Wednesday, April 11, 2018

India Top Recipient of Global Private Charity; Pakistan Ranks 12th

India tops the list of charity recipients from private foundations while Pakistan is ranked as the 12th largest recipient of philanthropic giving in the world, according to a report released by OECD (Organization for Economic Co-operation and Development).

Private Foundation Philanthropy in Asia. Source: OECD 


Global Philanthropic Foundations:

Philanthropic contributions of major international private foundations in Pakistan totaled  $267 million out of the $42 billion global contribution in  2013-2015.  This compares with $1.6 billion in top-ranked India and $498 billion in second-ranked China.  US-based Bill and Melinda Gates Foundation (BMGF) contributed nearly half of the $42 billion in global charity by private foundations.

Private foundations are filling the huge gaps in public funding of health and education sectors in developing nations. . They contributed  $11 billion for the health sector alone in the three year period, ranking third behind the United States and a global fund for fighting disease.

Massive Western Aid to India:

In addition to being the biggest recipient of private foreign charity,  India has been the number one recipient of official US aid since 1947, according to the US government data.   The country India's first Prime Minister turned to for help during the 1962 China-India war was also the United States.



India has received $65.1 billion in US aid since its independence, making it the top recipient of American economic assistance. Pakistan, with its $44.4 billion, is at number 5 on the list.  US data also shows that Pakistan is not among top 10 for military or total economic and military aid.

Top Aid Recipients and Their Donors in 2017. Source: Wristband Resources



Local Charity in Pakistan:

Pakistanis donate generously to local charities in the country in the form of religiously mandated donations such as "zakat, sadaqa and fitrana".  One of the key measures of empathy is generosity to others, the kind of generosity demonstrated in Pakistan by the likes of  late Abul Sattar Edhi. The Edhi Foundation set up by the great man is funded mainly by small donations from ordinary people in Pakistan.

 Anatol Lieven, author of "Pakistan: A Hard Country" wrote the following tribute to the Mr. Edhi:

"There is no sight in Pakistan more moving than to visit some dusty, impoverished small town in an arid wasteland, apparently abandoned by God and all sensible men and certainly abandoned by the Pakistani state and its elected representatives - and to see the flag of Edhi Foundation flying over a concrete shack with a telephone, and the only ambulance in town standing in front. Here, if anywhere in Pakistan, lies the truth of human religion and human morality."  

What Professor Anatol Lieven describes as "human religion and human morality" is the very essence of the Huqooq-ul-Ibad (Human Rights) in Islam. Abdus Sattar Edhi understood it well when he said, "there's no religion higher than humanity".

Edhi understood the meaning of what the Quran, the Muslim holy book, says in chapter 2 verse 177:

"Righteousness is not that ye turn your faces towards the east or the west, but righteous is, one who believes in God, and the last day, and the angels, and the Book, and the prophets, and who gives wealth for His love to kindred, and orphans, and the poor, and the son of the road, beggars, and those in captivity; and who is steadfast in prayers, and gives alms."

A recent article written by Shazia M. Amjad and Muhammad Ali and published in Stanford Social Innovation Review said that "Pakistan is a generous country. It contributes more than one percent of its GDP to charity, which pushes it into the ranks of far wealthier countries like the United Kingdom (1.3 percent GDP to charity) and Canada (1.2 percent of GDP), and around twice what India gives relative to GDP."

OECD says corporate donations in Pakistan have increased from  $4.5 million to $56.4 million over the last 15 years. Corporate donations are dwarfed by individual donations made as zakat, sadaqa and fitrana as commanded by the Quran.

In addition to zakat, sadaqa and fitrana, Pakistanis spent about $3.5 billion on Eid ul Azha in 2017, according to analysts. This included sacrifice of $2.8 billion worth of livestock and another $700 million on clothes,  shoes, jewelry and various services. This amount represent a huge transfer of wealth from urban to rural population, including many rural poor, in the country. It also brings philanthropic donations of Rs. 2.5 billion to Rs. 3 billion ($25-30 million) worth of animal hides which are sold to the nation's leather industry.

