The increasing integration of the global economy has been exerting its impact on the U.S. and other nations for a long time now, but events over the past year have reminded us just how intertwined we’ve all become, and not just in terms of commerce.
Violence and political collapse in the Middle East have continued to create shockwaves across the world. A surge of terrorism in Europe and the westward flight of thousands of refugees have changed the political landscape in the European Union, underscored by a startling Brexit vote that shook not only that continent, but also nations across the world.
Attempts by Russia and China to expand their spheres of influence serve as stark reminders of just how long ago it was that we were seriously talking about the “Peace Dividend.” China’s claims on the South China Sea continue to put it in conflict with the U.S. and its Southeast Asia allies, while Russia’s involvement in the Syrian civil war and its backing of rebels in the Ukraine increase the odds of a conflict with NATO.
Oh, and now there are legitimate concerns that Russia may be using computer hackers to try to influence the U.S. elections in November.
Fortunately, investors are well aware that many of the world’s problems fall on our doorsteps, and that it’s incumbent on all of us to seek solutions. In our special “Positive Impact” section, Carol Clouse reports on how investors are using impact investments to apply business solutions to problems in the Middle East. As the story notes, charity has its place, but many believe that investment and economic reform are vital to bringing peace to the region. In a second story, Steven J. Chidester reports on the key differences between the way the U.S., U.K. and other nations regulate grant-making entities—and where clients should go if they want to form one.
Our cover story, by Caron Chesler and Evan Simonoff, touches upon a time when it was actually possible for the U.S. to be isolationist. The multifamily office of the Pitcairn dynasty was founded in 1923, 40 years after the creation of PPG Industries, the plate glass and paint company upon which the family fortune was built.
The history of the Pitcairn family is truly fascinating—John Pitcairn, the founder of the family’s wealth, accompanied Abraham Lincoln on a train ride to Washington in 1861 before he became president—and the evolution of its family office over the years reflects how history has shaped the advisory business.
Finally, on a lighter note, Thomas Kostigen gives us a glimpse of one of the exclusive hideaways of the rich and famous: Gstaad Palace in the village of the same name in Switzerland. Expect to pay $20 for a beer at this slice of paradise tucked away in the Alps. But many of its guests, who include royalty and international celebrities, seem to feel it is well worth the price.