China Philanthropy News
January/February 2008
Issue 011

Click here for PDF version of this publication

China Philanthropy News is produced by Grantmakers Without Borders (Gw/oB) for grantmaking organizations, donors and individuals interested in philanthropic engagement with China. It provides current news on giving, useful resources, people and books to provide a better understanding of the landscape of philanthropy in the country. For more information about Grantmakers Without Borders, visit www.gwob.net.

CONTENTS

Gw/oB HAPPENINGS
1) Registration is now open for Gw/oB's 2008 Conference

Current NEWS
2) When Asian tycoons give
3) Comparing Chinese and US philanthropy
4) Corporate social responsibility: Going global
5) NGOs to provide social services
6) In China, grassroots groups stretch limits on activism
7) China uneasy with growing foreign NGOs
8) The development of environmental NGOs in China: A road to civil society?
9) China internet population tops 200 million
10) China's future in an energy-constrained world
11) China promises to promote clean energy
12) China bans free plastic bags
13) Beneath booming cities, China's future is drying up
14) China's wealth gap widens
15) Grinding poverty defies China's boom
16) China's farmers protest a key Mao tenet
17) China needs to tackle corruption
18) A voice for rural women of China
19) China says trafficking in women, children on the rise
20) China's Communist Party expels 500 for defying one-child policy
21) China unveils health care scheme
22) Charting the battle against HIV/AIDS
23) China ready to adopt anti-drug rules to protect nation's children
24) Caged in China: parents grapple with mentally ill
25) In Chinese factories, lost fingers and low pay
26) Migrants are China's 'factories without smoke'
27) Lawmakers urge China to help in Darfur

Useful RESOURCES
28) Report: "Toys of misery: Santa's helpers suffer constant abuse while making Barbie, Thomas & Friends, and other toys for Wal-Mart at the Xin Yi Factory in China"
29) Report: "A joint assessment of HIV/AIDS prevention, treatment and care in China"

Upcoming EVENTS
30) Fourth session of the World Urban Forum, 13-17 October 2008, Nanjing, China

Latest BOOKS
31) Rightful Resistance in Rural China by Kevin J. O'Brien and Lianjiang Li

China PROFILE
32) APCO Worldwide

- Gw/oB HAPPENINGSs -

1) Registration is now open for Gw/oB's 2008 Conference
Globally minded foundations, individual donors, and allies in philanthropy are warmly invited to attend Just Giving, Grantmakers Without Borders' Eighth Annual Conference on Global Social Change Philanthropy. Registration for the conference is now open, at www.gwob.net.

The conference will bring together a diverse assembly of foundation staff and trustees, individual donors and global Southern activists to learn about, discuss and debate social change grantmaking practices and explore some of the most critical issues facing grassroots communities in Africa, Asia and Latin America today

Conference participants will have more than 40 sessions to choose from, on two main tracks:

• Global Grantmaking Practice: International grantmakers and donors, both experienced and novice, will enjoy a range of useful workshops on grantmaking practice on topics such as monitoring and evaluation, IRS regulations, disaster response, and grantee capacity-building.
   
• Advancing Human Rights, Equity and Justice in a Climate-Constrained World: Global warming and other urgent environmental issues are already having a profound impact on communities throughout the world. Strategic global grantmakers are increasingly recognizing the need to understand the depth and breadth of the current environmental crisis, no matter the issues they may fund, from global health, to economic development, to women's rights. The conference will feature a range of sessions that explore grantmaking in the context of climate change, natural resource depletion, and peak oil.

Gw/oB's conference will also provide ample time to network, share experiences and build relationships with peers and allies in grantmaking.
For more information on the conference and to register, please visit www.gwob.net.

- Current NEWS -

2) When Asian tycoons give
ASIAN universities lag far behind those in the US in luring philanthropic donations and until attitudes change, the best students will continue to seek the extra sparkle of a Western degree, analysts say. But there are signs that giving is on the increase, particularly in China, although donations tend to focus on bricks and mortar instead of supporting a wider educational experience. As reported by the Star online. http://thestar.com.my/education/story.asp?file=/2007/12/30/education/19779936.

