Due to scarce resources, developing countries faced multiple, socio-economic challenges which needs to be dealt accordingly. However, government alone is unable to deal with the austere issues of economic growth, such as lower GDP, and per capital income along with other and with the issues of economic development such as dealing with Human Development Index (HDI), poverty rate, literacy rate etc. Thus, government need the support of other stakeholders to help him achieving the socio-economic developmental goals. This gives the rationale of emerging third sector which constantly engaged other relevant partners and general public to join hands in addressing socio-economic development challenges across the globe. This phenomenal changes emerge since the beginning of 21st century.
In order to deal with these challenges, the non-profit sector took support from numerous sources such as through foreign development aid, indigenous government support, donations from general public but significant among is diaspora philanthropy, which will be explained later in this article but first let me explain the potential of indigenous philanthropy.
Philanthropy in general has the huge potential across the world and in Pakistan as well. The annual corporate philanthropy in Pakistan reached to its highest level which is approx.Rs. 13 billion in 2018, the individual donation is estimated around Rs. 240 billion in 2014. Pakistani’s are the most generous nation, around 98 percent of the sampled population is involved in some form of giving, reported by 2016 PCP report on “The State of Individual Philanthropy in Pakistan.”The World Giving Index, 2018 ranked Pakistan eighth in terms of number of population helping a stranger as well as donating money. Despite the fact that the country has been constantly facing tremendous challenges such as constant declining of GDP growth rate,widespread unemployment and poverty along with many other prevailing socio-economic challenges but nations collective generosity is phenomenal. Philanthropy has been growing constantly, individuals and corporations wanted to help people in need and to the causes close to their heart.
Though, there are different types of philanthropy including individual, corporate, foundations but as discussed diaspora giving has a profound impact but what is it?”Diaspora philanthropy” which is relatively a new phenomenon with several deviations, including homeland, migrant, and/or transnational philanthropy.In the contextual framework, diaspora defines as an individual residing outside their home countries but maintaining strong ties. They have the potential to contribute considerablyfor the societal wellbeing. It is commonly referred as giving by individuals living abroad so as to maintain connections they support socio-developmental causes of origin country. Theoretically, there are huge disagreement in the conceptualization of diaspora philanthropy but this is generally an acceptable definition.
Although, Philanthropy and remittances are not synonymous but they do have some common grounds. Take a glance of Pakistani diaspora community in order to fully optimize its philanthropic potential. According to World Bank estimations, Pakistani diaspora is the world’s seventh largest community with an estimated 7.6 million residing in about 140 countries. According to UK census 2011, around 1.17 million migrants lives in the UK who send around £2.6 billion (approx. Rs. 455 billion) in the form of remittances. This shows diaspora philanthropy as a mammoth potential funding stream to sustain civil society-led initiatives and could effectively contributes towards achieving development goals.
The recent publication on “Pakistani Diaspora Philanthropy in the UK 2019” highlighted the annual giving of the Pakistani diaspora to causes based in Pakistan and the UK amounts a combined total of £1.25 billion (approx. Rs. 251 billion) more than half of the amount sent in the form of remittances to Pakistan. The highest donation led by the Zakat in the form of monetary giving and lowest from time volunteered in the form of non-monetary giving for the causes in Pakistan. The report also accentuate that giving to UK based causes largely targets to disadvantaged and disabled people while health and education are preferred for Pakistani based causes.
This trend shows that giving by diaspora has increased manifold, for example, in 2005, the giving by Pakistani diaspora in USA stands at approx. Rs. 155 billion in real terms. The trend showsa significant growth in diaspora philanthropy, an effective utilization brings more fruitful results. One could easily see the diaspora giving trends during the fundraising campaigns of ShaukatKhanum Memorial Cancer Hospital in USA, UK, Australia and other gulf countries. The Citizens Foundations (TCF) who gives free education to poor and needy people also follow the similar lines. This highlights that diaspora are more than willing to help people in need if donated money has been effectively utilize.
Diaspora philanthropy need the attention of all stakeholders, the government has to recognize the contributions of Diasporas that brings the national development
Diaspora philanthropy need the attention of all stakeholders, the government has to recognize the contributions of Diasporas that brings the national development. As the space of civil society has been shrinking continuously due to dwindling financial sources, it is the utmost priority of international aid agencies as well as civil society organizations to identify the new avenues of development aid which could help in achieving development goals, diaspora could be the potential source of philanthropic giving. Notably, diaspora communities are also willing to contribute and help people back, so as to maintain links with the home.
There are several possible question arises here such as how diaspora philanthropy emerges phenomenally? The reason behind these are mainly due to following reasons, firstly, increasing trend towards migration resulting in the surge of remittances, secondly, diasporas interest towards national development, thirdly, the growing trend of civil society in engaging diaspora towards development causes.
What are the other possible sources through which diaspora could contribute? Monetary giving is not the only giving mechanisms through which diaspora could give. Many experts believe that diaspora population could play significant role in transferring skills, technology and maintaining strong political relationship so as to represent their country appropriately in international forums. Diaspora could also play pivotal role during post conflict or emergency situations such as during floods.
Generally, a typical question floating around about the impact of diaspora philanthropy. Although, impact has not been evaluated but it has been witnessed the potential increase of magnitude and impact of diaspora giving which eventually achieved the desired social outcomes. In the developed world, diaspora socio-economic contributions has recognized an important source of additional funding and many countries are in process of making effective policies to create linkages with the diaspora. Other key stakeholders are also playing pivotal role in developing and shaping the policies to engage diaspora more effectively in due process of development.
What diaspora philanthropy could achieve? Let me quote here that the development budget of education and health in 2018 was Rs. 101 billion and Rs. 130 billion respectively which is half of what diaspora give ignoring the fact that other dimensions of philanthropy also contributes significantly.
In order to finance the shortfall of USD 2.5 trillion per year in achieving SDGs many developing countries along with their developed counterparts putting efforts to increase the worldwide aid, for example, International Finance Facility for Immunization raise USD 5.7 billion with the purpose of providing funds along with purchasing and delivering life-saving vaccines and to strengthen the health services of world’s poorest countries. Important, its funding mechanisms are donor pledgees. In this regard, engaging diaspora groups could bring promising results. Another example is United Nations Development Program, TOKTEN program, meaning the Transfer of Knowledge through Expatriate Nationals. The purpose is to engage qualified professionals of diaspora community to contribute for national development causes in their home countries. So far, TOKTEN placed more than 5,000 volunteers in more than 50 developing countries.
With the increasing impact of globalization, communities are vastly engaged in developmental causes as migration opened many other avenues. This has been escalated rapidly over the last two decades. The rationale of conducting such researches is to create awareness about the unknown portion of remittances which goes towards charities and an effective policy could benefit the country in number of ways. Globally, “making a difference” brings amazing results.
The writer is a Program Officer at Research Pakistan Centre for Philanthropy (PCP)