Empathy Study:

A Michigan State University (MSU) study of 63 countries finds that Pakistanis have higher empathy for others than people in their neighboring countries. It also finds that the United States is among the most empathetic nations in the world.





The MSU researchers, led by William J. Chopik,  analyzed the data from an online survey on empathy completed by more than 104,000 people from around the world.

The survey measured people’s compassion for others and their tendency to imagine others’ point of view. Countries with small sample sizes were excluded (including most nations in Africa). All told, 63 countries were ranked in the study, according to MSUToday, a publication of Michigan State University.

Summary:

Pakistanis are among the most generous people in the world.   They contributes more than one percent of the nation's GDP to charity, which pushes Pakistan into the ranks of far wealthier countries like the United Kingdom (1.3 percent GDP to charity) and Canada (1.2 percent of GDP), and around twice what India gives relative to GDP, according to Stanford Social Innovation Review.  Average Pakistanis continue to be empathetic and generous in spite of the violence and the terror they have endured for over a decade. It can only be attributed to the strength of their faith and their adherence to what Prof. Lieven describes as "the truth of human religion and human morality".

Related Links:

Haq's Musings

Study Says Pakistanis Have Higher Empathy Than Neighbors

Comparing Median Wealth and Income in India and Pakistan

Eid ul Azha Economy

Foreign Aid Pouring in India

Huqooq-ul-Ibad in Islam

Philanthropy in Pakistan

Panama Leaks Scandal

Misaq-e-Madina Guided Quaid-e-Azam's Vision of Pakistan

Interfaith Relations in Islam

5 comments:

Amjad N. said...

Thanks for another informative piece. With regard to charitable giving in Pakistan, we at TCF monitor this closely. In recent years, the ratio of donations to TCF has been 60:40 (Pakistani v. overseas donors). As giving to TCF by overseas donors has increased, the ratio is still 50-50 (2016, 2017).

Riaz Haq said...

Pakistan shuns US for Chinese high-tech weapons

https://www.ft.com/content/8dbce0a0-3713-11e8-8b98-2f31af407cc8

Pakistan is focusing instead on the rollout of the next batch of the JF-17, the fighter jet it is developing with China, and which is catching up with the F-16 in terms of capabilities.

One former Pakistani minister recalls telling colleagues the US decision confirmed his worst fears. “We have learnt over time that the Americans are terrible when it comes to honouring their promises,” he says. “This was bound to end up in divorce.”

Pakistan’s response encapsulated what had been a slow but steady shift in military procurement away from American-made weapons towards Chinese ones, or those made domestically with Chinese support. 

Since 2010, US weapons exports to Pakistan have plummeted from $1bn to just $21m last year, according to data from the Stockholm International Peace Research Institute. During the same period, those from China have also fallen, but much more slowly, from $747m to $514m, making China the biggest weapons exporter to its southern neighbour.

The shift coincided with Islamabad’s growing suspicion about the closeness between the US and India, but was accelerated by the killing of al-Qaeda leader Osama bin Laden on Pakistani soil in 2011, which badly damaged relations with the US. 

This year, relations deteriorated again when President Donald Trump suspended $2bn of military aid to Pakistan, accusing it of showing “nothing but lies and deceit” in its promises to crack down on the Taliban and affiliated groups. The problem for Mr Trump is that he needs support from Pakistan as he recommits to the war in Afghanistan, and his officials are finding that Islamabad is less responsive than usual to the US message. 


Harrison Akins, a research fellow at the Howard H Baker Jr Center for Public Policy at the University of Tennessee, says: “The Trump administration’s decision to pursue sanctions against Pakistan, alongside Trump’s fiery rhetoric . . . can only push Pakistan further into the arms of Beijing — especially with Pakistan’s shift from US military supplies to Chinese military supplies. 

“In the short term, this will make the US mission in Afghanistan more difficult and costly.”

For the US, there could be longer-term consequences that stretch well beyond its complicated relationship with Pakistan. Sales of weapons systems, often backed by preferential financial terms, have become central to the way the US has managed its vast network of military alliances and partnerships — in effect, a form of patronage.