3) Comparing Chinese and US philanthropy
Recent reports have highlighted the rising number of Chinese millionaires and households, asking what this new class of wealthy will do with their money. In China, philanthropy is fairly new, and steeped in traditional ideas of giving. This article explores the nature of giving in the US compared to the burgeoning philanthropic sector in China. As reported by the Wall Street Journal. http://online.wsj.com/article/SB120034061972789129.html?mod=googlenews_wsj.

4) Corporate social responsibility: Going global
This report explores the growing global landscape of corporate social responsibility (CSR) and looks at China as the new frontier. While there is significantly less political and social pressure for companies in China to engage in CSR, there is a burgeoning CSR sector, and many companies have begun issuing CSR reports. This is most apparent in Africa, where China's presence has been increasingly prominent. As reported by the Economist. http://www.economist.com/specialreports/displaystory.cfm?story_id=10491136.
For more on CSR in China, see also http://english.people.com.cn/90001/90776/90884/6335270.html.

5) NGOs are being called upon to provide social services
Six of Shenzhen's district governments have signed letters of intent to outsource social services to nine non-governmental organizations, making it the second pilot city, after Shanghai, to set up such a system. According to the agreements between the parties, local governments will pay 60,000 yuan ($8,200) a year to each of the 427 social service workers from the NGOs. The money will cover their wages and welfare as well as their organizations' operational costs. As reported by China Daily. http://www.china.org.cn/english/government/238980.htm.

6) In China, grassroots groups stretch limits on activism
Independent charities and advocacy groups have begun popping up around the country in response to social problems. Beijing is gradually permitting non-governmental organizations, but the country's leadership worries that too much civil society could stir up conflict, challenge its grip on power and put at risk the stability that has underpinned 25 years of fast economic growth. As reported by the Wall Street Journal. http://online.wsj.com/public/article/SB119980515239074901-T5oVZf9kg5DRk5VGna1wUbxlApM_20090108.html? mod=rss_free.

7) China uneasy with growing number of foreign NGOs
A recent report, "How do deal with foreign NGOs in China", explores the proliferation and presence of foreign NGOs in China, noting that foreign NGOs have brought about positive effects but warning too of the negative impacts they may have. The report notes that foreign NGOs bring in about US$100 to $200 million each year and have contributed to social development in China, for example by raising awareness on HIV/AIDS, by encouraging volunteerism, and by promoting environmental protection. However, the report claims that there is also a risk that foreign NGOs will "undermine national security, destroy political stability, foster corruption, [and] propagate foreign practices [not suitable for China's national conditions]." As reported by Worldpress.org. http://www.worldpress.org/Asia/2506.cfm.

8) The development of environmental NGOs in China: A road to civil society?
In recent years there has been a surge in the number of environmental NGOs in China: Recent estimates show over 2,500 environmental NGOs operating in the country. In many ways, these NGOs have played an important role in leading and organizing the environmental movement in China. This report looks at the development and growth of this sector and assesses the future implications for the continued presence of NGOs and civil society. As reported by The Jamestown Foundation. http://www.jamestown.org/china_brief/article.php?articleid=2373242.

9) China internet population tops 200 million
At the end of 2007, China's internet population reached some 210 million, leaving it just 5 million shy of becoming the largest wired nation—even though only 16 percent of its population is online. Most users are under the age of 18 and over the age of 30. Although the majority of users come from urban areas, about 40 percent of users in the last year came from rural areas. As reported by IDG News Service.
For more on the internet in China, see also http://www.economist.com/business/displaystory.cfm?story_id=10608655, http://www.latimes.com/news/nationworld/world/la-fg-video5feb05,0,2843668.story", http://news.yahoo.com/s/ap/20080212/ap_on_hi_te/china_internet_crackdown_2
http://www.iht.com/articles/2008/02/04/asia/wall.php.

10) China's future in an energy-constrained world
In the last quarter century, China's breakneck economic growth, in lifting over 50 million people out of poverty, has tripled energy demand. Experts predict that China will surpass the US to become the world's largest consumer of energy and fossil fuels soon after 2010. Because of its heavy reliance on coal, China already emits more carbon dioxide than any country on earth. The rate and path of this energy growth is of enormous consequence for China and the world. At stake are issues of global importance, including climate change and competition over dwindling oil resources. Perhaps more important for China, however, are domestic concerns such as severe urban air pollution, energy security, and sustained economic growth. This report charts China's energy growth, highlighting problems such as fossil fuels, sustainable development, and a new look at its environmental priorities. As reported by World Resources Institute. http://earthtrends.wri.org/updates/node/274.

