How Capitalism Solves Poverty

“Mr. Khosla is what I call a ‘social arbitrageur.’ He understands that there is tremendous economic potential in solving social problems. Not just in the ethereal, abstract, long-term sense. Like, in the tomorrow sense. Khosla recently earned $117 million—pocket change for a billionaire—on the recent IPO of SKS Microfinance, one of the largest micro-lenders in India. Khosla, who founded Sun Microsystems, also raised a $1.1 billion for a ‘green’ VC fund last year. According to Khosla: ‘There needs to be more experiments in building sustainable businesses going after the market for the poor. It has to be done in a sustainable way. There is not enough money to be given away in the world to make the poor well off.'”