Insights into refugee resettlement in Germany

Last week, I was in Munich, attending a conference organized by the Institut fur Politisch Bildung, a German think-tank and Virginia Tech (my alma mater). The three day visit was overwhelmingly positive, except for a visit to the Dachau Concentration camp, which left me drained, emotionally.  Regardless, here is a quick synopsis of some of the key points made by Kelly T Clemens, Depy. Director, UNHCR, who was one of the speakers.

  • “Statistics are stories with tears dried off.” Stats do tell a story. Just 8 yrs ago, there were 42 mn forcibly displaced people. Afghan and Iraqi were about half (doesn’t include Palestinians). 75% resided in the neighboring countries of origin. Two years later, in 2012, this went up to 45 mn- by 2014, 60 mn and some of the same populations. We just published mid-year trends in 2017. 67 million now. The trends we have seen are clear and unambiguous. Old conflicts have festered and Somalia and Afghanistan have been major senders. New conflicts have erupted, including Syria, which led to new displacements. 2017 saw Myanmar’s Rohingya leaving. The situation in 2018 is not different.
  • Millions leave and are struggling in the margins. Minara, who I met in Bangladesh; walked for three weeks (1 yr old baby). Had lost her husband. The story of her flight is terrible. She and her husband were chilli farmers. It’ll be challenging for her to restart her life. This is a lesson we have learnt. Apart from physical safety, it impacts their ability to begin to reestablish socio-economically. Refugee crisis in 2015, it is impossible not to refer to Syria.
  • UNHCR, working with over 1000 partners, registerd 1 mn March 2015 and 4 mn by 2015. Today, its over 5.5 mn refugees. By hosting countries, neighbours provided global good (Syria’s neighbors). They granted people to enter local and national job opps. In most cases, they are not partners of 1959 Geneva conventions . We helped with setting up camps only where necessary and provided support shelter, aid and sanitation.
  • We also gave cash registration instead of in kind. Innovative solutions, in addition to traditional. We work with World Bank and other partners, to identify the most in need and embraced digital platforms, web based systems and other platforms.
  • Faith- based groups run by refugee groups are modern day echo of megaphones to refugees. Alongside, there is recognition of challenges to countries.
  • We work with UNDP, regional local UN resilience plan. With World Bank, Poverty and Welfare study.
  • Turkey has spent $8bn. UNHCR advocated funding to host countries. Can we provide concessional financing to Jordan, other countries? Concessional financing facilities. Inspite of generous response, at least to allow partial funding.
  • The appeal we have launched, only 41% support. Cuts in food aid for thousands. Thousands left out of cash funds. Lost access to healthcare. Many adults were forced to beg, etc.
  • In Jordan, new identity docs required too much money to pay. Limited education opps, were also factor. 90K students unable to access education in school. Lack of security for people in their own country was the major cause to leave.
  • ElSalvador and Honduras unspeakable violence. Gang violence and extortions. Flee to Mexico. Cash based support from UNHCR. What was clear from dozens of stories, we heard that they needed protection and aid. Their stories were not separated from socio-eco lives.
  • People resort to different and more dangerous routes. How do we advise asylees to seek help? It was one of the most frustration operations have experienced.
  • The 2015-16 left a profound impact on European systems. We can speak of pre-and post 2016. Populatinos have shown commitment to host refugees. New partners have been formed, down to municipalities, NGOs and govt. A broad commitment has provided a holistic system. A contribution to help refugees, designed to make their lives better.
  • NY Declaration– 129 countries adopted a declaration to protect people from all countries. It helps support people. Through this declaration, states have adopted robust measures to help fleeing people and a call for global solidarity. Intl responsibility sharing. Incorporates strong calling for solutions and need to address root causes and help resolve conflicts through peaceful means. Annex 1 mandated us to have a comprehensive refugee response network.
  • Four aims in 13 countries, to ease pressure on hosts and expand access to third country. Voluntary return in safety and dignity and covers entire cycle.
  • We have central lab in Central America who are driving the cause and strong network of countries in Horn of Africa, who want to take this on and interest from Asia as well. Applied from diverse range of actors and NGO actors. Our work in these countries has led to inclusion of eco. For refugees. Taking a step back, what’s diff now? First, it’s a political statement that we should engage more comprehensively and secondly, this response clarifies that humanitarianKelly.JPG action alone is not enough We need political and development efforts. Addresses root causes and requires us to consider refugees not in isolation but as part of communities.
  • Calls upon us to rely on private sector. Particularly, since 2015, engagement of World Bank and $2bn for refugees has been monumental.
  • Djibouti – new refugee law  – to settlement approach. Ethiopia too, to implement programs A roadmap driven by PM around large-scale employment. Removing encampment policies to have free movement of people.
  • Somali region – 200,000 people in Ethiopia – local community was struggling. Ethiopian govt has kept borders open and this has happened over decades and inspite of difficulties, hosts and refugee countries are working together to grow crops and help themselves. Private sector, through IKEA foundation, to irrigate farm lands etc. they have built schools that include both hosts and refugee kids. Also, renewal energy to save planet. Excellent example.
  • Uganda – coordinating mechanism place. Key role, to help sustainable response. Help other stakeholders in place. In addition to philanthropy, private sector are being tapped.
  • 3 countries accounting for major refugees hosting, other countries in the global North and South need to do more.

