Diaspora Philanthropy

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Diaspora Philanthropy An Agent of Change In
Asia-Pacific Communities Presentation by Shamsh
Kassim-Lakha, H.I., S.I Former Federal
Minister For Education, Science and
Technology Government of Pakistan and Chair,
Pakistan Centre for Philanthropy Closing
Plenary May 23, 2008
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Content

• Growing influence of Asia Pacific Region in
  world affairs and importance of social
  development
• Role of private sector including Diaspora
  Philanthropy in social development
• Importance of religious motives in giving
• Giving of know-how is as important, if not more
  than monetary giving
• Lessons learnt
• Conclusions

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• As we reflect on our two day conference,
• Before discussing whether and to what extent
  Diaspora philanthropy is an agent of change in
  Asia-Pacific
• Lets stand back and look at bigger picture of
  Asia-Pacific communities.

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• Thus far almost every commentator on
• Asia-Pacific has concentrated on interpreting
  growth of these communities in economic terms.
• Not enough thought given to social development.

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• Social Development is critical for sustainable
• economic growth, national and regional
• stability.
• Great risk of instability unless Asia-Pacific
• Communities address issues of
• Equity
• Religious Beliefs
• Cultural Heritage
• Respect for Diversity and Pluralism

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• In coming decades, Asia-Pacific Region will
• undoubtedly be the new driver of major decisions
  across the globe
• Not just economic but,
• Also strategic decisions

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• Drivers for Social Development are
• Government
• Private Sector

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• Governments do play their part but
• Often inadequately
• Sometimes unevenly
• Almost always too late

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• Imperative that Private Sector / Civil Society
• play larger, more meaningful role in social
• development of Asia-Pacific communities.

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• Industrialized countries provide many interesting
  examples of civil societys roles in social
  development through philanthropy.
• Philanthropy and civil society leaders have built
  social assets
• Universities
• Schools
• Professional and vocational training
• institutions
• Libraries
• Health care facilities

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How Did This Happen?

• It wasnt by chance.
• Over past 150 years, those who created new
• wealth in the West saw importance of building
• social assets leading to healthier societies.
• Much of this driven by their belief systems
• To whom much is given from him much will be
  required Holy Bible

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• But also governments in the West
• encouraged such philanthropy by
• Providing enabling environment through
• multiple means
• Enabling Laws
• Encouragement of private initiatives
• in education, health, social welfare
• Creation of institutions to support
• philanthropy e.g. Foundations, other
• philanthropy intermediaries.

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• Today philanthropy in industrialized
• countries is also seen as a reason for
• generating wealth
• Bill and Melinda Gates Foundation
• Warren Buffets Philanthropy
• Omydiar Network

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• It is time for Asia-Pacific communities to
  build key social assets through philanthopy
• To enhance harmony within society
• To provide safety net for less privileged
• To supplement government efforts
• To provide more efficient and better quality
  delivery of social services
• To redress major imbalances in social and
• economic development.

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• For too long countries in Asia-Pacific have
  relied on external benevolence for social
  development, including development assistance
• Its time to take major indigenous initiatives-
  philanthropy

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Economic growth in recent decades has encouraged
philanthropic giving within these communities.
This is enhanced by government support,
new Intermediary Organizations, including
institutions for support and enhancement of
philanthropy.
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• We have noted that the impulse to give is
• driven by many motives.
• However, principal among these drivers in
• Asia-Pacific communities are religious
• beliefs.
• Not dissimilar to western experience.

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• The likeness of those who spend their wealth in
  Allahs way is as the likeness
• of a grain which groweth seven years, in every
  year a hundred grains. Allah giveth increase
  manifold to whom He will. Allah is
  All-Embracing, All-Knowing
• - Holy Quran Surah Al-Baqara, Aayat 261

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• If you knew what I know about the power of
  giving, you would not let a single meal pass
  without sharing it in some way
• - Lord Buddha

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• He does not live in vain who employs his
  wealth, his thought and his speech to advance the
  good of others
• - Bhagwat Gita

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• It is therefore not surprising that
• 40 50 of all giving in many
• countries of Asia-Pacific is faith based
• Same holds true for their Diaspora
• This is similar to the experience of host as
• well as Diaspora communities in the USA

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Question

• How can we turn this spark to give into
• a flame of philanthropy?
• Let us build on these religious beliefs that
  have transcended centuries

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• While philanthropy at the national level
• must continue to play important role in
• social development
• In recent decades Diaspora philanthropy has
  supplemented this

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• However, current research confirms Diaspora
• philanthropy is in its infancy.
• 60 of US 250 million given by Pakistani
  Diaspora in USA goes to US based Pakistani causes
  and those unrelated to Pakistan. Only 40 comes
  to Pakistan. Najam, 2005
• Similarly, volunteer time (which constitutes two
  thirds of all giving) is overwhelmingly spent in
  host country and hardly any in home country.