11) China promises to promote clean energy
China has promised to develop renewable energy for its fast-growing economy. However, leaders warn that coal consumption will grow dramatically and have avoided embracing binding limits on greenhouse gas emissions. In a report on its energy plans, the government announced no new initiatives but said it wants to curb reliance on oil and gas to drive an economy that is the world's second-biggest energy consumer after the US. In addition, China will promote hydroelectric, nuclear, solar and wind energy. As reported by the Associated Press. http://www.usatoday.com/money/economy/2007-12-26-2292059593_x.htm.

12) China bans free plastic bags
Declaring war on the "white pollution" choking cities, farms, and waterways, China is banning free plastic shopping bags and calling for a return to the cloth bags of old. The latest nation to target plastic bags in a bid to cut waste and conserve resources, China begins its ban on June 1, just two months before the Olympics. The regulation comes as Beijing steps up efforts to fight pollution that has accompanied China's breakneck economic growth. As reported by the Associated Press. http://news.nationalgeographic.com/news/2008/01/080110-AP-bags.html.

13) Beneath booming cities, China's future is drying up
China's use of water has quintupled since 1949. Problems such as water pollution, lack of conservation, and industrialization are leading to severe water shortages. While China has roughly 20 percent of the world's population, it claims just 7 percent of the world's water resources, leading to difficult choices both politically and economically. As reported by the International Herald Tribune. http://www.iht.com/articles/2007/12/14/asia/28water-growth1.php?page=4
For more on water resources in China, see also http://www.nytimes.com/2008/01/23/world/asia/23china.html?_r=1&oref=slogin.

14) China's wealth gap widens
The widening gap in wealth and income between the urban and rural population in China continues to grow. In 2006, the average city dweller's income was 3.28 times that of a rural resident's. This has fueled political tensions, leading to increased protests over poverty and tax burdens. Although the government has made rural development a priority, rural spending on education and health care has done little to lessen the gap. As reported by Time. http://www.time.com/time/world/article/0,8599,1698449,00.html?xid=rss-topstories.

15) Grinding poverty defies China's boom
In recent years, China has moved more people out of poverty than any other country. Yet the World Bank estimates that there are still 300 million poor in China, three times as many as previously estimated. Poverty is most severe in China's geographic and social margins, whether the mountainous areas or deserts that ring the country, or areas dominated by ethnic minorities, who for cultural and historic reasons have benefited far less than others from the country's long economic rise. But it also persists in places like Henan, where population densities are among the greatest in China, and the new wealth of the booming coast beckons, almost mockingly, a mere province away. As reported by the International Herald Tribune. http://www.iht.com/articles/2008/01/13/asia/poverty.php.

16) China's farmers protest a key Mao tenet
Challenging the age-old collective land system that rules over China's countryside, peasants have slowly begun resisting state ownership of land. More than 10,000 farmers signed a public letter in Shaanxi Province renouncing this system and calling for private ownership of land. Such collective land ownership is a fundamental tenet of Maoism, and the outbreak of peasant protests points to a growing frustration with the corruption of local officials that personally profit from current land tenure systems. As reported by the Christian Science Monitor. http://www.csmonitor.com/2008/0122/p01s01-woap.html.

17) China needs to tackle corruption
Corruption remains a prominent issue in China. But while corrupt officials have been targeted, businesses are largely excused. It is only recently that laws in China have targeted people giving as well as receiving bribes. There is a large perception that this is how to do business, and while the government at the highest levels has made it a priority to punish corruption, it has largely been for political reasons. As reported by the Australian. http://www.theaustralian.news.com.au/story/0,25197,22933139-18544,00.html.

