Jack Ma: ‘Making money is easy, spending it is hard’

For a man who says he’s afraid of giving speeches, Alibaba founder Jack Ma gives a lot of speeches. His latest came Tuesday at the opening ceremonies for a Peking University MBA program, where he reportedly spoke about his personal approach to philanthropy.

In the wake of the Tianjin explosion, Ma was beset with demands online that he donate money. But during his speech, he argued that in the context of a developing country, investing is better than donating, as it theoretically creates more jobs and more wealth.

Ma also said that in China, making charitable donations is particularly tough when one attempts to figure out who to give to. China lacks infrastructure, talent training, and the proper legal framework to ensure that charitable donations go to good use. Setting that up doesn’t happen overnight, Ma said.

Ma also complained a bit about the problems that plague the super-rich. “When you’ve got one or two million, that’s your money and you’re very happy. When you’ve got ten or twenty million, then the problems come; you’ve got to think about the devaluation of the renminbi and investment problems.”

“When you’ve got a few hundred million or billion, you must absolutely remember that it isn’t your money. Society has entrusted you with it to invest, it’s a kind of trust in you and a responsibility that you take on.”

“How do you manage that money well? You can’t go stupidly donating it out,” Ma explained. “You’ve got to wait for the talent, the organization, and the system to be ready before doing it. That’s why I say that spending money is much harder than making money.”

Ma says he does admire those who donate money, though: “I most admire the kind of person who makes 200 RMB [US$31] a month and still donates 1 RMB, or even 1 RMB per day. It is they who are the most amazing cornerstone of society.”