PHILANTHROPY AND SOCIAL INVESTMENTS IN CHINA

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PHILANTHROPY AND SOCIAL INVESTMENTS IN CHINA

• By Rory Tolentino
• Chief Executive
• Asia Pacific Philanthropy Consortium
• _at_
• 5th CONGRESSO GIFE SOBRE INVESTIMENTO SOCIAL
  PRIVADO
• 4 April 2008

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China Current Economic Situation

• Over the last 25 years, Chinas economic growth
  averaged 9.37
• In economic size, China is surpassed today only
  by the US, Japan, Germany and France
• Chinas share in global growth from 1995-2002 has
  been estimated at 25 compared to 20 for US

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China Current Wealth Statistics

• In 2007, China had 106 US billionaires, up from
  15 in 2006, and 0 in 2002
• The list of 800 people had a combined wealth of
  457 Billion
• China now has more billionaires than any other
  country except the US
• Top two wealthiest individuals are women

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China Current Philanthropy Statistics

• As individual wealth has increased, philanthropy
  has grown!
• In 2008, top 50 philanthropists in China gave
  1.5 Billion
• Five years ago, top 50 philanthropists gave
  131.6 Million
• Top causes health, education, social/basic
  services

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Philanthropy Context in China

• Philanthropy, while growing, is rarely directed
  to strangers
• Attributed to Chinese system of guanxi or
  personal connections, extending to those who
  share a certain identity
• Traditional Chinese charity emphasizes mutual
  help and personal relationshipsConfucian and
  Buddhist beliefs

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Philanthropy History in China

• Start of Communist Partys rule heralded 30 year
  decline in philanthropy, broken only by Yangtze
  River flood in 1998, which raised more than 11.5B
  RMB
• In recent years, rise of traditional charitable
  practices based on clans, kinships and dialects
• Diaspora philanthropy on the rise

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Corporate Philanthropy in China

• On the rise, substantial amount, initially led by
  multinational companies
• Corporations look at strategic projects that
  support needs in large areas and which are
  strategic to the companies business operations
  (e.g. Intercontinental Hotels Group)
• Also in partnership with government (e.g.
  Shanghai Water Resource Protection Fund)

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Chinas Policy Environment for Philanthropy

• Many philanthropic activities emanate from
  government or the Party
• Social Donation System for cities and
  communities to receive donations from the public
• While NPOs can exist in China, all NPOs are
  required to be affiliated with a government
  entity

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Conclusion

• Because of its economic growth and population,
  China will continue to grow and become one of the
  most powerful countries in the world
• While philanthropy is growing, for the most part,
  it still remains traditional
• However, new influences are coming in, including
  foreign investments and diaspora resources,
  influencing China to become more open to social
  investments in philanthropy

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OBRIGADA!