Two Americans in Ecuador

While the American political apparatus is busy withdrawing itself from the world, I met two incredible Americans who have not only spent their energies, but also their time trying to make Ecuador a better place.

Just last week I was in Quito, the country’s capital to visit Sun Mountain, an organization founded by Scott Solberg, an alumni of Cal Lutheran University, where I teach. He has been in Ecuador for over 17 years now; managing projects in Ecuador and around the world. The focus of Sun Mountain is sustainable living, broadly defined. They also bring expertise in agriculture, community development and related areas. Jake Hutton, also an alum is one of the other employees at SMTN.

While I spent time in Quito and went around the country, visiting places like Pacto, a little dream of a village; tucked away in the mountains, I also witnessed the kinds of collaborations that can occur between groups that are training locals in environment sustainability and eco-tourism. These groups are largely local ones started by concerned farmers and activists who want a sustainable and equitable model of development for their communities. I attended two such meetings and was impressed by their dedication and focus. And of course, I spoke in Spanish!

A group called Pacto Magico is bringing together local businesses in Pacto to help them grow and promote eco-tourism and best practices. The focus seems to be on improving the living conditions of the locals, help them stay true to their mission, as organizations; while remaining afloat.

It was reassuring to witness two Americans and an American led organization still be involved in Quito, to the extent that Scott and Jake are. While there are hundreds and thousands of such people, with a clear mission of serving the world and doing it with clarity of thought, such examples need to be highlighted. Highlighted not only to bring positive attention to them, but also to inspire others to go out there, explore the world and be a force for good. That is what the US can be and in these times, when Americans seem to be forgetting this side of their legacy; Sun Mountain serves as a reminder of what is possible.

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Me with Scott (with the blue cap) and Jake.

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America’s philanthropy problem?

170616141515-amazon-whole-foods-jeff-bezos-grocery-brick-and-mortar-00001001-1024x576A debate that is becoming salient, over the past few years is if philanthropic foundations are becoming powerful by the day? A recent article in The Huffington Post points this out. The writer points out, correctly, that Jeff Bezos solicited ideas for his philanthropy, just a few days before the purchase of Whole Foods. PR stunt? Astute move to buy some social capital? Or perhaps a combination of both?

For some, this is a problem – arguing, as does the Huff Post writer, Matt Stoller. But for others, this is nothing but a transactional idea. A means of buying some legitimacy in a world where raising questions such as this is moot. The battle of ideas over the legitimate use of power is over, in this other world-view. The capitalists have won and rightfully decide what needs to happen in our world. Whether it is by monopoly or other means is irrelevant.

A friend recently pointed out Hypernomalization, a documentary that also makes this point. The thesis in this documentary, that giving away of democratic power to those with wealth is dangerous and has brought us to the current state of affairs – with a climate change denying President and a world where the state is increasingly being made irrelevant and the real power resides in the handful of oligarchs around us.

