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

1. 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

2. 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

3. 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.

4. 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.

5. 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

6. 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

7. Drivers for Social Development are : • Government • Private Sector

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

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

10. 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

11. How Did This Happen? 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

12. 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.

13. 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

14. 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.

15. 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

16. 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.

17. 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.

18. “ 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

19. ‘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

20. ‘He does not live in vain; who employs his wealth, his thought and his speech to advance the good of others’ - Bhagwat Gita

21. 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

22. 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:

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

24. 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.

25. 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.

26. 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.

27. 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

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

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

30. 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.

31. Aga Khan University, Karachi

32. Aga Khan University, Karachi

33. 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

34. 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

35. 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.

36. 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

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

38. 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

39. 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.

40. 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.

41. Most Diaspora philanthropists give to charity for individuals and family causes LESSON # 1:

42. However when trust and partnership are created, Diaspora can be attracted to building social assets rather than only give for charity LESSON # 2:

43. 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

44. 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:

45. 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:

46. 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:

47. LESSON # 6: We must work towards expanding overall Diaspora philanthropic pie and persuade them to give in support social assets

48. 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

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

50. 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