18) A voice for rural women of China
In China, where in many places boys continue to be favored over girls, Xie Lihua began the Rural Women magazine targeting peasant women, offering reader's letters and chats about issues facing these communities. Readers send in their thoughts on sex, marriage, divorce, and other issues that are generally considered taboo in their communities. The plight of rural women in China is severe, with 150,000 women committing suicide each year, the only place where more women than men kill themselves, according to the WHO. As reported by the LA Times. http://chinadigitaltimes.net/2008/01/a_voice_for_rural_women_of_china_john_m_glionna.php.

19) China says trafficking in women and children is on the rise
Chinese authorities announced a five-year plan to combat the increase of trafficking in women and children. The nationwide campaign, to begin next year, will seek to step up monitoring of the problem from the grassroots level as well as to help victims. Around 3,000 cases of women and children being abducted are reported to police each year, though the number is believed to be higher, as many cases go unreported. As reported by Agence Presse France. http://news.yahoo.com/s/afp/20071221/lf_afp/chinatraffickingwomenchildren_071221165728.

20) China's Communist Party expels 500 for defying one-child policy
Authorities have expelled 500 people from the CCP for defying the country's one- child policy. The government has been trying to crack down on officials and wealthy people who have been ignoring the policy. Being dismissed from the Party is a serious offence. As reported by the Associated Press. http://www.iht.com/articles/ap/2008/01/07/asia/AS-GEN-China-Family-Planning.php
For more on China's one-child policy, see also http://www.iht.com/articles/ap/2008/01/02/news/China-Family-Planning.php, http://www.nytimes.com/2008/01/22/world/asia/22china.html.

21) China unveils health care scheme
China has recently embarked on an ambitious program that would provide healthcare to every citizen in the country. Announced by the health minister, the Healthy China 2020 program would provide a universal national health service and promote equal access to public services. Since abandoning the social welfare system 30 years ago, the health care system has come under tremendous strain, unable to meet the needs of China's 1.3 billion citizens. As reported by BBC News. http://news.bbc.co.uk/2/hi/asia-pacific/7175501.stm.

22) Charting the battle against HIV/AIDS
More and more attention is being paid to the national fight against HIV/AIDS, with support coming from international donors, NGOs and the government. The latter, which is realizing the importance of NGOs in this fight, has undergone a change in mentality and attitude, bringing about more enhanced cooperation. Programs like CHARTS (China AIDS Roadmap Tactical Support) have helped to strengthen the link between AIDS prevention and good governance. As reported by China Daily. http://www.chinadaily.com.cn/opinion/2008-01/29/content_6427363.htm
For more in HIV/AIDS in China, see http://news.yahoo.com/s/nm/20080121/hl_nm/aids_china_vaccine_dc_1.

23) China is ready to adopt anti-drug rules to protect children
China has drafted the final version of an anti-drug law intended to curb drug-related crime, reduce the soaring numbers of drug users and provide more appropriate care for underage addicts. The number of drug users in the country has been on an upward trend and is estimated to be 1.16 million people. More than 700,000 people are estimated to be heroin addicts, 69 percent of whom are under the age of 35. As reported by China Daily. http://www.chinadaily.com.cn/china/2007-12/24/content_6342368.htm.

24) Caged in China: Parents grapple with mentally ill
The issue of mental illness in China lags far behind most other heath care concerns. This article looks at the consequence of a shifting health care system that has led many families to lock their mentally ill in cages as a way of restraining and dealing with the issue. While the Ministry of Health has, since 2003, offered medication free of charge and hospitalization for those with severe mental illness, it is not enough to reach many who still need support. As reported by the New York Times. http://online.wsj.com/article/SB120043020275792159.html.

25) In Chinese factories, lost fingers and low pay
Nearly a decade after some of the most powerful companies in the world began an effort to eliminate sweatshop labor conditions in Asia, worker abuse is still commonplace in many of the Chinese factories that supply Western companies, according to labor rights groups. Some reports claim that companies routinely shortchange their employees and expose them to harmful conditions. Factories that supply to large US companies have been accused of unfair labor practices, including child labor. As reported by the New York Times. http://www.nytimes.com/2008/01/05/business/worldbusiness/05sweatshop.html?ex=1200286800&en= e57839684163678c&ei=5070&emc=eta1.