This is not just a political problem but also a social problem. And in that sense, a philanthropic problem as well. For those of us who study (and practice) philanthropy, this should be disconcerting – simply because of the ramifications of how the act of philanthropy is perceived.  Whether it is a genuine act – aimed at bringing about social change or a PR stunt depends as much on one’s motivations and style of managing it. The current tilt towards hi-networth philanthropy makes it less egalitarian and ‘normal,’ it seems.

Is there a ‘rational’ way to Discuss Immigration Reform?

America is a country that equally loves and hates immigration. With public opinion on this issue being divided, it does not look Americans will reach a consensus on what is good for the country, anytime soon. If history is any indicator, then this question has not been settled in the last three hundred years. So, as urgent as this matter is – and I do believe that immigration reform should take place – I think we need to step back and look at this issue for what it is – a deeply rooted one, that is intertwined with the very identity of America. Is America really a ‘melting pot’ of cultures and people? Or is it not? There is no right answer to this question, as it is a normative one, whose meaning will be defined and re-defined by every generation. I would argue that it is impossible to determine this purely on the basis of polls, public opinions or even voting, because this question is about values and normative assumptions about what constitutes America.

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By this, I mean that there is no ‘rational’ or ‘scientific’ way to go about immigration reform in the U.S. I believe the best way to think about this issue is to think of it as an ethical value, rather than as a ‘rational’ one, that would either benefit or harm America’s economy. President Obama’s recent moves to allow millions of undocumented workers is not a new story, in the sense of being totally novel, but one that is part of a struggle between nativists who did not want to dilute the character of America versus liberals, who believed that the melting pot of America should be kept open to all, who wanted to be a part of it. As this article in the New York Times points, one key piece of the Executive Order may allow up to five million undocumented workers to work in the U.S. with work permits and not fear being deported. The benefits of this measure could be potentially limited to those who have lived in the country for more than ten years, the report added. This brings us to the question of why immigration continues to be such a big issue? Why is it so divisive and what is the history of this discourse?

Since the early 19th century, this has been the pattern of existence for most Americans. While the immigrants have changed – from Irish in the early nineteenth century to Asians, Arabs and now Latinos. The anti-immigration sentiment has been based on fear. This is a dominant theme that emerges time and again. This could be a fear of several things: Fear of lack of resources, vanishing jobs, ‘dangerous criminals’ and fear of ‘diluting the true identity’ of what it means to be an American have all been invoked, from the early 19th century onwards. While we are witnessing anti-immigrant sentiment against Latinos and Muslims now; the Irish, Eastern Europeans, Arabs to South Asians have faced this in the past.

Latino immigration and fear of the ‘foreigner’

While President Obama has been slow to push for comprehensive immigration reform, given the nature of divisive politics in Washington D.C., there is indication that he will issue an Executive Order, soon. This is meant to allow for greater access and mobility for undocumented workers, who are predominantly from Mexico, but also come from Latin American countries.

Nativists argued for banning the Irish from entering the U.S. in the 19th century and then later in the 20th century, the same arguments were propounded against Arabs and those from Asia. As Wuthnow suggests, we must critically examine the mythos that make up America – that is a land of opportunities, or that it is really a religious place. These myths are not helpful, and can do more harm, he suggests and goes on to say “For example, they encourage us to think that we are more religious than we are. They result in ideas on how to escape materialism and consumerism and are more wishful than what we imagine.” Any such examination should take into account that we are becoming more individualistic, as a society and this needs to give way to a more collective way of thinking, he suggests. So, is the anti-immigration sentiment a purely rational decision of individuals deciding to keep those not ‘fit’ to be part of the U.S. out, while allowing others to come in? Or is there something more to it? Can we explain this through purely rational choice paradigm or do we need more than that?

So, while it is important to examine the narratives on which America is built, it is also crucial for us to look at the narratives and myths about the immigrants themselves. I would argue that this is equally important, if one were to arrive at some approximation of ‘truth’. While several studies have shown that immigration is good for America, there are an equal number of them that would point to the opposite – that immigrants are harmful to our economy, they take away jobs from deserving Americans etc. This sort of ‘instrumental rationality’ of measuring everything from a purely ‘scientific’ perspective is not helpful. In social sciences, we need more ‘value rationality’, as suggested by Flyvberg (2001) and others. This means that we actually go beyond purely epistemic or quantitative analysis and make normative, ethical judgments about issues – whether an issue is ‘good’ or ‘bad’ for our society.

