describing their thinking about giving at www.givingpledge.org. The United States is the most generous country in the world. More than 15 percent of the large estates go to charity. That is significant, but there is room for that to increase. Warren has said, “We want the general level of giving to step up. We want the Pledge to help society become even more generous. We hope the norm will change towards even greater and smarter philanthropy.”

Although this effort is focused on those people in the United States with the greatest wealth, we are encouraged by and support similar efforts that focus on other groups. For example, some of the top business people in China and India asked if we would meet with them to stimulate discussion about giving in their country. Warren and I had the meeting in China in November and we were very happy with how many people came and how the conversation turned out. All three of us will be attending a similar meeting in India in the first half of the year.

Last year I launched www.gatesnotes.com and started a Twitter feed (@BillGates) to share my thoughts on the work we’re doing and what I’m learning from leaders and innovators. One great benefit of these tools is that they allow me to hear back from people. Over the next year I’ll be trying some new ways of adding interactivity to the site so I can get even more feedback.

Melinda is also very interested in spurring a broader conversation about the issues she’s focused on at the foundation. Last year she started posting regularly to the foundation’s blog. She also hosted a terrific TEDx event (www.tedxchange.org/pastevents) in New York that brought together interesting speakers on global health and development. Next year, building on her relationship with TED, she’ll be hosting a series of “TEDxChange” events in communities around the world—in places like Kenya and India. The goal of these TEDxChange events is to give people a chance to hear about health and development from people who live in the places where the work is happening.

Despite government budget difficulties and the complexity of solving the key problems the foundation’s work addresses, Melinda and I remain optimistic. We meet so many remarkable leaders whose work is making the world a better place.

My father, our co-chair, set the foundation’s direction from the start and he always helps us keep in mind what is important. Jeff Raikes, our CEO, continues to add great people and improve the way we do our work. Not everyone can go to the field, or even donate. But every one of us can be an advocate for people whose voices are often not heard. I encourage everyone to get involved in working for solutions to the challenges those people face. It will draw you in for life.

fardin salim pour azar

Co-chair, Bill & Melinda Gates Foundation
January 2011

Outside of health the area where we invest the most to help poor people is agriculture. There is so much potential in agricultural development because most poor people in the world feed their families and earn their income from farming. When farmers increase their productivity, nutrition is improved and hunger and poverty are reduced. In countries like Rwanda, Ethiopia, and Tanzania, investments in seeds, training, access to markets, and innovative agricultural policy are making a real difference. Ghana made agriculture a priority and cut hunger by 75 percent between 1990 and 2004. The increase in food production has led to economic development in other areas.

But the growth in other countries has been slower. These are complex issues, and it’s going to take strong leadership to make sure farmers have the opportunity to seize their potential. Kofi Annan, who chairs the Alliance for a Green Revolution in Africa, is leading the way by helping to drive a new agriculture agenda for the continent.

One program I’m especially enthusiastic about is a partnership launched in 2008 with the World Food Programme (WFP), the world’s largest humanitarian agency for fighting hunger. What I like about it is that it takes a new approach to something the world has been doing for a long time, food aid.

In the past most small farmers were not able to sell their produce to WFP to be used as food aid. They had trouble meeting WFP’s complicated requirements and delivering food in bulk quantities that met WFP’s quality standards. Our partnership works with farmers and others to resolve these issues, making it possible for them to sell to lots of additional buyers including WFP. When the West African country of Niger experienced a famine last summer, WFP bought 1,000 metric tons of rice from a farmers’ organization in Mali. When small farmers in Mali are earning extra income by feeding hungry families in Niger, it’s a clear win-win.

The near-term rise in food prices and the long-term increased demand for food will create opportunities for small farmers even in the poorest countries. In fact, increasing production in Africa will be critical for the world to have enough food. It’s encouraging that foreign aid for agriculture has now increased from its historic low of just $2.8 billion in 2003 to $5.9 billion in 2009, and it’s critical that nations don’t cut back again.

One of the most important new developments came in April when I joined the finance ministers of the United States, Spain, Canada, and South Korea to launch the Global Agriculture and Food Security Program with initial commitments of nearly $1 billion over three years. This program provides support to developing countries with strong domestic agricultural development plans that they are already investing in themselves but cannot fully fund. It has generated amazing demand, demonstrating how committed poor nations are to their own agricultural development.

Of the 8.1 million deaths per year of children under the age of 5, over 40 percent happen in the first 28 days of life, or the neonatal period. The good news is that we are headed in the right direction. In 1995 there were an estimated 5.6 million neonatal deaths. The most recent estimates show the number down to around 3.6 million.

Unlike the deaths that take place after a child is 28 days old, almost all of which can be prevented by inventing and delivering vaccines, reducing these early deaths requires a range of approaches. Some require new tools such as an ointment for the baby’s skin that prevents infection and an antibiotic solution for cleaning the cut umbilical cord. However, many of the key interventions involve social and behavioral change. You can have a huge impact (on both newborn and maternal health) by increasing the number of births done by a skilled provider in a clinic. It’s also important to teach mothers to wash their hands before handling a baby, to have frequent skin-to-skin contact with their babies, and to breastfeed exclusively for the baby’s first six months. (Mother’s milk contains not only key nutrition but also antibodies that block infection until the baby’s immune system is ready to operate on its own.) Where all of these elements come together, neonatal deaths can be reduced by 50 percent or more, so it’s critical that we learn more about how to teach and motivate mothers effectively, especially at a large scale.

