Emerging economies such as China, India, Brazil, and South Africa provided substantial assistance to developing countries in 2011 in the form of philanthropy, remittances, and capital investments, a new report from the Hudson Institute's Center for Global Prosperity finds.
According to the Index of Global Philanthropy and Remittances 2013: With a Special Report on Emerging Economies (42 pages, PDF), China, India, Brazil, and South Africa accounted for $103 billion in private financial flows to the developing world, compared with $577 billion from the twenty-three donor country members of the Organization for Economic Cooperation and Development (OECD). The report also found that more than 95 percent of the financial flows from the four emerging economies were private — a higher proportion than among developed countries — and that donors and investors in emerging economies tended to focus their investments in social entrepreneurship and local ownership.
According to the report, philanthropic giving from OECD donor countries was an estimated $58.9 billion in 2011. India topped the list of emerging donor countries, with $249 million in private giving to developing countries, followed by South Africa ($96 million) and Brazil ($20 million). The report notes, however, that because philanthropy has yet to be institutionalized in many of these countries, data collection on the full scope of private giving remains a challenge.
The report also found that overseas development aid from all OECD donor nations totaled $134 billion in 2011, down 2.3 percent in real terms from $128.5 billion in 2010. Meanwhile, private investment flows from OECD donor countries and the four emerging economies totaled $410 billion, while remittances from those countries totaled to $211 billion.
"Private sector interactions — whether investment, remittances, and philanthropy or just remittances and private philanthropy — far exceed ODA," the report notes. "This reflects the diverse, new world of international development where for-profits, nonprofits, churches, universities, families and individuals from developed and emerging economies can and are contributing to international relief and development."