As Wuthnow argues, renewal of America – as an idea – is not purely about material conditions, though economy is always part of the political discourse, but rather about where people feel the country is headed. This is evident in the mid-term elections that concluded, where a majority of voters did not recognize Obama’s achievements in reducing unemployment, budget deficit etc. and instead voted for the Republicans. How does this fit into the arguments that I have made thus far? It confirms in some ways what Flyvbjerg says that people do not make ‘rational’ choices but rather those that are based on normative choices. So, in our analysis of issues like immigration, climate change etc. perhaps we must be open to including judgment and decisions made in the manner of a ‘virtuoso social and political actor’, as Flyvbjerg suggests, rather than just focusing on the rules of the game. Rules are often now followed and are often broken, when it comes to practical, everyday life – a fact that ‘rational’ social science does not take into account.

 

Can democracy take root in the Arab world?

As Syria burns, Iraq implodes and Tunisia and Libya struggle to democratize, one question remains central to framing discussions of participatory governance – Is democracy possible in the ‘Muslim world’? Is democracy an ‘internal wound,’ that has been left to fester for too long, within the Arab/Muslim world, as Moroccan scholar Fatima Mernissi argues? She says, pointing to Islamic history that, since the advent of Islam, there have been two traditions within Islam – the intellectual and philosophical tradition of the falasifa, of the Hellenized philosophers and the Sufis of Persian and Indian traditions and on the other hand, the Kharijite tradition of political subversion – which has been violent and bloody. This tradition continues, as we look around the Arab world and the struggles for power that are ongoing.

 As Mernissi says “The two traditions raised the same issues that are today told are imports from the West, issues that Islam has never resolved: that of ta’a (obedience to the Imam or leader of the community) and that of individual freedom. Political Islam resolved these issues neither in theory nor in practice, for the idea of representation was never effected, although the idea that the Imam is chosen by the community is deeply rooted in the Sunni Islam.” (1992, p.21). This choosing of the Imam by the majority is a democratic element that has been part of Islamic history, no matter how one reads it. The first caliph and those onwards, till Ali were chosen by consensus of the community, though it was not an ideal participatory voting mechanism, as we know it today. Some of these age-old tensions are still playing out, in many ways. This could be considered a part of the power-struggle within the house of Islam, at the risk of sounding orientalist. But there is a grain of truth to this.

I explored some of these questions a few years ago, when I took part in a two semester course called Democracy in the Middle East at the Maxwell School of Syracuse University, as part of my MA in International Relations. This was in 2009, when life was stable in the Middle East and it would be a while till the word ‘Arab Spring’ would become part of everyday lexicon. Some of the bigger questions that we grappled with, as part of the seminar, taught by Dr. Miriam Elman were: Is Islam compatible with democracy, Are the countries of Middle East and North Africa inherently not able to adapt democratic means of governance and to what extent has history played a role in the way things are.

            Vicky Langhour (2002) points to the arguments made by some scholars that substantive democracy may need to be stalled in the authoritarian countries of the Middle class till there is a solid middle class that can demand legitimate democracy. This is operating on the assumption that the only alternative to the existing autocratic regimes is that of Islamists (Muslim Brotherhood, Al’nahda etc…) who are as bad, if not worse than the current authoritarian rulers for democracy – so goes the argument. She says: “The suggestion that substantive democratization be put off until middle classes develop is of limited usefulness. On the one hand, its assumption that middle classes do not support Islamists is belied by Islamist successes in the elections within middle-class professional syndicates; on the other, the growth of strong middle classes in several Arab countries has not made regimes any more willing to devolve power democratically. Western pressure is needed to push Arab autocracies toward a phased-in democratic opening designed to strengthen opposition parties.” The wide spectrum of Islamists from MB to Hamas to Hezbollah all demonstrate the various stripes in which these parties come. The question really is : Is the West willing to acknowledge Hamas as a legitimate party, once it is elected democratically. Now that Hamas does rule the Gaza strip, it is still not treated as an equal partner in dialogue by Israel. So, how does one deal with such hypocrisy from those who purport to promote ‘democracy’? This is a legitimate question and one that is being asked in the Muslim majority countries. Langhour suggests using economic incentives such as trade agreements and other incentives to push Arab governments to move in a certain direction – in terms of allowing greater participation among the political parties etc. But the West certainly cannot pull strings now, as it has in the past, given the recent wave of anti-Western sentiment and ongoing civil war in Syria and Iraq.

