Diaspora Philanthropy An Agent of Change In Asia-Pacific Communities Presentation by

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Diaspora Philanthropy

An Agent of Change

In Asia-Pacific Communities

Presentation byShamsh Kassim-Lakha, H.I., S.I

Former Federal MinisterFor Education, Science and Technology

Government of Pakistanand

Chair, Pakistan Centre for Philanthropy

Closing PlenaryMay 23, 2008

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• 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

Content

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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 sustainableeconomic growth, national and regionalstability.

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 society’s 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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It wasn’t 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

How Did This Happen?

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But also governments in the Westencouraged 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 Buffet’s 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 hasencouraged philanthropic giving within thesecommunities.

This is enhanced by “government support”, newIntermediary Organizations, including institutions forsupport 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 Allah’s 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

‘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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How can we turn this spark to give into

a flame of philanthropy?

Let us build on these religious beliefs that have transcended centuries

Question:

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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 Diasporaphilanthropists who give money also possesseven more precious asset: know-how

Know-how can put their material resources to betteruse

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How do we engage Diaspora philanthropists to give money as well as know-how at the sametime?

Question:

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Get Diaspora to buy into a cause by involving them during:

– Planning– Development and later operational

phases of a program or project.

Possible Answer :

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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.

31Aga Khan University, Karachi

32Aga Khan University, Karachi

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• But from beginning potential national andDiaspora 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 raisingdrives, Diaspora gave very handsomely and

beyond our expectations.

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• Successive campaigns have raised total of US$400 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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• Most Diaspora philanthropists give to

charity for individuals and family causes

LESSON # 1:

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• However when trust and partnership are

created, Diaspora can be attracted to building

social assets rather than only give for charity

LESSON # 2:

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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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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

LESSON # 3:

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• 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.

LESSON # 4:

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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

LESSON # 5:

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We must work towards expanding overall

Diaspora philanthropic pie and persuade

them to give in support social assets

LESSON # 6:

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But how can we engage them more fullyand on an ongoing basis?

Governments, intermediary organizationsand philanthropic causes all have critical rolesby involving Diaspora in:

• Planning and development of existing andnew social assets

• Monitoring ongoing operations, thereby alsoenhancing 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 invitingrepresentatives 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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1. 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 Citizen’s foundation, Pakistan comes from Diaspora

CONCLUSIONS :

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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.

CONCLUSIONS :

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3. 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

CONCLUSIONS :

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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.

CONCLUSIONS :

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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.

CONCLUSIONS :

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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

CONCLUSIONS :

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8. 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

CONCLUSIONS :

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9. Research:

Intermediary institutions should assist in conducting research on key issues of Diaspora philanthropy

CONCLUSIONS :

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10. 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.

CONCLUSIONS :

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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

CONCLUSIONS :

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• 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?

Future implications to the growth of theAsia-Pacific regions:

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APPC should engage regional governments:

• Enhance enabling environment for:

• National philanthropy

• Diaspora philanthropy

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1.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?

Questions:

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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