WASHINGTON -- Despite the global recession, private giving and remittances are helping developing countries weather the economic storm, according to the new 2010 Index of Global Philanthropy and Remittances published by Hudson Institute's Center for Global Prosperity (CGP).
In 2008, private philanthropy and remittances remained among the most important sources of funding in the developing world. Private philanthropy and remittances from the developed to the developing world were nearly twice as much as government aid ($233 vs. $121 billion). As predicted in last year's Index, remittances from all countries to developing countries have remained remarkably resilient despite the global recession that began in December 2008. These remittances totaled $336 billion in 2008, a 17% increase from 2007.
This marks the fifth anniversary of the Index of Global Philanthropy and Remittances as the most comprehensive measurement of global private giving. Five years ago, the foreign aid establishment downplayed the importance of private giving. Now, almost every major international economic institution--from the U.S. State Department to the IMF and the World Bank--recognizes that private development aid is critical to prosperity in the developing world.
The 2010 Index shows that U.S. philanthropy to developing countrieswhich includes contributions from foundations, corporations, private and voluntary organizations (PVOs), individual volunteers, religious organizations, and colleges and universitiesheld steady at $37.3 billion, compared to $36.9 billion in 2007. Remittances from the United States to developing countries reached an estimated $96.8 billion in 2008, the largest U.S. outflow to developing countries.
"The success of the Index proves that if you measure something, it will grow. We have documented how private resources are transforming developing countries and challenging foreign aid to be more effective and collaborative. Through the Index, we have changed the discussion of foreign aid so that it represents what is really happening in developing countries. The aid landscape is forever altered," says Carol C. Adelman, director of Hudson Institute's Center for Global Prosperity.
CGP celebrates the Index's fifth birthday Wednesday, May 12th, at a luncheon at the St. Regis Hotel. Former USAID Administrator Andrew Natsios will give keynote remarks with an introduction by Dr. Carol C. Adelman, founder of the Index of Global Philanthropy and Remittances. Guests include high level government officials, foundation representatives, leaders among private and voluntary agencies, representatives from philanthropic projects featured in the Index, and key research partners including The Urban Institute Center on Nonprofits and Philanthropy, the Foundation Center, the International Institute of Education, and the Committee Encouraging Corporate Philanthropy.
This year's Index presents cases on how the recession has encouraged individuals such as14-year-old Talia Leman, founder and CEO of RandomKid.org, to harness children's philanthropic efforts to raise money for Cambodian schools and African wells after raising $10 million for Katrina relief. Similarly institutions like Land O'Lakes and the U.S. Marines partnered to create a dairy farm for widows in Faluja and are being challenged to be more creative in their efforts, spurring innovation in traditional giving models. The Index explores the philanthropic appetites of emerging economies like China and Russia, Europe's edge over the United States in social investing, as well as the development promises and practical challenges of high impact investment opportunities in African small and medium enterprises through emerging funds like the Africa Middle Market Fund.
For more information and to view the new Index of Global Philanthropy and Remittances, visit Hudson Institute's CGP on the Web at www.global-prosperity.org
Index of Global Philanthropy and Remittances 2010 is available to review by clicking on the "View PDF" button below.