But many of those countries are now advertising their ability to buy some of that hardware from other governments. Key allies such as Saudi Arabia and Turkey have signed arms agreements with Russia. From the Philippines and Thailand in east Asia, to large parts of Africa, world leaders are also increasingly looking to China to provide the kinds of weapons they always used to buy from the US. Between 2011 and 2015, China exported 88 per cent more in weapon sales than during the previous five years, according to Sipri.


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For Pakistan’s defence planners, the collaboration with China on defence technology is not only about equipping their own armed services. They are also hoping they can become a significant arms exporter and, in doing so, help to boost the country’s low foreign currency reserves.

Pakistani officials say that between 2014 and 2016 the country exported about $63m of weapons, but last year they announced an intention to increase that to $1bn a year. To do that, they say, they will focus on selling aircraft such as the JF-17, jointly made with the Chinese, to countries such as Egypt, Turkey and Nigeria. Farooq Hameed Khan, a commentator on security affairs, says: “Pakistan’s close collaboration with China has helped us build our quality of weapons. Gone are the days when Pakistan only produced small arms.” 

Riaz Haq said...

OUTRAGE as #India spends £330 MILLION of £1billion #UK foreign #aid on GIANT BRONZE #StatueOfUnity. BRITONS are outraged after the Indian government spent hundreds of millions of the £1.17billion of overseas aid sent to them by the UK. #Modi #patel http://shr.gs/SrNnexe

While the UK was sending India £1.17billion in aid, the Indian government was spending nearly half of that on the world’s tallest statue.

This new statue is twice the height of the US’ Statue of Liberty and has been met with condemnation for the large bill that it carried.

Over the 56 months it took to build India’s Statue of Unity, the government spent around £330million of UK taxpayer’s aid.


It stands in Mr Modi’s home state of Gujarat at the bend of the Narmada river.

The Prime Minister was the chief minister of Gujarat when the statue was first commissioned.

Construction began in 2012 when the UK sent India nearly £300million.

Then, in 2013, the UK sent another £268billion followed by £278million in 2014 and £185million in 2015.

Since then, the UK has sent India smaller sums.

While this money was coming in, India was spending much of it to build the 579ft bronze replica of a hero of India’s independence movement, Sardar Patel.

In response to this, Tory MP Peter Bone said: “To take £1.1billion in aid from us and then at the same time spend £330million on a statue is a total nonsense and it is the sort of thing that drives people mad.

“What it proves is that we should not be giving money to India.

“It is up to them how they spend their money but if they can afford this statue, then it is clearly a country we should not need to be giving aid to.”

The aid money was also spent on various programmes ranging from improving women’s rights to funding solar panels to investment in low-carbon transport.

In 2014, around £14,000 was spent in Gujarat to increase religious tolerance among young people.

While the UK did not directly fund the statue, the money was spent on programmes that the government could not have afforded if they had been using their own money on building the statue.

It took 3,500 workers four years to build and it also saw a massive land-grab that affected 72 nearby villages that, according to tribal chiefs, forced thousand out of their homes.

Upon its unveiling, helicopters flew overhead and dropped rose petals during Mr Modi’s speech.

Britain’s former International Development Secretary Andrew Mitchell said in 2012 that the UK would stop ending India aid in 2015, but £92.6million was sent to India last year.

Riaz Haq said...

#Japan gives emergency loan of 50 billion yen (almost Rs 3,500 crore) to help #India deal with #COVID19 crisis. It is the largest amount of aid announced by any country so far to help India amid widespread impacts on the #economy and #health sector. #Modi https://www.hindustantimes.com/india-news/japan-announces-emergency-loan-for-india-to-fight-covid-19-pandemic/story-EU1w4uYbMMipMFPdS2KaQP.html

Japan announced on Monday it will extend a emergency support loan of up to 50 billion yen (almost Rs 3,500 crore) to back India’s response to the Covid-19 crisis, including implementation of health and medical policies and development of hospitals equipped with ICUs.

Japanese ambassador Satoshi Suzuki, and CS Mohapatra, additional secretary in India’s department of economic affairs exchanged notes regarding the provision of the yen loan for the response to the Covid-19 emergency.

A statement issued by the Japanese embassy noted that the Indian government has taken several measures, including health sector reforms, in response to the spread of Covid-19. “This loan provides the necessary funds for emergency response in the fight against Covid-19 in India,” it said.

