The dynamic of global giving is evolving as foreign aid from industrialized nations decreases and aid given by private foundations, corporations, and countries which have recently pulled themselves out of third world status increases.

Among the largest nongovernmental contributors is the Bill and Melinda Gates foundation which in 2011 paid $3.4 billion in grants. Developed nations contribute higher amounts. Of the four highest contributing nations, the United States contributes the most at $31 billion (.2 percent of GDP), the United Kingdom contributes just over $13 billion (.65 percent of GDP), with Germany and France contributing right under $13 billion (.43 percent and .64 percent of GDP respectively). While the United States contributes a higher flat rate of aid to foreign nations, percentage-wise it contributes less than the least giving of the top donors.

One of the most positive aspects of private organizations donating to impoverished nations is that the organizations are often willing to take bigger risks than governmental organizations such as USAID. Governmental organizations are often bound to low-risk investments due to their accountability to tax payers. Alleviated from this type of accountability, NGOs can invest as freely as they see fit. In fact, the Bill and Melinda Gates foundation takes pride in investing in big-risk grants. As a single organization the Bill and Melinda Gates foundation gives more foreign aid than some developed nations.

Countries with weaker GDPs are also beginning to contribute to global development. All over the world, countries are beginning to see that strengthening one nation’s economy works to strengthen the global economy. With a more globally conscious mindset, it is no wonder that World Bank president Jim Yong Kim said that extreme poverty will be eliminated by 2030.

– Pete Grapentien

Source NPR