 

Is the Middle East exceptional, in some way?

Eva Bellin (2004) asks the question if the countries of the Middle East are in some way exceptional, in being resistant to democracy – by virtue of culture or economic development? No, she says and adds “The Middle East and North Africa are in no way unique in their poor endowment with the prerequisites of democracy. Other regions similarly deprived have nonetheless managed to make the transition. Civil society is notoriously weak in sub-Saharan Africa, yet twenty-three out of forty-two countries carried out some measure of democratic transition between 1988 and 1994. The commanding heights of the economy were entirely under state control in eastern Europe prior to the fall of the Berlin wall, yet the vast majority of countries in this region successfully carried through a transition during the 1990s.” She says that there isn’t one or even many preconditions for democracy, as it is a complex process. The question she asks is why there has not been even an attempt towards democratization. Given that she wrote this piece in 2004, that question has been answered now, with the Arab Spring and democratization of Tunisia and Libya, though the latter is struggling to keep it up. Drawing an insight from successful revolutions, she argues (based on Theda Skocpol’s thesis) that “Democratic transition can be carried out successfully only when the state’s coercive apparatus lacks the will or capacity to crush it. Where that coercive apparatus remains intact and opposed to political reform, democratic transition will not occur.”One can apply this reasoning to Egypt and Tunisia and see why the former failed as a successful revolution and the latter succeeded.

            In conclusion, it could be said that democracy needs not only an ecosystem in the form of civil society, an educated class of people who want change but also some preconditions – which are by themselves not necessary to guarantee it, but may facilitate its arrival. Finally, there is something to be said about the role of super-powers and the neighbors in a country. To what extent are their influences playing into the formation of alliances and networks of people is crucial to understand, as well. Also, it may be wise to remember Mernissi’s reminder that “the Gharib (West) is still Ajib (strange). The strange is always fascinating and as in the tales of the Arabian nights, one never knows that foot to stand on when faced with the unusual. Something that fascinates you, but you don’t understand, can eventually destroy you. Western democracy, although it seems to carry within it the seeds of life, is too linked in our history with the seeds of death. But the death of whom? Of the authoritarian technocrats or the powerless intellectuals? Of the officials who are the watchdogs or the people who raise the challenge?” (p.21).

Mernissi’s is a positive and hopeful vision of the future of democracy in the Arab world. She ends her book using an allegory of the Simorgh from Farid Attar’s classic Poem The Conference of the Birds, a classic written in the 12th century, an equivalent of the modern day classic Jonathan Livingstone Seagull. “The Simorgh is us” she says, arguing that the realization of all the best ideals of a Western liberal democracy and Islamic state are better individuals and a better community. Once we realize this, then the end result would be perfect, she seems to be saying. This is a vision that cannot be wrong or faulted. And in the years and decades to come, one can hope that it is realized by all those who are concerned about the future of the Middle East and its people.

 

References

Mernissi, F.(1992). Islam and Democracy: Fear of the Modern World. Peresus Books. Cambridge, MA

Langhour, V (2002). An Exit from Arab Autocracy. Journal of Democracy. Vol 13, No.2

Bellin, E (2004). The Robustness of Authoritarianism in the Middle East: Exceptionalism in Comparative Perspective. Comparative Politics. Vol. 34. No.4

Hyper-patriotism in the heart of Manhattan: My visit to the 9/11 memorial

 I visited the National September 11 Museum, more out of curiosity, rather than any sense of wanting to know more about the tragedy that struck the U.S. on September 11, 2001. While most of us know the facts – enough to know the bad guys, the heroism of the people involved and the reactions from dubya and what transpired later on, what is not so well known is the narrative of 9/11 and how it is being shaped. While I respect the sentiment with which the memorial was built – to honor the lives of 2,977 people who died on that fateful day- the execution of this vision leaves much to be desired. While the memorial is beautiful, the museum fails on many accounts.