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• Notice however that most discussion on Diaspora
  philanthropy revolves around material giving.
• Relatively little is said and written about
  giving by way of time and knowledge of
  volunteers
• Relatively limited research on volunteer giving.

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• Most surveys indicate that volunteering of time
  and knowledge by Diaspora ranges between 40 and
  60 of their philanthropy
• However, even this is contributed overwhelmingly
  in host countries.

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• Important to note many Diaspora
• philanthropists who give money also possess
• even more precious asset know-how
• Know-how can put their material resources to
  better
• use

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Question
How do we engage Diaspora philanthropists to
give money as well as know-how at the
same time?
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Possible Answer

• Get Diaspora to buy into a cause by involving
  them during
• Planning
• Development and later operational
• phases of a program or project.

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• Let me illustrate one example of
• successful Diaspora giving in Pakistan.
• At Aga Khan University, Karachi, we built
• new Medical Centre in 1985
• The founder, His Highness the Aga Khan
• Funded entire initial campus and
• Infrastructure at US 300 million.

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Aga Khan University, Karachi
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Aga Khan University, Karachi
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• But from beginning potential national and
• Diaspora donors were made aware of this new
  non-profit, non-denominational institution
• We aroused their interest and excited their
  desire to give

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We involved Diaspora in Campus planning and
building issues Providing medical and nursing
know-how Technical know-how on recruitment
of professionals and equipment selection We
lacked this know-how in country
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• When campus was ready, Diaspora
• wanted to know what more could they do
• They were keen to share their knowledge in the
  service of their nation by working in this
  Centre of Excellence
• We recruited 60 of all faculty from Diaspora.

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• Based on very positive experience of transfer
  of know-how, across the world,
• This year, Ismaili Muslim Community has mounted
  major programs of time and knowledge giving
  across the world
• Strong organization structure put in place for
  success

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• Later when AKU mounted major fund raising
• drives, Diaspora gave very handsomely and beyond
  our expectations.

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• Successive campaigns have raised total of
• US400 million.
• Of this, 65 or US 260 million is from
• Diaspora.
• Most of this came from Ismail Muslim
  Community
• This giving was faith based, but not for purposes
  of faith

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• Pakistani philanthropists also gave
• Generously to AKU but we believe Diaspora gave
  much more of their wealth because
• They had grown rich faster
• Had greater disposable income
• Were familiar with giving in host countries to
  social institutions such as universities.

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• Above ALL, they
• Had Trust in the institution, its Founder and
  management
• Major portion of earlier giving was faith based
• Had a sense of Ownership and involvement
• The system has worked and we continue to
• involve Diaspora in future projects.

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LESSON 1

• Most Diaspora philanthropists give to
• charity for individuals and family causes

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LESSON 2

• However when trust and partnership are created,
  Diaspora can be attracted to building social
  assets rather than only give for charity

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These contribute for social institutions
because They are acutely aware of dearth of
quality social assets in home
countries They have seen what social assets
like universities, founded by philanthropists
in host countries have done for sustainable
development Creation of social assets also
provide visible recognition of philanthropists
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LESSON 3

• Diaspora will be more generous, if they are
• more engaged through provision of their
• know-how as well as money
• This will create buy-in and enhance
• interest in continuing support for their
• favorite causes

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LESSON 4

• The key lies in persuading Diaspora to
• shift giving patterns from charity for
• individuals to support for institutions.
• This create sustainable social assets whose
• funding and impact can be leveraged in
• multiple ways.

