China Philanthropy

Why Microfinance? The Opportunity Gap

Today we bring you our second of three posts on microfinance by our guest poster Sarah Haig of Hope International. To read the first post click here: What is Microfinance: An Illustrative Hyperbole.

“No Business Left Behind.” Among all the “could have been” development slogans for China, this is my favorite. It would be foolish to do much more in this space than mention the tremendous economic growth that has catapulted China into the present and the future as a global economic influence. Similarly, much is being said about the millions of people who have been left behind the development growth curve—particularly the migrant workers that fuel the economy yet scarcely benefit from it. Underrepresented in the public discussion is a segment of the Chinese population that is well-positioned but still waiting to benefit from China’s growth: microentrepreneurs.

What is Microfinance? An Illustrative Hyperbole

Over the next two weeks we are bringing you a series of informative and creative guest posts on microfinance from Sarah Haig of HOPE International. Before joining HOPE, Sarah traveled extensively and experienced the developing world first-hand. She joined HOPE in 2005 with a desire to find solutions for families trapped in spiritual and physical poverty. In 2006, she moved to Beijing where she currently serves as Asia Associate Regional Director.

 

Once upon a time, there was a perfect town. Some people in the town were Strong, and they could build the houses of the Delicate. Some were Listeners and they enjoyed laughing at the tales of the Conversationalists. There was not total equality, since people were different. But there was something better: universal opportunity.

Giving “Directly” to the Poor vs. Giving to a Nonprofit in China

中文

“Direct” Aid from Chinese Philanthropists Underscores a Deep Lack of Trust in Traditional Nonprofit Channels

In our interactions with Chinese donors, one common theme that recurs is the apparent tension between giving “directly” to the poor versus giving to an established nonprofit that serves a particular disadvantaged group. This tension is hardly surprising given the traditional deep mistrust in an authoritarian society for non-governmental institutions (a very different perspective than in the West). It is at times counterintuitive that a philanthropist would engage directly in service delivery; why bother reinventing the wheel when you can find an “expert” who has a track record to do the job right?

Microfinance in China: Past, Present & Future

Compared to other Asian countries, the Chinese microfinance sector has developed slowly. Even though the first Microfinance Institution (MFI) was introduced to China in 1996, MFIs have had a difficult time. Government regulations have stilted their progress and, much like NGOs, they have had difficulty gaining enough legal status to develop effective programs. Much is changing, however, in China’s microfinance sector. In September, famed microfinance pioneer Muhammad Yunus of Grameen Bank and Jack Ma, CEO of Alibaba, announced plans to create Grameen China. A recent article in China International Business Magazine (CIB) discusses the evolution of microfinance in China including new laws that signify a significant shift in the sector.

Take a Number: China’s Medical System

According to Foreign Policy, over 200 million Chinese have no insurance. Clinics are few in number; consequently, hospitals are the only option for most citizens. There are many reasons for the lack of sufficient health care in China, including the privatization of medical care, rising fees, and the growing chasm between urban and rural. Over 27 years the central government cut healthcare funding by more than 15% which resulted in higher medical fees. Hospitals needed to remain profitable to stay open and corruption slipped in as they maintained profits by raising medicine prices and prescribing unnecessary treatments. Cancer and other pollution related diseases are on the rise yet many Chinese do not go to the hospital because they know treatments will cost more than they can afford to pay. The wealthier members of society demand better hospitals while the poorer simply want affordable health care.

Book Review: Rural Policy in China – The Recent OECD Review

We're excited to bring you our first guest post. Graham Thompson of The Blackford Trust (who we recently featured in an interview) kindly offered to review the OECD's recent report on rural policy in China. Read all about it!

Despite China's drive towards urbanization, it remains a predominantly rural country, with over 700m people living in the countryside – nearly twice the rural population in all OECD countries.  Rural policy remains fundamental to China's future, and has been examined in great detail in a recent publication by the OECD (Organization for Economic Co-operation and Development).  The Rural Policy Review of China, published in March 2009, was a collaborative effort between Chinese government and OECD researchers.  In addition, the work was partly funded by the devolved government of Scotland, a fact that is greatly welcomed by this writer, as a former Scottish rural policy official and Chairman of a charity that is focused on enhancing Scottish/China links.

Healthcare for China’s Kids: An Interview with Ellen Luo of the United Foundation for Chinese Orphans

Created in 2001 as the philanthropic branch of United Family Hospitals (UFH) the United Foundation for Chinese Orphans (UFCO) offers underprivileged kids one of the most basic, but also most important aspects of human life—health. Partnering with local organizations, UFCO provides medical services, modern healthcare, and training through UFH, as well as, funding for medical services that the cannot provide. UFCO currently operates in Beijing, Shanghai, and Guangzhou. They partner with organizations like Baobei Foundation and Bethel Training Center for the Blind which have been featured in SVG newsletters and blog posts.  New York native Ellen Luo recently came on as UFCO’s Executive Director. She discussed UFCO’s mission, goals, and CSR with us.

Social Investors: An Interview with Graham Thompson of The Blackford Trust

Established in 2008 as a Scottish charity, The Blackford Trust has an unusual dual focus—philanthropic investing in Scotland and China.  Native Scot Graham Thompson decided to form the Trust after receiving a legacy from his late father. The focus for the Trust came out of Mr. Thompson’s own firsthand experience living and working in China, as well as his father’s interests in the environment and landscape of Scotland. Graham is assisted by a board of four other trustees located in both countries.

So far Blackford Trust has invested in eight projects,  five in China - Hands on Shanghai , Sunrise Library, The Library Project, the Pucheng County Women's Sustainable Development Association, and the rebuilding of a community center in a quake-damaged Sichuan village (the last jointly alongside a school from Edinburgh). Following the recent launch of their website, I spoke with Graham about the development of the Trust and what they’ve been up to so far.

I Start: An Interview with Wokai’s Casey Wilson

While studying at Beijing’s Tsinghua University in 2006, Casey Wilson and Courtney McColgan met and found they shared a mutual interest in alleviating poverty in rural China. They set about researching the possibilities of forming an organization that could support and foster the nascent Chinese microfinance industry in it’s work with rural Chinese. While it would clearly be a challenge, Wilson and McColgan decided to form Wokai, which means “I Start” in Chinese. Wokai is a nonprofit based out of California with an office in Beijing and chapters in Beijing, San Francisco, Seattle, and New York City. Wokai raises funds through contributions made on their website and works with its Chinese microfinance partners to disseminate the funds to rural borrowers.

Working with China's Minority Groups: An Interview with Three Valleys Foundation President Jean-Luc Fazan

Located in Southwest China, the Three Valleys region has a rich and diverse mixture of cultures and people groups as well as a striking scenery home to a quarter of the world's animal species. For most people in the area though, poverty and progress threaten to destroy not only the landscape but the cultures of the region. With an average year's salary at 600rmb (half that for those living in the most rural villages), residents often cannot afford education or health care. As one of the few organizations working in this area, Three Valleys Foundation seeks to promote education, alleviate poverty, encourage culture, and improve health care. I interviewed President and Director Jean-Luc Fazan, a native of Switzerland, recently to learn more about Three Valleys.