Photos by author.
Photos by author.

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First off, I must lay bare my own normative biases – I am not a huge fan of memorials – of any kind- and in particular those of the type that are particularly nationalistic or jingoistic. The only exception to this is the Taj Mahal, which is also a memorial, but considered a wonder of the world, and with good reason. It is one of the most beautiful architectural pieces in the world. While I don’t consider nationalism to be utter nonsense, but let’s say that I am deeply skeptical of a project built entirely on just one identity – often based on exclusion, false pride and a visceral suspicion of the other. That is just not me.

The museum is somewhat of an aberration. It is based in perhaps the greatest city in the world – New York – a city that I truly believe represents freedom, diversity; but ironically is highly securitized and represents ‘unfreedom.’ A fact that Adam Gopnik highlights in this New Yorker story. The level of securitization just before one enters the museum is quite shocking, and one feels as if one is about to take off on an aircraft, bound to enter the ‘free world,’ except that one is leaving this free world to enter a world where one is quite literally held hostage. To the credit of the museum curators, the exhibits are quite well organized and often detailed with audio recordings – of the people who were trapped in the towers, of the fire fighters who risked, and often lost lives saving those of others and also that of an astronaut, who said something thoughtful about this tragedy from space.

The museum itself is hard to find. I took the subway to reach the closest station, near the Financial district. Walking around, I got lost twice, having passed West Street, from where one can enter the ticketing area. On reaching the ticketing area, I was finally met by a line of about 100 people before me and the possibility of entering the museum three hours later. Given the summer season and high volume of visitors, this was the earliest I could go. I decided to buy the ticket ( $18 for students, $24 for regular adults). As someone who frequented Smithsonians in Washington D.C. ( all of which are free entry), I feel this is too steep a price to pay. Thank the lord that I am a student and can get some discounts, even if it is $ 6 – enough to buy me a falafel sandwich on the street side food cart. A more scathing review of the museum is here.

On a positive note, the memorial itself is beautiful. It stands at the exact location of the two towers, and has water falling from all four sides, into something like a huge square bowl. The water then goes into a smaller square and into the ground- viewers cannot see the entire depth of the water falling. But it is a touching memorial in many ways – aesthetically pleasing and it also bears the names of all those who died on the side walls. This is truly the most positive aspect of the whole experience.

Firefighters – the real heroes?

One fact that came home to me was that real heroes that day were the firefighters – the first responders, who came together to save thousands of lives. The exhibits are meant to give a real sense of the tragedy and they do. The reaction that many people who visited the museum was quite strong – I saw a few young ladies cry as they saw videos of the devastation that was wrought that fall morning. Others just stood there, in a daze, not believing what they were seeing. To me, it was as shocking a spectacle as it was normal – in a sense that the amount of imagery that I have consciously and unconsciously been exposed to has perhaps dulled my senses. I did not cry, but I did feel a strong sense of empathy with all those who died and a sense of respect for those who responded to the call for help– especially the first responders, including the ones from Ladder 3 Company, all of whom perished that day. “They died, saving the lives of thousands. You must remember that there were over 15,000 people in both towers that the fire fighters tried to save. We lost very few, compared to how many were there in the buildings,” pointed out the old lady who was volunteering as the point of contact at the burnt display of one of the fire trucks.

 

The ‘essentialising’ of ‘Islamic terrorism’.

While there is large consensus that Al-Qaeda carried out the attacks and extremists who used the rhetoric of Islamic jihad were behind the planning, there is definitely a problem in the way that ‘Islamic terrorism’ is portrayed in the Museum. Some commentators have taken issue with how the rise of Al-Qaeda is portrayed and the word ‘Islamic’ terrorism is a misnomer and that it is terrorism carried out by those who were claiming to follow Islam. Nothing Islamic about their actions. While this may be a linguistic nuance, and one that I would agree with, vast majority of academics and intelligentsia seem complacent and happy with ‘Islamic terrorism’ and the word has gotten a lot of play. It seems almost banal to bring it up. Except that it is not banal and harmless.

