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Faith and Works Conference Global Giving – Global Impact October 27, 2008. Carol C. Adelman, Dr. P.H. Director, Center for Global Prosperity Hudson Institute. How the Developing World has Changed. Increase in Open Markets and Open Societies
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Faith and Works Conference Global Giving – Global Impact October 27, 2008 Carol C. Adelman, Dr. P.H. Director, Center for Global Prosperity Hudson Institute
How the Developing World has Changed • Increase in Open Markets and Open Societies • Growth in Private Philanthropy, Remittances, and Local Charities • Expanded Knowledge and Demand through Technology
Total Private, Official, and Remittance Flows from OECD Donor Countries and Multinational Agencies to Developing Countries in Billions of $, 1990-2006 Sources: OECD, 1990-2008; World Bank, 2006-2007; IDB, 2007; Hudson 2006-2008.
ODA as a Percentage of GNI and in Billions of $, 2006 Source: OECD, 2008.
Total U.S. Economic Engagement with Developing Countries, 2006 Source: Hudson, 2008.
The New Landscape of Global Private Assistance • Philanthro-capitalists • Expanded Scope of Faith-Based Giving • Cause-Related Marketing • ePhilanthropy and Cell Phone as Purse • Remittances
Assistance as a Percent of GNITotal Assistance from OECD Donor Countries to Developing Countries: ODA, Philanthropy, and Remittances, 2006 Sources: OECD, 2008; World Bank, 2007; IDB, 2007; Hudson 2008.
A New Foreign Aid Business Model for a New Developing World • Flexibility for Diverse & Changing Problems • Competition for Demand-Driven Ideas • Public-Private Partnerships: Co-Investment and Peer-to-Peer Relationships • Transparency, Efficiency, and Results
Private Giving at Work KickStart Americans Martin Fisher and Nick Moon sold their first MoneyMaker, a small irrigation pump that works like a stairclimbing exercise machine, to a Kenyan farmer for $55 in 1996. Today, their non-profit organization, KickStart, manufactures in Africa, generating jobs and selling more than 36,000 portable irrigation systems throughout East Africa, enabling local farmers to increase their planting from an average of 0.1 acre to 2 acres, and increase their average annual income from $120 to $1,400. A farmer in East Africa irrigates his field using the MoneyMaker. Photo credit: Courtesy of Kickstart
Private Giving at Work Five Talents International Founded on the premise of the old biblical parable of the talents: One servant given five talents reinvests them immediately to gain five more, Five Talents International is an Anglican micro finance organization that issues small business loans to poor people and couples them with sound business advice given by volunteer church members who own their own businesses. More than 20,000 business owners have benefited from a Five Talents’ loan. Donations from individuals, churches and foundations exceeded over $1 million for over 12,000 loans in 2006. Joy, a widow from Uganda gives a tour of the brick making business she started with a $150 Five Talents’ loan. Photo Credit: Five Talents International
Private Giving at Work Bristol-Myers Squibb In 1999, Bristol-Myers Squibb launched Secure the Future, a $150 millionprogram for AIDS prevention and treatment in ten southern African countries. With Baylor Medical College, B-MS built the first pediatric AIDS hospital, and trained local doctors through its Pediatric AIDS Corps volunteer program. B-MS hires local African personnel and uses African NGOs as partners in project operations. Baylor University Pediatric AIDS Corps Doctor in Lesotho Photo Credit: Bristol-Myers Squibb Company
Private Giving at Work Global System for Mobile communications Association (GSMA) GSMA’s Emerging Market Handset (EMH) program, launched in February 2005, brings together 18 mobile phone firms to manufacture the ultimate low cost phone for the developing world consumer. So far, over 16 million EMH phones have been sold. With a contribution of 50 cents to the GSMA Development Fund for every phone sold, the EMH program also contributes to economic and social development in the developing world. Cell phones are spreading into the far corners of the globe, helped by initiatives like the Emerging Market Handset program. Photo credit: Courtesy of Motorola
Private Giving at Work Joining Hands for El Salvador “Joining Hands for El Salvador” is an inspiring public-private partnership designed to help leverage remittances that El Salvadorian migrants in the United States send back to their villages. An estimated 28,500 students have benefited from 50 educational projects, including computer centers, expanded or remodeled schools, student resource centers, libraries, and science laboratories. Joining Hands for El Salvador provides more and better educational opportunities for children in El Salvador through community projects implemented trans-nationally by El Salvadoran migrants living in the U.S. Photo credit: Courtesy of Joining Hands for El Salvador