26) Migrants are China's 'factories without smoke'
Migrant workers in China are estimated to number between 150 and 200 million and to be responsible for 16 percent of GDP growth. As one of the more valuable economic assets of the country, they are known as "factories without smoke". Employees in the most dangerous occupations largely comprise migrant workers, in construction, manufacturing and coal mining. Many migrant workers still face considerable obstacles: Many are without proper residence permits and less than one-fifth have health insurance. As reported by CNN Asia. http://www.cnn.com/2008/WORLD/asiapcf/02/01/china.migrants/index.html?section=cnn_latest.

27) Lawmakers urge China to help in Darfur
Over 100 members of the US House of Representatives, with support from human rights activists, Nobel Prize laureates, Olympic athletes and Hollywood stars, have signed an open letter condemning China's support for the Sudanese government. China has been an economic and political ally of Sudan, investing in the country and importing over 2/3 of its oil output. It has sold weapons and vetoed UN measures against the government. As reported by the Associated Press. http://ap.google.com/article/ALeqM5j-X_MTp2ODZbZfZ5gQcI7iS5-YmQD8UOUU6O0
For more on China in Sudan, see also http://news.yahoo.com/s/ap/20080214/ap_on_sp_ol/oly_beijing_spielberg_11.

- Useful RESOURCES -

28) Report: "Toys of misery: Santa's helpers suffer constant abuse while making Barbie, Thomas & Friends, and other toys for Wal-Mart at the Xin Yi Factory in China"
Based on a more than a year's investigative research, this report examines working conditions and the alleged abuse of labor rights in the Xin Yi Plastics Company. All Xin Yi's production is for export, and its major clients appear to be Mattel, Wal-Mart, and McDonald's. Some of the findings: Ninety-five percent of workers are illegally held as permanent temps, required to sign "new" employment contracts every two to three months. Workers are routinely cheated out of nearly 20 percent of their wages, and many workers are paid just 53 cents an hour and $21.34 a week. See attached report.

29) Report: "A joint assessment of HIV/AIDS prevention, treatment and care in China"
This report, prepared by State Council AIDS Working Committee Office and the United Nations Theme Group on AIDS, covers the HIV/AIDS epidemic and responses to it since 2006 and identifies the ongoing challenges from which recommendations for the future might be formulated. See attached report.

- Upcoming EVENTS -

30) Fourth session of the World Urban Forum, 13-17 October 2008, Nanjing, China
The World Urban Forum was established by the United Nations to examine one of the most pressing issues facing the world today: rapid urbanization and its impact on communities, cities, economies and policies. It is projected that in the next fifty years, two-thirds of humanity will be living in towns and cities. A major challenge is to minimize burgeoning poverty in cities, improve the urban poor's access to basic facilities such as shelter, clean water and sanitation, and achieve environment-friendly, sustainable urban growth and development. The World Urban Forum is a biennial gathering that is attended by a wide range of partners, from non-governmental organizations, community-based organizations, urban professionals, academics, to governments, local authorities and national and international associations of local governments. It gives all these actors a common platform to discuss urban issues in formal and informal ways and come up with action-oriented proposals to create sustainable cities. For more information, please visit: http://www.unhabitat.org/content.asp?cid=4613&catid=535&typeid=24&subMenuId=0.

- Latest BOOKS -

31) Rightful Resistance in Rural China by Kevin J. O'Brien and Lianjiang Li (New York: Cambridge University Press, 2006)
This review was contributed by Katie Wilson, Assistant Program Officer for The Harry Frank Guggenheim Foundation and Master's Candidate at the Center for Global Affairs at NYU Responsibility program in China.

As an activist and a funder, I often think about what it takes to create social change in a more or less closed society, specifically China. As difficult as it is to characterize social movements in free societies, the idea of social movements in China challenges the whole notion activism—what does it look like to be an activist for social change in China? As an outsider, it is very hard to get information on social change, how it works and if it is possible to fund it.

