Bangladesh study on diaspora philanthropy shows need for closer collaboration between governments and not-for-profits

In his paper for APPC’s Hanoi Conference, Safi Rahman Khan identified several factors that were crucial to the development of diaspora philanthropy in Bangladesh. One was the shifting profile of Bangladeshi migrants—who were once comprised of professionals and skilled workers but who are now largely made up of temporary migrant workers. Another was the very low involvement of diaspora communities in social development in Bangladesh. Khan also cites major hindrances related to the lack of an enabling environment for philanthropy and the country’s unstable political condition.

In spite of overseas remittances accounting for a large piece of Bangladesh’s revenue pie (“far higher than net foreign direct investments into the country” and “higher than earnings from the Ready-Made Garments (RMG) sector that accounts for 75% of total exports from Bangladesh”), giving to philanthropic initiatives was estimated at only 1% of total inflows. Here, Khan cited Be Druyn and Kuddus (2005), who observed that “there was hardly any evidence from available micro-level studies of temporary migrant workers’ willingness to invest in community development initiatives.”

Khan enumerated five pre-conditions for directing diaspora philanthropy toward a more strategic level. What is striking about these pre-conditions is the high level of engagement that these require of the Bangladeshi government in enabling strategic diaspora philanthropy. First, Khan writes, philanthropy should evolve from being ad hoc and individual to collective. Next, not-for-profits should be enabled to strengthen their own organisations through the formation of legal entities. Third, he writes, “specific procedures, processes, and documentation are required for increasing accountability, efficiency, and institutional memory.” For these first three pre-conditions to exist, a commitment is required from the Bangladeshi government to institutionalize policy, system, structural, and procedural reforms that will be more supportive of the not-for-profit sector and that will allow for diaspora giving to be channelled toward developmental aims.

In describing the legal framework for the not-for-profit sector in Bangladesh, Khan noted that “Two ordinances in particular, the Foreign Donations (Voluntary Activities) Regulation Ordinance 1978 and the Foreign Contributions (Regulations) Ordinance 1982, are indicative of the then-state’s suspicion towards NGOs. These ordinances made it mandatory for not-for-profit organizations to register and get approval of government prior to receiving foreign contributions... It even restricted any donations from Bangladeshis living abroad.” Although there have been subsequent changes in government since the passage of these ordinances, the current legal framework in Bangladesh still leaves much to be desired.

Khan’s last two preconditions for strategic diaspora philanthropy include the need for “the articulation of a long-term vision and implementation strategy”, as well as the need to scale philanthropic efforts by “mobilizing greater amounts of resources.” In his paper, he cites examples from various U.S.- and U.K.-based organisations that have successfully mobilised resources for development.

“The potential for strategic diaspora philanthropy in the Bangladesh context seems cautiously promising.” Khan writes. He outlines five action recommendations to strengthen diaspora organisations and promote greater development-oriented, strategic giving in the near future:

1. For the Bangladeshi government to establish a government department dedicated to diaspora philanthropy;
2. For the existing regulations and laws related to foreign donations to be revised;
3. For non-government organisations in Bangladesh to improve their governance systems and promote trust in institutions;
4. For e-commerce rules and regulations to be passed to facilitate easy payment from abroad; and
5. For diaspora and home country representatives to form a network for the purposes of exchanging “knowledge, information, and expertise in order to better direct and utilize the transfer of diaspora resources.”

Is diaspora giving an agent of change in Asia Pacific communities? The seeds have been planted, that is certain. But for them to blossom and flourish in Bangladesh, it seems that a lot of care and attention are needed—from all levels of society.