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LESSON 5

• This is not to say that small and large Disapora
  donors should not give to their favorite
  charities through families and friends
• When asked, is there potential for significant
  increase in Pakistan related giving? 93 of
  Pakistani Diaspora agreed -Najam 2005

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LESSON 6
We must work towards expanding overall Diaspora
philanthropic pie and persuade them to give in
support social assets
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• But how can we engage them more fully
• and on an ongoing basis?
• Governments, intermediary organizations
• and philanthropic causes all have critical roles
• by involving Diaspora in
• Planning and development of existing and
• new social assets
• Monitoring ongoing operations, thereby also
• enhancing overall accountability

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• Let us recall that TRUST is still the most
  important factor in philanthropic giving

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• Trust and accountability are even more
• important for Diaspora philanthropy
• because
• Diaspora are located far away from home
  communities
• They have heard frequent horror stories about
  abuse of philanthropy by unscrupulous persons and
  organizations
• In most cases reporting back is inadequate

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• Trust can also be built by inviting
• representatives of Diaspora to visit causes they
  have supported
• Such opportunity be used to provide recognition
  by
• Beneficiaries
• Local counterparts
• Senior government officials
• Media

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CONCLUSIONS

• Diaspora philanthropy can be major agent of
  change in Asia-Pacific communities
• Many outstanding examples testify
• Xian University, China funded by Mr. Khoo Teck
  Phuat (Khoo Foundation), of Singapore
• 50 of annual funding for 455 schools (50,000
  students) of The Citizens foundation, Pakistan
  comes from Diaspora

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CONCLUSIONS

• 2. Diaspora philanthropy has remained
• largely untapped and under research they want
  to give but not sure where.
• Any fool can make money it takes a
• wise man to give it away.
• Andrew Carnegie.

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CONCLUSIONS

• There is major deficit of TRUST
• among Diaspora which can be
• enhanced by
• - Governments creating independent
  certification regime for NPOs which will
  engender confidence in givers

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CONCLUSIONS

• 4. Governments can let Civil Society
  get on with social development
  within well
  defined enabling framework.
• 5. TRUST can be enhanced by
• Intermediary institutions conducting
  certification regimes, developing guidelines for
  financial / management reporting and for better
  impact reporting of NPOs performance.

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CONCLUSIONS

• 6. TRUST can be enhanced by
• Media in host and home countries by reporting
  positive activities, highlighting impact of civic
  sector initiatives but also exposing those unfit
  for support.

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CONCLUSIONS

• 7. Governments should create more enabling
  environment for Diaspora philanthropy through
  enabling legislation for
• NPOs registration
• Fiscal concessions
• Financial support where possible, and
• Recognition of Diaspora support

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CONCLUSIONS

• Appeals for Diaspora philanthropy should focus
  both on monetary and know-how contributions
• This will give advantage of participation,
  buy-in and on-going association

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CONCLUSIONS

• 9. Research
• Intermediary institutions should assist in
  conducting research on key issues of Diaspora
  philanthropy

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CONCLUSIONS

• Research
• Funding for such research is an impediment,
  innovative sources of support must be found in
  Diaspora and home countries
• Research outcomes will guide Diaspora but
  more importantly home countries in developing
  policies that encourage and facilitate Diaspora
  philanthropy for social assets.

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CONCLUSIONS

• 11. Media
• We did not hear enough about important role of
  media both among Diaspora communities and
  home countries
• Supportive stories in mainstream media in host
  countries about home country projects can have
  powerful effect on Diaspora giving decisions
• Do not expect media to project philanthropic
  stories
• We need to be proactive in providing positive
  stories and appeals to media

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Future implications to the growth of
the Asia-Pacific regions

• Need to enhance quantity and quality of Diaspora
  philanthropy such that it attacks the causes as
  well as the symptoms of social affliction
• Few Diaspora associations evolved into
  significant philanthropic institutions. How can
  APPC help?

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• APPC should engage regional governments
• Enhance enabling environment for
• National philanthropy
• Diaspora philanthropy

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Questions

• Should we not engage Diaspora more
• intimately with deliberations such as this
• conference?
• 2. Should APPC encourage establishment of
• intermediary organisations in host countries
  to
• encourage philanthropy?

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• This Conference is very timely
• Huge potential of Diaspora philanthropy
• to Asia-Pacific region still not fully
• explored
• Given an enabling environment and
• professionalization of grant making,
• Diaspora philanthropy can really become an
• agent of change

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• Thank You