The 2012 Index of Global Philanthropy and Remittances, released by Hudson Institute’s Center for Global Prosperity, shows significant growth in charitable support for developing countries.
The Center’s Director, Dr. Carol Adelman, points out that, “that private philanthropy and remittances to the developing world now dwarf official government aid.”
2010 data (the most recent available) shows philanthropy from developed to developing nations of $246 billion, nearly twice the $128 billion in government aid. While total government aid grew dramatically, it accounts for only 18% of total financial support.
Private flows from the United States to the developing world increased to $39 billion in philanthropy, $95.8 billion in remittances, and $161 billion in private investment capital. Marking a major recovery for U.S. private investment capital, this important long-term development resource accounts for nearly 50% of U.S. total economic engagement with the developing world. While U.S. official aid increased to a high of $30.4 billion, it remains only 9% of U.S. total economic engagement with the developing world.
Taken with other financial indicators and recent philanthropic results, this appears to be yet another signal that the economy is forging forward, and that philanthropy may be a part of the overall recovery.