While this book does not give specific funding pathways, it does provide insight into how some rural Chinese citizens are challenging their local governments. O'Brien and Li create a new label for activists, "rightful resisters", to describe people who are able to mobilize popular support by cleverly finding the differences between policies set by the central government and local implementation and then playing each side off the other. By finding the cracks between local and national self-interest, the rightful resisters then use symbolic language of the Communist party to stay on the right side of the law while creating a more inclusive implementation of the law in their own communities. They use the philosophy of the central government to challenge the local enforcement of the rules. This means that rightful resisters use promotional vans, sponsor outdoor movies to gather crowds, and memorize long law texts that they recite to all who will listen. Among other techniques they use the dominant and legitimate doctrine to claim that the national laws are not being adhered to in their communities. By exposing local wrongdoings and corruptions, the rightful resisters often find themselves in unfriendly circumstances. One activist, after exposing the unlawful collection of taxes on rural residents, was arrested and beaten. After release, he set up sound equipment on his roof and broadcast oral readings of central documents on tax burdens. He was able to inform others in his community without exposing anyone to violence. The key to success was that the audience had to do nothing more than open their windows and listen.

In addition to a number of specific cases, O'Brien and Li provide an overview of how social scientists have viewed social movements and social change, and the ways in which the rural Chinese cases do and do not fit into US mainstream ways of thinking about change. A majority of cases in the book are drawn from activities of rightful resisters seeking fair elections, at times with extreme emphasis on procedure, and on legal taxation. Many of the activists go to regional or national offices to protest their treatment in their communities. The rightful resisters have to be careful how they approach higher powers, as lower powers are supposed to be following orders from above. The book shows how control of different domains can be played off one another, neither wanting to look like they have lost control. The rightful resisters strategies also point to another reality of China: it not is a stoic monolith, but rather a mish-mash of personalities, institutions, and systems that affect how law is interpreted and applied.

After reading the book, I find myself puzzling the future of international philanthropy in rural China. On the one hand, there are many people who are standing up to claim their legal rights. On the other, these activists couch their claims in legitimacy of the central authority, finding the points of exploitation in the differences between the letter of the law and how it is being carried out in their own communities. More than anything, rightful resistance is about the legitimacy of the national government, not about revolution and human rights. The strategies are about the fairness of the rule of law. That is a great step in the right direction in China as it tackles corruption in the rural areas, but it does not lend itself to funding, at least not yet.

Please feel free to contact the authors for more information:
    Lianjiang Li
    Department of Government and Public Administration
    Chinese University of Hong Kong
    Email: lianli@cuhk.edu.hk

    Kevin J. O'Brien
    Alann P. Bedford Professor of Political Science Chair
    Center for Chinese Studies Department of Political Science
    University of California Berkeley
    Email: kobrien@berkeley.edu

- China PROFILE -

32) APCO Worldwide
This month, China Philanthropy News features a conversation with Felicia Pullam, Associate Director, Corporate Responsibility for APCO Worldwide, a global communication consultancy [http://www.apcoworldwide.com/]. She leads APCO's Asia regional corporate social responsibility (CSR) practice and spoke with CPN about their strategy in China as well as larger trends in the sector. The following is a transcript of the discussion.

Q: What is APCO's strategy behind CSR in China? How has the program changed over the years?
A: APCO's broader service range encompasses corporate advisory, public affairs and strategic communications, and the main objective of our CSR team is to integrate corporate responsibility considerations into our other services. For example, when a client comes to us for help with a communications campaign, we also aim to help them understand how they could improve their dialogue with civil society stakeholders.

In addition to integrating CSR into our other services, we aim to integrate our other services into our CSR offering. For example, since companies can't do much in China without interacting with the government, our public affairs team is key to ensuring that our CSR work takes the political environment into account.

We're very excited to be celebrating the 10th anniversary of our China corporate responsibility practice in 2008—and the environment has changed a lot during that time. First of all, interest in CSR is off the charts at the moment, whereas five years ago, only a few corporate leaders were really paying attention to it. Second, the types of programs are changing rapidly. A decade ago, companies were talking about training employees in Western business ethics and donating wads of money to the largest government-organized NGOs. Of course they're still donating cash to the GONGOs, but now some smaller, domestic NGOs are getting attention. Many companies are also designing signature programs that more closely match their corporate strengths. Even better, a much smaller number of companies are attempting to integrate CSR considerations into their core businesses.

Q: What have been some of the challenges to this program?
A: One important challenge is that decisions regarding corporate responsibility programs are often made exclusively at the headquarters level or exclusively at the local level. This can lead to non-strategic programs that may be overly focused on one-sided philanthropy rather than partnerships. In other cases, programs developed without close consultation from the local team may not fit the market well.