Melinda has been a strong leader on maternal and child health issues. She gave an especially powerful speech last year to the Women Deliver conference (http://www.gatesfoundation.org/womendeliver). The plight of mothers and their babies is something she feels deeply, and it’s something we talk about a lot.

When she came home from a trip to Malawi she shared the experience of seeing two babies in a hospital in the town of Lilongwe, lying side-by-side in the same incubator. They were born within hours of each other. Each had suffered the same condition–they were unable to breathe at birth. Sadly, it was clear that only one would survive. That baby’s mother had made it to the donor-funded hospital in time for her delivery and was able to get the care she needed. Her baby was immediately resuscitated, which saved his life. The other was not so fortunate. He was born on the way to the clinic, on the side of road, and was not resuscitated soon enough. I wish everyone had a chance to experience what Melinda did, so they could see how things are improving but also understand the urgent need to do more.

In the same way that during my Microsoft career I talked about the magic of software, I now spend my time talking about the magic of vaccines. Vaccines have taken us to the threshold of eradicating polio. They are the most effective and cost-effective health tool ever invented. I like to say vaccines are a miracle. Just a few doses of vaccine can protect a child from debilitating and deadly diseases for a lifetime. And most vaccines are extremely inexpensive. For example, the polio vaccine costs 13 cents a dose.

This year 1.4 million children will die from diseases for which there are already vaccines—diseases like measles, pneumonia, and tetanus. Those lives can be saved if we can reduce the costs of vaccines and raise enough money to buy and distribute them. If we simply scale up existing vaccines in the five countries with the highest number of child deaths, we could save 3 million lives (and more than $2.9 billion in treatment costs alone) over the next decade. In addition, researchers are inventing new vaccines for malaria, AIDS, and tuberculosis, and these would save millions more lives. But generous aid is required to realize the true lifesaving potential of vaccines. The most direct way of saying this is that every $2,000 cut in the most effective aid spending causes a child to die.

A few years ago I was looking into the history of vaccination coverage. In 1980 less than 20 percent of children worldwide received the vaccinations for diseases including measles, diphtheria, tetanus, and whooping cough (pertussis) that children in rich countries were receiving. Less than 15 years later, in 1995, vaccination rates had been raised to over 70 percent. Just this year I finally got around to learning why there was such a huge increase. The head of UNICEF at the time, Jim Grant, led the way. The book Jim Grant–UNICEF Visionary tells his amazing story. Since there are only a few used copies of this in circulation UNICEF recently made a free version available at http://www.unicef.org/publications/index_4402.html.

I’m surprised by how little attention his story gets and how long it took me to find out about it. I was inspired by reading how he drove global progress even during the tough economic decade of the 1980s. We can draw lessons from his leadership now, in our own tough economic times.

As is often the case with courageous efforts, many people resisted Jim Grant’s push, viewing it as too top-down. However, he managed to enlist a number of countries to lead the way, and as the number of deaths in those countries dropped dramatically he was able to persuade almost every country to run strong vaccination campaigns. It is especially amazing that he did this in an age when there was no Internet and no email. Jim Grant’s achievement is the greatest miracle of saving children’s lives ever.

The benefits of widespread vaccination are mostly explained in terms of the lives vaccines save, and based on that measure alone, vaccines are the best investment to improve the human condition. However, there are two other equally important benefits that are not as widely known partly because they are harder to quantify.

The first is the reduction in sickness. I don’t mean just the acute sickness where a child is clearly suffering from the disease, but also the permanent disabilities caused by the disease. This is most noticeable when the disability presents with a clear symptom such as being paralyzed by polio or going deaf because of a pneumococcal infection. However, the largest disability is the effect on mental development. For example, severe cerebral malaria damages your brain even if you survive. When children have lots of diarrheal episodes or parasites in their intestines, they don’t get enough nutrition for their brains to develop fully.

The huge infectious disease burden in poor countries means that a substantial part of their human potential is lost by the time children are 5 years old. A group of researchers at the University of New Mexico conducted a study, covered in The Economist, showing the correlation between lower IQ and a high level of disease in a country. Although an IQ test is not a perfect measure, the dramatic effect you see is a huge injustice. It helps explain why countries with high disease burdens have a hard time developing their economies as easily as countries with less disease.

The second great benefit of vaccination is that as the childhood death rate is reduced, within 10 to 20 years this reduction is strongly associated with families choosing to have fewer children. While it might seem logical that saving children’s lives will cause overpopulation, the opposite is true.

I mention this amazing connection often, since I remember how I had to hear it multiple times before the full implications of it became clear. It is the reason why childhood health issues are key to so many other issues, including having resources for education, providing enough jobs, and not destroying the environment. Only when Melinda and I understood this connection did we make the full commitment to health issues, especially vaccination.