Consider this: For all the effort at portraying and including all evidence and narratives, the Museum brochure does include a few languages – to ensure that people from around the world understand what they are seeing. I did see Japanese, Korean, Chinese, and German – but noticeably there was no Arabic script. Are the Museum staff telling something through this omission? I find it hard to believe that they left out Arabic – one of the world’s most widely spoken languages from the brochure, in a city that has a large Arab population and also hosts millions of Arab speakers on an annual basis. And I don’t think it is an unconscious omission. There is more to it than just a slip on someone’s part. I find that disturbing. The museum also fails on this account, of leaving out close to a billion people. And is there a valid reason for this?

 

 

Can the ‘Golden Age of Philanthropy’ Transform America?

As I visited Indianapolis last week to attend the ARNOVA Young Leaders Forum, I met some of the people from Lilly School of Philanthropy, the world’s first school of philanthropy. While the two day meeting was meant as a professional development opportunity, it also served as a way for the young leaders – most of who are PhD students – to network and also listen to some of the leading researchers in the field of philanthropy about the ‘state of philanthropy’ in the U.S.

 

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Incidentally, one of my colleagues also forwarded me a newly released report titled A Golden Age of Philanthropy Still Beckons: National Wealth Transfer and Potential for Philanthropy Technical Report released on May 28th by the Center on Wealth and Philanthropy at Boston College points to a new ‘ golden age’ of philanthropy, that could be ushered in, considering the inter-generational wealth transfer of about $59 trillion that is likely to occur in the duration between 2007-2061. I will discuss this briefly, in this blog post. This is the first of a series of blog posts and I will come back to discuss the issues in this post, in subsequent posts.

For the uninitiated, it may help to start off by pointing out that philanthropy is the most American value. As one speaker argued, it is more American than Apple pie – given that more Americans give to organizations than the number who vote or take part in any other social activity. Here are some key highlights about American philanthropy:

–          The average giving by Americans has hovered around 2 % of GDP for the last four decades

–          The total giving (estimated) in the U.S. was about $ 300 billion in 2013, according to Giving USA report

–          Giving to religious institutions has declined over the decades from about half of all giving to only about one-third of all giving in 2013.

Consider a recent story about Detroit in the New York Times that showed that about $ 850 million are needed to rid the city of blight and deprecated buildings. Problems of urban poverty, homelessness are far too big and widespread to be addressed by philanthropy alone. While the figure of $ 300 billion may seem big, when one considers the scale of social problems facing the U.S., this figure is miniscule, compared to the total amount of money needed to ‘fix’ all the problems, provide the poor and vulnerable with services they need and also to invest in the future of the next generation. Philanthropy by itself cannot solve these problems.

 

How is this relevant ?

While the figure of $59 trillion may seem an impressive one and perhaps transformative, several questions remain unanswered too. Would those who get the bequests actually use this money towards philanthropy or would they hoard wealth? What about the newly wealthy, who may not be inclined to support causes that address social issues, but may in fact veer towards political advocacy or other parochial means of spending their wealth. As the press release for the ‘A Golden Age’ report says: “The study reveals a 12 % increase in this “give while you live” trend since the authors 199 study. Over 55 years, nearly $ 27 trillion are estimated to be given through lifetime giving and a further $ 6.3 trillion through estates and various estate planning approaches.” What is of interest to non-profit professionals in this is that the portfolio of transfers is shifting, according to the authors of the report. One of their conclusions is that the transfer portfolio will include nonprofit organizations, donor advised funds, family foundations as well. This diversification of portfolio is what the authors claim makes this trend in giving transformative.

This report and other similar ones point to one important sociological shift in America: Giving patterns are slowly shifting, though giving has somewhat remained at 2 % of GDP over the last forty years or so. This shift towards ‘giving while living,’ may potentially be a game changer, as the report indicates. And there is good reason to believe this claim. But the hype of philanthropy solving all major societal problems is a very big claim that is not substantiated by facts, as the example of Detroit above shows. While I believe in the power of philanthropy to have a transformative effect in certain niche areas, the claims being made in many cases are outright exaggerations.