Personally, I think that the ideal situation is when the headquarters team develops clear guidelines for programming that can be adapted in various ways at the local level. It isn't easy to develop guidelines that are loose enough that they can fit every market, while also building a unified, global program. It's also important that the headquarters team consults with national-level managers when developing the guidelines, and then works closely with them during implementation to really make sure everyone is on the same page.

Another challenge comes from the culture gaps between civil society and corporations. In the US, this is tough, but in China, the gap is often much larger.

Q: Do you think foreign companies have had an impact on national companies to give more to charity and build more philanthropy work? Where do you think CSR is now in the country?
A: I think the expectations for foreign companies are much higher, and this is having an impact. That's not to say that there aren't Chinese companies that are doing good things for the community—there definitely are—but I think many people believe that MNCs simply have more resources and are benefiting from operating in China, so therefore ought to do more.

Interest in CSR has increased dramatically in the past few years, and many MNCs are actively communicating about what they're doing. Other actors, including NGOs, the UN, and the government are also rewarding the activities of some of the leading companies. By promoting certain companies as role models, I think this raises the bar for other companies, while also showing less active companies the potential rewards. Managers from all types of enterprises have noticed.

Q: What do you think the landscape of Chinese philanthropy is? What do you think have been some of the challenges to building a philanthropy movement in China? And where do you think it is going?
A: By far, the most significant challenge is the lack of a solid legal framework that allows all legitimate NGOs to operate comfortably. This has hampered the growth of CSR for at least three reasons.

First, it's important that companies can find NGO partners that match them well—and it's also important to have some variety. It's hard to get employees excited about the same program that every other company is doing every year.

Second, there are NGOs that are doing very innovative things at the community level, and sometimes a little bit of seed funding can go a long way. If these groups aren't registered, sometimes the hassle is just too much for busy managers.

Third, and perhaps most important—we need the good cops and the bad cops. We need more watch dogs to show us corporate misbehavior, and we need partners to help reward companies that do the right thing. It's tough for NGOs to be effective watchdogs if they don't have the rule of law to back them up.

Q: What do you think the impact of foreign philanthropic support to China has been to date, and how do you see this shifting?
A: I think that foreign philanthropic support has been valuable. Foreign NGOs have done quite a bit to share experience with Chinese NGOs and help connect them to global networks. These international NGOs must rely on foreign funding to support their China-based work. There have also been cases where local NGOs want to provide services or raise public awareness about issues that were not initially of interest to local donors. HIV/AIDS is a good example—it's hard to raise money to fund desperately needed advocacy and awareness-raising, if there isn't much awareness of the need to do so.

Q: Given your familiarity with the landscape and what other companies are doing, what would be some advice you could offer to other organizations interested in giving to China?
A: Try to be creative. There's room for that now, and there's a lot of interesting opportunities out there that just take a little digging to find.

ABOUT GRANTMAKERS WITHOUT BORDERS

Grantmakers Without Borders, a philanthropic network, is dedicated to increasing funding for international social justice and environmental sustainability and to improving the practice of international grantmaking. Our membership, currently numbering some 150 grantmaking entities, includes private foundations, grantmaking public charities, individual donors with a significant commitment to philanthropy, and philanthropic support organizations. Availing of this wealth of experience and expertise, Grantmakers Without Borders provides capacity-building support to international grantmakers both novice and experienced. We offer a space for education, community and collaboration among international social change grantmakers. We advocate before policymakers on behalf of social change grantmakers, and we work to leverage the philanthropic sector to increase funding to the global South. In all our efforts, Grantmakers Without Borders is committed to the ideals of justice, equity, peace, democracy, and respect for the environment. We value and respect the wisdom and experience of local communities in all their diversity, and we are dedicated to amplifying the voice of the global South in international philanthropy. Founded in 2000, Grantmakers Without Borders is a project of the Tides Center.

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P: (617) 794-2253

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Grantmakers Without Borders   PO Box 181282   Boston, MA 02118
Phone 617.794.2253           Fax 617.266.0497
Copyright © 1998-2008. All rights reserved.
For more information contact us at GwoB@gwob.net
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