The connection of health to education, jobs, and the environment points back to the tremendous value of high-quality international aid—and why it’s essential that donor nations not cut their spending on it. Melinda and I have committed $10 billion from the foundation over the next 10 years to help make this the Decade of Vaccines. However, this will fall well short of what is needed.

The group which helps poor countries purchase vaccines and increase vaccine coverage is the GAVI Alliance and like the polio campaign its success will depend on donor generosity.

The foundation’s website does a great job of outlining all of our strategies, but in the remainder of my letter I want to highlight a few specific areas. The world has made some crucial breakthroughs, and with bold leadership I think we can do even more.

In the same way that during my Microsoft career I talked about the magic of software, I now spend my time talking about the magic of vaccines. Vaccines have taken us to the threshold of eradicating polio. They are the most effective and cost-effective health tool ever invented. I like to say vaccines are a miracle. Just a few doses of vaccine can protect a child from debilitating and deadly diseases for a lifetime. And most vaccines are extremely inexpensive. For example, the polio vaccine costs 13 cents a dose.

This year 1.4 million children will die from diseases for which there are already vaccines—diseases like measles, pneumonia, and tetanus. Those lives can be saved if we can reduce the costs of vaccines and raise enough money to buy and distribute them. If we simply scale up existing vaccines in the five countries with the highest number of child deaths, we could save 3 million lives (and more than $2.9 billion in treatment costs alone) over the next decade. In addition, researchers are inventing new vaccines for malaria, AIDS, and tuberculosis, and these would save millions more lives. But generous aid is required to realize the true lifesaving potential of vaccines. The most direct way of saying this is that every $2,000 cut in the most effective aid spending causes a child to die.

A few years ago I was looking into the history of vaccination coverage. In 1980 less than 20 percent of children worldwide received the vaccinations for diseases including measles, diphtheria, tetanus, and whooping cough (pertussis) that children in rich countries were receiving. Less than 15 years later, in 1995, vaccination rates had been raised to over 70 percent. Just this year I finally got around to learning why there was such a huge increase. The head of UNICEF at the time, Jim Grant, led the way. The book Jim Grant–UNICEF Visionary tells his amazing story. Since there are only a few used copies of this in circulation UNICEF recently made a free version available at http://www.unicef.org/publications/index_4402.html.

I’m surprised by how little attention his story gets and how long it took me to find out about it. I was inspired by reading how he drove global progress even during the tough economic decade of the 1980s. We can draw lessons from his leadership now, in our own tough economic times.

As is often the case with courageous efforts, many people resisted Jim Grant’s push, viewing it as too top-down. However, he managed to enlist a number of countries to lead the way, and as the number of deaths in those countries dropped dramatically he was able to persuade almost every country to run strong vaccination campaigns. It is especially amazing that he did this in an age when there was no Internet and no email. Jim Grant’s achievement is the greatest miracle of saving children’s lives ever.

The benefits of widespread vaccination are mostly explained in terms of the lives vaccines save, and based on that measure alone, vaccines are the best investment to improve the human condition. However, there are two other equally important benefits that are not as widely known partly because they are harder to quantify.

The first is the reduction in sickness. I don’t mean just the acute sickness where a child is clearly suffering from the disease, but also the permanent disabilities caused by the disease. This is most noticeable when the disability presents with a clear symptom such as being paralyzed by polio or going deaf because of a pneumococcal infection. However, the largest disability is the effect on mental development. For example, severe cerebral malaria damages your brain even if you survive. When children have lots of diarrheal episodes or parasites in their intestines, they don’t get enough nutrition for their brains to develop fully.

The huge infectious disease burden in poor countries means that a substantial part of their human potential is lost by the time children are 5 years old. A group of researchers at the University of New Mexico conducted a study, covered in The Economist, showing the correlation between lower IQ and a high level of disease in a country. Although an IQ test is not a perfect measure, the dramatic effect you see is a huge injustice. It helps explain why countries with high disease burdens have a hard time developing their economies as easily as countries with less disease.

The second great benefit of vaccination is that as the childhood death rate is reduced, within 10 to 20 years this reduction is strongly associated with families choosing to have fewer children. While it might seem logical that saving children’s lives will cause overpopulation, the opposite is true.

I mention this amazing connection often, since I remember how I had to hear it multiple times before the full implications of it became clear. It is the reason why childhood health issues are key to so many other issues, including having resources for education, providing enough jobs, and not destroying the environment. Only when Melinda and I understood this connection did we make the full commitment to health issues, especially vaccination.

The connection of health to education, jobs, and the environment points back to the tremendous value of high-quality international aid—and why it’s essential that donor nations not cut their spending on it. Melinda and I have committed $10 billion from the foundation over the next 10 years to help make this the Decade of Vaccines. However, this will fall well short of what is needed.

The group which helps poor countries purchase vaccines and increase vaccine coverage is the GAVI Alliance and like the polio campaign its success will depend on donor generosity.

The foundation’s website does a great job of outlining all of our strategies, but in the remainder of my letter I want to highlight a few specific areas. The world has made some crucial breakthroughs, and with bold leadership I think we can do even more.