dna edit: Tight-fisted billionaires

Harsh at it may sound, Indians are not adept at the art of giving. The money would rather rot in the bank, or better still, find its way to Swiss banks, it is said. And the allegations are not without merit.

It’s worth considering that the black money parked in tax havens is more than enough to take care of 32.7 per cent of the population, which, according to the 2011 World Bank estimates, falls below the international poverty line of US$1.25 per day. The uber rich are not only loath to pay taxes, they consider philanthropy a waste of resources. Corporate social responsibility in India is merely a face-saving gesture, lacking the necessary zeal or commitment to make an impact. The worst in this lot are perhaps the blue-chip companies which should have led the way in nurturing pro-poor initiatives. It’s a mindset best reflected in the cold statistics of wealth generation, spelt out by the IMF managing director Christine Lagarde. Regardless of the crest and trough of the economy, in the last 15 years, the country’s billionaire community has amassed enough money  — their net worth has increased 12 fold — to wipe out poverty twice over.

What’s particularly shameful is the steadfast refusal to learn from distinguished foreign billionaires who have donated generously in research and health care in India. The Bill and Melinda Gates Foundation’s contributions in battling AIDS and infant mortality — among several other initiatives — stand in stark contrast to the absence of similar initiatives from home-grown moneybags.

Gates or Warren Buffet are the shining examples of a culture where donating for noble causes isn’t just a random act of charity. In the US, home to the Rockefeller and Carnegie Foundations, philanthropy constitutes 2 per cent of the GDP. After much prodding, wealthy Indians have begun to donate between 1.5 per cent and 3 per cent of their yearly income. Even cumulatively the sum amounts to virtually nothing, given the scale of hunger and poverty in rural and urban India.

Europe, which lags behind the US on this count, is looking at venture philanthropy for solutions — a social investment approach aimed at organisational capacity building, tailored financing, non-financial support to enhance education, social cohesion, employment, and leisure opportunities among other things.

Over the years India has seen a profusion of NGOs at the grassroots, some of which have made good use of national and international grants in the sphere of education, health care and sanitation.

While such achievements are noteworthy, a systematic approach by corporates investing in the necessary infrastructure to deal with these problems is still a far cry.

A stray one-time grant is just a grand gesture, signifying nothing. Along with annual funding, CSR should include close monitoring of welfare programmes and taking the initiative to see them through. Perhaps, adopting a village or a slum can be a good start. What can, of course, act as an incentive for reluctant billionaires is large-scale tax exemption for philanthropy. If the rich truly invest in the poor, the government also stands to gain.