In just the last four years, recognition of the significance of transnational philanthropy has burgeoned. The term is used somewhat differently in different quarters, however. Narrowly, it refers to transfers of charitable contributions from immigrants to charitable organizations in their home countries, a flow that is also called "diaspora philanthropy." More comprehensively, it refers to the combination of such purposeful philanthropy together with immigrant worker remittances to their families or home communities in their country of origin.

The subject has recently gained the attention of no less than the World Bank, which now puts the remittance and philanthropic transfer total globally at $90 billion, nearly twice the total flow of Official Development Assistance from developed nations to developing nations. Remittance flows themselves have increased by 25% in the last four years, and trebled since 1990. The U.S. is the single largest point of origin of transnational philanthropy.

Why are these flows important?

The value of money is, of course, one measure. By any metric, the numbers are impressive. There are, for example, 7.6 million document and undocumented Philippine migrants working in over 190 countries. Between 1990 and 2003, they returned to the Philippines over $62 billion. In 2003 alone, that flow was $7.6 billion in remittances and $218 million in charitable contributions. That total is nearly 10% of the nation's Gross National Product, and these flows keep an estimated one million people above the local poverty line.

"The U.S. is the single largest point of origin of transnational philanthropy."

The flows are also important because they often fuel local economic investment and development. Certainly, the most frequent use of funds is for the personal or family needs of the recipient, especially for the costs of health and education. Such "personal" use, of course, has significant long-term benefit in terms of building up local economic capacity. But remittances and diaspora philanthropy also flow to more structured economic efforts. Philippine workers abroad are the key investors in a 10-million-peso mari-culture project on Samal Island in the Philippines. Mexican elected officials increasingly come to the U.S. to pitch local development projects to Mexican immigrant community organizations in major U.S. cities. The Micro Banking Division of the Bank Rakyat Indonesia has established a program to draw remittances in and reinvest them in rural development projects. Similar efforts are being made by the New Rural Bank of San Leonardo in the Philippines.

Third, transnational philanthropic flows are important because they reinforce civil society. Philanthropy is the monetized expression of a community's commitment to its future. Remittances and diaspora philanthropy provide a stream of evidence of the commitment of private individuals to the future of their families and their communities. Indeed, it is these flows and the evidence of their importance that have led elected officials and political candidates from around the world to actually campaign in the local communities of their immigrants in the U.S., looking not just for votes, but for cash and a good word to their friends and families at home. Remittances and philanthropy are solidifying the world's turn toward freedom and democracy.

"Philanthropy is the monetized expression of a community's commitment to its future. Remittances and diaspora philanthropy provide a stream of evidence of the commitment of private individuals to the future of their families and their communities."

Finally, the growing tide of transnational philanthropy has attracted to philanthropy itself the attention of powerful institutions like the World Bank. For too long, in this author's view, philanthropy and private flows of funds have been, at best, treated by global institutions as merely another source of (free) money to serve their own interests, and, at worst, as trivial actors on the economic stage.

It is hard, however, to treat $90 billion or $100 billion as trivial. Private philanthropy deserves a seat (indeed, several seats) at the global economic development table. Both its size and its role in civil society argue for the presence of its leadership at that table.

It is interesting that it appears that the private philanthropic actions of 175 million individual immigrants, not the power of foundation behemoths, finally got the attention of global development. Power to the people, indeed.

Sources

JM Opiniano, The Dynamics of Transnational Philanthropy by Migrant Workers to their Communities of Origin: The Case of Pozorrubio, Philippines. Paper presented to the Fifth International Society for Third-Sector Research International Conference, July 10, 2002.

Migration and Development: Myths and Facts, The European Policy Center, January 27, 2004.

Making the Best of Globalisation: Migrant Worker Remittances and Micro-Finance, Workshop Report. Geneva: International Labour Office, November 20-21, 2000.

Immigrants, Remittances and Development: Transforming Countries. Conference report from the New Americans Immigration Museum and Learning Center, January 21, 2005.

G Thompson, "Mexico's Migrants Profit from Dollars Sent Home," New York Times, February 23, 2005, A1.

Promoting Diaspora Philanthropy, Asia Pacific Philanthropy Consortium, Electronic News Bulletin, Issue 18, October 2004

Contributed by Susan Raymond, Ph.D., is Sr. Managing Director, Research, Evaluation, and Strategic Planning for Changing Our World Inc. Reprinted with permission from OnPhilanthrophy.com.

To read another Global Envision article about whatever global philanthropy, see Profits,With a Conscience.