This is the largest amount of financial assistance announced by any country so far to support India’s response to the Covid-19 crisis, which has had widespread impacts on the economy and health sector.


The “Covid-19 crisis response emergency support loan” will back the “implementation of health and medical policy by the government of India, and will lead to the development of hospitals equipped with ICUs and infection prevention and management facilities, which are undersupplied in India”, the statement said.

“It is also expected to lead to the enhancement of telemedicine using digital technology in numerous villages across India. It is expected that these measures, in addition to controlling the spread of infection in the country, will also contribute to the recovery and stability of the country’s society and economy, as well as to sustainable development,” the statement added.

The terms and conditions of the loan include an interest rate of 0.01% per annum and a redemption period of 15 years, including a four-year grace period.


Suzuki and Mohapatra also exchanged notes for the provision of grant aid worth 1 billion yen under Japan’s Official Development Assistance scheme for India’s Economic and Social Development Programme, which is being implemented by the health ministry.

“This programme will provide oxygen generators to government of India. Oxygen generators can be employed for the treatment of Covid-19 patients under critical conditions. This programme will lead to the strengthening of India’s infectious disease countermeasures, as well as her health and medical systems,” the Japanese embassy said.

In a separate development, the Japanese embassy and consulates and Japan External Trade Organisation (JETRO) updated the list of Japanese businesses in India with the cooperation of Japanese chambers of commerce and industries in India.


As of October 2019, the total number of Japanese companies registered in India is 1,454. The number has increased by 13 (0.9% growth), compared to 1,441 in 2018.

The total number of Japanese business establishments in India, as of October 2019, is 5,022, a decrease by 80 (1.6% decline) as compared to 5,102 in 2018.

West Bengal and Haryana showed the largest increase in the number of Japanese companies. There was a significant increase in the number of companies in such sectors as information and communications as well as services.


The manufacturing sector accounted for half of the total Japanese companies and more than a third of Japanese business establishments in India.

“The total number of establishments decreased while the number of companies increased, because some companies became non-Japanese due to the closure of office, corporate restructuring, change of ownership etc,” said a statement from the Japanese embassy.

Riaz Haq said...

#UK #aid to #India does little for #humanrights and #democracy, watchdog finds. Aid Program spent £2.7bn between 2016 and 2021 but is fragmented and lacks a clear rationale. There's no programming related to democratic space, free media or human rights https://www.theguardian.com/global-development/2023/mar/14/uk-aid-india-human-rights-democracy-watchdog?CMP=share_btn_tw

Britain’s aid programme to India is fragmented, lacks a clear rationale and does little to counter the negative trends in human rights and democracy in the country, the government’s aid watchdog has found.

The findings are likely to be used by those who claim the UK government risks using its aid programme to deepen its relationship with India, including seeking free trade deals, rather than attempting to reduce poverty, which is the statutory purpose of UK aid.

The review by the Independent Commission for Aid Impact said the government spent £2.7bn on aid to India between 2016 and 2021, including the provision of loans by the government-run British International Investment to mainly smaller companies. In total, loans to India represent 28% of the BII global loan portfolio.

The review finds “the overall programme is fragmented across activities and spending channels and lacks a compelling development rationale”, particularly since India already has relatively developed financial markets.

The UK does not use its aid programme, enshrined in a joint roadmap signed by India and the UK in 2021, to support Indian democracy and human rights, despite backsliding in this area under the premiership of Narendra Modi, the review says.

The ICAI review group reported: “To explain the limited activity on democracy and human rights, Foreign Office officials noted India’s acute sensitivity to any external influence in its political affairs, particularly from the UK. They acknowledged that the UK and India have different perspectives in this area and described the roadmap as being based on shared interests, rather than shared values. They informed us that the UK engages in ‘quiet diplomacy’ on issues such as freedom of speech.”

On human rights the report finds the 2021 roadmap setting out India and the UK’s joint cooperation goals “does not include any objectives related to the promotion of democracy or human rights in India” and adds that “the UK has not been particularly active in India in this area in recent years, either in its aid programme or in its public diplomacy”.