Categories
Sunday Papers

The Sunday Paper – Getting Rich But Not Giving? Exploring the Mechanisms Impeding Charitable Giving in China

It’s a bit of a mystery as to why, given the increase in prosperity they’ve enjoyed in recent years, Chinese in China haven’t become more charitable?

Reza Hasmath of the University of Alberta together with Qian Wei of Stanford University decided to take a closer look using a detailed study from 2012 which, they admit, isn’t ideal but don’t think much has changed since based on more recent World Bank Data.

They note, China’s particular circumstances since 1949 may have something to do with it. If a government seeks legitimacy from its ability to provide citizenry with cradle-to-grave support then it’s unlikely to want to foster the growth of charities whose existence would suggest they’re not doing the best of jobs?

Indeed, within China there a large number of state-sponsored and run charities that seek contributions from time to time. The researchers note the 2008 Sichuan earthquake when many donations to official charities seemed to have a political flavor as also being an aspect unique to China.

Also at work are issues to do with low levels of perceived financial security, social trust and an absence of benefits for givers such as tax breaks or matching programs common in much of the West.

On that note, my own two pennyworth would be to also note here that China, despite being home to some fabulously wealthy individuals, remains still a low-ish income country.

It’s premature then to expect the charitable impulse in China that multi-generational prosperity in other societies has ended up producing. China is decades behind this comfortable state and comparison is thus, in part, flawed.

The paper in full is a short (15-pager) read and can be accessed via this link Getting Rich but Not Giving.

Happy Sunday.

print