Fourth Annual Index of Global Philanthropy and Remittances Shows Private Philanthropy, Remittances Provide Lifeline to Developing Countries During Recession
WASHINGTON, April 27, 2009 — Despite the global recession, private giving and remittances are expected to be lifelines to help developing countries weather the economic storm, according to the new 2009 Index of Global Philanthropy and Remittances published by Hudson Institute's Center for Global Prosperity (CGP).
The most comprehensive measurement of global private giving, this year's Index shows that philanthropy from all developed to developing countries increased to $49 billion in 2007 (latest available data). Despite the loss of assets in 2008, giving abroad by foundations, corporations, charities, churches, and individuals is not expected to take a sharp downward turn in 2009, according to Index analysis. Remittances—money sent from migrants living in developed countries back to their families and towns in the developing world—may be the most recession- resilient means to help alleviate poverty in underdeveloped countries. This $145 billion sent back home exceeds government aid from developed countries, which totals $103.5 billion. Even with the economic downturn, remittances grew 9 percent in 2008 and are expected to decline by less than 10 percent in 2009.
The new Index, officially launching on April 27, shows Americans continued their generosity in 2007. Dr. Carol Adelman, Director of CGP, is presenting the findings at the Council on Foreign Relations in Washington, DC.U.S. private philanthropy, larger than ever, totaled $36.9 billion, over one and one-half times larger than official aid for this same period. When remittances are added to private philanthropy, the combined total—$115.9 billion—is more than five times official aid of $21.8 billion.
The Index details the private philanthropy of U.S. foundations, corporations, private and voluntary organizations, volunteers, colleges and universities, and religious congregations. For the first time ever, the Index provides private-giving data by region and type of activity, showing that Africa receives the largest percent of corporations and charities' donations, while Latin America gets the bulk of giving by religious congregations.