Private Giving Overseas Outpaced Aid From the U.S. Government, Study Finds

Giving by foundations, corporations, and individuals in the United States to poorer countries far outpaces aid provided by the U.S. government, according to a new study by the Hudson Institute’s Center for Global Prosperity, in Washington.

In 2006, the United States gave $34.8-billion in private philanthropy and $71.5-billion in remittances to help poor people overseas, as compared with $23.5-billion in government aid.

In total, philanthropists and migrants in the United States who sent money to their families abroad gave 4.5 times what the U.S. government provided in 2006, the last year for which data were available. That compares to 3.5 times the amount of official government assistance in 2005.

Of the total amount given, private and voluntary organizations in the United States provided $12.8-billion, religious organizations $8.8-billion, corporations $5.5-billion, foundations $4-billion, and universities and colleges $3.7-billion.

“The traditional ‘donor-to-recipient model’ of foreign aid is being supplemented, if not supplanted, by public-private partnerships,” said a report on the study. Government aid “is a minority shareholder in the growth and development of poor nations.”

Sweden Tops Rankings

The study found that the United States ranked second-to-last among 22 developed nations in providing government aid as a percentage of its gross national income. The United States gave 0.18 percent of its income in 2006.

Sweden provided the highest percentage of government aid, 1.02 percent, followed by Luxembourg, Norway, the Netherlands, and Denmark.

However, the United States ranked sixth in terms of giving as a percentage of income when philanthropy and remittances were also measured. Donors in the United States provided 1 percent of the country’s gross national income through government aid, private philanthropy, and remittances.

Sweden ranked first, giving 1.3 percent, followed by Luxembourg, which gave 1.1 percent. Japan ranked last, giving 0.3 percent, while Portugal provided 0.4 percent and Italy, 0.4 percent.

The United Nations has called for rich countries to give 0.7 percent of their gross national incomes in overseas assistance. The study found that the majority of developed nations exceeded this goal if government aid, private philanthropy, and remittances were measured.

The study, known as “The 2008 Index of Global Philanthropy,” can be downloaded free from the Center for Global Prosperity’s Web site.